The URL can be used to link to this page

2015-07-20 - Village Board Committee of the Whole - Agenda Packet2. Executive Session A. Executive Session - Litigation: Section 2(C)(11) of the Illinois Open Meetings Act (Beverly Sussman) 3. Informational Items A. Economic Development Strategic Plan Update (Lester Ottenheimer III) B. Amusement Tax Discussion (Joanne Johnson) C. Presentation of Revisions to the Procurement Policy (Joanne Johnson) D. Sidewalk Snow Removal (Beverly Sussman) E. Establishing Budget Officer (Joanne Johnson) F. Six Month Financial Report (Joanne Johnson) G. Health Insurance Update (Joanne Johnson) H. Snow Report (Andrew Stein) I. Fire Department Apparatus Purchases and Capital Reserves (Steve Trilling) J. Stormwater Management Fee (Andrew Stein) K. Sunset Provision on Utility and Home Rule Sales Tax (Joanne Johnson) 4. Questions From the Audience Questions from the audience are limited to items that are not on the regular agenda. In accordance with Section 2.02.070 of the Municipal Code, discussion on questions from the audience will be limited to 10 minutes and should be limited to concerns or comments regarding issues that are relevant to Village business. All members of the public addressing the Village Board shall maintain proper decorum and refrain from making disrespectful remarks or comments relating to individuals. Speakers shall use every attempt to not be repetitive of points that have been made by others. The Village Board may refer any matter of public comment to the Village Manager, Village staff or an appropriate agency for review. 5. Adjournment The Village Board will make every effort to accommodate all items on the agenda by 10:30 p.m. The Board, does, however, reserve the right to defer consideration of matters to another meeting should the discussion run past 10:30 p.m. 6. Information Items 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. 2.A Information Item : Executive Session - Litigation: Section 2(C)(11) of the Illinois Open Meetings Act ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ Recommendation of Action Staff recommends discussion. Executive Session - Litigation: Section 2(C)(11) of the Illinois Open Meetings Act Trustee Liaison Village President Sussman Monday, July 20, 2015 Staff Contact Dane Bragg, Office of the Village Manager Updated: 7/15/2015 8:53 AM A Page 1 Packet Pg. 2 3.A Information Item : Economic Development Strategic Plan Update ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ Recommendation of Action Staff recommends discussion. The Village of Buffalo Grove Economic Development Strategic Plan is being led by the Economic Development Strategic Plan Steering Committee and is currently underway. It has recently completed its second phase: Market Assessment and Goal Development. At the July 20, 2015 Committee of the Whole meeting, staff will present a summary of the Market Assessment and Goals Statement. ATTACHMENTS: • COW ED Memo 7.20.15 (DOCX) • Draft Market Assessment 7.14.15 (PDF) Trustee Liaison Trustee Ottenheimer III Monday, July 20, 2015 Staff Contact Chris Stilling, Building & Zoning Updated: 7/15/2015 9:32 AM Page 1 Packet Pg. 3 3.A.a "II'Le GE OF BUFFL � _ VI DATE: July 15, 2015 TO: President Sussman and Trustees FROM: Christopher Stilling, Director of Community Development SUBJECT: Update- Economic Development Strategic Plan Is PROJECT UPDATE The Village of Buffalo Grove Economic Development Strategic Plan is being led by the Economic Development Strategic Plan Steering Committee and is currently underway. It has recently completed its second phase: Market Assessment and Goal Development. All five phases of the project are shown below: Economic Development Strategic Plan Phases 1. Project Initiation (Completed) 2. Market Assessment and Goal Development (Completed) 3. Strategy Identification and Exploration 4. Plan Completion and Approval 5. Implementation At the July 20, 2015 Committee of the Whole meeting, staff will present a summary of the Market Assessment and Goals Statement. PHASE 2. MARKET ASSESSMENT AND GOAL DEVELOPMENT Market Assessment The Market Assessment addresses the question: "Where are we now?" by exploring the existing conditions of the community. It draws upon data and information from demographic, real estate, employment, and market sources along with interviews and surveys with stakeholders. It is organized into the five sections shown below. Market Assessment Sections: Section 1: Introduction Section 2: Community Demographics and Amenities Section 3: Community Outreach Section 4: Employment and Businesses Section 5: Commercial Development Goal Statement The Goals Statement addresses the question: "Where do we want to go?" and has been developed by the Steering Committee. The goals are organized into the three themes of Economic Growth, Development and Redevelopment, and Quality of Life. Recommendations and strategies, which will be developed in the next phase of the project, will provide details on how these goals can be achieved. Page 1 of 1 Packet Pg. 4 iF 5 .. . . . ...... I" demographiGS trends . . ...... Lake -Cook Carridor iri re development process quality of life iidusfi,,U cluster "C'S absorption �wsjnESSOS POPWton E Zr growth i"HEE; retail M cla, 79 SOWN rea� esWe postion in markO B liff a 10 G rove . = A ES WaOructve amenMes concephd frawwork dpamics �ke CounN P housphdd 1conomic Development Strategic Ian o f f i c e I i; a k s u 1p, I g a ii d rJ IN iii d wMiers �Milwakuee Corridor r 0 Village of Buffalo Grove Community Development Department July 14, 2015 CU CL r— CL cu Asa. 0 0 0 E 0 a 0 W I Packet Pg. 5 1 - I - I Packet Pg. 6 1 S.A.b Table of Contents SectionOne: Introduction.................................................................................................................. - 4- Section Two: Community Demographics and Amentities......................................................................8 Section Three: Community Outreach....................................................................................................14 Section Four: Employment and Businesses............................................................................................18 Section Five: Commercial Development..................................................�;g ............................... 28 Appendix A -2- Packet Pg. 7 -3- I Packet Pg. 8 1 Section One: Introduction The Village of Buffalo Grove has decided to develop an Economic Development Strategic Plan (Plan), which will define the economic development vision for the Village and th�,�steps needed to achieve that vision. Having an accurate understanding of the existing col appropriate and effective plan that addresses the issues, concerns, Market Assessment, represents the accumulation of months of re,, activities and provides an overview of the current conditions in provide an agreed upon "starting point" by which to move The Market Assessment is organized into five 0 Section One: Introduction 0 Section Two: Community DemogrO,*.C's and Amenities 0 Section Three: Community Outreach 0 Section Four: Em 0 Section Five A/,/' e and Economic Development necessary to develop an of the community. This .Iysis, and public outreach end is designed to ('hared vision. Economic development is traditionally /46fined as the attraction, retention, and expansion of development and businesses. Achieving economic development generally requires the alignment of three key players: a willing property owner, a viable business, and a proactive village. A willing property owner is an owner of land/facility and is either selling, leasing, or looking to sell or lease their land/facility to a viable business. This owner will generally utilize brokers, developers, and reports to understand market trends and could be interested in development, redevelopment or other physical improvements to their physical space as well as land acquisition and assembly. The second key player, a viable business, is a new, existing, or expanding business. It is seeking or working with a willing property owner to occupy a facility or land. A viable business requires a facility that fulfills certain physical requirements (building specifications) as well as market requirements (the facility is located in an area of market demand). -4- I Packet Pg. 9 1 S.A.b The final and third key player is a proactive village. This player helps facilitate and regulate dealings among willing property owners and viable businesses with programs, policies, and activities that seek to improve the economic well-being and quality of life for a community. These programs, policies, and activities include but are not excluded to: • A clear vision • Concise and consistent regulations • Streamlined processes • Continued communication with stakeholders As noted above, when all three key players are aligned Economic Development Strategic Plan • Programs and incentives for businesses and development • Necessary infrastructure imurovemens and amenities • Regional [d c cal partnerships A municipality cannot achieve economic development s6loj cultivating and aligning willing property owners and viable development wholly within a community ¢ control is its abi proactive village. This framework sets the c �� p g . ��ue of the E which is to optimize Buffalo Grove's role as a'rc economic development opportunities now an&`ir The Plan is particularly time "a variety of re taken several steps to b � me a pho,4 0 village. Planning Commissio, c1 /the Zonir,Board of Village Board, and simplify the A��tecture ] of%/ rii�iiij �i/f" clear vision by ,lishing a torYr � e moved towards creating more ccfid,j and cons' ,ii//e ; code. The Economic Develomentpgic Plan the can be achieved. n i b'p as it has limited influence in Or i'esses. The only aspect of economic xnbrace and fulfill the role of the iontivelopment Strategic Plan, so tsition the community for S. First, the; `Village of Buffalo Grove has already Ii as helped streamline processes by combining the pP61s, limiting the number of referrals to the ,evie Committee process. It has also begun to set a T*ment department. Finally Buffalo Grove has 'ant regulations by improving the temporary signage will build off these previous initiatives. Second, the economic development lan#i ape is evolving. National trends such as the rise in e- commerce and telecommuting, advancement in technology, shrinkage of the retail footprint, emergence of the millennial generation, and comeback of the manufacturing industry are having considerable impacts on communities, businesses and development. More localized trends such as the closing of Dominick's grocery stores, northern and westward expansion of industrial development, and new leadership in Springfield, are also affecting economic development dynamics. The Economic Development Strategic Plan will explore these issues and help the Village navigate them so to achieve long-term economic stability. The plan is long-term and is meant to provide guidance over the next 10-15 years. It will also be flexible and adaptable to the changing conditions of the market. The Village can update this plan at any time. -5- Packet Pg. 10 Relationship to other Plans and Studies To ensure compatibility with other local and regional initiatives and optimize the opportunity for future partnerships, the Economic Development Strategic Plan will incorporate and build off of the relevant goals and recommendations from related Village, county, and regional plans including: • Village of Buffalo Grove Strategic Plan 2013-2018 (2012) • Village of Buffalo Grove Comprehensive Plan (2009) • Lake County Comprehensive Economic Development Strategy (2012) • Planning for Progress —Cook County's Consolidated Plan and 7Co/ h ns* Economic he ive -2019(2015) Development Strategy, 2015 • Chicago Metropolitan Agency for Planning GOTO 2040 A summary of each plan and its relationship to the Buffalo Grovcconomfivelopment Strategic Plan listed above can be found in Appendix A. Planning Process The planning process to create the Village of Buffalo Grove"" E, ic Development Strategic Plan includes multiple steps shown below. After,,,,the Market Assess S completed, the Village Staff will draft a goals statement. This statement" will outline the main""", is for the Economic Development Strategic Plan. ........... . ............ A Packet Pg. 11 Packet Pg. 12 3.A.b Section Two: Community Demographics and Amenities Key Findings • Buffalo Grove's 2013 population estimate is 42,000. The Village%average household size of 2.57 is slightly lower than Cook County, and significantly s than Lake County. Between 2000 and 2013, the Village's population slightly decrease y 3 is comparable to population decline in Cook County (3%) but contrast wit poase in Lake County (9%)�' • The majority of housing units in Buffalo Grre single fmily homes that✓oner- occupied. Approximately 16,700 housing units o�p�y th� �lential areas inraffalo Grove, 70% of which are single-family homes. The Village %ow residential vacancy rate of 3%, which is lower than Cook County end the Lake Courn�lit hm the Village's occupied units, approximately 81% are owner -occupied. • Buffalo Grove residents are highly -educated, white-collar fames with high household incomes. Nearly all of Buffalo Grove residents have a high school diploma and the majority (64%) have a bachel;��ree. The community has an unemployment rate of 6.5% and the leading employt recto' ducational services and health care and social assistance. The median house income f uffalo Grove is $94,391 while Cook County and Lake County have reported me d ,house, Id incomes of $55,548 and $77,649, respectively. Approximately 47% oa�G��rove earn over $100,000, whereas 24%-39% of �ii //��i house i�mod+ i (rake Con, d Cook C'c c itry fall within that bracket. • ye Village offers �ng qua1�fe for residents and businesses. Buffalo Grove's schools, it pare and open space, policand fire departments are some of the community's greatest and rt ,valued assets , ffalo Grove has received numerous quality of life awards including the 46thlace to Li in the US by Money Magazine. Packet Pg. 13 S.A.b Demographics Population and Households Per the U.S. Census data, Buffalo Grove's population is almost 42,000. The Village's average household size of 2.57 is slightly lower than Cook County, and significantly smaller than Lake County, as shown in Table 2.1 below. Between 2000 and 2013, the Village's population slightly decreased by 3%, which is comparable to population decline in Cook County (3%) but contrasts with population increase in Lake County (9%) (Table 2.2). Table 2.1 Estimated Population, Households, and Household Size, 2013, Population 41,663 5,212,372 702,099 Households 16,167 1,933,335 241,072 Average Household Size 2.57 2.60 2.82 Source: 2009-13 American Community Survey, U.S. Census Bureau 1 %%l , Table 2.2 Estimated Population and Changp/,in Population, 2000� 2013 Population, 2000 Buffalo Grove 42,909 Cook County 5,376,741 Lake County 644,356 Population, 2013 41,663 5,212,372 702,099 Change, 2000-13 -1,246 -164,369 57,743 Change as %, 2000-13 -2.9% -3.1% 9.0% Source: 2009-13 American Community Survey, U.S. Census Bureau Housing s Apprqptely 16,700 hou units are Vie -family hor than Cook C6 and the occupied units, �, �/oxima. occupied properti6me b single-family homes units 66A/he residential areas in Buffalo Grove, and 70% or 11,600 s�he Ville has a low residential vacancy rate of 3%, which is lower ak ounty's rates of 11.7% and 6.0%, respectively. Among the Village's I /o are owner -occupied while the remaining 19% are renter- �ate of owner -occupied units is understandable given the dominance of Table 2.3. Estimated H,6using Units, 2013 Packet Pg. 14 Table 2.4. Estimated Housing Occupancy and Tenure, 2013 Buffalo Grove Cook County Lake County Count Percent Count Percent Count Percent Occupied 16,167 97.0% 1,933,335 89.5% 241,072 94.3% Owner -Occupied 13,036 80.6% 1,127,937 58.3% 183,009 75.9% Renter -Occupied 3,131 19.4% 805,398 41.7% 58,063 24.1% Vacant 497 3.1% 227,160 11.7% 14,527 6.0% Total Housing Units* 16,664 100.0% 2,160,495 100.0% 255,599 94.3% *Total, excluding mobile, boat, RV, van, etc Source: 2009-13 American Community Survey, U.S. Census Bureau A/A Educational Attainment, Employment, and Income Overall, Buffalo Grove residents are highly -educated, white -col14f'/'/,,,,, familie' rly all (97%) of Buffalo Grove residents have a high school diploma and th gjiijo rite (64%) bachelor's degree. These rates of educational attainment are higher than t#"b�f Cook and Lake C4 The community has an unemployment rate of 6.5% whicignificarYtly lower than ty and „ an d Lake County. Educational services and health care " d do 1 s t/' industry is t ing source ass e of work, employing 21.2% of residents. Other industries s6o" sional, scientific, an management, and administrative and waste management servi'do "t"P,,mp oy 1 15.8% of residents. The distribution of employment by industry sector closely mirrors that a ook County residents. On a whole, household incomes in Buffalo Grove exceed that of sumo ing counties. The median household income for Buffalo Grove is $94,391 while Cook County and Lake County have median household incomes of $55,54 'pd/,$77,649 respectively. Approximately 47% of households in Buffalo Grove earn over $100,00 e 06-39% of households in Lake County and Cook County fall within that bracket. Table 2.5 Estimated Population, 25 years and over 29,432 100.0% 3,484,571 100.0% 448,708 100.0% High school diploma or higher 28,435 96.6% 2,943,216 84.5% 398,815 88.9% Bachelor's degree or higher 18,362 62.4% 1,208,856 34.7% 188,068 41.9% Source: 2009-13 American Community Survey, U.S. Census Bureau in Packet Pg. 1S Table 2.6 Estimated Employment Status, 2013 Buffalo Grove Cook County Lake County Count Percent Count Percent Count Percent Population, 16 years and over 33,120 100.0% 4,135,182 100.0% 537,227 100.0% In labor force 24,185 73.0% 2,750,328 66.5% 379,074 70.6% Employed 22,608 93.5% 2,414,798 87.8% 332,723 87.8% Unemployed 1,577 6.5% 334,198 12.2% 35,438 9.3% Not in labor force 8,935 , 27.0% , 1,384,854 33.5% 158,153 29.4% Source: 2009-13 American Community Survey, U.S. Census Bureau *Does not include employed population in Armed Forces Table 2.7 Estimated Employment of Residents by Industry Sect 011 Buffalo Grove Cook County Lake County Count Percent Count Percent Count Percent Educational services and Aff health care and social assistance 4,798 2120% 549,8 /6 65,279 19.60% Professional, scientific, and 113 management, and administrative and waste management services 3,570 15,80% 325,145 13.50%/// 43,808 13.20% Manufacturing 3,058 13.50% 1 257,608 10. 7 0,06 53,108 16.00% Retail trade 2,532 11.20% 240,490 10.00% 39,094 11.70% Finance and insurance, an//% real estate and rental and leasing 2,51 11.10% 199,758 8.30% 26,196 7.90% Arts, entertainment, and recreation, and VAN accommodatip,/jq/'/"j" n 2 services7.3000' 238,442 9.90% 30,198 9.10% Other ices, except pu 4/ ad 1'0 55 122,019 5.10% 14,180 4.30% Wholesale 027 4.50% 67,710 2.80% 14,613 4.40% Transportation a" warehousing, angles 699 3.10% 150,690 6.20% 12,170 3.70% Information 685 3.00% 57,227 2.40% 6,520 2.00% Construction 524 2.30% 110,281 4.60% 16,209 4.90% Public administration 430 1.90% 91,280 3.80% 10,207 3.10% Agriculture, forestry, fishing and hunting, and mining 61 0.30% 4,274 0.20% 1,141 0.30% 2,414,7 Total Employed Population 22,608 1 22,608 98 2,414,798 332,723 332,723 Source: Longitudinal Employer -Household Dynamics, U.S. Census Bureau I I Packet Pg. 16 Table 2.8 Estimated Household Income, 2013 Buffalo Grove Cook County Lake County Count Percent Count Percent Count Percent Less than $25,000 1,730 10.7% 462,067 23.9% 33,268 13.8% $25,000 to $49,999 2,409 14.9% 435,000 22.5% 43,393 18.0% $50,000 to $74,999 2,215 13.7% 332,534 17.2% 39,777 16.5% $75,000 to $99,999 2,280 14.1% 233,934 12.1% ?,063 �j 13.3% $100,000 to $149,000 3,654 22.6% 253,267 13.1%j 42,1 8 17.5% $150,000 and over 3,880 24.0% 216,534 11. 0,384 20.9% Total Households 16,167 100.0% 1,933,335 J O.OW 7 2 100.0% Median Household Income $94391 548 Source: 2009-13 American Community Survey, U.S. Census Bureau A'/// Community Character ana"Quality Of Education The educational institutions ar" key part of Buffalo Grove and source of pride for residents. Village residents have access to vtYftsr elementary schools, which include: Longfellow, Kilmer, Ivy Hall, Prairie, Tripp, a itc ett Eentary Schools. Middle schools or junior high schools include: Cooper, Twin, Meridian;'fi,Apta. Older students can attend Buffalo or Stevenson High School. Various private schools area V ident"fid children. The scho r84 Grove dye a strong reputation for academic rigor and athletic 'h e x c e I I e� . Stakeholders "ftii," 1 e w e reported that schools are one of the main A1 attraifffii*f th e e Village Stson HfW'School and Buffalo Grove High School were rated by US News and 414 Report as nib4er &6�nd number 18 in the state respectively. Parks and There are over 400 ac/ri'e,"�"sbf """ k d open space in the Village. These include playgrounds, sports N/par s an fields, bicycle trail, and fcnic areas. The Village is served by two park districts which manages most of these public areas and provides activities and programming. Additional recreation opportunities include municipal and private golf courses and the Buffalo Creek Forest Preserve. Safety The Buffalo Grove Police and Fire departments provide quality service to residents and businesses. The Police Department has been recognized at the state and national level over 40 times for its traffic safety programs. These awards include 1st place in the International Chiefs of Police (I.A. C. P.) Championship Category and the Clayton J. Hall Memorial Award (Top traffic safety program in the nation). I ? Packet Pg. 17 Quality of Life Awards Since 2013, Buffalo Grove has received a number of awards that recognize the community as a great place to live, work, and raise a family. These awards include: • The 46th Best Place to Live in the US by Money Magazine -the only Illinois community recognized; • The 20th safest community in the United States and the 2nd safest in Illinois; • The 7th most family -friendly community in Illinois; • Best Chicago suburbs for young professionals; and • Recipient of a Sunshine Award by the Illinois Policy Institute for tp ,psparency. The Village has also been able to manage the affects of the recent reqe' n by containing costs and jp reducing staffing levels. The Village was able to accomplish subst ia s without impacting the delivery of our core services. As a result, the Village has a Tripp Bond. ill Packet Pg. 18 Section Three: Community Outreach Community engagement is a critical part of the Economic Development Strategic Plan process. Village Staff formulated outreach activities to reach businesses, property owners, developers, and other stakeholders and hear their perspectives on economic developmenj//JW%Bii to Grove. Each outreach effort varied in format. However, all outreac��//,#`., , es sought to address the following three central questions: A/ What are the key strengths and assets of B What are the challenges and issues facing What is the vision for the future of Buffal( A summary of each outreach activity is discussed I outreach activities is also presented. Nn/ Outreach Activities from all of these Board ofTrustees — Com4t�,Iof the Whole Village Staff presented a - ervi- - - - - - the Economic Development Strategic Plan to the Board of Trustees at the March ommi the Whole meeting. The presentation highlighted economic development topics, i 1111 the k players needed for economic development success and how this framework translates in 'e- ti"O Ecq#bmic Development Strategic Plan. Staff also reported ony e 0s1C/4 sment and explained the plan's process and fig /* �T, k�` Andinthe mai� alignme ith othe'r"'p,44"/""'//,,,/,,Follo he presentation, the Board discussed economic development A/75 oppo I ies and concerns Economic De`�pment S&4a gic Plan Steering Committee Kick -Off Meeting On May 18,h, the'h4T/A of Truees appointed an Economic Development Strategic Plan Steering Committee. The coni**ee-,',,/f cludes businesses, developers, elected/appointed officials, as well as other appropriate comin�7�;/fity groups and stakeholders to represent the varied business and 0 development interests i Buffalo Grove. The first Economic Development Strategic Plan Steering Committee meeting was held on May 26, 2014. The meeting included a presentation on economic development concepts including key players of economic development; the plan's alignment with other plans; the role of the Steering Committee; and the plan's timeline, outreach efforts, and preliminary findings. After the presentation, Steering Committee members were provided a brainstorming worksheet aimed at answering the three central questions posed above. Members wrote down their answers to these questions and then shared their answers with the larger group. The roundtable discussion format allowed for spirited exchange of ideas and collective brainstorming. 114 Packet Pg. 19 The Steering Committee members include: • Chair Michael Abruzzini, Chamber President • Lester A. Ottenheimer 111, Village Trustee • Dave Ruber, Director of Facility and Distribution for Yaskawa • Paul Sheridan, Hamilton Partners • Eric Smith, Chairperson of the Buffalo Grove Planning & Zoning Commission • Michael Stevens, Executive Director of Lake County Partners • Tim Donahue, Property Manager and Broker for the Buffalo Grove Town Center • Peter Panayiotou, Owner of the Continental Restaurant • Jennifer Serino Stasch, Director of the Workforce Development e County • Rich Cillessen, Vice President of Sales for Siemens Build nologies • Maria (Nina) Strezewski, Resident • Sangeetha Subramanian, Resident Key Person Interviews To gain further insight into economic development�d/ d oppc*Wnities in Buffa ve, Village Staff conducted over 15 key person interviews between e of 2015. ThSe key persons ep included business owners, developers, brokers, and local buA4,Ieaders in the community. The interview format allowed for staff to condii/a more in-depth dis�" n with interviewees on topics surrounding community assets and challenges as well as an econoffi"vel pment vision for the future. Business Survey In April 2015, the Village To advertise the survey,/11Z NA, sent an e-blast to th Forty-one businesses comp" je, service business were or manufactii S The, "A ,questions were regarding/ i /////*,f6rce comint Findings frornspecific Businesses. anonymous, online survey for all businesses in Buffalo Grove. Red postcards to all 800 businesses and the Chamber Staff these ?articipants, approximately 46% were retail or le, final 22% were light industrial (warehousing tij,,q6us on the three central questions. Other questions r/ and workforce development programs were also posed. are further explored in the Section Three: Employment and 11; Packet Pg. 20 Outreach Findings As described above, each outreach activity aimed to address the three central questions. Common answers and themes expressed by these stakeholders are featured below. These ideas will help inform the vision, goals, and recommendations for the final plan. Strengths: • General accessibility to regional road networks particularly Interstate 94. The accessibility to these networks is beneficial for both freight and passenger movemqp. • Ideal regional location in Cook County and Lake County. BuffaIO r6` t'ls location provides great access to labor and other industry centers. Additio all County has favorable tax structures for commercial development. • Strong demographics profile. The Village has a stableotlJatio latively high household incomes and high educational attainme Is 7M// • High quality of life and services. These amenitiesd services include biiit`4*,/,/e, not limited to parks, schools, Village services, and low cri • Solid base of existing businesses and industry. /211 Weaknesses • Developers grappling with national and regional trends such king retail opportunities, limited access to capital, and an uncertain Illinois economy. • Poor communicationsbyveen existing businesses and the Village. • Lack of incentive to encourage business and development growth. Developers particularly tu, off e's lengthy development processes, cumbersome sign code, tT and reputation t approving commercial projects. iffill in 60, • Outdated shopping r o Arnown arg a, and limited number and type of restaurants ,own A for r(; 44 work' gongrta petition in nearby communities such as Deer 01600, Park, /Lincolns Wheel x and Vernon Hills. vacancy "M reception that ri ' / ufacturi# 'businesses in the Village are traditional manufacturing p I a 'A k ,0,,,ir, smo estac reality, these companies are better classified as light and/or advan4 '44anufacturi enters. • 4 Limited pi, ation options as well as limited utilization and awareness of these options. • High traffic an6 dlock, especially along Lake -Cook Road. • Jobs/housing rrsmatch. Industries and companies in and around Buffalo Grove are in need of young, highly -skilled professionals. However, a large portion of this demographic lives in or closer to Chicago. • Lack of housing stock diversity. The Village lacks housing options, particularly more affordable options for young professionals and young families. • Lack of diversity among residential population. I A Packet Pg. 21 Vision for the Future • Strong and diverse employment, industry, and residential base. • Welcoming environment to a diverse array of residents. • A Village center/downtown area to provide the Village with an identity and focal point. • Redevelopment of commercial areas to meet current market demands. • Increased nightlife activities, particularly entertainment and dining options. • Promote of industrial areas as advanced/high-tech manufacturing centers. • Strong communications and relations with existing businesses. Village helps facilitate supportive services and programs for business development and growth. • Development processes and codes are clear, concise, and streaml* "/'.,','�,/V,,iIIage offers programs and incentives for development. 7////7///0///1//, • The Village is aggressive and nimble in attracting and retaj nesses and development. 17 Packet Pg. 22 Section Four: Employment and Businesses Key Findings %a • The Village of Buffalo Grove has a sizeable employment base. that the Village employment base is approximately 20,000 we concentrated in five main industries which include manufacti services; professional scientific, and technical services; w�jk a] social assistance. Approximately 92% of workers live outse Of which commute from communities within Cook an&6ake &111 The manufacturing industry is an economic e. for the manufacturing is the leading industry employ'ef,04,js sho, Buffalo Grove's manufacturing base and growth is estimates indicate tiripqoyment is accommodation and food ale; and health care and the majority of ge. With ov00,vorkers, signs of growt"fiving 6, of advanced manufacturing, which refers to the emergence of high-tech products ii� ocesses in the manufacturing industry. Approximately 40% of the manufacturing firms*Duffalo Grove are classified as pharmacy/medical supply, computer electronics, and machii ,pse are considered the top three subindustries in advanced manufacturing. • Manufacturing, especig ,advanced manufacturing, are beneficial to the Village's economy. Economists estimaJ#/,`ffdt//% manufacturing job creates between two and five additional jobs in related and earned $120, Buffalo Grove. A es. Moreover, manufacturing employees in Buffalo Grove 4, white is 40% higher than the average annual earnings of workers in Th///v///V//,ge i"""'644/k/tr , xegioii*e_,,,facing mounting employment challenges. Amongst these xallenges is a job, sing s 1 0#41 mismatch. This mismatch occurs when homes conducive to preferences`� A afforda00ty are situated far from their employment centers. The loii bs sing mismatch /',/, ears to be a particular problem for the budding Generation Y workf -who prefer amenities, neighborhood characteristics, and housing types that are not traditionatf consistently found in suburban communities. Another challenge, specific to the advance ring is the widening workforce gap. Advanced manufacturers are seeking highly-s and educated workers, however, lingering negative perceptions have discouraged talented students and workers from entering into the manufacturing industry. Industrial, as well as office businesses in the Village have expressed use for or interest in workforce development programs. 119 Packet Pg. 23 Employment Overview Recently -released employment estimates indicate that the Village's 2014 employment base is approximately 20,000 workers. This base is generally concentrated in five main industries: 1) manufacturing; 2) accommodation and food services; 3) professional, scientific, and technical services; 4) wholesale trade; and 5) health care and social assistance. Each of these five industries constitutes between 8% and 19% of the local employment base, and collectively account for 60% of the total (Table 4.1). Manufacturing is iiii& leading industry, employing approximately over 3,000 (19%) workers in 2011. Table ts a sample of Buffalo Grove companies classified within these top five industry sectors. A/I The Village is generally reflective of employment trends in t / subregion. Th,,W'App five industry "al fier Lake Count Y, sectors in Buffalo Grove overlap with the top five sectors, /'�/eit ok County. All However, Lake and Cook County have a more gene "verse distribution of empl' nth sector A11/Z than the Village. Manufacturing The prominence of the manufacturing indus in Buffalo GroVm/' try its a deeper dive into its trends, outlook, and economic impact. The industry is showing signs of gr6*th/as exemplified by companies such as AbbVie and Flextronics, who have recently established in Bu rove. Flextronics representatives have reported that they are looking to hire over 250 e /"loyees to staff their operations and invest over $1,5, 0 million in their facilities. In addition to these new businesses, Village records and interviewed sndicate that manufacturers currently established in the Village are starting to expand.", The growth in the manufacb" 90 — pJ/ryig 1 s y s not exclusive to Buffalo Grove. The nation and region "77// are experiencm fg industry as the economy rec overs, covers, the industry f # /4 �4 strengths "i , i / Aeir production to American shores.' Some of the bdd,�� rs `4 e or retu'r key reafor this res demand for customized products, the growing vulva of intellectua eA a e rising cost of wages and energy, especially in China? An exanuAj,, wJ this reshoring and i eVillage's backyard. A few years ago, Japanese manufacturer, awa opted establish its production in Buffalo Grove rather than in China.3 This reshoring enabI to 'vide quicker delivery to customers, retain lower inventories, and enable higher ' Wial, Howard. Locating ChicagoManufwtufine: The Geog1-,71,V7VofP1-oc1uctjon in Metropolitan Chicano. Universitv of Illinois nois Chicano Center for Urban Economic Development. 2013. Sirkin, Harold, Zinser, Michale, and Rose, Justin. "How Illinois Can join Manufacturing's Comeback" Crains's Chicago Business, December, 2012. 2 CM AP. MetiviWkdn Chicago's Manufacturing Cluster.- A Drill -Down Report on Innovation. Workforce. and Infrastructure. 2013. 3 Reshoring Imitative, Reshoring Case Studies, 201 4 Ibid. I Q Packet Pg. 24 Table 4.1 Employment by Industry Sector, 2011 Buffalo Grove Cook Lake County County Count Percent Percent Percent Manufacturing 3,278 19.1% 8.4% 16.2% Accommodation and Food Services 2,158 12.6% 7.4% 5.9% Professional, Scientific, and Technical Services 1,854 10.8% 8.5% 7.1% Wholesale Trade 1,509 8.8% 4.8% 8.1% Health Care and Social Assistance 1,500 8.7% 13.6% 10.5% Educational Services 1,093 6.4% 9.8% 9.5% Administration & Support, Waste Management and Remediation 1,056 6.2 7.2% 6.8% Retail Trade 1,005 9.6% 14.1% Finance and Insurance 977 .7% 6.8% 4.7% Construction 607 gy/ .6% 3.0% Arts, Entertainment, and Recreation 407/ 2.4% 2.3% Transportation and Warehousing 1.6% Other Services (excluding Public Administration) //Z�' % C 3.90. 2.6% Real Estate and Rental and Leasing 324/////// 1. 7 % 1.0% Public Administration 324 1.9% 3.9% 2.5% Information INn, 170 2.6% 1.6% Management of Companies and Enterprises 91 V, 2.0% 2.0% Agriculture, Forestry, Fishing and Hunting 59 0. 3 0.0% 0.1% Utilities 24 0.10/0 0.3% 0.6% Total may17,159 100.0% 100.0% 100.0% Source: Longitudinal Employer- ics, U.S. Census Bureau. Table 4.2 Buffalo Grove's,f"dus"��" Sectors and Corresponding Companies* Industry Sector Top Businesses Manufaqr-g x6k' Rexam Inc., Siemens Industry Inc., Plexus Corp. Buffalo Restaurant and Ice Cream, Lou MaInati's A/1 AccCrmft3f ion and Food Set/ 4///ts Pizzeria, Wyndham Garden Inn K Grabowksi Law Center, Chicago Show Inc., Telemedia Professional, ific, and Tecljj';"cal Services Inc. Amerisource Bergen Tech Group, Automed Wholesale Trade Technologies, Hexacomb Corp. Omni Youth Services, Northwest Community Hospital Health Care and Social istance � Medical Group, Sunrise Of Buffalo Grove *List represents a sample of companies in Buffalo Grove by industry sector and is not an exhaustive list. Source: Longitudinal Employer -Household Dynamics, U.S. Census Bureau, EMS1, and Lake County Partners. Packet Pg. 25 Driving Buffalo Grove's manufacturing base and growth is the fairly high concentration of advanced manufacturing in the Village. Advanced manufacturing refers to the emergence of high-tech products and processes in the manufacturing industry. Unlike traditional low -skilled, labor-intensive manufacturing jobs and processes that are vulnerable to off -shoring or automation, advanced manufacturing relies on highly skilled workforce and complex techniques to create sophisticated products that are difficult to outsource. Industry leaders tout that advanced manufacturing will be the key to the region's economy in the 2 1 It century.5 The distribution of manufacturing firms by subindustry, as shown on Chart 4.1 below, best demonstrates the high presence of advanced manufacturing in the Village. Almost 40% of % - I manufacturing firms in Buffalo Grove are classified as pharmacy/medica I/y, computer electronics, and machinery (including transportation, electrical, and mercial/industrial machinery), which are considered the top three subindustries in a jnanufacturing.6 The high concentration of advanced manufacturing in this area isn't too risinj`/A,�/V� the Village's location between northern Cook County which specialize in electr0 art Lake CC 4" which specializes in health sciences (pharmacy/medical supply subin ustr v, Table 4J/ y des some of Buffalo Grove's major employers within the phar ac edical supply,n s computer 6 05 ,and machinery subindustries. it The prevalence of manufacturing, especially advanced manufi,,,/J(// i provides various economic benefits to the Village. Economists estimate/that each manufa""job creates between two and five additional jobs in related and unrelated industries.' Thiseffect is higher in the manufacturing industry than in any other industry.8Moreover, manering employees, particularly advanced manufacturing workers, are generally well paid According to EMSI's Average Earnings by Industry, manufaquring employees in Buffalo Grove earned $120,000 in 2014, which is 40% higher than the averrnings of all Buffalo Grove workers ($86,296). These high earnings have addii residents as well as benefits for the Village as workers also represent potential for lo& ,�gj eateries, retailers, and other commercial venues. 5 CM AR Metropolitan ChicdVs Manufacturing Cluster.- A Drill -Down Report on Innovation, Workforce, and lnfiwstnicture, 2013. 6 Ibid. ' Ibid. 8 Ibid. XI Packet Pg. 26 Chart 4.1 Fabricated i 4% Primary Metals, Nonmetalic, Petro/coal 5% in Buffalo Grove, 2014 I Source: EMSI, Lake County Partners, CMAP, and Village of Buffalo Grove. I Table 4.3 Advanced Mari'` i res hiluffalo Grove I lial ilia", y� / Supply CORP,MedS ,/,,) I Austin)Nemical Co Inc Computer/Electronics Building Technology 3 Corporation Test Svstems Inc Yaskawa America Inc, Machinery Panasonic Factory Automation Ophthalmic Goods Manufacturing Surgical and Medical Instrument Manufacturing Pharmaceutical Preparation Manufacturing Instruments and Related Products Manufacturing for Measuring, Displaying, and Controlling Industrial Process Variables Bare Printed Circuit Board Manufacturing Semiconductor and Related Device Manufacturing Miscellaneous General Purpose Machinery Manufacturing Miscellaneous General Purpose Machinery I Eaton Cooper lo Lightning Residential Electric Lighting Fixture Manufacturing This is not an exhaustive list. —Including transportation, electrical, and commercial/industrial machinery. Source: EMSI, Lake County Partners, CMAP, and Village of Buffalo Grove. Packet Pg. 27 Map 4.1 Regional Manufacturing Employment* 1) 1; Packet Pg. 28 Workforce Development Workforce development refers to services and programs that coordinate with job seekers, workers, and employers to help prepare and advance potential and current workers in fields associated with local employers. General workforce services and development are offered by workNet Centers and affiliated partners through Buffalo Grove's local workforce investment areas. Employment assistance and unemployment insurance services are also available at Illinois Department of Employment Security (IDES) centers. Additional training and education are available to businesses, workers, and resident of Buffalo Grove are the post -secondary institutions such as College of Lake County and Harper College. Given the Village's specialization in manufacturing, training specific ufacturing and industrial p1han trades is also available outside of the traditional college model. 'he e Fisher/Unitech, Symbol Job Training, Jane Addams Resource Corporation (JARC), and tjIR g Center. Finally, industry associations and collaborative groups such as the T anufacf, 410/111/1Association (TMA),, Alliance for Illinois Manufacturing (AIM), and the IIImo* ManuringSS61, ",n (IMA) provide employers networking opportunities and sometimes r ,�qj+ training, options. SC s a non- profit aimed at assisting smaller businesses, has exprk terest servi alo 1 ovi ing Grove businesses regardless of their industry. The online business survey showed that t4f,,office and industria sinesses, specifically industrial businesses, are interested in workforce development. Some of thesf messes reported utilizing local and online colleges, professional associations, local Thigh schools, and5ssional agencies. Those office and industrial businesses that do not utilize these resources stat 4they either plan on using them in the future or lacked awareness of these resources. A few office businesses reported to not need such workforce deve grams. Almost all retailers indicated they were not interested in workforce develop 1p) r r Where Workers Data from ffi,6T&s thaf//90/0 of the workers employed in Buffalo Grove commute from Cook an 'sake Countie s reinforced from the online business survey as well. Most of 7,17 7, these,� of the Village such as Chicago, Arlington Heights, / s are traveling"fom areas Palatine, aiia/ether Cook Couf,/�/,//f comm,/ nities. Only 8.2% of workers are also Buffalo Grove residents. Ap It"Ok mate 1 00" workers originate from DuPage County, McHenry County, or other counties in the r/6004- Wor kemainly commute car, however a few utilize public transportation options including ne Bus. ?A Packet Pg. 29 Table 4.4 Residence Location of Workers in Buffalo Grove, 2011 City of Chicago Count 1,874 Percent 10.9% Village of Buffalo Grove 1,413 8.2% Village of Arlington Heights 758 4.4% Village of Wheeling 610 3.6% Village of Palatine 509 3.0% Other Locations In Cook County 4,306/ 25.1% In Lake County 3/ 20.6% In DuPa e County 9 03 /A" 6.4% In McHenry County 10,79 6.3% In Other Counties 1,977 .5% Total Employed Population 17,159 1000/0 Source: Longitudinal Employer -Household Dynamics, U.S. Census Bur 641/, Alffil"?`111�'11, X" jobs Housing Spatial Mismatch • growing concern identified by outreach efforts is ajobs-housing s15jismatch in Buffalo Grove. • jobs -housing mismatch refers to the phenomenon where homes cons ive to workers' preferences and affordability are situated far from their employment centers. Steering committee members and stakeholders interviewed fg/ J lysis specifically discussed this mismatch in terms of Generation P, Y or the millennials h den ,workforce A �ey expressed that the emerging Generation Y work rce has the skills and aptitude nod[ DO help b/i esses grow, particularly the advanced manufacturing companies, however they"/" er pre, %-7 ,to not live in the suburbs or cannot find housing options conducive to their needs. Studies r� ide credeti&04"his c66,*`/ Research indicates that millennials highly value u bicycle and walk ' accessibility; mixed -use, denser areas; and apartment �ransp /911 livi g.9 o ri� T �/h 0kmillennials that,///// purche homes, prefer units that are smaller —both in square i* footage androoms—than ienerations past. 10 These types of characteristics and amenities are 7 not traditio a sist ntl k/,//found in suburban communities, but are almost uniformly offered in more urban I c ti alo,,i rove and other nearby communities have started to implement and embrace such char and amenities. A specific point of focus in the past few years has been the housing stock in Bu ' o Grove. The 2013 Homes for a Changing Region report, which is an analysis of current housing conditions as well as set of recommendations for local and subregional housing actions, have noted that the Village and its neighboring municipalities should diversify their housing stock to meet projected housing demands. Nielsen, Millennial, Breakin,g Me WM5, 2014. Urban Land Institute, Generation K America ' New Housing Wave, 2011. 10 National Association of Realtors. "Millennials Say They Don't Want a Home Like their Parents'." RealtorMap,. 2013 ?7 Packet Pg. 30 3.A.b Section Five: Commercial Development Key Findings • As of 2015, Buffalo Grove had over 10 million square feet of co ,1rdi,1 space and a vacancy rate of 7.7%. The majority (63%) of commercial space is indu l and flex while the balance is office (20%) and retail (17%). The North-Central Subm the region have less 51-54% industrial and flex space an#�ro or' �1 more 24-26% retail proportionally ( )� P P ,Y ( ) space. �//1', Industrial and flex properties in the Village ,� low (3 49/6) vacancy rate Te in generally good condition. This trend is reflecte e lar#/a�$ubregional and oval markets and consistent with various analytical repo; T-he particularly low vacancy rate in Buffalo Grove is likely a result of itsidealregional locA*,, Office space has high (16.6%) vacancy rate and is also in fairlyd condition. The office vacancy rate is also high in the North Central Submarket (18.A) and the Chicago Metro Region (13.9%), Analysts report and fiscal trends their entire di p these trends, rel the market's sluggish recovery after the economic downturn. _p market is particularly tied to state and national employment ice, "e also becoming more efficient with their space and moving to downtown Chicago to attract younger workers. Despite in the office market. 'ail space in"'t`t , /1llage i'ar and has a vacancy rate of approximately 13.2%. The high ancy rate in Buf* Grove"�j the greater region is largely due to the closing of the ]J �icks grocery st�. Acro /the country experts are noting the changing face of retail. E-coke continue grow and has contributed to the overall shrinking retail footprint. Re orts ' indicate tl' today's shoppers tend to value and spend more on experiential consumpticruch ,dining, entertainment, and leisure — than material goods. Most of the co ercial developments in the Village are clustered into three types of corridors. These typologies include: Industrial/Office (Northern and Southern); Retail/Commercial Corridors (Dundee and Town Center) and Mixed -Use Corridors (Lake - Cook and Milwaukee). Preliminary retail analysis indicates potential areas of opportunity for specific retail tenants in Buffalo Grove and its trade area. These tenants include: motor vehicle and parts dealers; food and beverage stores; gas stations; food and drinking places; building materials, garden equipment and supply stores; and clothing and clothing accessory stores. Packet Pg. 31 Village -wide Conditions Commercial real estate refers to any real estate intended to generate revenues. For purposes of this analysis, commercial real estate will be classified into three main types: industrial/flex, office, and retail." Traditional industrial space is often considered to be a warehouse that is mostly utilized for manufacturing, storage, and distribution. Flex space has become more popular over the years and refers to a building can house traditional industrial space as well as office space. Office space, as the name implies, denotes a facility intended to house companies and employees in various fields such as administration, accounting, law, financial, insurance, medical, and otehr services. Finally, retail real estate refers to development built for the distribution, promotion, and/ products and services to the general public. 7/0/7�1?koof, As of 2015, Buffalo Grove had over 10 million square feet of ci 7.7% (Table 5.1). The majority (63% or 6.6 million square f A flex. Office and retail compose 20% and 17% of total coT7�e//e//n distribution of space in Buffalo Grove slightly differs f dam the `n Central Submarket (Deer Park, Kildeer, Long Grov C Buffalo Grove, Wheeling, Prospect Heights, Mount Pros submarket and the region have proportionally less industrial' proportionally more retail space (24-26%)/.'// Vacancy Rates and Trends a vacancy rate of ! is industrial and �„(Chart 5.1). The Metro Re; non Hills, )n �/Heights, and Palatine). The space (between 51-54%) and The following analysis explores industrial, office, and retail developments, vacancy rates, and related trends in Buffalo Grove an' / d rger subregional and regional context. _ Industrial Ile I0 V Of all property types, indo*jAl and,"" x space in Buffalo Grove has the lowest vacancy rate (3.4%). '" �///11` Z� The North-Central Submar"64411/0" egion have also posted low vacancy rates. The positive abso;, 0,66A, resulting in higher rents and new construction, hteni, 0 #bb d e ma much of/ "/ ic a. i is spect12 E xpq,,',/,,t&/attribute the strengthening of the industrial market to various factor as the reemer i�** of ma" �"J padring pent-up demand for industrial space, and the 13 recoverii* nomy The uP*,/k in c9o/limier expenditures has translated into an increased demand for wareh50Z�_ce'to product, More, ...ore, and ship sought after goods.14 11 Commercial real estate can also include other categories such as multi -family properties, farms, and hotels. However given the scope and objective of this report, the named three categories (industrial, office, and retail) provide the most appropriate insight into the commercial real estate market. 12 NAI Hillman. "Industrial Market Review: First Quarter 2015." 13 Ori, Ryan. "'Good old days' return for industrial landlords. Crain's Chicago Business. February 23, 2015. Ori, Ryan, " Here's One Sign of a Strong Economy." Crain's Chicago Business. April 13, 2015. Ori, Rvan. "Industrial Vacancv Falls to Lowest Level Since 2006." Crain's Chicaao Business. [uIv 21, 2014. 14 Ori, Ryan, " Here's One Sign of a Strong Economy." Crain's Chicago Business. April 13, 2015. ?Q Packet Pg. 32 3.A.b Chart 5.1 Distribution of Commercial Space by Type in Buffalo Grove, 2015 Source: CoStar data Table 5.1 Commercial Real Estate Square Footage and Vaca Type, 2015 Grove North-Central Submarket* ChicagoBuffalo Metro Region Total..Total Building Area Vacancy Rate Building Area Vacancy Rate Building Area Rate Industrial and Flex 6,551,527 3.4% 44,601,205 8.6% 1,171,019,362 7.8% Office 2,093,054 16.6% 19,954,745 18.5% 465,117,297 13.9% Retail �246 13.2% 22,376,030 9.7% 518,476,663 8.5% Total 10;� 7 7.7% 86,931,980 11.0% 2,154,613,322 9.3% Includes Deer Park Kildeer Long lr Ind} anon Hills, Lincolnshire, Buffalo Grove, Wheeling, Prospect Heights, Mount Prospect, Arlingtoz}gt and Palatine/%/ %�/// i/ Source: CoStaxtiiit;if $uffalo,, The arts Orly low vacancy*e in Bu o Grove is likely a result of its ideal regional location. Intervieweceholders noted�at the Village's location at the edge of both Cook and Lake Counties allows` community% o benefit from each county's assets. Cook County strength is its strong residential; ems loyment/`and industrial base stemming from Chicago. However, Cook County tax structure is disadvus for retail and industrial real estate. The county assesses retail and industrial properties at a='igher percentage of market value than residential properties causing businesses to shoulder more of the property tax burden than residents. This tax structure has partially contributed to businesses relocating outside of Cook County, into neighboring counties, including Lake County. Lake County has seen a 3% (2.2 million square feet) increase in industrial property between 2005 and 2015. The Village was recognized in the Lake County Comprehensive Economic Development Strategy as being a county leader in industrial development. Packet Pg. 33 The industrial space in Buffalo Grove is in generally good condition. The majority (64%) of the space is considered Class B, while 32% is considered Class C and 4% is considered Class A.15These rankings aren't too surprising given the age and characteristics of the facilities. Most of the properties are 25-30 years old and have 18-24 foot ceiling heights, which are considered low by today's standards. All are of masonry or reinforced concrete construction. Office In contrast to industrial and flex space, office space has the highest vacancy rate (16.6%) among the commercial property types in the Village. The office vacancy rate is also dramatically high in the North-Central Submarket (18.4%) and the Chicago Metro Region (13.9%), reflecting the market's sluggish recovery after the economic downturn. Analysts report that the, arket is particularly tied to state and national employment and fiscal trends. Consequently e state's fiscal challenges and the relatively high unemployment rate in recent years has eno A conservatively and/or look elsewhere to establish their operati Companies are also becoming more efficient with their spac suburbs are increasing their ratios of office space and per,,;ployde the country.16 Approximately 10 years ago, the natio T,,,R tandard w employee, but in recent years that has declined to f e eet.1, policies for telecommuting and implementing a more ope which affects the demand for office space.18 113 Another trend is the office flight from suburban communities to companies, including major companies as Walgreens, Kraft Foods moving into Chicago or creating a satellite office in Chicago so to a Despite the overall sluggi is regional office market 2 "C( unemployment rate in before.22 Vacancy rates ha expand again,,g, yyay to Similarjo(/Af he industrial,"' B, Whif 0 0 is considered' 7 and i997",Pst all are 1-2 , are the only hat are 12 panies to operate y, businessi/,////, // the Chicago a trend that, %bccurrin9 across as 250 square fex of ffice ,s are als6,44/clopting 171, space floc/ plan, all of wri,1 Chicago. 19 Suburban 1 d Sears Holdings, are younger employees .20 recent years, there has been some recent momentum in the dint the Illinois Department of Employment Security, the Illinois 15 0 0, which is lower than the 6.9% rate posted the year Sslightly decline. Employers are also looking starting to i c7 T 11 1. nnlr 23 in , '(518%) of the office space in Buffalo Grove is considered Class A an is Class C. Most of the buildings were built between 1985 .es, ho,ever a few are 3-5 stories and the Riverwalk Office towers ies tall. 15 Class rankings reflect the building size, structure, and operating systems in the market area. Classes A, B, and C imply that these characteristics are excellent, good, and fair -to -poor respectively. 16 CBRE. "Chicago Suburban Office MarketView QI 2015." " Heschmeyer, Mark. "Changing Office Trends Holds Major Implications for Future Office Demand." Costar. March 13, 2013. 18 Ibid. '9 Ori, Ryan. "Rents Keep Rising in Chicago's Top Office Towers." Crain's Chicago Business. June 15, 2015. 20 Ori, Ryan, " by suburban companies like McDonald's follow the sired call of downtown." Crain's Chicago Business December 13, 2014. 21 Ori, Ryan. "You can stop pitying suburban office landlords now." Crain's Chicago Business. January 5, 2015. 22 Illinois Department of Employment. 23 NAI Hilffman. "Office Market Review: Frist Quarter 2015." 111 Packet Pg. 34 3.A.b Retail Although not quite as high as office space, the retail space in the Village is approximately 13.2%. Most of the vacancy in Buffalo Grove and in the greater region is attribuitable to the closings of the Dominicks grocery stores. Excluding the Village's remaining vacant Dominicks grocery store, the retail vacancy rate is 9%-10%. Although some of the Dominicks spaces have been filled in the region, several are still vacant and causing a spike in vacancy rates throughout the region.24 Excluding the Dominicks closures, analysts report that overall the retail market is improving. In spring of 2015, consumer confidence rose to its second -highest level since 2007.25 However, the rising tide is not lifting all boats. Those in centers and locations that are considered premier — the top 10%- 20%- are being absorbed by retail tenants, while the rest are struggling.26 Overall the retail market is dramatically evolving and experts conten 'at those players who �� embrace the changing face of the retail market, can best position t ss for the future. E- commerce, which represents all purchases made on desktop and; to coters, tablets and mobile phones, continues to gain momentum.27 Today, 6-7% of rarc�ses are via e-commerce.2a Such platforms have allowed consumers to become more"176omfof"table, knowled ge, aware, and opportunistic," than ever before.29 It should be note;?/12`//!///// Fever, that most consumef§#(at still prefer , in-store shopping to procure staples, fill an immed or wan& and to touch ant4��el" merchandise.30 77 The rise of e-commerce has contributed t64he shrinking retail fiat Retailers have either closed their stores or dramatically reduced the physical size of their space Jptro�ic and office supply stores have been specifically affected by this trend.The shrinking of tetail footprint has caused a more diverse tenant mix in shopping centers. Educational, health and/fitness, spa, medical and other non -retail services have an A final key trend 1n tthna*1 mar] today's shoppers ten and leisure, and other activities�n with Overall, the commercial and experieiY Ilan a just a cin %fhat caters to presence at shopping centers." a shift toward experiential consumption. Reports show that 3 more on experiences — such as dining, entertainment, 32 Industry leaders are responding to this trend and retail shopping centers format to a more centers aim to provide a sensory -filled physical environment gs Tot available on the internet. Such centers are more �%%%/, e5urt. They provide services and amenities in an ine needs and demands. rove tend to be in clustered in shopping centers along the spaces in Buffalo Grove tend to be older, with the majority of 24 M.aidenberg, Micah. "Retail. Landlords Cain, But Recovery `Not Lifting A11. Boats."' Crain's Chicago Business. February 9, 2015. 25 "Consumer Sentiment in U.S. Rises to Second -Highest Since 2007." Bloomberg Business. May 1, 2015. 26 Ibid. 27 As implied in the text e-commerce includes all mobile or m-commerce, which are purchases made by tablets and mobile phones. 28 QuarterlvE-commerce Sales. U.S. Census Bureau. News. May 15 2015. 29 Philip Evans. "Non -Retail Tenant Cain in Important." RetailProperty &n hts, Volume 21, No 2, 2014-201.5. International Council of Shopping; Centers. 30 Shopping Centers: America's First and Foremost Marketplace. International Council of Shopping Centers. 2014. 31 Philip Evans. "Non -Retail Tenant Cain in Important." Retail Pronez-tVlnsiehts. Volume 21. No 2, 2014-201.5. International Council of Shopping; Centers 32 Ibid. 111) Packet Pg. 35 them built between 1974and 1988. Their age iareflected intheir style, which aozozc traditional format. CorridorsCommercial Most ofthe commercial developments are clustered into three types o[commercial corridors: industrial/office corridors, retail/commercial corridors, and mixed -use corridors. The following provides mzoverview ofeach corridor organized 6vtyPnlovv.8s0000 o[these corridors border municipal boundaries, the information discussed below regarding land uses,commercial space square footage, vacancy, and other details generally refers to only those propert land within the municipal jurisdiction. Industrial/Office Corridors The Northern Industrial/Office Corridor, is the prima ndustriat,,corridor in the e. I generally covers the area from Aptaksisc Boulevard to just So I A", ra train /,/,arkway and fro 77,777/77 line to Milwaukee Boulevard. Major north -south r a s rd rea b Milwaukee Boulevard and Barclay Boulevard and ajor wesif"' roads include Aptakastic Road, Bush Parkway, and Deerfield Parkway. This corridor is home to various manufactures, some of which hire between 100 to 400 employees. Some of the larger manufacturing companies include Si ustry, Flextronics, U.S. Music Corporation, Scbulct uiooManufacturing, and AotoMedTechnologies, and8o/ter. I in 6 rate parks such as Abbot Business Center, Aptakisic Creek Corporate Park, Rog f C#> rs or merce, Arbor Creek Business Center, the Corporate Grove, and Covington Corporate .1 flex rentable building space in these industrial parks roximately 4.7 million square feet. As of April, 4,/ V, 4' "b'd condition. The buildings, not necessarily spaces, range quare fe however most of these facilities are between 33,000 and and overall condition of the buildings, the majority (64%) have a Class B rati considq d Class C and a small portion (3%) are considered Class A. The Class /\ facilities include by Plexus C and �kcm�d 7,77 along Millbnook Das the Rexam Consumer Plastics facility on 800Corpomte Grove Drive. Southern Industzi.WOHce Contidor The Southern Industrial/Office Corridor is an additional industrial corridor in the Village that is centered on the railroad. The corridor extends just west of Lexington Road to the Chevy Chase Golf Course and from Pauline Avenue toLake Cook Road. The Buffalo Grove Southern Industrial/Office Corridor is part of a larger north -south industrial cluster that extends into Wheeling. In general, most of the businesses in the corridor are smaller and employ less than 15 workers, however there are several larger companies that employ 75-l75 workers. These include yxakmvva /\noczica Manufacturing, Dow Chemical Company, and Assembled Products Group. qq Packet Pg. 36 In terms of development, the Southern Industrial Corridor is generally composed of Buffalo Grove Commerce Center, Chevy Chase Business Park West and Chevy Chase Business Park. In all, the corridor has approximately 1.6 million square feet of industrial and flex space with a 0.5% vacancy rate. Facilities here tend to be slightly smaller and older than those in the Northern Industrial/Office Corridor, as most range in size from 12,600-55,000 square feet and were built in the mid -to -late 1980s. The most recent development was constructed in 1999 and is the Missner Top Hits Entertainment Facility at 360 Hastings Drive. Overall, the majority (67%) of facilities are considered Class B and approximately a third are considered Class C. The Southern Corridor also has approximately 825,000 square feet of office space of which 6,;,e approximately 130,500 square feet (15.8%) is vacant. The most promin9 eO,004 buildings are the A' ,P Riverwalk I and Riverwalk 11 buildings off of Lake Cook Road. Each buildings offer between 260,000-272,000 square feet of Class A office space. Other office nerally between 19,000-45,000 square feet and are considered either Class B or C s C spay Retail/Commercial Corridors Dundee Retail/Commercial Corridor" The Dundee Retail/Commercial Corridor is centered &Wg e 'ad and generally e�&nds from Lake Cook Road to just east of Buffalo Grove Road. The cormQkial uses and development can be described as "highway -oriented." Some re6fiers such as Aldi, Sa"h Music Store, American Family Insurance, and Garden Fresh Market are clustered in shopping centauc s Stratmore Square, Plaza Verde, Grove Court, Village Plaza and Cambridge CommonsOt, tenants such Oberweiss Ice Cream and Diary Store, Bob Rohrman Pre -Owned Superstore, and Fitt Midwest Bank are stand- alone retailers. The Dundee Corridor ver 625,1 square feet of retail space with a relatively low vacancy rate of 7%. With the exception Plaza `t Buffalo Grove, most of the shopping centers offer between 15,000-61,000 square feet 0 1 a at Buffalo Grove is the largest shopping center offering over 125,000re ce, er centers offer somewhere between 15,000 61,000 sl ife feet . . . . . . . . h/ hies are generally around 10,000 square feet of space or most all of the A, smalleh// ines I in the 1960s or 1970s. Town Ceji11t'*`,1,k et aWCommC6mdor The Town Cent etail/Comrcial Corridor is located in the heart of Buffalo Grove. It is anchored by the Town Cenoppm development and is generally bound North Buffalo Grove Road to the 'M I / west, Lake -Cook "outh, Weidland Road to the east and the intersection of Buffalo Grove and McHenry a tnorth. The Town Center shopping center has various tenants such as Brunswick's bowling alley, Binny's Beverage Depot, and the Buffalo Grove Theatre. Across the street from Town Center is The Grove shopping center with Jewel-Osco and other smaller retailers such as the Best Salon and Spa and the Blue Swim School. Buffalo Grove Shoppes is a smaller shopping center with Walgreens, Supercuts, and other convenience retail. Other freestanding retailers in the area include Lou Malnati's Pizzeria and Deerfield Bakery. The Town Center Corridor has a total of 376,000 square feet of retail space. Overall the vacancy rate is low (8.2%) and most of the vacant space is in the Town Center development. The overall retail 1114 Packet Pg. 37 space in the subarea was built in the 1980s and 1990s. Buffalo Grove Shoppes is the most recent development and that center was constructed in 2001. Mixed -Use Corridors Lake -Cook Mixed -Use Corridor The Lake -Cook Mixed -Use Corridor runs along Lake -Cook Road and generally extends from Arlington Heights Road to Weidner Road. This corridor has over 572,000 square feet of office space including the Buffalo Grove Business Park that houses NorthShore University Health medical offices, Templar Securities, and the MIGroup. The office vacancy rate is 23% (134,990 square feet) and office A buildings (not necessarily spaces) offer between 15,000-34,450 square f�e of the office space is considered Class B, with some considered Class C. Some facilities in th/ /J3uffalo Grove Business Park are considered Class A. In addition to office, the corridor has 103,000 square feet o/ iJ space that ift/�, es Chase Plaza, the Wyndham Garden Hotel, Outback Steakhouse, and PN nk. In accordance t8' ",,,ar, the leading source for commercial real estate data, the vacanc r 670 A, Yo all which is attrib`,0/'#F/p the former Dominicks grocery store that formerly anchored se PIaA�0///////// Milwaukee Mixed -Use Corridor The Milwaukee Mixed -Use Commercial C��rtidor is the eastern //�''/I?f the community, centered around Milwaukee Avenue. Some of the properties along this c r ap with the Northern Industrial/Office Corridor. Milwaukee Avenue has'a mix of propertir Buffalo Grove's jurisdiction and some in unincorporated Lake County, resulting in a f agmented corridor. Some of the unincorporated properties jii *de the northern edge of the Milwaukee Mixed -Use Corridor are subject to the Buffalo Gi k and �4,/qlnshire Boundary and Planning Agreement. This 'ffl' ant iden e intergovernmental agT/*/ // s future municipal jurisdictional boundaries between the two communities as well/as uses. The corridoT/;,, J �al1 y*h 04 e residential, industrial, and vacant properties. 0/*,,J/,/,/, r there di" Many of �,*ico restaurant, Speedway gas station, and Woolie restaurant. retail us&§'J/0'/'//,,,,,, 144e Mi` oSta Milwaukee Mixed -Use Corridor. It provides nfohave a total of 32,000 square feet that are fully occupicfe buildings re from 3,700-9,000 are feet. Retail Market Analysis Of specific interest to the Village is a retail market analysis that identifies Buffalo Grove's trade area and estimates the trade area's retail demand, supply, and leakage. This type of analysis is generally used to gauge opportunities for retail development and tenants. Market analysis numbers presented in this analysis should not be interpreted as absolute numbers but rather viewed as estimates that reveal market conditions, trends, and dynamics. T; Packet Pg. 38 The Trade Area Traditionally defined, the trade area is a geography from which approximately 70%-80% of the trade area businesses' sales originate. In other words, 70%-80% of the trade area's retail customers reside within the trade area. The trade area utilized in this report was identified by traditional method of synthesizing data and information from various factors including: a fifteen minute drive time radii from Buffalo Grove shopping centers; road networks; travel patterns; and natural, physical, and psychological barriers. The trade area is shown on Exhibit 5.1 and encompasses the following communities either entirely or partially: Riverwoods, Vernon Hills, Palatine, Arlington Heights, Deerfield, Prospect Heights, Long Grove, Kildeer, Hawthorn Woods, Lincolnshire, Bannockburn, and Northbrook. Demand Demand, or the total potential retail expenditure, is the amount o ', 611'i/T(//,a household or a group of households will typically spend on retail goods and services army ulation is derived from In a trade area's population, number of households, household/j, 6/, and re enditures. The trade area has sizeable population pool and significant pu, - g/power. The arhas around 354,125 people, within 135,015 households, creating -1-h-ld size of 2.60 a e ...... . . . . . . ome. The distribution of household income shows the majority d../ usehold 2, e middle tohi median income is $83,626 and the income per cap 'xi atel The household income comparative analysis on Table 5.3 rev`6 T ,)3uffalo Grove's position within the trade area. Buffalo Grove's purchasing power is comparatively lit �,�r than the trade area as the Village's median household income is $94,391 or 11% higher than rea. This income disparity also indicates that Buffalo Grove residents may have different ail expenditure patterns than trade area residents. Higher -income households typically spend more retail goods and services than middle -income housebqo�,(,but middle -income households may spend a greater proportion of their retail dollars on f6o&/4Kd`1Y&//V'/,aces. Given the trade area�§ p6#0j'ation, nO#iber of households, household income, and retail expenditure estimates, the total retail M46d 4`1 food p and drink) of the trade area is estimated to be approximately, ro/'on dolh s0 5.4. In other words, households in the trade area 11,1,,,X�3",,11,�J, J, d /a cumulativ )end'/56,/,,,,/,/ion d on retail goods in a given year. Significant dollars are spent on A� lower-/ e d, commonly ra m o n y / medh as food and beverage at stores, as well as at general merd &'* establishments ".,/,�,UJ h of th categories represent approximately 14% and 15% of total the trade ar64,X retail dema�,/' rvice and drinking places represent just over 10% of total retail demand r significanJ ollars are spent on higher -priced, less frequently consumed goods such as motor nd Darswhich account for 18% of total retail demand. Non -store retailers suchh/,e'-commerce, mail-order businesses, direct sales (party sales and other W forms of selling in constimer's homes) are estimated to capture approximately 8% of all retail demand in the trade area. This relatively high capture rate reflects consumption dynamics. Higher -income households are more likely to patronize non -store retailers than lower income households. Non -store expenditures and sales can distort a market analysis because most retailers and consumers of e-commerce and mail-order businesses are not within the physical confines of the trade area. However, completely ignoring non -store expenditures and sales disregards the emerging integration of the physical and virtual shopping world. Consequently, this analysis will examine expenditure, sales, and leakage with and without non -store retailers. As shown below, the total retail expenditure excluding non -store retailers is $5.8 million. I .46 Packet Pg. 39 SUPP/Y The volume of retail sales within the trade area is considered the supply. The total supply or sales volume of retail goods is approximately $9.9 billion (Table 5.4). Non -store retailers represent 41% or $4 billion of these sales. The high sales figure reflects the various non -store retailers headquartered or located within the trade area. These retailers include LTD Commodities, which sells various appeal and home goods via online and catalogue. Another listed non -store retailers is Caremark Rx, which is a prescription benefit management retailer and as subsidiary of CVS Health. Caremark Rx are likely listed as a non -store retailer due to its mail-order and delivery services. Other examples include Harry and David, Skil Vending, and Ross Nut Company, and Custom Personalization Solutions LLC. The total sales of the area, excluding the sales of non -retailers, is $5.8 milli There are 2,000-2,250 individual retail establishments and 500-600 establishments in the trade area. Some of these retailers are listed b the trade area's retail establishments are clustered together and fcmd sh analysis major shopping center will be defined as having gross I' le are 200,000 square feet and can include larger community re�t�a f//i/ regional regional centers and lifestyle centers. The trade area ha% 5.5 lists some of the major shopping centers within tde area in Table 5.4. Most of upping centers. For this A) greater than �0/,,,/Iers or super slc 2 centers. Table 'A7 Packet Pg. 40 S.A.b Exhibit 5.1 Trade Area Table 5.2 Estimated Population and Households, 2015 Population %///////j 41, 354,125 P ,,; Households 16,135,015 Avg. Household .5 ii ! 2.60 Source: ESRI Wsixiess'Ana�`fit' u . illaee of 16/ o Grove. Ta 5 Less than $25,000 Count 1i 4 Grove 10.6% TradeBuffalo Area 15,122 11.2% $25,000 to $49,999409 14.9% 23,898 17.7% $50,000 to $74,999 2,215 13.7% 21,467 15.9% $75,000 to $99,999 2280 14.1% 17,012 12.6% $100,000 to $149,000 3654 22.6% 22,548 16.7% 150,000 and over 3896 24.1% 34,969 25.9% Total Households 16,167 100% 15,122 100% Median Household Income $94,391 $83,626 Sources: ESRI Business Analyst, US Census Bureau, Village of Buffalo Grove Packet Pg. 41 Table 5.4 Estimated Consumer Retail Goods and Services Expenditures in Trade Area Demand supply Retail Gap Retail Category Sample Retailers (Total (Le akage and Expenditure) (Total Sales) I Goods Motor Vehicle & Parts Dealers Good Sam Enterprises (Lincolnshire), Carmax (Glencoe), Toyota (Northbrook) $1,132,220,000 $733,040,000 $399,180,000 Furniture & Home Furnishings Crate and Barrel (Northbrook), Stores Walter E Smith Furniture (Arlington Heights), Bed, Bath, and Beyond (Vernon Hills) $128,550,000,g_ $219,450,000 ($90,900,000) Electronics & Appliance Stores Apple (Dee Park), Best Buy (Deerfield), Sprint (Vernon Hills) $153,5740 $386,320,000 ($232,750,000) Bldg Materials, Garden Equip. ProSource Wholesale (Buffalo Grove), & Supply Stores Menards (Long Grove)< Home Depot (Palatine) $ 83 $44,840,000 Food & Beverage Stores* jewel Osco (Buffalo Grove) Sunset Foods (Northbrook) Trader Joe's (Arlington Heights), $89$,780,000 $7'5,�f' $141,530,000- Health & Personal Care Stores— Walgreens (Vernon Hills), Ulta (D I' Superior Optical (Glenview)$5 /D $924,7 bOO 30� ($414,980,000) Gasoline Stations Speedway (Buffalo Grove), Amaco (Wheeling) Mobil Hills) (VernQ4 40,000 $375,970,000 $144,070,000 Clothing & Clothing Talbot's (Deer Park), Accessories Stores David's Bridal (Vernon Hills), Burlington Coat Factory (Arlington Heights) $3 $344,040,000 $30,430,000 Sporting Goods, Hobby, Book Dick's Sporting Goods (Deer Park), Or/ & Music Stores Toys R Us (Vernon Hills), brics (Northbrook) $146,660,000 $160,480,000 ($13,820,000) General Merchandise Stores— 1 >Wheeling), oscto unt Prospect), almaVernon Hills) $945,620,000 $1,074,120,000 ($128,500,000) Miscellaneous Store Retailers**** e eemp n k) $120,530,000 $160,250,000 ($39,720,0 00) Non -store Retail ommo 1, (Bannockburn and Z, 'Lhbrook), Premark 4, Ha a //id(Deer Park) $503,940,000 $4,068,340,000 ($3,564,400,000) Dining Food Services and Drinking """p vets (Buffalo Grove), Places tarbucks (Wheeling), l iris' Greek Restaurant (Deerfield) $670,200,000 $491,920,000 $178,280,000 TOW Includ*'No nstore Retailers $6,325,160,000' $9,871,9001,000, ($3,546,740,000 Total Ewlwhng Nonstore Retail en 5,821,220,000 $5,803,560,000 $17,660,000 Source appears to include sales from Dominck5grocary stores, which have closed —Health and Personal Care stores include drugstores, pharmacies, and beauty supply stores. —General Merchandise Stores include department stores and discount department stores. *** Miscellaneous Retailers includes florists, pet stores, and office supply stores. -Non-5tore retailers include retail goods purchased electronically and via catalogue. This also includes direct selling retailers such as newspaper routes, frozen food and freezer plan providers, bottled water, and water softer services, and goods sold at home parties. Source: ESRI Business Analyst and Buffalo Grove. cu co CL co CL cu cu Asa. 2 0 0 0 U E 0 a 0 W 110 Packet Pg. 42 Table 5.5 Major Shopping Centers in Trade Area* Name Location Gross Leasable Area (GLA) Number of Stores Anchors Randhurst Village Route 83 and Euclid Ave, 1,335,000 60-65 Carson Pirie Scott, Costco, AMC Mount Prospect Theatres, jewel Osco, Pet Smart Northbrook Court Lake Cook Road and Red Oak 1,000,220 125 Neiman Marcus, Macy's, Lord & Lane, Northbrook Taylor, Crate & Barrel, AMC Theatr Deerbook Mall Route 83 and Lake Cook 627,000 26 Sports Authority, Jewel Oscol Office Road, Deerfield ax, Bed Bath and Beyond Deer Grove Center Route 12 and Route 68, 490,356 15 T arget, Staples, TJ MaXX, Home Goo Palatine ,� Town and Country Route 12 and Palatine Road, 329,849 -20 Dick's Sporting Goods, Best Buy, Center Arlington Heights N), rshalls, Joe Capputo and Sons *Not an exhaustive list. Source: ESRI Business Analyst and the Village of Buffalo Grove. ".", .......... Retail Gap A trade area's leakage is determined by calculating the d;ence between the demand (total expenditure potential in the trade area),,�4nd supply (trade aC salesvolume). A positive leakage number indicates that demand is not being met by the to jy, and is commonly referred to as sales leakage. In this scenario, the leakage number reprets the amount of retail dollars that are leaving the trade area and being spent elsewhere. A negative leakage number, Q of /termed a sales surplus, indicates that the trade area is capturing dollars from outside the t or that the supply is exceeding demand and the market is oversaturated. It shou t sales surplus doesn't necessarily imply that the additional businesses can't be s t doh indicate that any additional businesses established should have a full understanding 0 iq, and competition within the trade area and the larger "pat A 1 de sub -region. ri-ston&apply, the subject trade area is currently ,/�.r A "n experien- I 11ion (Table 5.5). Without the non -store retail and demand, the ga sales sttft $3. trade ,q/ Is experiencing 1kage o /jnillion (Table 5.5). 7;/ Of greater rtant than the ///' salo' surplus and leakage, is the individual surpluses or leakages of Op Pt each retail c i i icant,"',etail leakages are motor vehicle and parts dealers, food and beverage stores, gas st ti aid drinking places. The leakage for food and beverage stores is even X A//O/ higher than reportreportecJ as ars that the data source utilized includes sales from Dominick stores, which have since ee ed. Other less significant leakages are in the retail categories of building materials, garden equipfiient and supply stores, as well as clothing and clothing accessory stores. These retail categories represent potential areas of opportunity for the trade area and Buffalo Grove. Retail categories that are experiencing a sales surplus in the trade area include health and personal care stores; electronic and appliance stores; general merchandise stores; furniture and home furnishing stores; sporting goods and hobby, book and music stores, and miscellaneous store retailers. cu co CL r_ M CL cu CU E CL 0 0 0 E 0 r_ 0 W 0 V_ C*4 Packet Pg. 43 41 Packet Pg. 44 00703=1 Relationship to other Plans and Studies A summary of local and regional plans and their relationship to the Buffalo Grove Economic Development Strategic Plan is discussed below. Village of Buffalo Grove Strategic Plan 2013-2018 (2012) In 2012, the Village of Buffalo Grove developed a Strategic Plan 2013-2018 to guide Village * 'O/,,,nomic development. operations and services around the five strategic priorities, one of which 1 Op" Alr g The Economic Development Strategic Plan will be to address the econ c development objectives of the Strategic Plan, which include but are not limited to: leveraging P 7/ es to meet community objectives, creating an inviting environment for businesses marketing methods, managing opportunities in the comme expanding businesses. The Strategic Plan will be amended/,, Plan Goals. Village of Buffalo Grove Comprehensive Plan (2009) Adopted in 2009, the Village of Buffalo Grove Comp� g eW A ,ommunity and )rs, aMP/ and ,,taining w//, to includ�W16-2017 Strategic provides an overall vision for the community with supporting goals and action steps. Part of the `1%i, states that the Village will continue to strive to be a community that "fosters continued econ' development with proactive programs encouraging and supporting businesses." Goals backing this' include: encouraging reinvestment in established commercial properties, strengthening and diversifying the Village's economic base, continuing to participate in regional programs that encourage a positive and healthy business climate, and stri conomic development foundation that yields a vibrant and Vi A/lA/Al 0// sustainable economy. M, 7 'I , "r'F /Ift Lake County Comprehensi ono, gy (2012) velopment,$trate W-6' Lake County PrW/,,,pJLCP) if" conomic development corporation for Lake p, g�f County, le 0 e, if'", ant the County 6'M 'g� prehensive Economic Development Strategy (C E 1) s)j I U U. The L a k 11 L Y zes Lake County demographic, real estate, and industry F data, ih'a dines implement n and o ational goals for Lake County Partners. These goals include: ret#4,j and attracts ,' rimas to Lake County, diversifying the County's tax base, an( enhancing waO, rce develop t and training, improving access and availability to business financing and moment, sup rting improvements to infrastructure connectivity, and providing greater support an U rc / or entrepreneurs. The plan also provides guiding principles for LCP as well as an action plans is organized under the three topic areas of job creation, marketing and outreach, and or anizaon and coordination. Planning for Progress — Cook County's Consolidated Plan and Comprehensive Economic Development Strategy, 2015-2019 (2015) In 2015, Cook County adopted Planning for Progress, a plan that unites the federally mandated Consolidated Plan (Con Plan) and the Comprehensive Economic Development Strategy (CEDS) into one integrated vision. The plan adopts relevant economic growth policies from previous efforts and focuses on goals related to infrastructure and public facilities, businesses and workforce development, housing development and services, non -housing services, and planning and administration. Specific recommendations include increasing the transparency, efficiency, collaboration, and capacity for Packet Pg. 45 county and suburban governments, enhancing support to manufacturing clusters, and improving the physical infrastructure tobetter link residents with jobs. Chicago Metropolitan Agency for Planning GOTO 2040 (2010) CMAP is the official for the northeastern Illinois counties of Cook, , Kane, Kendall, Lake, McHenry, and Will. ln2Ol0,CMAP developed G(]T{)2O4O, metropolitan Chicago's first comprehensive regional plan inmore than lOOyears. The plan establishes coordinated strategies chmtpdDbelptbc re ioo'a204coonozuoitieoaddzcoatrmouportatioo' housing, economic development, environmental, and other quality -of -life issues. Specific topics related to the Buffalo Grove Economic Development Strategic Plan include-, dn ooand workforce development, supporting economic innovation, achievi through land uacandhooaio&pozooioQcoordiomiedinveatnocntendthochezc and increasing the commitment toenhance passenger and freight mobility. Packet Pg. 46 3.B Information Item : Amusement Tax Discussion ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ Recommendation of Action Staff recommends discussion. Staff has reviewed the potential to enact an Amusement Tax as a strategy to diversify the Village's revenue sources. Attached is a memo provided by staff as well as a memo provided by Village Attorney Jeff Stein with background information about the tax and the Village's authority to enact such a tax. ATTACHMENTS: • Amusement Tax Memo (DOC) • Memo from Attorney Jeff Stein (PDF) Trustee Liaison Board Member Johnson Monday, July 20, 2015 Staff Contact Jenny Maltas, Office of the Village Manager Updated: 7/15/2015 11:39 AM Page 1 Packet Pg. 47 3.B.a Vl:�LlA(IJ, Olbw BUFFALO '�'F R MEMORANDUM TO: Village President & Board of Trustees FROM: Jennifer Maltas, Deputy Village Manager DATE: July 15, 2015 RE: Amusement Tax Introduction Staff has been exploring alternative revenue sources for the Village as a result of the financial uncertainty due to the State budget. The financial impacts to the Village are not known at this time; however, the State is by all accounts looking at a fix for the 2016 budget year and is not looking at a long-term strategy. For that reason, it is best for the Village's financial security to diversify revenue categories as much as possible. One tax option that many home -rule communities utilize is an Amusement Tax. The following memo will provide a brief overview of the Amusement Tax for the Village Board's consideration. Also attached is a comprehensive memo and survey completed by Village Attorney Jeff Stein regarding the same. Background Information State law provides home -rule communities the ability to enact and locally administer an Amusement Tax on entertainment uses at a rate anywhere from 0-10%. A tax that exceeds 5% requires a referendum; thus, you will notice that many communities' Amusement Tax is 5% or lower. A flat fee can also be charged but for simplicity purposes a percentage tax is the most common application. There are a variety of uses that can be taxed and home -rule communities have the ability to decide which categories they wish to tax or exempt from taxation. The following basic categories are taxable: 1. Live Performances (movies, theater, concerts) 2. Craft Shows and Festivals (carnivals, art shows, amusement parks) 3. Spectator Sporting Events (football games, horse racing, boxing matches) 4. First Person Participation Activities (health clubs, bowling, billiards, golf) The Village has many entities in the Village that could be subject to the Amusement Tax. Samplings of these entities include Brunswick's, K-1 Speed, Buffalo Grove Theater, Xtreme Trampolines, Twin Rinks, BG Gymnastics Limited, Health Clubs, etc. A majority of the uses, primarily located in the industrial district, that would qualify under an Amusement Tax do not currently pay substantial sales/food and beverage taxes. These uses are also destination recreation facilities that draw from a larger trade area than Buffalo Grove. The Amusement Tax would be a way to capture revenue to offset service costs (infrastructure and public safety) associated with these types of uses throughout the Village. -1- Packet Pg. 48 3.B.a Exemptions Staff would recommend exempting governmental organizations, non -profits, churches, and other entertainment events/activities done for the benefit of local organizations. The provision would exempt Park District activities and any local fairs and festivals such as Schwaben's Festival or other fundraisers that benefit the schools, local churches, or other organizations such as the Rotary Club. Golf Courses Unless specifically exempted, both of the Village's golf courses would be subject to the tax. The Village of Schaumburg exempts governmental entities but qualifies that the Village owned performing arts center is NOT exempt from the tax. Should the Village Board consider the enactment of this tax, staff suggests not exempting both golf courses and place the funds generated by the tax back into the golf course funds to reduce future subsidies to the golf course for either operations or capital improvements. Recommendation Staff recommends discussion regarding an Amusement Tax as a means to reduce the Village's reliance on property tax and diversify the revenue base. Staff believes that the tax will conservatively generate $300,000 on an annual basis if the tax was set at 5%. This figure does not include taxing the Village's golf courses. Should the Village Board choose to pursue this revenue option, Staff would recommend implementation of the tax beginning on January 1, 2016. -2- Packet Pg. 49 3.B.b TressierILLF 11 li • ; i 11 Privileged Attorney Work -Product Confidential Attorney Client Privilege To: Dane Bragg, Village Manager From: William Raysa, Village Attorney Jeffrey M. Stein, Deputy Village Attorney Re: The Village's Authority to Enact Amusement Taxes Date: March 3, 2013 UPDATED: July 10, 2015 The following memorandum details the Village's authority to enact a tax on certain amusements and the Village's authority to determine which amusement -type activities to tax. As explained below, the term "amusement" is not a defined term. Authority to Tax Pursuant to the Illinois Municipal Code, the Village has the power to regulate the following "amusements" in the following manner: • "license, tax, and regulate ... sellers of tickets for theatricals, shows, amusements, athletic events and other exhibitions at a place other than the theatre or location where the theatricals, shows, amusements, athletic events and other exhibitions are given or exhibited." 65 ILCS 5/11-42-1. • "license, tax, regulate, or prohibit pinball, or bowling alleys, billiard, bagatelle, pigeon- hole, pool, or any other tables or implements kept for a similar purpose in any place of public resort." 65 ILCS 5/11-42-2. It is important to note that Illinois courts have held that Section 11-42-2 of the Illinois Municipal Code grants municipalities the power to license, tax, regulate or prohibit all types of modern "coin -operated amusement devices," not just pinball machines. See Hagen v. Rock Island, 18 III. 2d 174 (III. 1959). x ca c aD E as N E a N C r� N c 0 a E 0 L 0 E as c a� E s U �o a Packet Pg. 50 3.B.b Additionally, the Illinois Municipal Code grants municipalities the power to tax a "coin -in -the - slot -operated amusement device, including a device operated or operable by insertion of coins, tokens, chips or similar objects[.]" 35 ILCS 510/1; 65 ILCS 5/11-55-1. The Village may also regulate or control the operation of such devices within its boundaries. Therefore, the Village has multiple sources of power under which it can implement a tax on certain amusements. Implementing Taxes Against a Limited Number of Amusements There is no Illinois case law directly on point for whether a municipality can tax certain amusements while not taxing other amusements. The main reason is likely because "amusement" is not a defined term under the Illinois Municipal Code. As seen in the above statutory references, the word "amusements" is used both in conjunction with theatrical shows/sporting events and gaming devices. However, when that term is applied in case law or in municipal ordinances, "amusements" generally refers to games such as coin -operated amusement devices. Consequently, the Village should not consider the term "amusement" as an all -encompassing definition. If the Village determines that it wishes to tax coin -operated games, it is not required to also tax theatrical shows because those two activities are not one and the same. The same reasoning would apply if the Village implemented a tax on bowling but not a tax on coin - operated games; the two activities are not defined as one identical activity. Therefore, there is no requirement to treat those two activities in the same manner. While there is no explicit ruling from an Illinois court on this issue, there is implicit authority under Illinois law. For instance, the Illinois legislature has distinguished between theatrical shows and coin -operated devices by implementing separate statutory sections regarding a municipality's power to tax or otherwise regulate those activities. Additionally, the Illinois legislature has distinguished between coin -operated games, bowling alleys and billiards by granting municipalities the authority to "license, tax, regulate, or prohibit pinball, or bowling alleys, billiard, bagatelle, pigeon -hole, pool, or any other tables or implements[.]" 65 ILCS 5/11- 42-2. Based on the plain language of the statute, the Village has the authority to separately determine whether to tax each individual type of activity. Finally, "coin -in -the -slot -operated amusement devices" are distinguished even further by having another separate statutory provision from even the pinball games and bowling alley tax provisions. See 35 ILCS 510/1; 65 I LCS 5/11-55-1. Certain Illinois case law has also implicitly permitted a municipality's decision to regulate one type of "amusement" activity and not another. In Rothner v. Des Plaines, 554 F. Supp. 465 2 Packet Pg. 51 3.B.b (N.D. III. 1981), the court upheld a municipal ordinance prohibiting "electronic games and automatic amusement devices" from all businesses without a liquor license. While the objector did not specifically argue unequal treatment, the ordinance restriction in question did not extend to other "amusement" activities such as bowling alleys or pool tables. However, the court went on to state that it was "well within the home rule and statutory powers of the City of Des Plaines to protect [minors] from coin -operated games." Id. Finally, the Village has home rule authority above and beyond the powers granted by the Illinois legislature. And because the Illinois legislature has not prohibited a municipality from taxing one activity (for example coin -operated games) while not taxing another activity (for example bowling), then the Village may exercise that power. Currently, home rule municipalities such as the City of Chicago do have differing regulations on activities such as performance shows, c bowling and billiards and coin -operated games. a� N Types of Amusements that can be Taxed a The Village currently licenses, but does not tax, "amusement activity" and "Coin -operated amusement devices". The definition for "amusement activity" pursuant to Section 5.08.010 of the Code is as follows: c • An "amusement activity" within the terms of this section includes art festivals, concerts, carnivals, circuses, fairs, trade shows, trade amusements, boxing and wrestling exhibitions, traveling shows and any other similar or related type of activity conducted for the furtherance of a business enterprise. The Village may want to consider an expansion or amendment to this definition. There is also a catchall provision that states "and any other similar or related type of activity conducted for the furtherance of a business enterprise." While that catchall provision has served the Village in the past, it is advised to have as many items listed in this definition that specifically relate to activities the Village desires to license and tax. The amusements that are taxed by other home rule municipalities vary greatly. Attached is a spreadsheet that shows how 24 other Illinois Home Rule municipalities tax "amusements". From that data the amusements can generally be described in the following four categories: 1. Live Performances a. Comedic b. Theatrical c. Dramatic d. Musical 3 Packet Pg. 52 3.B.b e. Opera f. Concerts g. Speeches and lectures 2. Craft Shows and Festivals a. Amusement or Theme Parks b. Animal Act c. Antique Show d. Art Show e. Carnivals f. Circuses g. Craft and Product Show h. Fairs i. Flower Show j. Motion Picture Show k. Poultry or Animal Show I. Rodeos m. Trade amusements n. Trade shows o. Traveling shows p. Water Parks 3. Spectator Sporting Events a. Auto Racing Events b. Baseball Games c. Basketball Games d. Boxing Matches e. Football Games f. Hockey Games g. Horse Racing Events h. Lacrosse Matches i. Martial Arts Exhibitions j. Soccer Matches k. Softball Games I. Wrestling Matches 4. First Person Participation Activities a. Arcades b. Batting Cages c. Billiards and Pool d. Bowling e. Dancing f. Golf C! Packet Pg. 53 3.B.b g. Ice and Roller Skating h. Miniature golf i. Motorized Racing Carts j. Physical fitness centers k. Pony rides; I. Swimming m. Tennis n. Instruction or demonstrations of any of the above The tax rates charged are based upon the admission fee and/or the cost of participating in the event. Municipalities charge a flat rate or a percentage of the admission fee or gross receipts collected for the events. The flat rates span from $.25 to $1.00 per person; the percentage rates span from 1% to 10% of fees or gross receipts. The Village also has the option of charging a different rate for different types of amusements. For example, a neighboring community charges 4% for movie theater tickets and 1.5% for live performance tickets. The third element the Village needs to determine is what, if any, users or types of users will be exempt from such taxation. Some municipalities exempt out certain users from taxation such as other governmental agencies (e.g. the high school charges for admission to a baseball game) or religious/charitable/fraternal/societal organizations (e.g. a church carnival). As a side note, coin operated devices are already "taxed" by the Village in a way other amusements are not. In general (by the state and numerous municipalities), coin operated devices are not taxed by their use or at a percentage of their derived income, like other "amusements" are taxed. Rather coin operated devices are taxed (or in the Village's case "licensed") at a flat rate per device. The Village currently regulates coin operated devices and charges a license fee of $50 per year (or $25 for half of the year). See Section 5.12.050 of the Buffalo Grove Municipal Code ("Code"). Therefore, since the Village already implements a license fee in the same manner in which these devices are often taxed (at a flat rate), it does not make sense to create a new "tax" which could be viewed as "not business friendly" and may be perceived as double or excessive taxation. Rather, the Village could increase the license fee amount and achieve the same goal it would by creating and implementing a new tax, without the headaches and the perception of a new "tax". The last increase in the coin operated license fee was passed in 2002. Conclusion The Village has authority to enact a tax and/or other regulations on amusement -type activities based on the express and implied powers granted to it by the Illinois legislature. Additionally, 5 Packet Pg. 54 3.B.b an Illinois court would likely find that the Village has the express and implied authority to regulate some amusement -type activities while not regulating other amusement -type activities. If the Village does enact a tax on any type of activity described above, it is recommended that the Ordinance adopting the tax specifically state the purpose behind implementing such a tax. Finally, the Village has to determine what events or activities it wishes to tax as "amusements"; what that tax rate would be for each of those "amusements"; who will be exempt from this taxation; as well as determining if the Village wants to increase the annual license fee for coin operated devices. no Packet Pg. 55 (xel }uauaasnwV : 6 �Z�) uia;s mod Aeuionv woa} omew : ewLiaeuv o ' '6 U iC U OU ;�CY r✓ cO N O i0 '� U � bA ¢, � O y O O U `� p . U RUC ' R, bju O Q. �' ct N O", U W O m y 4 cC O N Q O p¢ b.0 3 w o oc13v a o to ci to °° o r. o ti u O �. v N.i v A. M �' E p =ti 5A E 7� ¢ A. U Q 7C .gyp. O ct U c ° Z7 °� w lu O cC0 c3 r. Q+ r. 1 � 121 N U O pp Q.i C cC ¢ t ON 110 ca zt E; > t U p pp O cG LLJ U to U v _ > O O U r to lu S. O U °Ob Uo aq w co °.U. 'LS U U U cz au u Ic 0 F^ U �+ _f U U (xel }uauaasnwV : 6 �Z�) uia;s mod Aeuionv woa} omew : ewLiaeuv o 0 �. o o R � � U p U t: p U o YC O U U � y y 3 w r" o y o al t O ✓toLm. O t ca r.. U O t vi O U bA60 O l bp CL U+" '� a' O O bA cd y °w _ U� o. ' • U 5-I y E :r E opn 75 O r. O Osr L7 .1i p U C U � U U Q i� •� G U N " U W U (xel }uauaasnwV : 6 �Z�) uia;s mod Aeuionv woa} omew : ewLiaeuv o o v -or 3 bA 'O y° o Y c Ln m r c lutU bA O v N a)O ° O Y :.6 .p c I'dN .. dj C Uj O iti c� O Vi G Y Q L O xcu :� _ x C aJ U .. r.. a) x ^ X YO aj O vpi 'j, ns Y -✓Ui w o a �.. o rn �+ a Y L 3: W V s O o p Pr O aJ a! '6 O '6 U N W 'O C ro Y ate-+ Y� •y 0��.� � •> U � .� N N •o c Q Q o U o O D o bn �bA k 0 ra ns own .°ct o U 'i. '• y t C C .L' cd • U W � — Q co 3 x `wu U C co U O �n O U W O N V L a� cz bb cu ° Cb •� co,o 40 Cd cz 0 by U tl 'E s° � � U C w w C�. a a z o a, o 0 Ij ° c o Y o ,b cn tj — � o m a y7s o o a 3 °Q ° w o o 0 o •o 4- v o °' 3 Q y a 0 y$ Q u° U � O � � C y U ri U U U r U Q G ° ti a� ;7 bb W ti W co LO a aD a (xel }uauaasnwV : 6 �Z�) uia;s mod Aeuionv woa} omew : ewLiaeuv a, c o o ° O 2 N Y o = N.0 C: Y v c� O Q C ; a, a, 0 (C6 N ° O O_ V U V •u Y -6 0 N C C (0 Vi C C C O u O m �p p N � C u C � O C C Y 0 C O C O ... ow — -0 — 'Y O a, C 0 'Y r GJ N Q O N to •Y C m N Q a, •; N C E Q C C Wm 0 'uiii w h0 u C CLO C .2 O (a O bb .LA i O O a, 0 iv O `p O� p_ O E N a1 C _ C a, y�.� O O a, u N C O m • C C U O O� O E 8 E E O O V' K Ln u N `� C O V) O v a v E i `^ Y O 8 O O Q = Q p N u Q Q— N a1 °Y' v 3 0 y E t `o u E O_ O o w N D O u i o v 3 v o u N Q N0 U v N — 3 O + p No � E o = Q m Y n -0 0 t a C E N by v C E O O ca t U y p v E C 0 L, O L ❑ W "a 0 0 i+ u 7 u N L — u d T C 'a 4t 2E i > a, °- p C CC '0 cC C 0 t O (6 Q O a, C v= a, E E C p °' t p OU O N CS - to a, O N .. bA ? Y t %• ? Z 3 = E.o .� o a a� a v a a f y Q @ p ;- O N N Q crl O bq v v O `0 Y O to N s a, au, Ou O -00 3 x Q al Y CL a, O u oa w p N N w O u -S w° N E ce o a� 141 o °° o fl ° ca 1 y�i on N vA u N C� �l VJ 4 L� 7 v Z E vi c❑; c`a 6' N N '0 '6 cC c6 .ri c4 cC u ¢. O u cC ¢r p. U � O C N u U i G 0 Im LO a aD a (xel }uauaasnwV : 6 �Z�) uia;s mod Aeuionv woa} omew : ewLiaeuv o> a o o m N Y N O O -0 m O p m 4-76 i N U N V V N ` LO u N i @ v L U N •C N >` @ dA C N o E 3 v 3 N O w N O1 i o a o o v O Q a @ g E O 00 N C v @ Y m -6 O O cu Y Q m cu N O !n N v E Q D N yo N Q t y O x @ @ E Vf C L 1/1 N N Y> E N N L U .� E Y Q N N OJ .� y C v@ C N @ Y O @ E > p o E C O- N m Q @ N o `� T vi O C 41 Y O w Y 0 Q O C i 1 o +' 'o 7 L -O 3 7 C 'E m 0 m p N N +O+ C 7 O L O p 0 L m O, C O N C T U Y U1 Q E N o E N +' }' O N o Q O N C= p E Q L-2 .E C m C O ro U1 -O L O C Y Q N C O c� N L o 0 p U _ O@ E N O ya v 'V • N O •Y v 0> N 29 N @ O-0 v >. a -0� _p rp u E E y > vi 0 ON a0i ` E v m E N O+ Q N O N N C ow w O O O N C i E a� w 6 N O C O-0 N O L N� L E O L C E C O N @ Q ,0 N �_ v p m Y C m m Q ew o m a� N @ E c .- o ,�., E o N E YC W N O 3 c C y O O 'Y p= N N L vyi Y *' m a N Q) V O O E ;Y O L C � m c� QJ N= Y @ O ,� m u v 3 L O@ Q m L T O YO Q N N N U E O E � O E Q 3 ?� ,� C Z o O 7 Q am+ v 0 C `� O p 3 0 Q v N N N O C C v ai m� Q oD O p Q p N C O v; Y O C i L U N N Y Q L T O w Y E .� .� N Y N N p L O (m.) @ U U Ql m Q C 7 .� m N N m iL-+ .0 m Ql � U m O > i O Q@ N C' E E N U = _@ C% Q p aL-+ O O 'O 11 Q 'E C Y L Q Q a U L C >j O 7 X O Q v N O U UO U p m 'm b0 Y 0 '-o m O N N @ .y -6 O- N m m > L J y L U -O LL m Q O N @ O O .a) E N Y C N O -O Y C *' m N C O w wY = 4 0 +O+ @ @ �^ m N C L Q Q U L '^ L O Q E Y m •m l0 .O w n _i N @� 3 W •c E O O Q1 v N •2 p 3 p O m E L L.+ Q N O GO C Q C = U N N O m v C N (6 Q N 0 p v'x aL-+ m -O O m N w +' OA i1 N m •gyp Q Q C f0 pp -6 U N T N UJ w ++ L m ] m ++ E m T iL o > o m y N v O O N E o a C L r- C o@ N 7 C > ao m> > > C v E o N m C Q @ O Y °p m m � � V C: Y N V E S> L m Y m @ w O O H GO N b0 p OI) @ Q Q E .� a c y N m , Y -2 v 3 o — @ c U o o o L p v N u4 o = c m L Y � U U O m o -0 a N v �b=v n _ o.�� y E E y @ 0 L t v .E N a x 3 @ a) N N -0w d a H ci U r. .O L i� G (xel }uauaasnwV : 6 �Z�) uia;s mod Aeuionv woa} omew : ewLiaeuv 0 o v L T v � .� N E L Y Y v°� a Y s ) •> O O Q m— L +' N N C46 ao O N m Y U! O Y 0 c Q t L O 7 0 N Y CN O Y Q Q E LL N— QQj N N m— m N Y O c N C m .� E +L+ N C >' N m �_ -O Y E O N m m L m m m N Y O L m C aj c O _E _ O> 'j O O fl- ow b0 O E 'O L a+ > Q E �'r X YC u > CL.1 L Q N aL.., aj O Y L U cu O m }' W u E t N N v C Y L c c L C�0 w 000 v 48. o U O O— YFoU! L N = U L -0-6 N O C m _ N O a! Y U T an m c N Y L L N +' C N N N cu Y C L� O L N Y Q a)?� C O O �, •Q C N Y LL p v Q v .E zs V W O E! 'O v w L E •— . o un a! C E v E m o m tip E Z Z i — N -O •�, O > cu bL.O m o `� E 3 0 cL -a E Q t v v 0 u u N m u `O V O dp U! o U O N u w O OA C o v i E N O N m m o E-0-E E . m N ! v C Y E _ c- E c v i N H OuD Q N O v c E Y > C N 0 U C Y ce cu o u E E E 0 � J � u .c: C Y N � C V E c E O E m m U V�1 � Q L O a)E O m p m a a! Y L Q m cu V N C � •m — 7 m (u7 x Nb�y.��w�o ao N a cl � U O is G ID ^C N �H (xel }uauaasnwV : 6 �Z�) uia;s mod Aeuionv woa} omew : ewLiaeuv C Y N 0 @ w > a)O O 1 CN E a CL @ a) C aJ O N O .O p u p O p m O N QJ N > > w @ Q Q ° OA N C @ 6 N ❑ O N +@+ C lD N C � O � •� N a: ow _N O 00 — N @ E X N 7 Y @-0 aJ �, O U _ O W — C Y N O O N a) aJ O YO aJ Q Q p Y -° @ a)N @ 7 N C > 3 E a�i aJ CL a o V; Y b = O C 3 -6 `o C o > @ a)w o oto — - O Y O Y = O @ a 3 @ U @ @ N s aJ aJ a) aJ Q E @ @ v .^_ Y i V E c 'F, a)C E v C v C v V N @ O aJ aJ N F a) @ J ba V J V J V J Q E 0.0 aJ cb @ s @ W ai 3E bq C @ 0 .O � � bA c bA p @ a aJ @ a O Q w @ N .Y 3— C E O— C. tCUv xm UO @a o� •>ai sN F N N E E aJ > bA E @ N E ° YO x c i] u ora u E °= La N @ 0 0@ O E@ @ >' aT+ Y aJ o a, v — J ° v ar i ar — E aJ E CSC Q L mucU0 - O N 0@A O O nn oo ON° m0) Y Y uO = 4-; > CU O CUEm E E OE ( v —3 C° N E a) u m0- 0 .vEY -a bE u ba aJ c u o aJ - o Y O o oa r u v J L Y ,O -0 -O aJ aJ .3 E +U.� U M t aJ -° Y L O L @ @ aJ @ 0 O (6 w Y N 'O -p aJ W N Ql O Y 3 U YC E 3 t C U @ u ++ 0-b0 C -° O O @ N '6 :EQJ .�^ O Z a'' Q a@+ ._ m +O+ E U @ @ @ @ r Y O N L a >• C LJ ° Y Q Y vi aJ U N V ' ai L v1 >• V aJ C E@ a O O m 7 y u +-' E@ p " CL @— @ C O u u Y '6 '6 O t v O@ 0) aJ Jw 3 p O Cc: `QQ p a aN a o -0 p> Q E �-o -° oo@ x cCL � Q Q-0 @'p > N mc v N N o55 '° to o y o j o 40 U U i� G C M (xel }uauaasnwV : 6 �Z�) uia;s nor Aeuionv woa} omew : ewLiaeuv N a V _ ^ a 0 7 O N a X a L m N U C C 7 a a pA C m C E Y = E m E ❑ C m ° C a � aJ L w N O C GJ E u Y Y L a N C m a >, N O ° _0 o E o W C bD C E a m o a O h!J a m °u O .^L a N N Y a Q m rL+ +a+ Q O N O -O u _u 0 O a -a a Y a� C a� a a m a L N C C C a a m p O V V V J 7 V •V X J J J O E '6 N f0 t Q I� 00 Ol v Q C a a to C E O aJ m m vi L a C (0 T O_ O Ri Y u o p LJ v a CL 7 00 �� 00 E Y o> w am a° C L E E `6 m c `0 > •C N � bn tip a o .E p o a o a o 3 a L o f aJ 3 c '6 N a O 4-;' u O_ O N+ hD o m C N C .E > O O> a a o O V T N O v O m N a E m a c� + O ON a u •� m bA O O YC L O E Y E E L +' N u 3 O_ -1 > m T CL N m E' y F" 3 N ° C o= �Y v m a a 0_ + t E v�� m- V '� o _ w p m u +' N Y �, m C a V U N p L N 3 V O C aA m u C L O N c C o c m eA m oA a — O *' O *' a p �° =+ ❑ a 0 O a 'c� —_ L a 7 m •C — a C m> p O a C O bA a CQ m N C m= E m L N m a u U Q w a L U > ++ L Q Y N U L ° o lu bA 7 L m o X O N a -a L T a 4-� O a u •� .u. C _W C: N p +� m a a N aT+ E— C Y a 4- C E u X '} fl_ o E m O a U p u C C ° X C lla L a '6 m Waif Q N m aL-+ O 00 00 C O N aJ O C a� > Q 7 N O O 3 Lam— _ m E N *' ++ O m o= i a E +' j, m a N m r, E a W bA O o L N v v N m a > n> m a L o° b axJ m 0- v 3 3 a m a a m " -0 -0 c° T a >• T T a0 E C T Qj i Y, V E L w E >' m m U S." `� y a u1 l0 I� ° O° Q 00 F +-' a ++ C m L u L L O_ O_ A. N -0O— m m m L H m ++ ID c v w a d O cd a cC U N '� i '+-i a s ° 7 C a a ° O L a �' m cCC a0�n °' ° a4 to ° y E ° �? -a E a bA E E N o _ o a a� v a C a v C a ° p 7 O m p- o D- C: T > 3 xQE oOE 2E CL a. N N > m U is G � G bA 1 �4 �Q (xel }uauaasnwV : 6 �Z�) uia;s mod Aeuionv woa} omew : ewLiaeuv v v i+ C VI o C 01 O E v a Q @ -0 C: ow Q � •N v@ G�J O O O L X U Q C W O Q O O O Y O >1 C N v Y v N w N .O C @ to m L Y O uD N C U ) N E— C� @ o 'm 'vi 3 c 4t, @ v o @ v N O Eo E @ E c @ dp N Y � � Y Q y O Y O @ C bA aj N u a@, ❑ cc y u O O @ p '^ N O w Q Y E s Y E v a c CC ,ti Li cC m Y _N _ U E v L @ ti0 L p @ @ j L t 'O .0 E u v = v v •O_ O @ C O O_ 45 Y QL E C t l O v� O C C 7 E @ B) C m Y !E T Y @ O p OA V U t -p 0 Q 'i fl_ O N .� O 4 U y Q t w N o E o 3 °Y' o x o 0 Y rY-r C N 0 CD O C VI @ °�° Q >.� '✓� �' ;/ Y o o y o X ° o E E 4 w H N v O-@ U in 0-0 W U Y U ❑ ~ M r+ M y 00 O [� L; VX nl i� Cr O O � (xel }uauaasnwV : 6 �Z�) uia;s nor Aeuionv woa} omew : ewLiaeuv • N t .I Vl T O .� w M aj N 0_ Y N u — ° Y aJ i 7 Y c 0 N >, a! L Q (0 N O_ 3 7 y x N c U a1 n7 L N a1 .2 V 3 a .� .Q v o 0 o bO N Q c N 00 Ca -0 UA o i - L c 0 a1 O 'O CIA c V E , M M -O = L O M @ = y vi 7 0 a! LCL Ql vNi O L O c j o +� .0 'v O •°—� E O O L L aO+ C bJ] a1 a1 a1 v t a1 7 N u 'N C U 3 '� a 0- Y U O '6 N Y aJ N E O i vm E 7 7 w o Y a V O• c c 7 o co a1 L O Y v-0 0 0 O C p L Y C C vi O 0 N 7 E ow L a! V E Up V O Y 3 u c E w V O w O O N c L V L O O N V E — -O Y L c c O Y ,, e c aJ L c E W Y vv m .L) Q1 Q a) Y -0 — Vi o ° T u C O Y u ° O Y t O L 7 U N E > aJ U 0 aJ a) 6 C O O N N .Y t o N N L N O_ — — � L T O .6 n�i M ° 0 07 O -O a) E O CIO Ql U YO 7 6 O Y— T 7 C -O A O C Y 0 7 O C .V O > Y O u w 4 E p 0� O .� L }' a, 2J > to a1 o o N N 7> Ewa_ 0 O 0 0 hA u •r E o O O vO 7 ° a O a rO ° Oa1 0 0 a -0 Q? 0 M 0_ u Q x -p CO O E i2 E -2 wv a1.o0 — aiv o U N!E V)°(D°Q 0 N 0r � >O O vYv1Q NQ ca c o Q c O_ m v = N O_ O_ -0 Cv oO_ v N T 3> M 0 o = v a °� O v° c p @ O v oA v= E v v m°@ s° v o-0 0 3 Y ao C o Q v E c °A u v E° °' v Q ocA c E o c to "u Q� N n ai _° v c c m o -M N N O w N o •N c V aJ o c L D 0 i > 0 o u 0 0 c aJ c Y x (� o= 3 a �° 6 N -6 .N v E v Y E '2 f0 o x t N— x E u- 3 C6 c 3 n cb o aY' Q -o Q u v 'tYo E E L O N Do = w _0 Y > v1 vi a! a1 0 i v -O L .N GOA a1 ro (a L+ a1 N N Y E L Cc: -6 N O O O u u v1 ra ro LQj - M 'i •+� E -O a1 Y �' +' OA O ° V 3 N a o .Q 3 c V a L C c o M OA > a u c E '� c >, o v O m 7o U ,E c — 0 Q a; nA o c :� ao 3 o t o 3 3 w o 0 °- 'Y o M ao > E v [� .L 0 o V 0 . i A L o N v N o L` v T— ° Q N `1 � vt .� 3 a M-0 a) t E T a o V nsY V N v _— M E 3v a o v 3 a� a 3 ° Cw o a; p x E u N E m x E o o L O ai E -0 •� E v L N c 0 cA 0 °o v 4 i.� O +_+ O CIA L u L o (u E ai E M a o L E ° C0a ` 0 O— E 3 °a o ucA -0 a o b0A o o o E° 0 4 .0 a p N x ca 'U V " O E 0 c L .� 0p O N Y ca Y y CA 0 Q 7 Ql 3 O c L N p C � C O_ O 7 (6 L N •= ca �' L +�.' 7 a1 N f6 N O_ a! fa ° aJ N 0 w C L"' 7 ° t o c C L Y 0 L a1 7 i U � � 't_I a1 Ca vOi U N E c o iA 0_ N N= ° E '3 N C C O v >, .o .� N to v .E O U N .N = Q c 'L w U v u t ar aJ E L .� E E m a a, M u c oA ° u c cua ° � v o ca 0 3 N 7 >, cM N � c c c v E n3 •� aJ T c .°- E *' V c6 V CA >• u c V 0— +' x Q •++ c>3 Q a1 .. > Y 7 U E Q @ 0 Q' v c° o o '^ o= o o �° `� = Q vi � E -° Q c' -0 ° E t O E 'c V M m c as v .� c6 .o ao c L > r�l @ a) w m v •c c +-' o ai bD O a v E° N oA — v V aJ v oA ° Q —' 3. o E v o W O O O L 6 — 7 L '� 7 7 X O E 3 V E i E ° Y ° 3' °_6 o f n o Q w 3 Q Q E v 'N a°o s MO u 'N ° ° c N ° c M 0- o L p a cu h.l cu Ql bn Q p Ql — a) aJ L O v C 0 vi Y C6 O Q O N p 7 ° Y Y O a1 YC CO N Y c a! O N '� O a1 a) on �"^ N � O •� aJ c aJ OL 7 L w O a1 vNi > L w E N i E N Y '� a1 c > Y 3 Y i L 7 Q E _ x c- E-- E Q 3> p w O N v n� v L o c— Q 3> v a 7 Q E m Y 7 ro Y o 7 u v N M CIt cn O � U a p-' N (xel }uouaasnwV : 6 �Z�) uia;s mod Aeuionv woa} omew : ewLioeuv > bZ -6 0 C: o '^ N -p C i m yL.. @ a+ 7 N O 7 C L N Y C O m N m L cu 7 U C a) a o -� E v o 3 t N ,� Y p L c N o Y v E m— E by L m m Q t N v L Q p a 7 .0 C C O U' m C L N v O= O a1 C T N@ a) v i X 0 m 3 c 0 N E y vi c Ln m u .� L v= v o v m o 'p N E L O p- m N m m m O N _a c N V m ''' X c N cu 7 m m Lcu C: •y c a) 0 Q i > m T Y -O O O ,L m 'i E Y x a) L a) N N bA N C m y Y N N C a) c cu by 'i �,, O a+ L +O+ () Y m N 6 m Q_ m y m 7 E E N L O N bA %< 0 7 E C T N 7 •' aj Q o L > C L m_ N Y E .� w C p N N vi 3 to C T ❑� 7 .0 a ._ U O bC0 N a) — 0 -6 m T 'a+ '� 'V.3 a) c> aJ O L m m Y W .E b.0 C y .0 Q! U — y N .0 ` O O Q i y_ m y +� a) L N L N a) � +' N U L -6 a) T m L w O .0 Y a) Q_ N O a) >i c a) a) c a v — C m bn o 7 c m, c v m N C 7 m m C O U N bA p i C- p 3 -6 C �' O bn o a) L E c Y T O m o 7 — L Vi m C 7 O OU C �- Y m � Q Q C U U— m L C aJ y O E-a a) w N C C `-' -6 O "7 o O >, Q E L Q O L N 0 y L +, T aJ b0 p c m m — E > c o o c E v m a) aL"' — O_ v 4 ° ,v, N fY0 m V N > L a"' U > m m Vf y N y •� E c— c o o bA m w ° y c t E cFo t —cpi N o> o o m° a) N N i m E N y v 7 Q_ Q_ C •�'.� 7 N m O OV E '6 O H 'yJ �• �• -p (6 N ,'ZI � N m > N 7 p L p .*' 7 C h 6 E -6 -6 Q" m i C L C L 7 m m .E Q C aJ U y 7 a1 o L Y 7 7 O C o a) aJ u Q_ -EN w m 7 X 7 L V X L N E m C o N -0 u m N Q m y N O U L (D L a) a y N -6 +L+ 2. N O E N E m 0 7 u' E N L E L a) y Q E- m � v m y '� E 7 N to O c 3 v E v E s m c_ w v Y T m Q v N b7n c a y O i c E v tiA o m 6 m 6 m v a Y w v m p o .N c N o m E 'a N a1 7 -6 O E N O E a) Q O L a1 U C N N E :' O -a)Y by Y ') Q_ GJ a1 'C a) cmJ Cz0 cu @ OO U E H E 7 Q 0 N O i L" C C C N m y U a) O m bjo a) LO m U o v c O Lvo ar o L a' mE 3 '6 L Q—to _m o o N o p o C: m m L bn v E bn y o N ° o @ Q u E a 3 E> p L� E C L v o v u ai N E L m bb w L 'V (° i C Q) ai U m C N O � O Q- m N O N Y C J c m m a 8--o 'N +p 'U m (! E p@+ ` E—� u 'O v m w L � C 7 E p o +� ,} L> m v 'N L '� XQ. NQj O> C L E O a O N m •0 3 Q a) c 3 Q v N 3 c C Y a c- E m v t o E c y 3 o E a) v o 3 'E b° v o a E>> E @ u O — v a1 3 6 L u -0-O Q b1I Qj N N O L -6 b 0 0 a) a! m v N O-6 am. �_ p (D �' F o L s v >-- N a1 •_ w b.o m O L m v E E y o 3 ._^ > m 7 7 Q_ Q.E a> p m C m u m O C w V o Q m ao� `o ° bAL m o m 0 a) O + C Q '� O N 7 T C a) y C 0 O p bA N a U v C ram. ce O,- Q_ o w +-' a) C 7 U N a) p v m v Y v _m .0 Q v v �; o ao v> s N o a v �_^ E m E v v y v o N y v _6 c a, E y m `� E +� c c ,� N .0 — *' m a a mac— cu .� Q E u v u °Y' "' -6 p- U O C O C bn o N y T '� O N N a) a1 L U E CSC x N N C 7 _� m N O N 7 C aJ a) bA 7 L +' O -6 E O C ., Y — O aJ V N O_ 7 O -p H am+ Q v° Q 2- C �, T m E o E— E m° p L >• c c @ 0 Q- aC+ i >• 7 m c E a) N L v @ L N 6 m p— o m 3 u— > m o Q E u m m m o w o Q 3 0 m m .� 3 w m u m ci U cl C N .� a) O is G U U `) � z (xel }uauaasnwV : 6 �Z�) uia;s mod Aeuionv woa} omew : ewLiaeuv v O o Q v = Y = u =5 C iJ O -100 CC iVi N' � O E C ._ u C O N! O S '� O U O .� O v @ !Ew '� O O Q� .+' ° 3 O N o o 'c .E c o CL o r. n O LO •� L 0 0 O O O .0 V � Y UJ 48N O u O E C O O c C C O C Uaj a U O (U +�E — w m N r� v O t6 0)t •cJ O_ v "a N Y N w L ON = N L ate-+ N .0 -C U L: L � Q C CU L '> C O O O w .0 O > Y aL+ v C O c6 biD c3 L: o X .� > C3 O O N '— '= Y c w� � •v1 'O N to v� C X W "3 N OE - Y O N N tm O O C O Y - bn N F C V to = O -O O c3 'O u N m QJ O N U -6 y0 m > L (3j 10 p O v Y �_ C F= CSC O O C O N Y n CQ cu /p i U L •i. ,O _ X E U IDO U U O C > O Y t •y 17 vv Y U � N C C C" L � c3 O E Y y X -O C ate+ 0) C 4: ice+ v t y C O N 3' x v Q tv v v c E w O - U Y U N v n +C� •� 3 tU ._ .'. U O C N w tL w lu r CL� V i O 00 O N N�O vaj l CY 'O O 3-C6 N N ate' aCYCC !E.c �N UO iI O C U E .O N t =U CN Qj N �1 ? O C C D n u a O VN O} O •OCN b �Ly vi F �i U ++ ate+ d 0 tU O Cl) v C - tx U1 ry @ C £ Q) N N v C (ll N N C Q N N Q y— — yCU v Y N Y N C % to (� — t6 w VI (U v V v N (ll N X C = r6 m tL tL U OZ —> O N ate-+ ate-+ aO+ U O L) H is r". O O z z (xel }uauaasnwV : 6 �Z�) uia;s nor Aeuionv woa} omew : ewLiaeuv _0 QJ U N Y N 6 O a, — yv �. Y Y C -° N O Y p M 00 J -0 Y Q, L m p a, p -0X p > O Y aJ O C O N aO+ p_ O m a, U a, a/ O L ,� 3 E U vI � N- v N - Y O N N C C Ul 7 m° O U mO lu Y _0 O N O Y E 0 USA C u 0 Y 0 a O -° ❑ O — v a1 .E Lo0 E Q, v p N O - a, O O O O +T+ O O p O�+ a 0 owO 0 m L 0 3 T o v Y Y U m n3 a, 7 O .p- -p ut L C 'O Y O C �, a, L N Y N G, YC L in YO T N °- Q L Cc: E L a, -O o- a, O w N 077 0 OO Q 7 vOi 7 0 OD vi •� N L Y C ULD O OU N O L Y o -6 7 L Y bD C ° 000 ° � Q O m" — N - E N LJ N C N U Q }�+ �'' YO Q= U p Y ^ O E — C � N m.N — C p -o — '� a, bA U C O C U C 2 Q ^o C E N X E i m Y Q -O •> '° p wO O a, o a, 00 C:_ 0 O v C V` 0 0 >, c, ? 'u N Q ON a, v@ Z +' O_ O 7 Q N N ut C O u vi o 'u E, 0 v 3 30 3 ° L bC0 .� (B C ,N � •`n C !Etp p O � v cu a, U L '^ ^. a, m OD O O 5 .Q a, a L M 3"o O Q w ° O v�i �p O o L aJ % E aJ *' aO-� to -o .� N yUy aJ L Y U o a L � *' Y E v L > .� C � 3 p L C ut ut bA v N 3 � O M ° m ° o m- v a °� L v, O aJ E •� C 7 L, n3 u fp U a1 N @lu p .YO— >, p N N OOA N O L a, — L `� L nl C-:: = (6 c¢ o c C E a u .O ,v E E 3 a1 nl X T a Q) C �.% b0 p c6 ro aJ o u r, Ga ut C ° U. E w O L v �^ +O+ C: •�' O ;-• C '� E O C-0 ° u Q ° CM: a�i c _6 E a .� c o E (Io E aY, n o - 3 M , ^ a) > U ci ba L O 'L .— a) n3 ° DD -0 o E 'U � aXi a c Ln ~ a -0 m a c �' >C Q, (a in O Y i O C w cn >. uj O Q L 3 O H L > "6 . a, t3/1 F o° o .� c c��o c- 3 > Q o Q p0 v .p i ; 'N '° s � T m E 'E ate, +� E 1O aa) cv, ° aYi a L U yy V Yo W i Y N -° i U U C -° Q Q a, V ut 'a w Q Q U ut Q O O Q �yJ p N v •c., ram.0 O o w n v¢ aJ N > to Y Q v O +' w *' w° 3 o° a a, x O U v i°. .� a, O> Q .� C E L N Y Y O Q �F Y. -° E > YE m {U. -0E i aJ �n p O a1 UD cn N O .�^ ro v O u a, -0 L E x Y o w° °^' L as ° o .E3 m 3 m n m u as v O ci U � N C N _ � U i� G � O (xel }uauaasnwV : 6 �Z�) uia;s mod Aeuionv woa} omew : ewLiaeuv vI v7; o co L v o o v c 0_ v ❑ o v o m ow N N C C10 m .c E W o � v o cu v a c 'v v L U a'' O n O i N c c m 3 O_ O O ° � v .Z- '^ f° T c Y L ll N C -O i O co v O a.+ c O N `ti N a+ O v �^ a C m C O -6 O -6 w '7, -a •C C �- O O bA c t p cm: a+ Ya c '1 Cv UU VN UJ 6 U ;.+� m O ° E O_ 3 O v h-6 O c C '° LE OL- Q c O 0 ^ X°� o > a)o > .-a E —L`•y�mN avOongiv > c v °L 75 o -a E cu N Y t6„o +CT+ o E o o m N >2 3° v L v � N E v CL -0 � v O 0 O>LC0 N UO E Nm3 O O ° C °N °L O Z 6 o -0 )0 c O O n 2 -C fo C C 0 d o �E �� , 0 a) : Q E a) ros° bn v o ai 0 v 2 m ns vc Nc ra-0 '� ° 'E" C o-0 L °° Ev vc:i N in V c N viO O O C N N ^ +�O N (U 3 N m OO N E L++ o cu U> o v N aL L -E c UQJ o +, C 4O — — fa"O m Q hQ X m Q i C E .0 > >>irl L m N i 7 N v (U Lil c Y V L m Q Q L N m V E m N i N UA N c E (U oD oD m c C- v 3 v c E '6 �' �p C 3 E V U 00 C C N ° O 0- N m i L c ++ c .0 '++ m O L m i N O >j m N c i O O E L m° m >' 3 3 O O v >, E �n vOi 3 v +� E 0 O a:., 0 m O dJ v 6 L v a+ O U w (U ++ E t v Q m a + oa E Q u L L � �, c m m �, m 0_ C c-i m v� L �, L L �., +� c m c m w c c v oa .E m v o o v 0 O U 3> o a H U cl C L i� G O N (xel }uauaasnwV : 6 �Z�) uia;s mod Aeuionv woa} omew : ewLiaeuv r o ow v � w o. � T N o o F7 N ° N O U (U N N 7 i L L a1 N u ra C L ° > i Y .bA c > N iJ O O N 3 p N 3 N 31 o .Q o a, o ra c L @ u >• (6 t Q (6 U W Q OU Y -6 (0 Y v 3 Y i U k y O o Q N .> V E N O aco °Y' C >o a1 E +O+ C a1 3 � Y 3= ° L z v a' !EE .S E u E ° c Q a o U E ° ca c >' °> •E c Y °° c c L a o N w axi o° v— v L v v L v> E 3 c w° Y Nto v 3> `� Eo ra c c m .� N c r-> u ° 'Q v o° aci E E � 7 N c6 w ns E a) y C E C v v - u aJ E O '�, u N > C a1 O cd R. p. E L Y c c ° Y c � u v 3 v vi i 3 v v O Y °° N "° a m E ro E O� E �.U. . N ✓, ' R X v ar Y u c au ° o Y c O '6 c0 O n5 u .� tin E v O c0 C y N c E° O O c° O N ° O° vi c a, c c O ca c ° O p ar N �, N Y 0 ° o � {..) O N w aci p Q E O O .V Y C (u ��•! 4! .� t N ro 2' L Y0 =5ra L U 3 = cu c °_ O c °u axi i U u sJ ate+ E O U L1 N �+ ` ,� aJ c 7 L > >. O >. V U cC U �� •— o E E a a, o a a a o o W a a -a W s 3 ¢ OV o N E m ° �n .� a o a � i E 11a CP Y ci f ci Q c-I a1ci Ua cd •� Y vYi Y c v .� O N 00 E c O O = _o -° L Y p Y Y -o -o f0 L ba Q a o 3 v E v i a o v E Y o�"° a „N F 0o N 0 U C ti u � J O U Q i� U N a N (xel }uauaasnwV : 6 �Z�) uia;s mod Aeuionv woa} omew : ewLiaeuv 3 0 w • ° s 0 ow � w bjD o CLto s° :b 8 a ' v o thu o o aq y s pq oIt o i 3 o o o •� o o . ^C y • ^ '" -a �°, 'C y a�i �, •;C� E may" �qca ct ID U ? y C o xl ci 4". o ° ° o °J ci M. ° o o 7; ° d o Q. 4 tb -� � X, y � Y � p ..U. C b°A � � � 9- :n � � � � ,� � ^ • � O ° .sue-", Syr" N i a> bbji G a -1:1 N N (xel }uauaasnwV : 6 �Z�) uia;s mod Aeuionv woa} omew : ewLiaeuv O U m4� o u ; v v v o L O U1 a+ G U � � • � � > ^O Q�+ Y p >i �' p ow � O G W o + GJvai p W, O a\ N Q IS N O v N U � "3 N U Z O_ ate+ U7 O o " CL 3 3 a, � p o � cC U p U aHiC13 U J � 2 U � N U by bA U ,� • � ,L' U s-i —0 y 'p rip � .s' G Oto O cC z." Fr F7 fTj G .-r 70 FG U Q w ;-d O ^. cn w ^�, 7 cl) cz o w tz a a ct U cl N C � N O U is �+ rn O M N (xel }uauaasnwV : 6 �Z�) uia;s mod Aeuionv woa} omew : ewLiaeuv �y °'vim s � cpC > @ 00 •� c�^3 U G U 7U. L7 W 0>-0 O U A .a U 0 O 7S y @ 0 O > ow to 2 ° �' L Q 21 L N w U w it >ct 0 t4 U `~ '° Q 00 £ °@° 'C 0 •° U may, 0 7 C = 11) O BUY' A. O A. V A. N va va 2 O -a p "C U _ b°A y cu •�• tap bl) cC F bA pp by Z as ( N U U o by c3 a d o o o N U o L U 0 bA U � �O � S^"• O g CO � to � N N ,� N :I,,- u o R 3 C 3> �7 .� It o m 3 o v o C w o c`b w U r c CyJ M Y is U '� � cd 3 i (xel }uauaasnwV : 6 �Z�) uia;s mod Aeuionv woa} omew : ewLiaeuv y.Ui L Y O o lio W U � O � O W ,O ~c y b o b N N � O � � N i C � UxiU U "O v p 3 a to o ro U v fl p .0 cc J c¢ � � U w o -75 A A � •� y 7 cd � i L"I N i-1 O y S"r U N ' O ¢' S U y ,U'_Q- ±ti CC C yy U r7 y � O � U •R U � 3 N a a� a 3.0 Information Item : Presentation of Revisions to the Procurement Policy ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ Recommendation of Action Staff recommends discussion. Presentation and discussion of revisions to the Procurement Policy. The purpose of the Procurement Policy is to provide the Village of Buffalo Grove staff with guidelines and directions for the acquisition of goods and services. In an effort to improve the Policy, staff has, in concert with the Village Attorney , reviewed the 2013 Policy and is recommending numerous changes to the Policy as detailed in the attached memo. A copy of the proposed revised Policy is also attached. ATTACHMENTS: • Policy cover memo 2015 (DOCX) • Procurement_Policy_2015 (PDF) Trustee Liaison Board Member Johnson Monday, July 20, 2015 Staff Contact Brett Robinson, Finance Updated: 7/15/2015 9:10 AM A Page 1 Packet Pg. 75 3.C.a 1,1 OF �13UFFALO GROVE DATE: July 7, 2015 TO: Dane Bragg, Village Manager FROM: Brett Robinson, Purchasing Manager RE: Revisions to Procurement Policy Is Please find attached the 2015 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. The previous version of the policy was the first of its kind and was for the most part, a codification of practices already in place at that time. In an effort to improve procurement and purchasing processes used by all departments, committees, and other entities that expend Village funds, staff is proposing numerous and significant changes to the Procurement Policy("Policy"). It should be noted that the core ideas and processes remain largely unchanged, but a good number of additions and clarifications have been made. Staff has summarized the proposed changes below. 1. While at this time staff believes that the current bid limit of $20,000 is appropriate, changes have been made for purchases below that threshold, providing greater authority to department heads to approve purchases. 2. Disciplinary action previously stated in the Policy has been removed and now the Policy refers to the Buffalo Grove Employee Manual. 3. Due to the receipt of some unusual bids and some questionable practices by bidders and proposers, staff has added Appendix D, a section dealing with debarment from future bidding and detailing the causes for debarment. 4. Language has been added relating to the recommendation from staff to move away from the petty cash process and move toward the use of credit cards where stricter controls and audit trails are available. 5. Clarification of language used in the areas of information technology, central garage and building maintenance has been added. These three areas tend to have unusual requirements for procurement. 6. Authority has been provided to Department Heads to execute contracts with a total value of less than $3,500. Attorney review of those contracts is still required. 7. Staff has added a section on environmentally preferable purchasing. This section details the need for the awareness of environmental considerations when making purchases. 8. Clarification on when contracts are required and who has authority to sign them has been added. Page 1 of 2 Packet Pg. 76 3.C.a 9. Clarification as to when prevailing wage is required and example contract documents to be used has been added. 10. Language has been added further clarifying that it is improper to split purchases in such a fashion to make the individual purchases less than the bid limit when the total project or purchase would in total exceed the bid limit. 11. Clarification has been added detailing when a Bid should be used and when a Request for Proposal would be an appropriate alternate. 12. A new Asset Sharing Policy has been added. This policy provides a guide to shared procurement of vehicles, equipment, and tools between Village departments as well as other entities (i.e. Park District). 13. Clarification on the standard of determination of responsive and responsible bidders has been added. 14. A more objective method of rating proposal responses has been added. 15. Revised and updated Automated Clearing House and Qualified Vendors forms have been included. If the revisions are acceptable, staff will then provide a copy to all employees. Follow up training will be provided to all departments and all current vendors will be invited in to a presentation on current procurement policies and for a question and answer session. Page 2 of 2 Packet Pg. 77 VILLAGE OF BUFFALO GROVE 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. Approved by Village Resolution 2015- XX on Month Day, 2015 Previous Resolution No. 2013-09 on March 4, 2013 3.C.b Packet Pg. 78 3.C.b Village of Buffalo Grove Procurement Policy ................................... 5 Introduction.................................................................................................... 5 Procurement Guidelines & Summary ................................................................ 6 Responsibilities of Purchasing agents.............................................................. 7 The Purchasing Manager's responsibilities 7 The Village Manager's responsibilities 8 Department and employee responsibilities 8 The Purchasing Manager's responsibilities to Vendors 9 The Vendor's responsibilities to Village of Buffalo Grove 9 Payment........................................................................................................ 10 Conflicts of Interest ....................................................................................... 10 Giftsand Favors............................................................................................ 10 Procurement Methods................................................................................... if Petty Cash 11 Advance Check Request 11 Purchase Orders 11 Blanket Purchase Orders 12 Procurement Card Program 12 Special Procurement..................................................................................... 13 Electronic Equipment Electronic Equipment Maintenance 13 13 Vehicles/Equipment Repair........................................................................... 13 Buildings Maintenance Agreements Environmentally Preferable PURCHASING 14 14 14 21P ag Packet Pg. 79 Ln 0 N I U 0 a. c a� m L 7 U 0 L a. c m E s U �a a 3.C.b WrittenContracts.......................................................................................... 15 Multi -Year Contracts 15 InformalPurchases....................................................................................... 16 Informal Buying Requirements - Purchases of $250.00 or Less 16 Informal Quote Requirements - Purchases Between $250.01 & $3499.99 16 Informal Proposal Requirements - Purchases Between $3500.00 & $20,000.00 16 Informal Purchase Exceptions 16 FormalProcurement Requirements............................................................... 97 Competitive Sealed Bids 17 Standard for Awarding Bid 18 Bid/Quote Records 18 Requests for Proposals 19 Request for proposal 19 Exceptions to Bid/Procurement Requirements ............................................... 20 Sole Source Procurement 20 Emergency Procurements 20 Professional Services 20 Fuel Procurement 20 Cooperative Procurement 21 Append&A................................................................................................... 22 Formal Bid Requirements.............................................................................. 22 AppendixB................................................................................................... 28 Competitive Sealed Proposals....................................................................... 28 AppendixC................................................................................................... 33 Village of Buffalo Grove Public Contract Statements ...................................... 33 AppendixD................................................................................................... 34 31 P ag Packet Pg. 80 3.C.b Causes for Debarment................................................................................... 34 AppendixE.................................................................................................... 36 Qualified Vendor 36 Automated Clearing House 37 Tax Exempt Letter 38 AppendixF.................................................................................................... 39 ProcurementCard Policy............................................................................... 39 Purpose 39 Background 39 General Information 39 Authorizations and spending limits 40 Responsibilities of Cardholders 40 Responsibilities of Finance Department 42 AppendixG................................................................................................... 47 Petty Cash Reimbursement Request 47 AppendixH................................................................................................... 48 Advance Check Request Form Appendix/..................................................................................................... 49 Prevailing Wage Rider 49 AppendixJ.................................................................................................... 53 Asset Sharing Policy 53 Source material forAppendixA and B: American Bar Association The 2000 Model Procurement Code forState and Local Government. 41 P ag Packet Pg. 81 3.C.b 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 services efficiently and economically. While this policy does not answer all questions related to purchasing, it does provide the foundation for a sound procurement policy. This policy is intended for use by the Village's Personnel as a general reference and will be revised as policies and procedures require revisions or clarification. This procurement policy may sometimes hereafter by referred to as "policy" The basic goals of the Village's procurement program are: 1. To comply with the legal requirements of 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 maximum value for each dollar spent by awarding purchase orders to the lowest 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 services 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 of ethical standards. The purpose of this purchasing policy is to provide the Village of Buffalo Grove staff with guidelines and directions for the acquisition of goods and services. This policy 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 enforcement of any of the provisions of this policy. Failure to follow the procedures outlined in this policy may lead to disciplinary action in accordance with the provisions of the Village of Buffalo Grove Personnel Manual. This policy is not intended to provide third parties with any specific rights when transacting with the Village of Buffalo Grove. All policies and procedures in this Policy are subject to modification by the appropriate Village employees and, therefore, vendors or other third parties shall not be entitled to rely on the contents of this policy. afire Packet Pg. 82 3.C.b Amount Of Purchase Procurement Method Notification Approval Purchases of $100.00 or less Petty Cash Procedures Supervisor or Supervisor or Designee Designee Credit Card $100.01 to $250.00 Purchases Request for Payment Method Department Department Supervisor or Supervisor or Or Invoice submitted Designee Designee Purchase Order Procedure $2S0.01 to $1,499.99 Purchases Quotes (verbal, fax, email, Department Purchasing written) Supervisor or Manager Designee 3 Quotes Recommended Purchase Order Procedure $1,500.00 to $3,499.99 Purchases Quotes (written, faxed or email) Department Finance Director Director or or Purchasing 3 Quotes Required Designee Manager Purchase Order Procedure $3,500.00 to $20,000.00 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 Purchase Exceeds $20,000.00 Contact the Purchasing Manager Village Village Board Manager or Formal Procurement Process Designee Award by Village Board Ultimate authority to make purchases resides with the Village Board. 61 P a g Packet Pg. 83 3.C.b 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 office supplies and helping establish guidelines for maintaining general janitorial maintenance supplies. 5. 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 of 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 of contracts and related documents including but not limited to certified payroll submissions and associated waivers of lien. 12. Assisting departments with the informal bid process. 7 1 P Mgr ir Packet Pg. 84 3.C.b NN88JMVJJMW,T 1. Purchase all materials, supplies, equipment, personal services and contracts for which funds are provided in the budget, but no item or personal service which exceeds any budget appropriation may be purchased. 2. For a purchase of more than twenty thousand dollars, with the exception of professional services, the Village Manager should solicit bids and such bids shall be presented to the Corporate Authorities for approval or rejection. 3. 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. 4. The Village Manager will make recommendations to the Corporate Authorities with respect to all bids. S. 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 of the Village. 6. 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. In such cases the Village Manager will notify the Corporate Authorities as soon as is practicable of all emergency procurements that exceed $20,000 1. It is the responsibility of each department to requisition goods and services in such a way as to allow time for competitive bidding, ordering, and delivery of materials. Exceptions shall be 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, to obtain these goods based upon competitive bids and to 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 employee is authorized to make any commitment to any salesperson or firm that will bind the Village in any way. During meetings with salespersons, no employee shall make any indication that he/she will recommend 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. Failure to follow the procedures outlined in the Policy may lead to disciplinary action in accordance with the provisions of the Village of Buffalo Grove Employee Manual. 8 1 P Mgr ir Packet Pg. 85 3.C.b 1. Encourage good Village/vendor relations. 2. Encourage businesses located within the Village to participate in the Village's procurement policy, by notifying all known in -Village vendors of opportunities to bid. 3. Conduct business with vendors in a professional manner that promotes honesty and fairness. 4. Accept, and in some cases require, samples from vendors to be used for testing. A fair trial shall be given to all samples and the outcome of the test shall be presented to the vendor, 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 file vendor information, catalogs, samples, price quotes, etc. to be used by all departments. 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 as a whole. 2. Conduct themselves in a professional manner: being honest about the supplies, services and products they represent. 3. Honor purchase orders generated as a result of providing price quotes on specified items and quantities. 4. Respond to Bids, Requests for Proposals, and Requests for Qualifications in a professional and ethical fashion. See Appendix D for causes for debarment from bidding. 5. Complete on a biennial basis the Village of Buffalo Grove Qualified Vendor Registration form. (Appendix E) Packet Pg. 86 3.C.b The Village is bound by State Statute (50 ILCS 505/1 etseq.) which states that payments are to be made pursuant to the Illinois Local Government Prompt Payment Act. It is important to note that all contracts and agreements with Vendors reflect these particular payment terms. The Purchasing Manager shall not knowingly initiate a purchase order when there is a conflict of interest. All known or suspected conflict of interest situations shall be referred to the Office of the Village Manager. A conflict of interest exists when a Village employee or officer (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) is an officer or director of the supplier, or owns five percent (5%) or more of the supplier of products and or services to the Village of Buffalo Grove. Employees shall not solicit, accept or agree to accept any gift of any kind from any person or business entity doing business or wishing to do business with the Village, except where said gift is expressly permitted by the Illinois State Officials and Employees Ethics Act (5 ILCS 430/1-5). A "gift" means any gratuity, discount, entertainment, hospitality, loan, forbearance, or other tangible or intangible item having monetary value including, but not limited to, cash, food and drink, and honoraria for speaking engagements related to or attributable to government employment or the official position of an employee. Employees shall comply with the Illinois State Officials and Employees Ethics Act at all times. The Purchasing Manager may accept samples from vendors only for the purpose of testing products. 10 1 P : g Packet Pg. 87 3.C.b FUITUNNINATUN# I Purpose. To reimburse an employee for small incidental purchases. Appropriate use of the Petty Cash: Petty cash funds may be used for small incidental nonrecurring cash purchases that do not exceed $100.00. The use of petty cash should not be considered as a substitute for regular procurement procedures. It is recommended that wherever possible a Village issued credit card/procurement card be used in the place of petty cash. Requests for reimbursement using petty cash must be accompanied by the Petty Cash Form (Appendix F). These forms must be completed and then submitted to the Accounts Payable Clerk. Purpose. To request a check for payment when an invoice is not issued. Appropriate use of Advance Check Request for Payment: Occasionally, a check is needed when there is no invoice. These occurrences include, but are not limited to: 1. An employee request for reimbursement for out of pocket expense. 2. Vendors requiring payment in advance. 3. Mail in catalog orders requiring pre -payment. When the Advance Check Request form is used, a cash receipt, a written quote, or a copy of the catalog order must be submitted as supporting documentation. For a copy of the Advance Check Request form see Appendix G. 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 Village to purchase the items listed at the prices stated. The vendor is obligated according to the terms and prices stated on the purchase order to deliver the goods or services. The purchase order provides specifications for goods and services ordered and shipping and billing information. Appropriate Use of the Purchase Order: A purchase order shall be used for procurement of any item or service that requires a written order or any purchase of $100.01 or more. Purchase orders are not required for prepaid orders. Packet Pg. 88 3.C.b HW.1101C1DUwill Wo85 .F.y1[47:11711:7. 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. V IM9111111.NUT IN ilk NJA Pella 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 F for the complete policy. 121�'a ,: Packet Pg. 89 3.C.b rr# N INIKUN111110UNKRUINUT1 The IT (Information Technology) Department or a company contracted by the Village to supply IT services will purchase or authorize the purchase of all computers, peripherals, printers, cell phones and all other electronics governed by the Communications and Information Technology Policy. The IT Department or a company contracted by the Village to supply IT services will then be responsible for communicating to the Office of the Village Manager and requesting a Purchase Order or instructing the department requesting services or equipment to enter the information required to create a Purchase Order. The IT Department or the company contracted by the Village to supply IT services will setup and install equipment in the appropriate departments. 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 or the company contracted by the Village to supply IT services. When maintenance or repair is needed for all other electronic equipment, including but not limited to computers, printers, and telephones, the IT department or the company contracted by the Village to supply IT services shall be contacted. The IT department or the company contracted by the Village to supply IT services will either repair, service or make arrangements for outsourcing the repair. 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 be outsourced. Before outsourcing work, the Fleet Manager will notify the applicable Department director with a recommendation of the work to be performed, along with estimates or quotes. 131P agri^ Packet Pg. 90 3.C.b The Public Works Department shall be contacted for Village building repairs and remodeling requests. For Village property the Public Works department will assess the need or problem and recommend the best course of action to correct the problem(s). Repair services for Village buildings or equipment that are not covered by maintenance agreements shall be obtained by the following procedures: 1. Estimates of the repair/improvement work shall be gathered and reviewed before proceeding with the repairs/improvements. 2. As repairs/improvements to public facilities will likely require prevailing wage to be paid, the rider in Appendix I. should be provided to contractors when requesting quotes. 3. If emergency repairs are needed, Emergency Procurement procedures should be followed. Departments should follow these guidelines for all maintenance agreements: 1. All maintenance agreements must be reviewed by the Village Attorney. 2. Maintenance agreements shall be considered for any equipment/asset that requires frequent adjustment or repairs. 3. Maintenance agreements are a form of contract Department Directors are not authorized to sign contracts in excess of $3,500.00 4. Copies of all maintenance agreements will be filed with the Purchasing Manager. S. Purchase order procedures shall be followed. 1�1►1t11.�17►1U1�1►Y1/:11111'/JI:LLI.�1:� 1I�11L'�N/:T+y1►[!1 The purchase and use of products and services can have a profound impact on the environment. The Village of Buffalo Grove recognizes the positive impact that it can make on the environment through purchasing decisions that Village staff make. It is the intent of the Village of Buffalo Grove to integrate environmental considerations into the aspects of procurement. Village staff should seek to reduce the environmental damages associated with their purchases by increasing their acquisition of environmentally preferable products and services to the extent feasible, consistent with price, performance, availability, and safety considerations. 141P Agri^ Packet Pg. 91 3.C.b 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 more than $20,000.00. 2. All maintenance agreements and leases. 3. Construction and repair (including demolition and renovation) projects requiring an expenditure of more than $20,000. 4. 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 $10,000.00 (but less than 10% of total contract price) can be approved by the Village Manager. 5. Any work that that can be considered an improvement to public facilities and therefore invokes prevailing wage rates must have a written contract. At a minimum the rider in Appendix I. must be attached to a quote provided for such work and signed by the contractor/vendor performing the work. All contracts that commit the Village to an expenditure of more than $3,500.00 shall be submitted to the Village Manager or Finance Director for approval signature. Contracts at or below $3,500 may be signed by a Department Director after review by the Village Attorney with the contract forwarded to the Purchasing Manager. Contracts that commit the Village to an expenditure of more than $20,000 can only be signed by the Village President or 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 and, a written contract may be used whenever it is deemed necessary and advisable by the Purchasing Manager or Village Attorney. 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. 15 1 P : g Packet Pg. 92 3.C.b Any procurement not exceeding $20,000.00 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. The splitting of a purchase or contract into two or more purchases for the purpose of avoiding the bidding or quotation process is in violation of State law and Village policy. The informal buying requirements cover purchases for construction or repair work and contracts for the purchase or lease -purchase of apparatus, supplies, materials, or equipment involving the expenditure of $250.00 or less. Pricing may be obtained verbally, or by electronic or written submission. No advertisement is required. The Village of Buffalo Grove standard is to seek three quotes for all purchases that do not qualify for the informal purchase exception rules. If the purchase is for a routine operating good or service, the price comparison needs to be performed at least once each fiscal year. ff,"WIT"ITUT . 1 1 ' ! '' 1 1 �. •. The informal quote requirements cover contracts for construction or repair work and contracts for the purchase or lease -purchase of apparatus, supplies, materials, or equipment involving the expenditure of $250.01 to $3,499.99. Pricing may be obtained by electronic or written submission. No advertisement is required. The Village of Buffalo Grove standard is to seek three quotes for all purchases that do not qualify for the exception rules. 111111117111: 1 11111 The informal proposal requirements cover contracts for construction or repair work and contracts for the purchase or lease -purchase of apparatus, supplies, materials, or equipment involving the expenditure of $3,500.00 to $20,000.00. 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. Exceptions to obtaining price quotes from more than one vendor should be limited to the following; 1. There are a variety of numerous items in the order, including but limited to maintenance repair and operational (MRO) supplies and office supplies. 2. Specifications are sufficiently detailed, or the item being sought is highly unique and/or specialized. 3. Sole source procurement. Exceptions must be noted with the Purchase Order. 161P Agri^ Packet Pg. 93 3.C.b Procurement involving the expenditure of $20,000.00 or more requires Village Board approval. Exception to this rule is provided for only in the case of emergency and is detailed in the section titled Emergency Procurement. The formal bidding requirements cover contracts for construction or repair work and contracts for the purchase or lease -purchase of apparatus, supplies, materials, or equipment involving the expenditure of more than $20,000.00. Bids should be used where detailed specifications are available and pricing is of the upmost concern. A notice to bidders, "Invitation to Bid" must be advertised locally. The advertisement must include 1. A general description of the service or supplies sought after by the Village of Buffalo Grove, with details on how to obtain more specific information of those services/supplies. 2. Notification that only sealed bids shall be reviewed. 3. Bonding and Insurance requirements as might be necessary. 4. Date, time and location of 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 to create those documents. Pursuant to authority in chapter 2.08 of the Buffalo Grove Municipal Code the Village may utilize Bids obtained through the Illinois Government Joint Purchase Act (30ILCS 525/0.01) 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 be accepted. Both Bid 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 Bid Process. The requirement for competitive sealed bids may be waived by a two-thirds vote of the Village Trustees. 171P Agri^ Packet Pg. 94 3.C.b • 1�'1 �• ••1 i 1 The standard for awarding contracts is based on the lowest responsive and responsible bidder, or bidders, taking into consideration quality, performance, and the time specified in the proposals for the performance of the contracts. If a supplier is recommended who has not quoted the lowest price, the reasons for selecting the supplier should be documented. Appendix A. Bid Evaluation and Award, fully details the methods to be used in determing lowest responsive and responsible bidder. Single Bids. When only a single bid or quote is received that fact alone shall not prevent the Village from accepting that bid or quote. The Village must keep a record of all bids/quotes sought, but those records are not subject to public inspection until the contract has been awarded. Packet Pg. 95 3.C.b The formal Request for Proposal (RFP) process cover contracts for construction or repair work and contracts for the purchase or lease -purchase of apparatus, supplies, materials, or equipment involving the expenditure of $20,000 or more. An RFP should be used in those occasions where the need for quality or expertise exceeds the concern for pricing. RFP documents will likely include a section detailing what criteria shall be used to make the selection for the vendor to be awarded the contract. A notice to proposers, "Request for Proposal" should be advertised locally. The advertisement should include: (a.) A general description of the service or supplies sought after by the Village of Buffalo Grove, with details on how to obtain more specific information of those services/supplies; (b.) Notification that only sealed proposals shall be reviewed; (c.) Bonding and Insurance requirements as might be necessary; and (d.) Date, time and location Proposals are due. A Request for Proposal should be mailed/e-mailed to potential Proposers the week the notice is published. Contract documents should be made available to Proposers 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 to create those documents. Proposals will be opened at the time and date as advertised in the Request for Proposal. Proposals received after the time and date specified shall not be accepted. Both Bid 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 B. for more information on the Competitive Sealed Proposal process. The request for Competitive Sealed Proposals is an exception to the bid process. The reasons for selection of this method of procurement and the procedures to be followed are set forth in Appendix B. 19 1 P : g Packet Pg. 96 3.C.b A contract may be awarded for a supply, service, or construction item without competition when, the Finance Director, Purchasing Manager, or a designee of 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 of a request for Bid Waiver. 1l'IN :l" 11101404 U 11111401h l 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 emergency procurements shall be made with such competition as is practicable under the circumstances. If emergency purchases are needed during business hours, begin Purchase Order procedures immediately and contact the Purchasing Manager for Purchase Order approval. When emergency 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 be included in the contract file. The Village Manager must authorize any emergency procurement for more than $20,000. In such cases the Village Manager will notify the Corporate Authorities as soon as is practicable of all emergency procurements that exceed $20,000. N "kill 1l: Professional services including but not limited to Accounting, Auditing, Financial, Recruitment, Employment, Procurement, Information Technology, Legal, Land Survey, Architectural and Engineering services, are generally procured 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 of the contracts. I�II�IIY�:i1ZI111:7�1u1�1►Y1 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 Section 2.08.040 of the Village of Buffalo Grove Municipal Code to make purchases in excess of the bid limit in order to secure fuel at the best possible price for the Village of Buffalo Grove. 2 0 1 P agr Packet Pg. 97 3.C.b 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 for and purchase using a joint procurement agency bid". The Illinois State Intergovernmental Cooperation Act (5 ILCS 220) allows for cooperative procurement. * 3rd Party includes but is not limited to; the State of Illinois Central Management Services, United States General Services Administration, Northwest Municipal Conference and the North Suburban Municipal Partnering Initiative. Pursuant to authority in chapter 2.08 of the Buffalo Grove Municipal Code the Village may utilize Bids obtained through the Illinois Government Joint Purchase Act (30 ILCS 525/0.01) I6f:7ifi[!�lIIl[I�1 A subset of Cooperative Procurement is Asset Sharing. The Village of Buffalo Grove is committed to providing safe, efficient and effective services to the Residents of Buffalo Grove and other external stakeholder groups through the sharing of assets where appropriate and practical. It is the policy of the Village of Buffalo Grove to ensure that certain criteria are evaluated when making capital asset purchases. The administrative guidelines outlined in Appendix J. apply to all situations where the sharing of assets could be of mutual benefit to those involved and reduce the overall lifecycle cost of the asset. This Policy shall apply to all departments of the Village and include such things as vehicles, equipment, trailers, and tools. The purpose of the Asset Sharing Policy(" Policy") is to provide the Village of Buffalo Grove staff with guidelines and directions for acquiring assets that can be shared. The benefit to all parties is a more effective use of resources, enhanced inter -governmental cooperation, and more efficient use of taxpayer dollars through cost sharing. The Policy is designed to be a fluid document and will be modified from time to time to conform to changes in law, technology and actual practice. 211 P a Packet Pg. 98 3.C.b '' fl 1 The Invitation for Bids is used to initiate 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, evaluation factors, delivery or performance schedule, and such 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, as applicable. Incorporation by Reference. The Invitation for Bids may incorporate documents by reference. Acknowledgement of Addendums. The Invitation for Bids shall require the acknowledgement of the receipt of all Addendums 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 Purchasing Manager. 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. 3. Bid samples or descriptive literature may be required when it is necessary to evaluate required characteristics of the items bid. 221 P ag Packet Pg. 99 3.C.b 4. The Invitation for Bids shall state that bid samples or descriptive literature should not be 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 be examined or tested, and will not be deemed to vary any of the provisions of the Invitation for Bids. PUBLIC 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 Purchasing Manager may require payment of a fee or a deposit for the supplying of the Invitation for Bids. Publication. Every procurement in excess of $20,000 shall be publicized in one or more of the following ways: 1. in a 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, 5. through the internet, agency web site, or other publicly accessible electronic media, or 6. in a government publication designed for giving public notice. Public Availability. A copy of the Invitation for Bids shall be made available for public inspection at the Purchasing Manager'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 names 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 an 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 a change is made by written addendum. 231 P ag Packet Pg. 100 3.C.b ADD:ENDI:UMS TO INVITATIONS FOR BIDS„ Form. Addendums to Invitations for Bids shall be identified as such and shall require that the bidder acknowledge receipt of all Addendums issued. The amendment shall reference the portions of the Invitation for Bids it amends. Distribution. Addendums shall be sent to all prospective bidders known to have received an Invitation for Bids. Timeliness. Addendums 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 addendum or, if necessary, by telephone and confirmed in the addendum. 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 to the time and date set for bid opening. An electronic modification or withdrawal received from the bidder or, as applicable, the receiving 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 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 to the modification or withdrawal of bids shall be made a part of the appropriate procurement file. LATE BIDS, LATE WITHDRAWALS, AND LATE MODIFICATIONS„ 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 is late. Notice. Bidders submitting late bids that will not be considered for award shall be so notified as soon as practicable. Records. Records equivalent to those required in the Section titled "Pre -Opening Modification or Withdrawal of Bids", shall be made and kept for each late bid, late modification, or late withdrawal. 241Pagre Packet Pg. 101 3.C.b RECEIPT, OPENING, AND RECORDING OF BIDS. Receipt. Upon its receipt, each bid and modification shall be time -stamped but not opened and shall be stored in a 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 bidder, the bid price, and such other information as is deemed appropriate by the Purchasing Manager, shall be read aloud or otherwise 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 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 to be confidential as set forth in the Subsection titled "Confidential Data" of 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 non -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. Confidential Data. The Purchasing Manager 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 Purchasing Manager shall inform the bidders in writing what portions of the bids will be disclosed and that, the bids will be disclosed. The bids shall be open to public inspection subject to any continuing prohibition on the disclosure of confidential data unless subject to an exemption under applicable law. Proposals and bids are exempt from disclosure until an award or final selection is made pursuant to 5 ILCS 140/7(1)(h). BID ]EVALUATION AND AWARD The standard for awarding contracts is based on the lowest responsive and responsible bidder, or bidders, taking into consideration quality, performance, and the time specified in the proposals for the performance of the contracts. If a supplier is recommended who has not quoted the lowest price, the reasons for selecting the supplier should be documented. 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. It may also provide for accomplishing any of the following prior to award: (a) inspection or testing of a product prior to award for such characteristics as quality or workmanship; (b) examination of such elements as appearance, finish, taste, or feel; or (c) other examinations to determine whether it conforms with any other purchase description requirements. 251Pagre Packet Pg. 102 3.C.b The acceptability evaluation is not conducted for the purpose of 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 be rejected as nonresponsive. Determination of Lowest Bidder. Following determination of product acceptability, if any is 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 of such criteria include, but are not limited to, transportation cost, and ownership or life cycle 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. Responsive and Responsible Bidder. In an effort to determine a "Responsive and/or Responsible" Bidder the Village will take in consideration responses from references provided by Bidders as well as information as might be solicited from other local municipalities or governmental agencies, in addition, the following shall be considered when determining whether the bidder is responsive and responsible: (a) The ability, capacity and skill of the bidder to perform the contract and to provide the service required; (b) Whether the bidder can perform the contract or provide the service promptly, or within the time specified, without delay or interference; (c) The character, integrity, reputation, judgment, experience and efficiency of the bidder; (d) The quality of the performance of previous contracts or services; (e) The previous and existing compliance by the bidder with laws and ordinances relating to the contract and service; (f) The sufficiency of the financial resources and ability of the bidder to perform the contract or provide the service; (g) The quality, availability and adaptability of the supplies or contractual services to the particular use required; (h) The ability of the bidder to provide future maintenance and service for the use of the subject of the contract; and (i) The number and scope of conditions attached to the bid. 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. 261 P ag Packet Pg. 103 3.C.b L 0 W TIE BIDS. 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 of the Invitation for Bids; (b) the supply, service, or construction item; and (c) a listing of all the bidders and the prices submitted. A copy of each such record shall be sent to the Village Clerk's Office DOCUMENTATION OEA WARD, Following award, a record showing the successful bidder shall be made a part of the procurement file. 271 P ag Packet Pg. 104 3.C.b Conditions for Use. (a) A contract may be entered into by competitive sealed proposals when the Purchasing Manager, Village Manager, the Finance Director, or a designee of any of the foregoing above determines in writing,, that the use of competitive sealed bidding is either not practicable or not advantageous to the Village of Buffalo Grove. (b) Contracts for the design -build, design -build -operate -maintain, or design -build -finance - operate -maintain project delivery methods shall be entered into by competitive sealed proposals. REQUEST FOR PROPOSALS. Proposals shall be solicited through a Request for Proposals. Public Notice. Adequate public notice of the Request for Proposals shall be given in the same manner as provided in Formal Bid Requirements, Public Notice section of Appendix A. Receipt of Proposals. Proposals shall be opened so as to avoid disclosure of contents to competing proposers during the process of negotiation. A Register of Proposals shall be prepared 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 subfactors, if any. Discussion with Responsible Proposers and Revisions to Proposals. As provided in the Request for Proposals, discussions may be conducted with responsible proposers 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. Proposers 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 should be no disclosure of any information derived from proposals submitted by competing proposers. Award. Award shall be made to the responsive and responsible proposer 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, reference responses and the evaluation factors set forth in the Request for Proposals and any related Addendums. Debriefings. The Purchasing Manager is authorized to provide debriefings that furnish the basis for the source selection decision and contract award. 281Pagre Packet Pg. 105 3.C.b 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 perform without condition or reservation in accordance with the purchase description, delivery or 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 to be other than a fixed -price type; (b) whether oral or written discussions may need to be conducted with proposers concerning technical and price aspects of their proposals; (c) whether proposers 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 of the technical proposal; and (e) whether the primary consideration in determining award may not be price. When Competitive Sealed Bidding is Not Advantageous. A determination may be made to use competitive sealed proposals if it is determined that it is not advantageous to the Village of Buffalo Grove, even though practicable, to use competitive sealed bidding. Factors to be 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 of 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. 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. 291 P ag Packet Pg. 106 3.C.b CONTENT OF THE REQUEST FOR PROPOSALS., The Request for Proposals shall be prepared in accordance with the Invitation for Bids section in Appendix A of this policy provided that it shall also include: (a) a statement that discussions may be conducted with proposers who submit proposals determined to be reasonably susceptible of being selected for award, but that proposals may be accepted without such discussions; and (b) a statement of when and how price should be submitted. (c) a listing of the criteria by which staff will make a selection and recommendation to the Village Board may also be included. PROPOSAL PREPARATION TIME, Proposal preparation time shall be set to provide proposers 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 Purchasing Manager. FORM OF PROPOSAL, The manner in which proposals are to be submitted, including any forms for that purpose, may be designated as a part of 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 OF BIDDERS LISP'S. Bidders lists compiled and maintained in accordance with the Bidders Lists section of Appendix A. of this policy may serve as a basis for soliciting competitive sealed proposals. PRE -PROPOSAL CONFERENCES. Pre -proposal conferences may be conducted in accordance with the Pre -Bid Conferences section of Appendix A. Any such conference should be held prior to submission of initial proposals. AD DEN DUMS TO REQUESTS FOR PROPOSALS., Addendums to Requests for Proposals may be made in accordance with the Addendums to Invitations for Bids section of Appendix A. prior to submission of proposals. MODIFICATION OR W1THDRAIIIAL OF PROPOSALS. Proposals may be modified or withdrawn prior to the established due date in accordance with Section the Pre -Opening Modification or Withdrawal of Bids section of Appendix A. For the purposes of this Section and the Late Proposals, Late Withdrawals, and Late Modifications section of this Appendix B. the established due date is either the time and date announced for receipt of proposals or receipt of modifications to proposals, if any; or if discussions have begun, it is the time and date by which best and final offers must be submitted, provided that only proposers who 301 P ag Packet Pg. 107 3.C.b submitted proposals by the time announced for receipt of proposals may submit best and final offers. LATE PROPOSALS, L.A.TE WITHDRAWALS, AND LATE MODIFICATIONS. Any proposal, withdrawal, or modification received after the established due date at the place designated for receipt of proposals is late. Late Proposals may only be considered in accordance with the Late Bids, Late Withdrawals, and Late Modifications section of Appendix A. of this Policy RECEIPT AND REGISTRATION OF PROPOSALS. Proposals shall not be opened publicly but shall be opened in the presence of two or more Village employees. Proposals and modifications shall be time -stamped upon receipt and held in a secure place until the established due date. After the date established for receipt of proposals, a Register of Proposals shall be prepared which shall include for all proposals the name of each proposer, 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 of Buffalo Grove personnel having a legitimate interest in them. E1lALUAP70N OFPROPOSALS". Evaluation Factors in the Request for Proposals. The Request for Proposals can include the following 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. 1. Classifying Proposals. For the purpose of conducting Village staff discussions, proposals shall be initially classified as: (a) acceptable; (b) potentially acceptable, that is, reasonably susceptible of being made acceptable; or (c) unacceptable. 2. Proposers whose proposals are unacceptable shall be so notified promptly. 3. Selection Criteria. Proposals will be evaluated by a selection committee made up of Village staff, which will subsequently present its recommendation to the Buffalo Grove Village Board. The recommendation for the successful Proposer may be based on the following or similar criteria, though the weight of each item will vary with the project: (a) 15 % Proposer's experience, capacity and capability to provide the required equipment, installation and training services in a professional, timely, reliable and secure manner. (b) 15 % Proposer's understanding of the Village's technical requirements and demonstrated ability to meet or exceed the same. 311 P ag Packet Pg. 108 3.C.b (c) 50 % The cost of providing the equipment, installation and training services. (d) 10 % Ability to interact productively with Village staff, as required. (e) 10 % Information obtained through reference checks. Proposal Discussions/Interviews with Individual Proposers. "Proposers" Defined. "Proposers" includes only those businesses submitting proposals that are acceptable or potentially acceptable. The term shall not include businesses who submitted unacceptable proposals. Purposes of Discussions. Discussions or Interviews are held to: (a) promote understanding of the Village of Buffalo Grove's requirements and the proposers' 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 of Discussions. Proposers shall be accorded fair and equal treatment with respect to any opportunity for discussions and revisions of proposals. The Purchasing Manager should establish procedures and schedules for conducting discussions. If during discussions there is a need for any substantial clarification of or change in the Request for Proposals, the Request shall be amended to incorporate such clarification or change. Auction techniques (revealing one proposer's price to another) and disclosure of any information derived from competing proposals are prohibited. Any substantial oral clarification of a proposal shall be reduced to writing by the proposer. Best and Final Offers. The Purchasing Manager shall establish a common date and time for the submission of best and final offers. Best and final offers shall be submitted only once; provided, however, the Purchasing Manager or the Village Manager 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 Grove's requirements and require another submission of best and final offers. Otherwise, no discussion of or changes in the best and final offers shall be allowed prior to award. Proposers shall also be informed that if they do not submit a notice of withdrawal or another best and final offer, their immediate previous offer will be construed as their best and final offer. 321 P ag Packet Pg. 109 3.C.b FWAVONXIM11M.9 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 CONTRACTORBIDDER In order to comply with 720 Illinois Compiled Statutes 5/33 E-I 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 651LCS 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 it is not delinquent in the payment of any tax administered by the Illinois Department of Revenue unless it is 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 A Misdemeanor, and (2) voids the contract and allows the Village to recover all amounts paid 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 331Pagi Packet Pg. 110 3.C.b ■ Nl 1 .i 1 The Purchasing Manager or Finance Director may debar a proposer, bidder, vendor, subcontractor, or supplier(collectively "Vendor") for- (1) Conviction of, or civil judgment for, - (a) Commission or attempted commission of fraud or a criminal offense in connection with (A) obtaining, (B) attempting to obtain, or (C) performing a private or public contract or subcontract (b) Violation or attempted violation of Federal or State statutes, or any other legally applicable law, regulation, or rule relating to the submission of bids, proposals, or claims; (c) Commission or attempted commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, tax evasion, or receiving stolen property; or (d) Commission or attempted commission of any other offense, or engaging in or attempting to engage in conduct indicating a lack of truthfulness, veracity, or honesty which affects the responsibility of the Vendor. (2) Violation of the terms of a Village contract or subcontract so serious as to justify debarment, including but not limited to - (a) Willful failure to perform in accordance with the terms of one or more contracts or subcontracts; (b) A history of failure to perform one or more contracts or subcontracts; (c) A history of unsatisfactory performance of one or more contracts or subcontracts; or (d) A history of failure to meet prevailing wage obligations, or any other contracting or subcontracting obligation imposed by the Village of Buffalo Grove Municipal Code or any other law. (3) Making or attempting or causing to be made or attempting to cause to be made any false, deceptive, or fraudulent material statement in any bid, proposal, or application for Village or any government work or in the performance of any such contract for the Village or a government agency, or application for any permit or license; (4) Refusal to cooperate with reasonable requests of Village inspectors, representatives, or other appropriate Village personnel with respect to work under contract provisions, plans, or specifications, or otherwise, pursuant to the duties of those Village personnel; 34 1 �' ag Packet Pg. 111 3.C.b (5) Founding, establishing or operating an entity in a manner designed to evade the application or defeat the purpose of these rules or any provision of the Municipal Code of Buffalo Grove, Village of Buffalo Grove rule or regulation, the statutes, rules or regulations of the State of Illinois, Cook County, Lake County, or any federal statute, rule or regulation, or any other legally applicable law, regulation, or rule; (6) Improper conduct, including but not limited to the commission or attempted commission of, (a) intentional or negligent billing irregularities; (b) submitting false or frivolous or exaggerated claims, documents, or records; (c) falsification of claims, documents, or records; (d) willful or grossly negligent destruction of documents or records the Vendor had an obligation to maintain; (e) bribery or coercion of a government official, or other unlawful tampering with a government official; (f) use of false or deceptive statements to obtain some benefit, or causing competition to be restrained or limited; (g) misrepresentation to any governmental agency or government official; (h) violation of ethical standards established by the Village, or other dishonesty incident to obtaining, prequalifying for, or performing any contract or modification thereof, (i) violation of ethical standards established by the Village or other dishonesty or incident to applying, obtaining, qualifying for, or acquiring any Village certification, license, or permit; (7) Any other cause of so serious or compelling a nature that it affects the responsibility of the Vendor, including, but not limited to, those specifically enumerated in 65 ILCS 5/8-10-11. (8) Debarment by any other government agency. 351 P ag Packet Pg. 112 3.C.b Accounts Payable Department Phone 847-459-2510 Fax847-777-6045 QUALIFIED VENDOR REGISTRATION Please email, fax or mail completed & signed form along with IRS form W-9 to: Email: IPJFuiine..ylbg.op.irg Fax: 847-777-6045 or Mail: Village of Buffalo Grove 50 Raupp Blvd. Buffalo Grove, IL. 60089 Legal Organization Name: _ Doing Business as: Primary Organization Address: City, State ZIP: Sales Contact Name: Sales Contact Phone: Sales Contact Email : Complete this section for new Vendors or account changes Select one: 11 New Vendor FEIN or SSN: Primary business function: Date business was established: Change in ownership in the last 2 years : Y/N Professional registrations: All payments will be made per the Prompt Payment Act (50 ILCS 505/1 et seq). Account Change By submitting this application, you authorize the Village of Buffalo Grove to make inquiries into the client/trade references that you have supplied. 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 Signature: Date: Name (printed): Title: Ln 0 N I 0 a I c a� E m L 7 U O L a C d E t U to Q Packet Pg. 11 3.C.b Accounts Payable Department Phone 847-459-2510 Fax847-777-6045 AUTHORIZATION FOR ACH DEPOSIT OF VENDOR PAYMENT Please email, fax or mail completed & signed form along with a voided check or voided deposit slip (savings account) to: Email: IP_IFuirb. rope.. Ylbg.ogirg Fax: 847-777-6045 or Mail: Village of Buffalo Grove 50 Raupp Blvd. Buffalo Grove, IL. 60089 Check Box if same as page 1 ❑ Payment Address: A/R Contact Name: Contact Email (for ACH notification): Complete this section for new enrollments or for financial institution or account changes Select one: ❑ New Enrollment ❑ Financial institution of Account Change Bank Name: Branch (if applicable): City, State Zip: Transit/Routing Number: Bank Account Number: Account Type (check one): 1-1 Checking Account 1-1 Savings Account I certify that the information above is true and correct, and that I, as a representative for the above name d company, hereby authorize the Village of Buffalo Grove Account Payable to electronically deposit payments to the designated bank account. This authority remains in full force until The Village of Buffalo Grove Accounts Payable receives written notification requesting a change or cancellation. Signature: Date: Name (printed): Title: For Village of Buffalo Grove use only Vendor Number: Date Received: U) 0 N I 0 a I c a� E m U 0 L a c m E s �a Q Packet Pg. 1 �47 wow Illinois Department of Revenue Office of Local Government Serv6ces Sales Tax Exemption Section, 3-520 101 W. Jefferson Street Springfield, IL 62702 217 782-8881 January 2, 2015 VILLAGE OF" BUFFALO GROVE SCOTT ANDERSON HNANCE DIR .50 RAUPP BLVD BUFFALO GROVE 11., 60089 Ef I rctive January 1, 2015, we have renewed your governrnental exemption fron-r payment of the Retailer' Occupation Tax, the Service Occupation Tax (both state and k>caO, the Use 'Tax, and the Service Use Tax, as required by Minois law, We have iSSUed the following new tax exerription iden0fication riurntwr. E9998-11,65-07 to VILLAGE OF BUFFALO GROVE OF BUFFALO GROVE, IL The terrns and conclitions governing Use of your exeryiption nuniber rernain unchanged. Office of Local Government Services Minois Department of Revenue S rS -- 70 (R- 2/98) L- 492- 3524 10 0001039 I Packet Pg. 11 1� 3.C.b MORIJIM 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. UVIKIDW 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. M Ilk In r ,1011el RAIN I OR - 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. Packet Pg. 116 3.C.b 51 HI VARAM N U$Jl l 1 '' l 1 \ U' 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 (AT?\ ) - 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 technology liaison) - Legal Services - Temporary Help - Clothing or other personal items - Telephone calls (with the exception of the IT Department or department I�DGy7�l►Fat.�111YYI1F.`rllY<M1:717:[#]1117117. - 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. 401I'a ;: Packet Pg. 117 3.C.b 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. Cardholders must notify the Issuing 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 Issuing Bank's Customer Service number. 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 into 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 delivering 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. 411�'a ,iu^ Packet Pg. 118 3.C.b 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 issuing 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 issuing 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. .laF. '1��►F.I IIIYYIaf.Y�lYt 11�/:1 [NNII I'7: kJIYUI�ILYI 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 Finance 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. Packet Pg. 119 3.C.b Cardholder Agreement for Authorized Use of Purchase Card 1.) I, , 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: 431Pagre Packet Pg. 120 3.C.b 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. 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 * Merchant Category Code 441 P ag 0 N I U 0 a I c a� E m L 7 U 0 L a c m s �a Q Packet Pg. 121 3.C.b Cardholder Statement of Questioned Item Cardholder name: (print) Vendor name: Date of purchase: 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: 451 P ag Packet Pg. 122 3.C.b VILLAGE OF BUFFALO GROVE PROCURMENT CARD POLICY Record of Purchase Card Use Form Cardholder name: Description of Purchase Date Account Amount Ensure all original receipts are attached to this form Cardholder signature: Supervisor signature: Date received by Finance Department: Finance Department signature: 461 P a g Packet Pg. 123 3.C.b Note: Reimbursements from petty cash cannot exceed $50.00. Date Department Amount of .............................................................................................................................................................................................................................................................................................. Requested By Reimbursement Description of Expense Account Number Approved By Signature ------------------------------------------------------------------------------------------------- Amount Approved Received By Signature *A receipt for goods purchased, must be attached to this form. 47 1 P :gi g ; : Packet Pg. 124 FWATIJIMOTH MI, Dote: Requested By: Purpose: Check Amount: Distribution of Charges: Account Amount: Account: Amount: For use when payment iurequired ivadvanccofnorma accounts payable cycle. Note: Check Number Approved By: 3.C.b 1�:�11►/:11111►[el►i�/.��J�:7117117 Terms A. Contractor shall not pay less than the prevailing rates of wages to all laborers, workmen, and mechanics performing work pursuant to this invitation to bid and shall comply with the requirements of the Illinois Wages of Employees on Public Works Act (820 ILCS 130/1-12). B. Contractor shall comply with all applicable laws, regulations and rules promulgated by any federal, state, local, or other governmental authority or regulatory body pertaining to all aspects of the Work, now in effect, or which may become in effect during the performance of the Work. The scope of the laws, regulations, and rules referred to in this paragraph includes, but is in no way limited to, the Illinois Human Rights Act, Illinois Equal Pay Act of 2003, Occupational Safety & Health Act along with the standards and regulations promulgated pursuant thereto (including but not limited to those safety requirements involving work on elevated platforms), all forms of traffic regulations, public utility, Interstate and Intrastate Commerce Commission regulations, Workers' Compensation Laws, Public Construction Bond Act, Prevailing Wage Laws, Public Works Preference Act, Employment of Illinois Workers on Public Works Act, USA Security Act, federal Social Security Act (and any of its titles), and any other law, rule or regulation of the Illinois Department of Labor, Department of Transportation, Illinois Environmental Protection Act, Illinois Department of Natural Resources, Illinois Department of Human Rights, Human Rights Commission, EEOC, and the Village of Buffalo Grove. C. To the fullest extent permitted by law, the Contractor hereby agrees to defend, indemnify and hold harmless the Village, its officials, agents and employees against all injuries, deaths, loss, damages, claims, patent claims, suits, liabilities, judgments, cost and expenses, which may in anywise accrue against the Village, its officials, agents and employees arising in whole or in part or in consequence of the performance of this work by the Contractor, its employees, or subcontractors, or which may in anywise result therefore, except that arising out of the sole legal cause of the Village, its agents or employees, the Contractor shall, at its own expense, appear, defend and pay all charges of attorneys and all costs and other expenses arising therefore or incurred in connections therewith, and, if any judgment shall be rendered against the Village, its officials, agents and employees in any such action, the Contractor shall, at its own expense, satisfy and discharge the same. Contractor expressly understands and agrees that any performance bond or insurance policies required by this contract, or otherwise provided by the Contractor, shall in no way limit the responsibility to indemnify, keep and save harmless and defend the Village, its officials, agents and employees as herein provided. D. In addition to the requirements set forth above, the Contractor (and any subcontractor into whose subcontract this clause is incorporated) agrees to assume the entire liability for all personal injury claims suffered by its own employees and waives any limitation of liability defense based upon the Worker's Compensation Act and cases decided there under. Contractor agrees to indemnify and defend the Village from and against all such Packet Pg. 126 3.C.b loss, expense, damage or injury, including reasonable attorneys' fees, which the Village may sustain as a result of personal injury claims by Contractor's employees, except to the extent those claims arise as a result of the Village's own negligence. E. Within five (5) business days after the Village's notice to the Contractor of the Village's receipt of a request made pursuant to the Illinois Freedom of Information Act [ILCS 140/1 et seq. — herein "FOIA"], the Contractor shall furnish all requested records in the Contractor's possession which are in any manner related to this Contract, including but not limited to any documentation related to the Village and associated therewith. The Contractor shall not apply any costs or charge any fees to the Village or any other person, firm or corporation for its procurement and retrieval of such records in the Contractor's possession which are sought to be copied or reviewed in accordance with such FOIA request or requests. The Contractor shall defend, indemnify and hold harmless the Village including its several departments and including its officers and employees and shall pay all of the Costs associated with such FOIA request or requests including Costs arising from the Contractor's failure or alleged failure to timely furnish such documentation and/or arising from the Contractor's failure or alleged failure otherwise to comply with the FOIA, whether or not associated with the Contractor's and/or the Village's defense of any litigation associated therewith. In addition, if the Contractor requests the Village to deny the FOIA request or any portion thereof by utilizing one or more of the lawful exemptions provided for in the FOIA, the Contractor shall pay all Costs in connection therewith. As used herein, "in the Contractor's possession" includes documents in the possession of any of the Contractor's officers, agents, employees and/or independent contractors; and "Costs" includes but is not limited to attorneys fees, witness fees, filing fees and any and all other expenses — whether incurred by the Village or the Contractor. F. Sexual Harassment Policy: The Contractor certifies that the firm has a written sexual harassment policy defining sexual harassment as required in Section 2-105 of the III. Human Rights Act. 775 ILCA 5/1-105 et. seq. G. Tax Payments: The Contractor certifies that the Contractor is not delinquent in the payment of any tax administered by the Illinois Department of Revenue as set forth in 65 ILCS 5/11-42.1-1. H. The parties hereto agree that for purposes of any lawsuit(s) between them concerning this rider or contract, its enforcement, or the subject matter thereof, venue shall be in Circuit Court of Cook County, Cook County, State of Illinois, and the laws of the State of Illinois shall govern the cause of action. Accepted by Signature Printed Name & Title , on 2015 Packet Pg. 127 1 3.C.b CONTRACTOR'S DRUG -FREE WORKPLACE CERTIFICATION The undersigned is an authorized representative of Name of Company: and certifies that they will comply with all requirements Pursuant to Chapter 30, Section 580/1 of the Illinois Compiled Statutes (30 ILCS 580/1) et. Seq. entitled "Drug Free Workplace Act"; the undersigned CONTRACTOR hereby certifies to the contracting agency that it will provide a drug -free workplace by: 1. Publishing a statement: a. Notifying employees that the unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance, including cannabis, is prohibited in the grantee's of CONTRACTOR'S workplace. b. Specifying the actions that will be taken against employees for violations of such prohibition. c. Notifying the employee that, as a condition of employment on such contract or grant, the employee will: d. Abide by the terms of the statement; and e. Notify the employer of any criminal drug statute conviction for a violation occurring in the workplace no later than 5 days after such conviction. 2. Establishing a drug free awareness program to inform employees about: a. the dangers of drug abuse in the workplace; b. the grantee's or CONTRACTOR'S policy of maintaining drug free workplace; c. any available drug counseling, rehabilitation, and employee assistance program; and d. The penalties that may be imposed upon employees for drug violations. 3. Making it a requirement to give a copy of the statement required by subsection (a) to each employee engaged in the performance of the contract or grant and to post the statement in a prominent place in the workplace. 4. Notifying the contracting agency within 10 days after receiving notice under part (B) of paragraph (3) of subsection (a) from an employee or otherwise receiving actual notice of such conviction. 5. Imposing a sanction on, or requiring the satisfactory participation in a drug assistance or rehabilitation program by any employee who is so convicted, as required by Section 5 (30 ILCS 580/5) of the Act. 6. Assisting employees in selecting a course of action in the event drug counseling treatment, and rehabilitation is required and indicating that a trained referral team in place. 7. Making a good faith effort to continue to maintain a drug free workplace through implementation of this Section. 8. Failure to abide by this certification shall subject the CONTRACTOR to the penalties provided in Section 6 (30 ILCS 580/6) of the Act. Signed: Title/Position: Subscribed and sworn to before me this day of 2015 Notary Public: 511Pag,iu^ Packet Pg. 128 3.C.b NATIONAL SECURITY/USA PATRIOT ACT Pursuant to the requirements of the USA Patriot Act and applicable Presidential Executive Orders, CONTRACTOR represents and warrants to the Village of Buffalo Grove that neither it nor any of its principals, shareholders, members, partners, or affiliates, as applicable, is a person or entity named as a Specially Designated National and Blocked Person (as defined in Presidential Executive Order 13224) and that it is not acting, directly or indirectly, for or on behalf of a Specially Designated National and Blocked Person. CONTRACTOR further represents and warrants to the Village of Buffalo Grove that CONTRACTOR and its principals, shareholders, members, partners, or affiliates, as applicable, are not, directly or indirectly, engaged in, and are not facilitating, the transactions contemplated by this Agreement on behalf of any person or entity named as a Specially Designated National and Blocked Person. CONTRACTOR hereby agrees to defend, indemnify and hold harmless the Village of Buffalo Grove, its Corporate Authorities, and all Village of Buffalo Grove elected or appointed officials, officers, employees, agents, representative, engineers, and attorneys, from and against any and all claims, damages, losses, risks, liabilities, and expenses (including reasonable attorneys' fees and costs) arising from or related to any breach of the foregoing representations and warranties. CONTRACTOR further represents and warrants it is not acting, directly or indirectly, for or on behalf of any person, group, entity, or nation named by the United States Treasury Department as a Specially Designated National and Blocked Person, or for or on behalf of any person, group, entity, or nation designated in Presidential Executive Order 13224 as a person who commits, threatens to commit, or supports terrorism; and that CONTRACTOR is not engaged in this transaction directly or indirectly on behalf of or facilitating this transaction directly or indirectly on behalf of, any such person, group, entity, or nation. CONTRACTOR hereby agrees to defend, indemnify, and hold harmless the Village of Buffalo Grove, its Corporate Authorities, and all Village of Buffalo Grove elected or appointed officials, officers, employees, agents, representative, engineers, and attorneys, from and against any and all claims, damages, losses, risks, liabilities, and expenses (including reasonable attorneys' fees and costs) arising from or related to any breach of the foregoing representation and warranty. CONTRACTOR Date Packet Pg. 129 3.C.b /:T.am1IIlN:G1 N1l[!Iall 11[M'1 ASSET SHARING GUIDELINES A. Objectives 1. Through collaborative efforts between all Village Departments and other external stakeholder groups (Park District, School District, County Government, etc...), Asset Sharing initiatives will be used to reduce asset redundancy and save money. 2. To increase collaboration between both internal and external agencies and improve productivity and organizational understanding. 3. Asset Sharing efforts are limited to local, regional, state and federal taxing bodies only, except as provided for specific outside groups with the approval of the Village Manager or designee. B. Asset Sharing Considerations Once an asset has been determined to be in need of replacement, the requesting department should follow the process outlined below as part of its regular evaluation. (This process would apply to new additions to the asset inventory as well). 1. Identify potential sharing partners. a. Can the asset be shared with another department within the Village or outside agency? b. Is the sharing of the asset appropriate and practical with type of asset and the department/agency for which it will be shared? C. Will the proposed partner be willing to share equally, or in part, the cost of the asset being purchased as well as the long-term operational cost once acquired? 2. Once a determination has been made that asset sharing is appropriate and practical, and the parties have agreed to participate in such an engagement, an Intergovernmental Agreement (IGA), Letter of Understanding (LOA) or some other written agreement should be drafted or reviewed by the Village Attorney 531Pag,: Packet Pg. 130 3.C.b 3. The agreement should clearly identify the responsibilities of the parties with respect to: a. Acquisition cost b. Who will perform the maintenance C. Maintenance costs allocation d. Storage e. Use and scheduling f. Accounting and budgeting g. Decommissioning and sale of the asset h. Other operational considerations. 4. Village department directors will be responsible for ensuring that this policy is communicated to all employees, particularly those with purchasing authority. 541 P :gig;: 0 a C a) E m 0 aL m s 0 N C O .y a1 O C O c0 C Q N a1 L a N N O N I t2 0 a I C a) E m L 7 V O L a C m E s ca a Packet Pg. 131 3.D Information Item : Sidewalk Snow Removal ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ Recommendation of Action Staff recommends discussion. At the July 20, 2015 Committee of the Whole meeting, staff is seeking Village Board input regarding a potential amendment to the Village Code requiring property owners to remove snow from sidewalks abutting their property. As part of the discussion, staff will be providing the Committee with the following information: 1. Current Village Code Requirements and Processes 2. Northwest Municipal Conference Survey Results from Nearby Communities 3. Staff Recommendation ATTACHMENTS: • Staff Memo (DOCX) • Snow Removal Survey Results (PDF) Trustee Liaison Staff Contact Village President Sussman Chris Stilling, Building & Zoning Monday, July 20, 2015 Updated: 7/15/2015 9:04 AM Page 1 Packet Pg. 132 3.D.a BUFFALO GROVE DATE: TO: FROM: SUBJECT July 15, 2015 President Beverly Sussman and Trustees Christopher Stilling, Director of Community Development Sidewalk Shoveling- July 20, 2015 Committee of the Whole Discussion At the July 20, 2015 Committee of the Whole meeting, staff is seeking Village Board input regarding a potential amendment to the Village Code requiring property owners to remove snow from sidewalks abutting their property. As part of the discussion, staff will be providing the Committee with the following information: 1. Current Village Code Requirements and Processes 2. Northwest Municipal Conference Survey Results from Nearby Communities 3. Staff Recommendation Current Village Code Requirements and Processes Village Code & Enforcement Currently, the Village Code prohibits property owners from placing snow from their private property onto a public right-of-way, including the sidewalk. Each year, the Village receives about 5-10 complaints where property owners are placing snow into the right-of-way. Furthermore, the Village does take an active role in ensuring that accessible parking spaces are adequately cleared of snow within commercial shopping centers. Current Processes The Village has approximately 237 miles of sidewalk. Currently, the Public Works Department clears approximately 28 miles of sidewalk in strategic locations throughout the Village. These locations are along major thoroughfares, heavily used pedestrian areas and near schools. It takes the Public Works Department approximately 1-2 days to complete the sidewalk snow removal with current staffing and equipment. Sidewalk snow removal occurs once the streets have been cleared. Overtime is not allocated for sidewalk snow removal, this work is completed only during normal business hours. Requests The Village receives multiple requests for additional sidewalk snow removal around schools, bridges, major intersections and between the Metra/Pace facility and points eastward. Public Works crews also perform corner edging to push back high snow piles that may obstruct driver visibility and pedestrian access. Each of the requests is reviewed on a case -by -case basis and a response is provided based on the availability of resources and the priority of the request amongst other snow -related service demands. Page 1 of 2 Packet Pg. 133 3.D.a Northwest Municipal Conference Survey Utilizing the Northwest Municipal Conference (NWMC) survey process, the Village was able to conduct a survey regarding the sidewalk snow removal policies and procedures from neighboring communities (Attachment A). The following is a brief summary of the results: Survey Results • Of the 23 communities that participated in the survey, 5 communities (Barrington, Cary, Glenview, Prospect Heights and Wheeling) require both residential and commercial property owners to clear snow from the abutting sidewalks. • The communities of Barrington and Cary average approximately 30-50 complaints/cases each year of property owners failing to comply with the ordinance. • Wheeling averages approximately 60-100 complaints per year. • Both Glenview and Prospect Heights average less than 10 complaints per year. • Barrington and Wheeling indicated that 10-20 complaints result in citations. Staff Recommendation Staff recommends that the Village Board not approve an amendment to the Village Code to require property owners to remove snow from sidewalks abutting their property. Based on survey results, staff estimates that the Village could have approximately 100-150 complaints/cases each year, with only a few resulting in a citation. Furthermore, larger snow events could require more staff time. Staff believes any potential fines received would likely not offset actual costs as fines would likely range from $25-$50 per incident. Attachments A. NWMC Survey Results Page 2 of 2 Packet Pg. 134 (eA omeZI mouSIleme@S:C�Z�) s|�ns tlAe mnSle oUJaU mouS ]uemLj,e■�¥ ) / \ § � \o= a 0 '\ /_) o 0m Gaƒ\� § 7\� /¥ \$f >G/ t � ° ,= I e 2 ° a = § ® a¥ k 2 E 2 0 E\\ _ 5 0 / \ / /D 2 o r%G0-.—C: 2¢g // 12 I 7 m= o= O o e q o 2= m y(\ z=-j / a U) _ § k / L 0 / / { = c = - } 0 CL \. §5g\k\ k �Zo \ /=o= / »_ /\ ® 7 E o = 0(\ a 2 D\ 0 \= a o o¥ E ° _= 7 « E D 2 8 E z \ ® \ 0 z 0 / z 2 ) a E \ 0 \ z z o z . _ \ � � / ¥ \ 7 \ 5 2 \\ _3 0 /2 ¥ a) \ ¥ a) = \ z / / E z u o o= o y» o 0)\ E\0-0= \ jcn \ a \ / 2 ƒ 2 0 5a =\§�g3\§2 2$2 E/ taƒ\ ®f\ ¥ \ \ } \\S\(\\ \E ƒ } ƒ } ƒ } / f z}z z z = 2 \ u � a)\ f E § _ /§0:3 \ s ® : / 5 ± _N> @ _ / \ » \ E = / I0ccm / _ _ @ 0 =-o g ¥ 0 I c e =»o oe= 3 eI-j== =2z z (leAOWOZI MOuS IleMOPIS : £�Z6) s;lnset1 AeAjnS lenowab MOOS :;uauayaejjNf cl- N O C L O C IQ L a+ �O U 1 a)U , E ,_ • • O N U fC d C. a)Q V C. E 7 ' • V .N u • • C CO > N Q O d O O a +� O C 0 m O .0 2 L i O • u O r �1 C. U) R y N r U 1 N C cl. N E R .� C • Q. = .2 • 2 V V d Q c C E = O >, l4 C`- 01 N L i y 3 ' 3 i O y Y • .a C � • N L y N 3 ' •• C i > °' • O � O O O E L E N • • • • O EO N E O • • • a)r • • • • • 0 ii w 3.E Information Item : Establishing Budget Officer ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ Recommendation of Action Staff recommends discussion. The Village of Buffalo Grove has the option of operating under the appropriations method of finances or the budget officer method. Currently the Village operates under the appropriations method. Staff recommends changing to the budget officer method as outlined in 65 ILCS 5/8-2-9.1. The impetus for the change is to bring more transparency to the budget process, allow for more flexibility to react to unforeseen expenditures, and eliminate the need for additional staff time devoted to compiling the appropriation ordinance and estimate of revenues. ATTACHMENTS: • Budget Act (DOCX) Trustee Liaison Board Member Johnson Monday, July 20, 2015 Staff Contact Scott Anderson, Finance Updated: 7/16/2015 3:28 PM Page 1 Packet Pg. 137 3.E.a (ILIAGE OF �i�U(°° F ,G110VE TO: DANE C. BRAGG FROM: SCOTT D. ANDERSON SUBJECT: ESTABLISHING BUDGET OFFICER METHOD OF FINANCES DATE: 7/16/2015 The Village of Buffalo Grove has the option of operating under the appropriations method of finances or the budget officer method. Currently the Village operates under the appropriations method. Staff recommends changing to the budget officer method as outlined in 65 ILCS 5/8-2-9.1. The impetus for the change is to bring more transparency and better analysis to the budget process, allow for more flexibility to react to unforeseen expenditures, and eliminate the need for additional staff time devoted to compiling the appropriation ordinance and estimate of revenues. Under the budget officer method, the budget is a fluid document that can be amended, with Village Board approval, to reflect actual financial performance. Where the transparency improves is in the reporting of subsequent year's budgets. One of the requirements from the Government Finance Officers' Association is to provide trend information through multiple years of budget data. How this process is flawed under appropriations is that a department could overspend its budget due to various circumstances but those increases not be captured in the trend analysis. For example; Under appropriations Finance Department Budget $1,000,000 Finance Department Appropriation $1,100,000 Unforeseen expenditures result in spending $1,075,000 Under budget officer Finance Department Budget $1,000,000 Unforeseen expenditure exceed budget $ 75,000 Amended budget (if passed) $1,075,000 Currently, all financial reporting uses the budget amount as the proxy amount for spending which in this case is 7.5 percent less than what really occurred. Page 1 of 5 Packet Pg. 138 3.E.a In order to function under the budget officer method, the elected board must vote to do so with an affirmative vote of two-thirds of the Village Board. Listed below are the differences in the two methods of finances. Appropriations Under this method, the Village Budget is not the legal spending document. It is used as a management spending control document. The legal spending authority resides with the appropriation ordinance. The appropriation ordinance is filed in both counties in conjunction with the property tax levy and serves as the expenditure justification for the levy request. Because of the legal restrictions on amending the appropriations ordinance, line items are significantly inflated beyond the amounts that would be actually necessary for expenditure purposes. That variance represents contingency funding for unforeseen capital expenditures, debt issuance, and higher than anticipated operating costs. Q a� The requirement under appropriations is that a public hearing is held and that the ordinance and budget are available for public inspection within ten days before the hearing. The appropriation must 00 LO be approved within the first quarter of the applicable fiscal year. N T ci a Staff has always treated the adopted budget as the authoritative spending document. The a� appropriation ordinance receives significantly less attention but represents a legal spending amount m that may exceed the budget by as much as twenty-five percent. Again, this has never been an issue d but community stakeholders could ask the question why more time isn't spent on the appropriation E ordinance rather than the budget given the legal standing of the ordinance. a Budget Officer Under this method, a budget officer must be appointed. In a managerial form of government the Village Manager may appoint this position. The responsibilities, as cited in 65 ILCS 5/8-2-9.2, of the officer include; 1. Permit, encourage, and establish the use of efficient planning, budgeting, auditing, reporting, accounting, and other fiscal management procedures in all municipal departments, commissions, and boards. 2. Compile an annual budget in accordance with Section 8-2-9.3. 3. Examine all books and records of all municipal departments, commissions, and boards which relate to monies received by the municipality, municipal departments, commissions, and Page 2 of 5 Packet Pg. 139 3.E.a boards, and paid out by the municipality, municipal department, commissions, and boards, debts and accounts receivable, amounts owed by or to the municipality, municipal departments, commission, and boards. 4. Obtain such additional information from the municipality, municipal departments, commission and boards as may be useful to the budget officer for purposes of compiling a municipal budget, such information to be furnished by the municipality, municipal departments, commissions, and boards in the form required by the budget officer. Any department, commission or board which refuses to make such information as requested of it available to the budget officer shall not be permitted to make expenditures under any subsequent budget for the municipality until such municipal department, commission, or board shall comply in full with the request of the budget officer. Establish and maintain such procedures as shall insure that no expenditures are made by the municipality, municipal departments, commissions, or board except as authorized by the budget. The annual budget serves in lieu of the appropriation ordinance and must be adopted prior to the beginning of the fiscal year. The budget may contain an amount set aside for contingencies (unforeseen expenditures). This amount cannot exceed 10 percent of the total budget, less the amount set aside for contingency purposes. The budget may be revised by deleting, adding to, changing or creating new objects or purposes at any time during the fiscal year by a 2/3 majority vote of the Village Board. Of course, no increase can be made to the budget unless funds are available. The tentative budget must be made available for public inspection at least ten days prior to its passage. A notice must be published not less than one week after the budget is made available for public inspection and at least one week prior to the public hearing. The following chart shows the major differences between the two methods of finance. Page 3 of 5 Packet Pg. 140 The only real disadvantage of the budget officer method is that a budget must be passed before the start of the fiscal year. This has never been an issue in the past, but staff will continue to schedule the budget presentation (hearing) in November to insure that there is adequate time for budget passage. Under the budget officer method, the annual budget becomes a more fluid and transparent process. Once the annual budget is approved, any changes to the budget must be presented to the Village Board as amendments, and approved by a 2/3 majority vote. Those amendments then become a part of the original document. At the end of the fiscal year, the original budget, plus amendments, will result in the final budget. From a historical perspective, the ability to adjust the budget to reflect actual expenditures provides more clarity for trend analysis. Attached to this memorandum are the state statutes that explain in more detail the budget officer method and the requirement. The municipal code will need to modified to include the following changes; Amend 2.08.040 - Duties Page 4 of 5 Packet Pg. 141 3.E.a K. Prepare a budget report indicating the funds necessary to defray the estimated expenses of the Village for the fiscal year; prepare the annual budget in time for consideration and enactment by the Corporate Authorities as required by statute; and prepare the annual tax levy; 2.08.043 Budget Officer A. Creation; Appointment. There is created the office of Budget Officer. The Budget Officer shall be appointed by the Village Manager, who may appoint himself or herself, or any other officer or employee of the Village, to fill that office. B. Bond. Before entering upon the duties of the office of Budget Officer, the Budget Officer shall take an oath of office and shall execute and file with the Village Treasurer a bond with security to be approved by the Village Board. The bond shall be payable to the Village in the penal sum directed by resolution of the Village Board, and shall be conditioned upon the faithful performance of the duties of the office of Budget Officer, according to law and the ordinances of the Village. The premiums for such bond shall be paid by the Village. C. Compensation. The Budget Officer shall serve without compensation. D. Powers and Duties. The Budget Officer shall have the powers and duties provided for in Sections 8-2-9.2 and 8-2-9.3 of the Illinois Municipal Code, and shall be responsible for compiling an annual budget in accordance with Section 8-2-9.3 of the Illinois Municipal Code. Staff would like to discuss this recommendation at the Committee of the Whole Meeting scheduled for June 20tn Page 5 of 5 Packet Pg. 142 3.F Information Item : Six Month Financial Report ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ Recommendation of Action Staff recommends discussion The attached report provides an update on budget performance of all Village Funds at the midpoint of the fiscal year. ATTACHMENTS: • Six Month Report FY 2015 (DOCX) Trustee Liaison Board Member Johnson Monday, July 20, 2015 Staff Contact Scott Anderson, Finance Updated: 7/16/2015 3:28 PM Page 1 Packet Pg. 143 3.F.a FROM: Scott D. Anderson, Finance Director DATE: July 14, 2015 RE: FY 2015 BUDGET —SIX MONTH STATUS UPDATE June 30, 2013 marked the mid -point of the fiscal year. This report provides an overview of current year performance measured against the approved Budget and makes a comparison against the previous year's totals. While department directors review expenditures on a monthly basis, the six month report is an important benchmark as there is time to make significant adjustments in spending and/or service delivery to respond to an unanticipated drop in revenues. If a drop in revenue is short term, the appropriate response may be to defer capital spending and reserve transfers. If the trend looks to be more long term then corresponding adjustment will need to be incorporated into the next year's budget. The total Budget for the entire village is $84,121,529 offset by revenue expectations of $78,737,348. As a reminder, the approximately $6 million dollar surplus is comprised of $3.5 million in additional pension revenue that is used to address future pension liabilities and a net $2.5 million in debt issuance proceeds that will fund a multi -year water meter replacement program. Based upon a review of revenue and expenditure/expense trends the Village's overall fiscal operations appear to be, in most line items, consistent with budget assumptions made during development of the current budget. Intuitively, one would expect that at the mid -point of the fiscal year both revenues and expenses would be at the 50 percent mark. Revenues typically hover near or above the 50 percent mark while expenses traditionally lag the 50 percent mark due to the timing of invoices and payroll, December debt service payments, and the phasing of construction and contractual payments. General kind Reivenue Highlight's Almost 80 percent of the General Fund's revenue are comprised of five sources of revenue, including property tax, sales tax, use tax, income tax and excise tax. Provided below is a chart of total General Fund Revenue collected to date and a description of the major revenues. Packet Pg. 144 3.F.a Property Taxes 14,034,943 7,185,891 51.2% 6,981,555 51.0% 2.9% 204,336 Base Sales Tax 5,195,046 2,839,496 54.7% 2,402,244 53.0% 18.2% 437,252 Home Rule Sales Taxes 3,396,028 1,875,660 55.2% 1,701,965 54.1% 10.2% 173,695 i Income Taxes 4,101,071 2,564,741 62.5% 2,660,262 56.0% -3.6% (95,521) Use Taxes - Electricity 1,674,000 794,932 47.5% 808,538 49.7% -1.7% (13,606) Use Taxes - Natural Gas 1,000,000 834,823 83.5% 858,203 85.8% -2.7% (23,380) Telecomm/Excise Taxes 1,875,000 791,591 42.2% 951,074 48.0% -16.8% (159,483) Fines and Fees 1,773,738 815,919 46.0% 818,171 46.2% -0.3% (2,252) Real Estate Transfer Tax 787,500 359,311 45.6% 408,309 58.3% -12.0% (48,998) Food and Beverage Tax ....................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 780,740 354,625 45.4% 363,326 49.6% -2.4% (8,701) Hotel/MotelTax 140,000 62,870 44.9% 100,127 77.8% -37.2% (37,257) Development Fees & Permits 706,000 535,848 75.9% 487,205 69.7% 10.0% 48,643 Business & Liquor Licensing 282,950 233,095 82.4% 159,037 54.0% 46.6% 74,058 j Interest Income 60,050 20,112 33.5% 15,845 20.3% 26.9% 4,267 Operating Transfers 852,500 426,250 50.0% 382,500 46.2% 11.4% 43,750 j All other Revenue 2,378,903 1,185,897 49.9% 940,435 61.6% 26.1% 245,462 Total 39,038,469 20,881,061 53.5% 20,038,797 53.4% 4.2% 842,264 General Fund revenues are trending at 53.5 percent surpassing last year by .1 percent in collections and 4.2 percent or $842,264 in dollars. The following is a review of all major sources of revenue. Property Taxes - 51.2% Revenue to date represents the first installments of the 2014 levy extensions for both Lake and Cook Counties. Historically, 99.7% of taxes levied are collected so it is anticipated that budget estimates will be realized by year-end. Property taxes extended in Cook County trend higher in the first installment as five percent is added to the previous year's extension. The second installment trues -up the levy request for the current year. • Combined Sales Taxes (Sales/Home Rule) - 54.9 % Base Sales Tax net receipts total $2,839,496 million which represents an increase from FY 2014 of $437,252. Home -Rule Sales Tax receipts total $1,875,660 compared to $1,701,965 last year. These receipts account for all taxable customer spending through March 2015. Even with one remaining vacant grocery retail site, Mariano's and Garden Fresh have surpassed the sales from the Dominick's locations. Grocery food sales are subject to home rule sales tax only. There are two sales tax incentives paid on an annual basis in the second half of the year. It is expected that the combined revenue will meet budget. Packet Pg. 145 3.F.a • Income Tax - 62.5% Income taxes continue to outperform based on stronger employment numbers and corporate earnings. This revenue is distributed on a per capita basis. The highest collection month is always in the first half of the fiscal year (May) due to income taxes being filed. Barring any move from the Illinois Legislature, this revenue should meet its revenue target. • Utility Use Tax (Electricity/Natural Gas) — 47.5% / 83.5% Compared to last year, the midpoint results are slightly lower than expectations. Electricity Use Tax is under the benchmark but will rebound with higher summer usage months in the second half of the year. Natural gas use tax is skewed due to higher usage months in the first half of the fiscal year. Assuming no major deviation in seasonal temperatures the remainder of the year, it is anticipated that both revenues sources will be at 100 percent of budget. • Real Estate Transfer Tax - 45.6% Receipts from the Real Estate Transfer Tax total $359,311 as compared to $408,309 in FY 2014. The real estate market has improved significantly over the last two years. The budgeted revenue anticipates about 15 percent of the revenue will be due to extraordinary transactions (greater than $1 m in sales consideration). There will need to be commercial/industrial/office sales for the budget to be reached. • Telecommunications Tax - 42.2% Receipts from the Telecommunications Excise Tax levied at a rate of 6 percent totaled $791,591. The revenue is down $159,483 from the previous year. A major reason for the variance is that all tax collectors have to refund taxes collected on data AT&T data bundles that were deemed as collected incorrectly by the State of Illinois. Each municipality with the tax has had its distributions reduced for the last eight months. The repayment period is over in July 2015. This revenue continues to confound many finance directors as it continues to drop each year. The budget anticipated a three percent decline (absent the repayment). It looks to be closer to five percent. • Prepared Food and Beverage Tax - 45.4% Revenue to date generated from the Village's 1% Prepared Food and Beverage Tax is $354,625 or $8,701 less than the previous year. Growth in this revenue was expected to match inflation. Absent any new restaurants, it does not appear this revenue will reach its budget of $780,740. • Development Fees/ Permits — 75.9% Construction and development related fees and licenses are generated in both the General and Water Funds. This amount is skewed higher in the first half of the year due to the collection of rental inspection fees. Higher than anticipated line items include, plan review fees (79% of budget) and building permits (100%). • Interest Income - 33.5% Much of the revenue is not realized until the close of the fiscal year through the accrual of unamortized income. Revenue is more than last year's total by about $4,300. The remainder of investments held by the Village is limited in duration by state statute and cannot be invested in any equities or separately held stocks. Yields on current assets range from around .1 percent Packet Pg. 146 3.F.a to .5 percent for CDs and about .1-3 percent for money markets At this point it appears the Federal Open Market Committee (FOMC) will increase the Federal Funds Rates (Village's short term investments are tied to this rate) at the end of the budget year. Water & Sewer Fund Revenue Highlights The following chart is the distribution of Water & Sewer Fund revenue and performance to date. Sales of Water 10,428,253 3,641,323 34.9% 3,166,606 31.7% 15.0% 474,717 Development Fees and Permits 35,750 93,672 262.0% 5,293 12.6% 1669.7% 88,379 Interest Income 10,250 2,750_ 26.8% 2,974 17.2% 7.5% (224) All other Revenue 6,000,000 2,237 0.0% 155,618 10.8% -98.6% (153,381) Total 16,474,253 3,739,982 22.7% 3,330,491 29.0% -6.3% 409,491 p Q cC 0 cC IL • Sales of Water/ Debt Service - 22.7% s Revenue earned at mid -year, as anticipated, trails the benchmark due to the timing and accrual c of water sales and sanitary sewer treatment fees to be received in the second half of the fiscal 2 period. While revenue reflects mid -year performance, what is not reflected is June, 2015 Cook x County residential, along with the May -June, 2015 Lake County revenue for residential and commercial user/consumer rates and fees to be billed as of June 30, 2015. The performance N number is lower than the previous year due to $6 million budget in All Other Revenue for debt related to the performance contractual meter replacement program. Absent those revenues, to c be collected in the second half of the year, the revenue is 36.1 percent of its target and in line N with historical budget performance. The village wide water consumption average in 2015 is LL 93.8 million gallons per month. The five year average is 92.8 million gallons; an increase of about o 1.1 percent. CL z G , f Enterprise Reifemie Highlightso a Buffalo Grove Golf Club: 5 Cl) Through June 30, 2015, a total of $443,452 in operating and non -operating revenue has been realized against a budget of $1,104,930 amounting to 40.1 percent of budget. This compares to June 30, 2014 s revenue of $455,635 or 37.9 percent of budget. U uuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuu�� Q Greens Fees 665,000 242,485 36.5% 253,812 37.1% -4.5% (11,327) Power Cart Rental 165,000 59,419 36.0% 64,919 38.8% -8.5% (5,500) Driving Range 61,500 24,292 39.5% 26,408 44.0% -8.0% (2,116) Memberships 64,000 57,823 90.3% 56,833 88.8% 1.7% 990 Merchandise Sales 57,000 26,261 46.1% 24,336 35.8% 7.9% 1,925 Rent & Utility Reimbursement 83,000 25,034 30.2% 23,601 28.4% 6.1% 1,433 All Other Revenue 9,430 8,138 86.3% 5,726 7.7% 42.1% 2,412 Total 1,104,930 443,452 40.1% 455,635 37.9% -2.7% Packet Pg. 147 3.F.a Revenues at the golf course tend to be less than the 50 percent benchmark as the strong play months are July and August. That being said, the amount of rain received during the first half of the year has resulted in a very slow start. Unfortunately, rounds lost at the beginning of the year are very difficult to recover in the second half. Through the midpoint of the year 15,138 rounds have been played vs. 15,554 a year ago a decrease of 2.7 percent. Arboretum Golf Club: Arboretum Golf Club operating revenue exclusive of equity transfers totaled $528,361, or 38.8 percent, of budget compared to the previous year's revenue of $518,930 (44.8% of budget). Most of the difference is the percentage of budget attained is the timing of receivables for rent and utility payments. The All Other Revenue category has exceeded budget due the payments by Reliable Maintenance for asset acquisition. To date, 13,192 rounds have been played. At the same point last year 13,278 rounds were played (.7% decrease). Packet Pg. 148 3.F.a All t� he Village Fund Revenue The largest variances year over year are, • Capital Projects Facilities revenue represents a draw on the line of credit for the EAB project. • Both pension funds are invested at a higher level of equities and revenues are marked to market each month. Certain revenue, such as Inter -Fund Transfers, generally are not posted until the second half of the period and then only based on the need of the receiving fund. All revenue categories will be monitored closely and all efforts maximized to enhance revenue. Packet Pg. 149 3.F.a General Fend Expenditure Expenditures to date total $18,794,760 or 48.2 percent of the approved budget. This compares to $18,732,838 or 50 percent in FY 2014. The performance of the entire fund is on track with budgeted expectations. The following chart depicts expenditure performance; 11111 uui i ,IuII�V . Personal Services 18,868,004 8,681,517 46.0% 8,712,035 46.8% -0.4% (30,518) Personal Benefits 9,717,293 4,414,646 45.4% 4,529,464 44.4% -2.5% (114,818) Operating Expenses 2,443,318 1,293,033 52.9% 820,611 42.6% 57.6% 472,422 Insurance 820,703 595,741 72.6% 667,515 76.0% -10.8% (71,774) Legal Services 379,650 154,396 40.7% 140,449 36.0% 9.9% 13,947 Committees & Commissions 106,300 24,681 23.2% 15,279 16.5% 61.5% 9,402 Commodities 432,490 140,136 32.4% 212,655 79.0% 34.1% (72,519) Maintenance & Repair - Facilities 1,268,333 622,057 49.0% 373,201 255.5% 66.7% 248,856 Maintenance & Repair_ Other 58,494 (1,621) -2.8% 15,780 1.8% 110.3% (17,401) Maintenance & Repair - Vehicle 1,787,121 899,119 50.3% 408,639 61.0% 120.0% 490,480 Capital Improvement - Facilities 203,500 272,849 134.1% 42,054 23.1% 548.8% 230,795 Capital Equipment 671,598 615,859 91.7% 162,968 17.6% 277.9% 452,891 Operating Transfer 1,943,943 939,778 48.3% 2,538,440 128.9% -63.0% (1,598,662) All Other Expenses 326,447 142,570 43.7% 93,748 30.3% 52.1% 48,822 Total 39,027,194 18,794,760 48.2% 18,732,838 50.0% 0.3% 61,922 Personal Services / Personal Benefits - 46.0% / 45.4% Personal Services is the single largest expense account category budgeted by the Village. In terms of total budget, Personal Services and Benefits account for nearly 73 percent of expenditures. Salary should always trend below the 50% benchmark due to the timing of payrolls and the accrual of the first payroll of the year back to the previous year. There have been twelve payrolls in FY 2015 that represents 46.15% of salaries. There was no increase in the health insurance premium in 2015 although the employees contribution increased by 1 percent to 14 percent of the premium. There are significant variances in Operating Expenses, Maintenance and Repair - Facilities, and Maintenance and Repair - Vehicles. This is due to the establishment of Internal Service Funds. Those chargebacks have been applied at a reimbursement amount of 50 percent and applied to those expenditure classes. Next year will normalize the data and provide for better trend analysis. Capital Equipment represents, in part, transfers made to the capital reserve for vehicles, buildings and technology. Insurance is skewed higher as the annual general liability/worker comp premium is paid every January. Commodities trend lower in the first half of the year as salt purchases are made in the second half. Packet Pg. 150 3.F.a Water, Sewer Fund Expense Review As of June 30, 2015, the Water and Sewer fund has expended 23 percent of its budget. Similar to the General Fund, Internal Services are being charged back to the Water and Sewer Fund driving the large dollar change in Operating Expenses. The largest notable variance is in Capital Projects - Water. The performance contracting project is accounted for within this account class. Most of the expense will post in the second half of the year. Packet Pg. 151 3.F.a Goif Enterprise EXpense Review M.. n Personal Services 544,124 175,981 32.3% 207,064 40.2% -15.0% (31,083) Personal Benefits 170,257 52,315 30.7% 63,007 31.9% -17.0% (10,692) Operating Expenses 284,354 300,688 105.7% 71,752 48.9% 319.1% 228,936 i Insurance 25,361 12,765 50.3% 12,766 50.3% 0.0% (1) Commodities 130,000 27,180 20.9% 78,430 60.3% -65.3% (51,250) Maintenance & Repair - Facilities - - 0.0% 30,028 50.0% -100.0% (30,028) Maintenance & Repair - Other 20,000 9,164 45.8% 4,495 15.0% 103.8% 4,669 Maintenance & Repair - Vehicle 27,000 455 1.7% 8,130 30.1% -94.4% (7,675) Capital Project - Facilities 22,000 5,643 25.7% 2,062 5.6% 173.6% 3,581 Capital Equipment 41,500 20,500 49.4% 5,500 17.2% N/A 15,000 Operating Transfer - - 0.0% - 0.0% N/A -i All Other Expenses - - 0.0% 406 81.3% N/A (406) Total 1,264,596 604,691 47.8% 483,640 40.3% 25.0% 121'051 o �� : w w'P - °moo ,,,:� � .:� o ��,111 m .:� �o a �� Personal Services 501,706 137,099 27.3% 177,952 35.8% -23.0% (40,853) Personal Benefits ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 160,039 37,540 23.5% 58,167 34.1% -35.5% (20,627) Operating Expenses 427,845 217,360 50.8% 79,589 49.8% 173.1% 137,771 i Insurance 25,360 12,765 50.3% 23,089 91.0% -44.7% (10,324) Commodities 160,500 18,431 11.5% 74,664 45.9% -75.3% (56,233) Maintenance & Repair - Facilities - - 0.0% 26,489 53.0% -100.0% (26,489) Maintenance & Repair_ Other 0.0% 8,709 62.2% -100.0% (8,709) Maintenance & Repair - Vehicle 0.0% 6,160 30.8% -100.0% (6,160) Capital Project - Facilities 34,000 244,279 718.5% 3,515 13.8% 6849.4% 240,764 Capital Equipment 51,100 41,703 81.6% 41,703 138.1% 0.0% - Operating Transfer - - 0.0% - 0.0% 0.0% i All Other Expenses 500 516 103.2% 406 81.1% 27.2% 110 Total 1,361,050 709,692 52.1% 500,443 43.3% 41.8% 209,250 The significant variances at both courses are due to the outsourcing of course maintenance and the impact of the Internal Service Funds. Capital Projects -Facilities account for the contractual expenses for the course maintenance. There is a corresponding decrease in Personal Services and Personal Benefits with the decrease in course staffing. Packet Pg. 152 3.F.a All Other Village Fund ExpenditureslExpenses Almost 75 percent of expenses in the Parking Lot Fund are for the ComEd right of way land lease. That payment is made in the second half of the year. The timing of Motor Fuel Tax related construction results in most of the expense being posted in late summer/early fall. Capital Projects — Facility includes the cost of performance contracting for street lighting. That project is near completion. The following charts provide the snapshot of budget performance to date for all Village Funds. General ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 20,881,060.82 18,794,759.95 2,086,300.87 Water & Sewer 3,739,981.75 4,382,872.91 (642,891.16) BGGC 443,452.00 604,691.06 (161,239.06) AGC 528,361.14 709,692.17 (181,331.03) Parking Lot ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 75,250.00 11,188.85 64,061.15 Motor Fuel Tax 885,155.00 124,702.00 760,453.00 Capital Projects 1,000,000.00 1,185,655.00 (185,655.00) Capital Projects Streets 25,000.00 345,289.00 (320,289.00) Debt Service 408,654.63 148,206.00 260,448.63 Police Pension 2,156,022.00 1,556,784.00 599,238.00 Fire Pension 1,989,556.00 1,152,122.00 837,434.00 Refuse 518,192.00 450,916.00 67,276.00 Total 32,650,685.34 29,466,878.94 3,183,806.40 Department directors will continue to monitor spending on a monthly basis. In light of potential legislative decisions that could impact state shared funding, several capital maintenance programs have been intentionally slowed until the situation becomes more clear. Packet Pg. 153 3.G Information Item : Health Insurance Update ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ Recommendation of Action Staff recommends discussion. The following memorandum summarizes the performance of the health insurance pool (IPBC) through the midpoint of the plan year. ATTACHMENTS: • 2015 Health Insurance Status Memo (DOCX) Trustee Liaison Board Member Johnson Monday, July 20, 2015 Staff Contact Scott Anderson, Finance Updated: 7/16/2015 3:29 PM Page 1 Packet Pg. 154 IN p'8•onp ,, M 11�9 21,00 To: Dane C. Bragg, Village Manager From: Arthur A. Malinowski, Jr., Director of Human Resources and Risk Management Date: July 13, 2015 Subject: Status of 2015 Medical Insurance - Actual Claims Paid v. Premium Paid Determination of Premiums Based upon several pieces of information including: (1) data on past actual claims paid, (2) medical cost/inflation trends, (3) the experience of the entire Intergovernmental Personnel Benefits Cooperative (IPBC) membership and (4) the entire Gallaher Benefits Services (GBS) book of business, the IPBC provides the Village with the annual medical insurance premium several months in advance of our actual plan year (January — December). It is important to note that the IPBC Pool, which is supported by GBS, consists of over 80 municipalities and other government entities, including the Village of Buffalo Grove, employing more than 12,000 individuals throughout Illinois, therefore the creditability of the Pool's sample size is not an issue. Additionally, the forecast for the annual premium is based on the best information available at the time and is conservative in nature. At the conclusion of each plan year, a "true -up" is made by comparing premiums collected in the past plan year against actual expenses paid by the Pool in the same period of time. The Village is then given a credit or invoiced to cover a shortage. 2015 Claim Experience and Costs As of June 30, 2015, we are at the mid -point of our plan year and per the most recent analysis conducted by the IPBC/GBS, we are tracking at approximately 118%. In other words, for every $1.00 we are sending to the Pool to pay medical claims, the Pool is spending $1.18 to pay the medical claims of Village employees. If this trend continues for the remaining six months of the plan year, we will owe the Pool as much as $400,000 in claims paid, but not previously funded via our monthly premium contributions. The Village's reserve balance, which is held by the Pool, continues to decline due to this year's claim experience and is unlikely that a sufficient balance will be available to cover the 2015 premium contribution shortfall if the current trend continues through the end of this year. Once the reserve is depleted there will be no ability to subsidize rates through the use of prior period surplus balances. Page 1 of 2 3.G.a Packet Pg. 155 3.G.a It is anticipated that the health insurance premium will increase by ten percent for FY 2016 or about $420,000 with the employee portion of the premium increasing to 15% next year. The increase in the employee portion of the premium was negotiated with both Unions and is applied to all employees who are covered by the Village's health insurance plan. It should be noted that since returning to the Pool that average annual insurance increase has been 2.6 percent. The average increase to all the Pool members is 2.2 percent for the next plan year. Plan Moving Forward Due to this issue and the 2018 "Cadillac Tax", staff has been discussing plan change options with IPBC/GBS consultants, which will ultimately serve to reduce the Village's medical insurance costs. As part of evaluating plan changes, a Wellness Committee has been established to help integrate wellness initiatives and to help employees get a better understanding of the mechanics of a health insurance plan and the cost drivers. In the mean time staff and consultants will continue to work diligently on possible solutions to this issue and will provide you with updates as appropriate. I am available to discuss this matter with you further at your convenience. Page 2 of 2 Packet Pg. 156 3.H Action Item : Snow Report ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ Recommendation of Action Staff recommends discussion. Public Works Director Mike Reynolds will review the assessment of the 2014-15 snow removal plan as well as proposed process improvements for the 2015-16 season. ATTACHMENTS: • 2015 Blizzard Memo (DOC) Trustee Liaison Trustee Stein Monday, July 20, 2015 Staff Contact Michael Reynolds, Public Works Updated: 7/15/2015 9:18 AM Page 1 Packet Pg. 157 3.H.a RE: January 31 — February 2, 2015 Blizzard Post Incident Review Findings Public Works staff met on Wednesday, February 5, 2015 for the first in a series of post incident review sessions of the blizzard of January 31 — February 2, 2015. There were a lot of good comments and discussion and it became clear that there was a lot of research and fact finding that needed to be done in preparation for this report. To help accomplish this, we enlisted the assistance of Police and GIS to help gather some data and correlate it to the routes, so that we could formulate some conclusions. Snow & Ice Control Supervisors met with their drivers at various times over the past three weeks and Department Management Staff met on February 18 2015 and again on February 26, 2015 to review the data and formulate conclusions and recommendations. General Timeline ofEvents: From approximately 8:00 pm on Saturday, January 31, 2015 until 3:00 am on Monday February 2, 2015, 22 inches of snow fell in Buffalo Grove, nearly twice the amount of the original 11-12" predicted on Friday and over 6" more than the revised predictions of late Saturday. As early as Friday, January 30, 2015, it was decided, based upon the predicted snowfall at the time that Public Works would staff plowing operations on a 24 hour basis (2 crews for a 12 on 12 off rotation) until all of the snow was plowed and streets were clear. Snow operations began at 10:30 Saturday, January 31, 2015. At that time, we had our ten 5-ton dump trucks deployed for a salting operation. By 3:00 am plowing operations had begun. By noon on Sunday approximately 8" of snow had fallen and all drivers reported being through their routes and to the curb at least once and some twice. The noon shift change occurred and plowing operations resumed. The heaviest snow occurred during the next 12-hour shift with approximately 10" of snow falling. Throughout the day Public Works and OVM staff had been posting updates on social media regarding storm conditions and plowing progress. Based upon comments on social media and discussions with the Village Manager later in the day, it became clear that additional staff needed to be mobilized. At 6:00 PM, the call was put out to backup personnel and by 8:00 PM ten additional pieces of equipment had been mobilized. Packet Pg. 158 3.H.a Based upon the comments received on social media, field observations and statements by various residents, it was apparent that some streets had very long cycle times. This was further substantiated on Monday morning when visual observations had identified many streets that had quite a bit of snow accumulation on them. The full compliment of 20 plow vehicles remained on the street until the shift change at noon, at which time 10 trucks remained on the street until operations concluded at midnight Monday. Throughout the remainder of the week crews worked on storm clean-up, clearing sidewalks, and knocking down any reported line -of -sight issues at intersections. Factors Influencinz Plowinz Effectiveness: This storm posed several challenges which, in part, contributed to the complexity of the operation. • Approximately 22 inches of snow fell (O'Hare 19.5"), which, according to the National Weather Service was the fifth largest event in 130 years of recorded snow history in Chicago. • Drivers in two of the ten routes did not follow the plan. • The heavy windrows from the State and County plows required us to spend more time clearing intersections in an effort to keep Buffalo Grove main roads open. In locations where we were not able to get there soon enough, cars were stuck as they tried to enter or leave their subdivisions. The effect of this was that drivers were leaving their locations within their routes to perform this work. • At approximately 5:00 pm on Sunday February 1, 2015, the Police were advised by Ernie's Towing that they were no longer towing stuck or abandoned vehicles. Police responded to 59 abandoned or stuck vehicle calls; 37 Sunday February 1 and 22 in the overnight hours of February 2. For many of these calls Police requested a Public Works plow truck for assistance. Again, drivers had to leave their locations within the routes to perform this work. Additionally, drivers assisted stranded motorists as they moved through their routes. • Because the storm was on Superbowl Sunday, there were heavier than normal traffic volumes for a typical Sunday evening. Additionally, because there were several Superbowl parties throughout the Village, there were several areas where parked cars were an issue. There was at least one instance where the occupants told Police Officers they would rather get a ticket that have to move their vehicles. • Finally, blowing and drifting snow required drivers to leave their positions within their routes several times to go back and clear roads. Data Analysis: In order to make a determination as to the effectiveness of the plan and where possible deficiencies exist, we needed to gather data and correlate that data to the ten established snow & ice control routes. With the assistance of the Police Department, GIS, review of comments/observations from the drivers and supervisors, as well as the data from the vehicles on board GPS systems, we were able to zero in on the areas of concern. The data from the GPS units indicated that some of the streets did in fact have long cycle times while other complaints were unfounded. The attached exhibit A shows the plowing activity for -2- Packet Pg. 159 3.H.a the 48 hour period between 11:59 pm on Saturday, January 31, 2015 and 11:59 pm on Monday, February 2, 2015. The streets where complaints were received are circled. Exhibit B lists the street complaints that we were able to validate based upon review of the GPS data. Based upon comments on social media, calls received either directly or through other sources, 39 streets (7.3% or 39 out of 537) of all Village streets were reported or observed as not being plowed. Evaluation of those locations revealed that the majority of those complaints (69% or 27 out of 37) were limited to two routes. Route 6; Highland Grove, Newtown and Fox Hill area (49% or 19 out of 37); and route 8, Mill Creek, Weidner Rd., St. Mary's Rd. area (20% or 8 out of 37). To a much lesser extent, routes 1, 2, 3, 4 and 9 received only a few (1-4) complaints. Upon speaking to the drivers, it appeared that they got tunnel vision and began to try to finish individual neighborhoods, clearing curb -to -curb first before proceeding on to the rest of their routes. This led to less overall effectiveness throughout the entire route, with drivers not following the plan to continuously drive their and making opening passes on a more frequent basis. The attached exhibit C provides a visual representation of the various issues as they correlate to the routes. In total, the Public Works Department dedicated 647.5 hours fighting this event. Based upon the number of motorist assist calls from Police, motorists assisted by our drivers on their routes, and the time spent re -plowing State and County intersections and drifting areas, it is estimated that up to 100 hours of plowing (15.4%) routes themselves were lost. Conclusions: Like many things that Public Works does, perception is reality with regard to snow & ice control operations. It is important to understand that snow plowing complaints are very subjective and what is satisfactory to one resident may be completely unacceptable to another. The goals of the new Winter Maintenance Program were to streamline our operations and respond to environmental and budgetary concerns by reducing amount salt used while still maintaining a high level of service and efficiency. We feel we have met that challenge. This year we purchased a brine making system. This allows us to make our own brine to various strengths depending on the predicted weather conditions. Using more liquids and applying sensible salting practices has resulted in a reduction in salt use of almost 1,100 tons of salt. Based upon the data analysis, overall we feel that the plan was successful. 93% of the Village's streets were plowed to an acceptable level. Deficiencies existed in primarily one route and, to a lesser extent a second route. This conclusion directly correlates to the locations of the documented complaints. When compared to the blizzard of 2011, we performed significantly better. Exhibit D provides a comparison of the two events. Furthermore, when compared to last year, we have been able to reduce costs by $130,218. Exhibit E provides a comparison between this year and last year. We believe that the long cycle times experienced in some routes were not indicative of a flawed plan, but were the result of drivers not following through with the plan. Too much time was spent clearing and curbing some neighborhoods, instead of continuously driving through an entire route as prescribed in the plan. If drivers continued to cycle through their routes, even with the outside factors of stuck and parked cars, the cycle times could have been held in check. Secondly, route progress reporting and evaluation was left to the drivers themselves, who all reported that they were keeping up with their routes. This event highlighted the importance of -3- Packet Pg. 160 3.H.a having a non -plowing supervisor on the street, evaluating conditions and making sure that plow drivers remained diligent through their routes. Finally, the addition of social media during the winter of 2014 — 2015 has added a dimension that is outside of our control. This has created a public forum for individuals that want to air complaints, comments and grievances in a social setting. At times those complaints can grow in momentum and size and become bigger than the actual problems themselves. We believe it's important to investigate the concerns of social media and follow up as appropriate, but not to wholly deviate from procedure based on those comments. Crews need to be allowed to complete the snow & ice control process according to plan in order to meet performance standards for all areas of the Village. It is also recommended that the Village's social media page include a disclaimer that any concerns, complaints, comments, etc. should be addressed directly to the PW or after hours PD numbers during an event and not just posted to a social media page. The fact that all of our personnel are out on the street during an event does not allow us to observe or respond to social media related comments or issues on a real-time basis. Plan Modifications: Overall, there are several modifications that we have implemented or plan to implement as a result of this evaluation. First, we will have one non -snow plowing Manager or Superintendent on the street during all plowing operations. This will allow for supervisory control of the routes and better assessment of route progress. Second, we will assist Police with motorist assists or other service -only calls to the extent that it does not significantly interfere with our snow & ice control operations. Third, because there appeared to be a disconnect between the plan and what the drivers actually did, we plan to implement check rides with all of the drivers in order to evaluate their route cycle times and provide one-on-one training as to the most efficient way to drive each route. Follow- up training will be provided as needed this year, as well as annually when we hold our snow day training. Finally, in addition to the four trucks already equipped with GPS, we have purchased and equipped all of our primary route trucks with GPS units. In addition to being able to know the vehicle's current location, we will be able to see where they have completed routes and when. This will allow us to specifically address issues related to complaints of vehicles having not been on a particular street. Please feel free to contact me if you need additional information or with to discuss this matter in more detail. Attachments c: Jennifer Maltas, Deputy Village Manager Mike Skibbe, Deputy Director of Public Works Bryan Beitzel, Superintendent of Maintenance Scott Fontanez, Street Section Manager Jeff Rogers, Sewer & Drainage Section Manager -4- Packet Pg. 161 3.H.a Histori aii Trip Keport ( iaup Report Options Asset: I+t7:2 %-d . Draw Route Un'e's? .� I Roane Threshold: I PNouv IPonnxt Threshold: law --------------------- V__..I StartCkateminle: IMV201 Ii+ It 59 PEA rII�M End Daternime: Vv2rl15 L�E "F ; I N'59 AM a rJ FI J Resullts urn Nonger hoad turves. Exhibit A m he ,end Plwslhpins rema Im4IPIJnalll' Cantxr&IK Event V, Nb•••aute (Mow) Ii P DOWN NO DATA Paints iRow) UP DOWN NO rtATA Truck 432 — Plow Route # 2 F O Q d 3 0 r` N _ O (n d O E d L N N m U) T- O N _ C� G t V Q -5- Packet Pg. 162 Historical Trip IReport (Map) Report Options Asact: �Zi-v-j Draw Route Unes? Route Thireshoid: [�9aw . .......................... Point Thireshold: PWW - - -------------------------- - start Daterrime: 2M 11:59 AM End Daterrime� � Lj �,' ---- - -- -- ---- I Results, in longer load time-s. 1 0-0 0 0-0-0, 00' (D; /0 Q Exhibit A 2 egend Pushpins (:'J.6tamd lVdIvidual 0 cantmIWEwnt Route (Plow) UP INDOWIN NO DATA M Points (00W) 11 P if DOWIN NO DATA M HHU I! 1 10 ! Truck 432 — Plow Route # 2 F 0 CL a) 0 CM 0 (n 0 E '13 N .N IM U) T— CD C*4 E 0 Packet Pg. 163 3.H.a Report Options. Asset: i"�..I Drawn RouteLines? I � a Route Tlhrestaadd: II m-- � _� Paint TNrrestaaNd: pll¢�wr �' Start. DaterFji roe: �VV2019 �� 9 _; � N t 59 f°Nd4 End Dater nne: 2P2d2015 �� "+ 7 5� 6�9 — ......__ J !I .�:i � .. __.. .__...... 1; * Results in Nonger Maack times. H.. �iyy yWIIrU, i�tylitt�V 432 SU Exhibit A to 03 G,e end Pushpins aalwac�r�m MI'Vidualll 0 —tradl. Ev Route (00W) UP InDOWN NO DATA M Pwnta (PaPOW) tl'F IN o wUIP NO rV.ATA Truck 432 — Plow Route # 2 O 12 d CM in r rl r O (n N� 1.6 O E (CV G M L N N m U) T— O N C C� G t V Q Packet Pg. 164 Report Options Asset- 4�32_ Y� I Draw Route Lanes? Route Thiresbol& II Plow Point Thireshcl& 0"j.. V] Start DaterrimE 202015 7:55 AM End Dateffiime�2 2 a015 Is :5 9 AM ' Results in Bonger Ioadi times. Exhibit A Le !end Pushpins ifidividuall! 0 CantrNIvEvant Route (Plow) UP DOWN NO DATA Points (Fow) UP DOWIN NO DATA, Truck 432 — Plow Route # 2 0 CL a) 0 C14 0 (n 0 E N U) T_ CD C*4 E 0 Packet Pg. 165 I Report Options Asset: jh2vj Draw Route Limes? [.yil Route Threshold: faw -------------------- - PointThreshold: [P9ow Start DaterFimea 2JV20'15 [11:59AIM End Dateminme: r��V20'15 It :59 PM I Results in longer load times. Exhibit A 2 RHO Ii 1 10 1 IIP-1Ruin Report ieqrnd P—hpi.. individualli ConnicYller Event RoA2 (Plow) Up DOWN NO GRATA M Points (Plow) DO' UP IN No NO DATA Truck 432 — Plow Route # 2 0 CL a) 0 CM 0 (n 0 E M N .N IM U) T— CD C*4 C_ a) E 0 Packet Pg. 166 Report Options Asset: u424 �j I Draw Route, Uries? Route Threshold: I maw v PointThreshold: [maw ----------------------- V Start Dateffirne: [MV2015 [11:59pm Endnaterrime: [27VM5 . il . m' . 9 -Am 424, JU I Results in longer 1,4ad; domes. 2m Exhibit A eg*nd Pushpins c5uatsaem L mdIviduall 0 Canl,rdllw E-1 1' RD ute (Plow) UP DOWN NO DATA M Points (Row) UP DOWN NO DATA M Truck 424 — Plow Route # 3 — 10— Packet Pg. 167 It Report Options Asset I Draw Route Lines? b� Route Threshold: Pjaw v - -------------------- --- Point Thire,stvoldquw start Daterrinne: [2"M ... - ° 2 0 1 End Daterrime: [117.59 P-M 424 JU I Results, in Nonger load times. Exhibit A M, ii TI Le Bernd plashpins C:9 .NBmd1 [:] individual CQntrullef Ennt Raute UP IRDOWN NO DATA M Points (HOW) UP IRDOWN NO DATA Truck 424 — Plow Route # 3 Packet Pg. 168 Historical Trip IReport (Map) Report Options As,setlZi v. Draw Raute Lines? I. Route Threshold: �p . ijef YJ PomkThireshold: flaw start Daterrime: 5 9-pm� -------------- End Datemime: [V2aD-1-5 7519 AM 424 JU * Resufts, M NongeT lbad times. Exhibit A m Er end P—hpin. I'adividual ContrWIK Ewnt R.0. (Flow) UP DOWN NO DATA Pomts (oow) U'P DOWN NO DATA UHU lia 11 Ila! Truck 424 — Plow Route # 3 - 12- Packet Pg. 169 3.H.a Report Options Asset: F4,m V.0 RDraw Route Lanes? �. Route Threshold: I Pgaw Po,intThreshold: IPow startDaterrimoe: �2020i5 Mi 259AM Enid DatelTlnne. 2�V2015 " i I 1 :59 AM 424 SU . Results m longer load tumes. Exhibit A MM' m Ba� Le send Pushpins _ b0mv f� In ividu911 I canftmlei Ew nt A` haute (Plow) tl P pt.WNl NO DATA Points �PJtdWN IJ P DIDWN NO JQP.ATAi Truck 424 — Plow Route # 3 O tZ d 3 O N C O (n d O E d L N N m U) T— O N C C� G s 0 Q -13- Packet Pg. 170 Historical Trip Report (Map) Report Options Asset: -424- --yj I Draw Route Lines? FBI Rmpte Thireshaid: I plow PoiintThreshdId: [P Gw Start DateMime: .. End wtarrime: F��i Gt5 ] 424, JU I Resufts, in 0onger load times. Exhibit A 21 m egend Pushpin5 clweeaared F] 0 controlIK Event Rnute (FoLvj UP DOWN NO DATA M PoBnts (Pow) It P DO W" NO DATA Truck 424 — Plow Route # 3 F 0 CL a) 0 CM 0 (n 0 E M N U) T— CD C*4 E 0 - 14- Packet Pg. 171 Report Options Asset - Draw Route Lines? RI RmAeThiresho,ld: Point Thresho4d: - . - -- 0 Start Dateffiime End Dateffinie: [VU-2-0-1-5 ------- ------Am-- �* 11�7 111 I Resufts, in longer bad fimes. Exhibit A Im Le end 0 cantfowEvqnt 0 R..te (PPOW) UP DOWIN NO DATA M Points (PdQwy U'p DOIRJWI NO DATA Truck 416 — Plow Route # 4 F 0 CL a) 0 CM 0 (n 0 E M N .N IM U) T— CD C*4 E 0 Packet Pg. 172 3.H.a Report Options Asset: rmas- " Drawl Rcute Lines? L Rouite ThreShald: PBaw V. IPotrxtTlhresholM lPflw StartBaterriutae: � V9V2L113 ill ", �11 sarma.. A"II End Dateffime: �VV24t 5 ,� ± I t 59 PM l Y Result's 41 x Results In longer load times. The Time Zone Reflected 6sa Cetrd,rrsall. 'TI frime (US & Camme La�,affe Lot r11� r air ��y �m a 140 I Y t ,. �o�y�r Vs a drrr a 4 � a beef eRrc.1 Pk h i D � n "e" m, Iw a Had Lit Ivy G lr4tl r ~,gLl yds yq +. M A. dr�........yv...�..e J �... �` Exhibit A F 0 Q d 0 Cn N_ C 0 N m 0 M N N m U) T— O N L2 end PlursHMp;iimis � aJuadarei E enawiauam � V C-II-oll. E..t <> ate+ Q Route (Plow) LIP DOWN ' NO DATA M Points (PF Qw) I:PP DO'I+IYII NO r@A 1: M Truck 416 — Plow Route # 4 -16- Packet Pg. 173 Historical Trip IReport (Map) Report Options Asset: Draw Route Lines? Route Threshold. Ili awv v Po,jni:Thireshol& Piow ... ....................... -- - - - - - - - - - --- M �201 5" start Daterrime! F:ht - ------ - ----- End u�aterrjime: [i-2E2-0-15 ........ 7.-59_AM_,_ ___ M------- Results 416 F? 4RCE, Knollivxxid Dr .0and D. Exhibit A I Results, in Oongef load ttmes. The Time Zone Reftsted is: General Timue (US-S Canada La ss F'.jHav U, 44-lpn IXY Id P Fi✓gaJ derct, 4Klike I�yplka C,arninfurifty Park � cc ontWay Ivy Hafl LID n pm k I Pfi(OFN 11,C VnU6"Gr, 500 0 CM 0 T 0 CW M N N U) T— CD C*4 egend C plashpins a) E cquuhv�dl Individuat 0 CantrdflK Ewnt <> Route (ROW) U P IMCOIN NO DATA M Pwnts (ROW) DO )-N N NO DATA M Truck 416 — Plow Route # 4 - 17- I Packet Pg. 174 1 3.H.a Report Options Asset: N416 Y„I " Draw Route Unes3 Route Threshold. Piave .... Point Threshold. 0 avw Start Dater Fime: VV20I S p �. F.51l mm IMP I End DNatielr Fime: IVV2015.......,.,. ( r X l & 55 Ai " Results, in heongea load... firnes,. MILE .r The Tim,e'Zone ReFllectedl is: Ce,intwa& Time (U;S� & Gaunsmrru and t.ul , l T rlmwu n 9itlulr�t� 1� w ' 1. h1.di.X � I �Nie!iF�rrgf�q��l F � u um a� ' . el �Nrtlay „� " �, r �,t f� dql� ' rw aii�l�"NIIW1VAu w L � r �o 4aui 4 da,. � I I m' i l �. ,�ir,f, �t2 I o�rrnti� � Treir9iut �r. �fN��m„�rd P"^'�rwh'.ar4� t � �yr��,r�4's�td tea rtuc±Al ' 7d p.F4 'Hole Ryllr mi �¢"II"oinwifty rJay Vc tp r� r M T WI4 rca k.eA' 4, �`00 y�d4 �, IgryIWi91!Lie a ? tlrlwrl ., Exhibit A m Mi . . irrvrrwr i wwv!.Hun Re vI N C O .N d O Cd G M N N m U) O N re end C Pushpins G1 C:lukared jr:] MdIvIduaN Controli T E"nt Route (PIQW) UP DOWN NO DATA P61-nff'S ft00wU UP DOWN NO DATA Truck 416 — Plow Route # 4 -is- Packet Pg. 175 3.H.a mimoriicai i rip Keport (map Report Options Asset: I416 `""..II x Draw Route Lines? N6 Route Threstadl& [PIGW--------------------- V..I Pd+l@t Tt7lfeStAdt& F�Uati+w �. Start Dater Fime: [2.P.V20l5 .......,.,. Im (1 & 59 P4t9 _....._ 1�1;+l End wterTlme: � r1d3p13 Q M 1R 59 �Pfl (+II Y� Results in Nonger load tonnes. Exhibit A LEI m �e rend Plus'hp,iins ,,.bBM0 NndividuuBlll Cdntr ally E"nt Na Ute (Fow) u'p DOWN NO DATA P&nts (Plow) tt'P In DOWN NO H9ATA Truck 416 — Plow Route # 4 O tZ d 3 0 r` N v _ O (n d cO G M L N N m U) T_ O N _ C� G 0 Q -19- Packet Pg. 176 Historical Trip Report (Map) Report Options Asset- [4-26 v] Draw Route Unes? RI Route Threshold: Qw PoinitThireshold: (Plow start Daterrim[1-13V2015 End Wte7jime: It -59 Am I IM W I MIF I Results, in Rong'er lbad times. Exhibit A ME de end Plushpins =.kqnsd ladrWidual 0 CanDmEnt 0 trWVI1 R—te (Plow) UP IN, DOWN NO DATA M Points (ROW) U, P ©n'IMIN NO AIA M Truck 426 — Plow Route # 8 F 0 CL a) 0 in CM 0 (n 0 E M N .N IM U) T— CD C*4 E 0 -20- Packet Pg. 177 3.H.a miswriicai i rip Kepon (map Report Options Asset. [AH v..II x Draw Route Lines? I.�1 Route Thresho4d: [Plow _______,_ ________,___ v..� PointThire$tBaM: FP9Caw y q Start �'BtePTllm'Ne: (�Pi,ii'Y79§.......,.,. ��A p I I (1159 AtA., ...._p**Y�ItI EndwtLmime: �—V2p13 � �1ttm55PhA " Results, in ganger lbad'tamre& Exhibit A aE Im ILe mnd plushpins C�IWBdanSM hdlvldualll 0 Cdntroala�v E"nt Kautz (PJOW) 0.1P ©OW IN IN NO DATA M Points. QPdow) UP DON NO DATA M Truck 426 — Plow Route # 8 O tZ d 3 0 r` N v _ O (n d cO G M L N N m U) T— O N _ 4C1 G t 0 Q -21- Packet Pg. 178 Report Options I Results, in Ron toiad times. Results 426 JU =M The Time Zone Reflected iis. Ce,irdvaE rime (US & Canfac N W LaktCoolt IRd- f-Aii'� < Nkh,06 Rd v, 2 0(11 y t Thu for aRKuc'R G(A CGLIF2 ljj a B u r wAA UP R)11,L I r6 II C HAIA f I A M Epsrr Tv6C Awmit, R d kIU),' !e Rd .11 W DundfT Rd, VH M OF KDt UJir pik F kan 4z bl Aa I W gFmq'�eaand Df W 0.6 miles 4y Exhibit A F 0 CL a) 0 CM .0 U) 0 E N N U) T— CD C14 Pushpins Cluk8ned El E lRdIVICILIN 0 ConbrvfleyE� nt Rnute (Plow) UP DOWN NO DATA M Points (Plow) D11P OWH NO DATA M Truck 426 — Plow Route # 8 —22— I Packet Pg. 179 1 3.H.a Historical Trip Report (Map) Report Options asset: [d26 v..I R' Draw Route Lines? 41 Route Threshold: [Plow __ V..I M .II RotirntYXlreshodd P'0mw Start . thsterriMe: V212015 Lf j'��i,Y �T59AM End Date(Time: [vV2015 Ill iP 19 N 59 AM PYihnty 42`6 SU " ResuAts m longer load; times. mr,00000- 0.00&C - 0 0- 0,000' Exhibit A m Le -end Pushpins C%YIN�t�FEd Mdlvlduell 0 Controller Ewint Route �Fo iv) UP DOWN NO DATA, Points (PPOw) UP DOWN NO DATA. Truck 426 — Plow Route # 8 F O Q tv 3 O N C O N d O E d L N N m O N C 4C1 G t V Q - 23 - Packet Pg. 180 Historical Trip Report (Map), Report Options Asset. [hS I Draw Route Unes? ICI Route Threshol& ry - P.io-w Point Threshol& L�! Start Date,'Fiimc �vMW 5 [111L56m End Dates nime; [vV2015 J I I t: 59 PM W Uk.-Jv'A" Rd, KpX VtLLA VIEPUA I I Results in longer Feud times. The Time Zone Refliectedl is,:: CentrM Time, (UCanag ............ . Vvfi�"Pnnq 0 MI HLN%f'v C15 Timr, Amrnv% W;Dunciee Ild G,tqVE'TF'RI'vNcP W Du rom "Am4un V 19 0.6 tuiles Rarf-ft"k I PaOk G�'rnel h my co- I ") If I C—A Exhibit A 0 CL 0 0 C%j .0 T 0 E M N .N IM U) T— CD C*4 egemd P—hpin. Oluoteren El E Molviduall 0 Contrufler E"nt 41 Route (Pow) DOWN UP 11, NO DATA M Points (Row) UP DOWN NO DATA M Truck 426 — Plow Route # 8 -24- I Packet Pg. 181 1 3.H.a BLIZZARD OF 2815 SYTWEETS REPORTED (OR OBSERVED) AS NOT PLOWED COMPARED, TO GPS DATA F 0 a a) a 3 0 cn N C O (n m 0 E a) L N N m U) O N C E t V r� Q -25- Packet Pg. 182 3.H.a Exhibit C Village of Bu ffalo Grove Plowing in CorrelationsIII low[ 2/�1 2015 - 2/2/20115 III r ■ i Mot,Oril t Assist Gauls I a 2, 4 O l" Roadway >Z d m � Buffalo Grove Municipal IEBoau ndlawy w O Trunstee Raesidemice = N_ S/ P` O O .N • J �"M r.r� uww� fi•MM mR � N � fi +n _lu ... �Y` MUWN"✓,�,.,.,,,,,,, ,,,, .....a j ,,, e O c G N U) T_ N C Complaint Lwraartiacrrnr t 3pdS R—It., ram+ lrniudk "!�A'I ea rw:�u mi Ji e4 '1 T—Ik 44F111' +� J �" � J � u 5�d lrniudk �N�"+A17+11 G J/ � NIIRNN O 0_25 0.5 `N 11.5 „ C370'7rtlurn I Miles 2V Packet Pg. 183 3.H.a Comparison - 2011 v. 2015 Storm Event Opmd'ons: 2011 21 T tall Preci iitatiiu i n 2.07 2" Storm Duration 20 Hleuurs 3 11 IHours, Approximate Tines, 1,00 pm, Tuuesdlay, February 1st. 191:90 elan, Tuesdle , February 2nd. 8,010 parmi, Satuirday,January 31 st. 1010 am, Monday, February 2nd. Snow & Ice Contmll Operations Duration 4 Days 2 Days, ppre iinm Times, .00 pm, Monday, February 1st. 3_3,01 prmi, Friday,, IFebir a ry 4thi- I O.010 pmio Saturday, January 1 St.. 11 '.DO, ami, Tnuuesde m IFetmmueuy 31rd. Tent ll Mutes IPI{owe'd 7,653149, Teat 11 IHol urs 1,163 62.9,, Plow isle er Hol ur 6.58, 6-60 Storm Cast $88,.7K $53.8 . Salt Used Toms 4 1165 Lu uuiid Used (Gallons) 91 3,44D Ligluid per Teri(Gallons) 9.5 20.8 Complaint Cable 2011 20,15 Maillboxes 39, 42 Excessive now 43 35 U nplo ed Streets, 53 jDangerous, Intersections O 5 F 0 a 0 0 cn N Z C O N d 0 E as M L N N m U) 0 N C rnI E x O -27- Packet Pg. 184 3.H.a \\$ ^^ ■ f \ \o \ of .\ j \. 14/15 Snow IceControl Cost, : the Same fAccumulation Accumulation (in inches) Number oEvents.» \ Regular4\d \ \' \ @ Overtime, Hours . Used Oln tons) used (°aa4°^) #uid to Salt, Ration (gi \■ w o2, $34 i,329.93)� ^2 ^f ■ Ne �y \o2 . ■ Storm .. \/ 0\ < \44. Coper \\of»°a ? F 0 CL J ■ 0 $ / 04 0 7 » � 0 E � 2 § m � k 2 E I � �« -25- Pa k tPg. 185 3.1 Information Item : Fire Department Apparatus Purchases and Capital Reserves ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ Recommendation of Action Staff recommends discussion. Staff will review upcoming purchases of fire vehicles and the financing mechanisms available to the Village to make the purchases. ATTACHMENTS: • 080315 COW Cap Res Memo Minutetraq (DOCX) Trustee Liaison Staff Contact Trustee Trilling Mike Baker, Fire Monday, July 20, 2015 Updated: 7/16/2015 11:24 AM Page 1 Packet Pg. 186 MEMO To: Dane Bragg, Village Manager From: Mike Baker, Fire Chief Subject: Fire Department Capital Reserve/Apparatus Purchases Date: July 14, 2015 Background The Buffalo Grove Fire Department has three primary response ambulances (Amb 225, 226, 227), one reserve ambulance (Amb 228), two primary response ladder trucks (Twr 25, Quint 27), one reserve ladder truck (Twr 236), one primary response fire engine (Eng 26) and two reserve engines (Eng 213, 218). This allows for an emergency replacement ambulance and an emergency replacement fire vehicle for each primary response vehicle. The reserve ladder truck (which was decommissioned for six months and due to be sold), is one of the oldest vehicles in the fleet, but has been pressed into service due to mechanical problems with the other ladder trucks. The oldest engine in the fleet still functions very well and has been placed in service multiple times this year. The replacement schedule of fire department vehicles has historically been: Staff/Command Vehicles 6 years Ambulances 8 years Specialty Vehicles 10-15 years Fire Engines 15 years Ladder Trucks 15 years A new ambulance is scheduled to be delivered at the end of August and the "loaner" ambulance, provided by Foster Coach, will be returned. A "loaner" ambulance was needed as the ambulance that was to be traded in (Amb 225) had a catastrophic engine failure and would have cost $11,000 to repair. The initial trade in value was $10,000 and Foster Coach has offered $2,500 trade in, even with the known mechanical problems. Amb 226 is due to be replaced in 2016 and with it's current mechanical problems, it will be recommended that the replacement of this ambulance be a part of the Fire Department Capital Reserve purchases. Battalion 4 (299) is the primary response vehicle for the shift Battalion Chief and is also due to be replaced in 2016. There has been interest in a multi -jurisdiction (Long Grove, Lincolnshire) purchase of the same Command vehicle and sharing the current BGFD Command vehicle as a reserve Command vehicle for the participating jurisdictions. This would allow for sharing of resources among the area fire departments and the potential for cost savings as the Command vehicles and associated radio and command equipement. The two oldest vehicles in the fleet are Engine 213 (1997) and Tower 236 (1997) both of which are 18 years old and have been in reserve status for the last five years. The condition of reserve apparatus is important to allow for maintenance and other unforeseen events or breakdowns. Quint 27 is scheduled to be replaced in 2018, but it is being recommended as a trade in for a new ladder truck due to its' marred mechanical history and reliability issues. UN a Q. a a L i- N N 0 0 as a U 0 U _LO M O O O a� E s U c� a Packet Pg. 187 Options Two apparatus replacement options were researched; refurbishing current fire vehicles and capital purchase of replacement vehicles. Refurbishing Fleet Refurbish Twr 236 Refurbish Quint 27 Refurbish Eng 213 Total cost of refurbishing fleet New Purchases New Fire Engine New Demo Aerial Ladder Total cost of new units Trade or sale of Twr 236, Quint 27 and Eng 213 Net cost $ 439,000.00 $ 354.000.00 $ 249,000.00 $1,042,000.00 $ 526,560.00 $ 916,829.00 $1,443,389.00 $ 200,000.00 $1,243,389.00 Another consideration for the purchase of replacement apparatus is the lead time it takes to order and manufacture the vehicles. Typically fire engines will take 6-8 months, ladder trucks 8-10 months and ambulances 4-6 months. This timeline does not take into account any locally installed equipment (radios, computers, etc) which can add an additional 2-3 weeks to the final delivery date. Capital Reserve Balance As can be seen in the chart below, the next five years of planned fire department vehicle purchases is currently underfunded in the Capital Reserve fund. This is a challenge that will need to be addressed in the upcoming budget cycles. VEHICLE NUMBER DESCRIPTION YEAR PURCHASED SERVICE LIFE REPLACEMENTYEAR REPLACEMENT COST TOTAL AVAILABLE FIRE SERVICES: 236 E-ONE QUINT 1997 15 2012 Reduction in fleet 0 213 E-ONE PUMPER 1997 15 2012 526,560 0 297 CHEVROLET IMPALA 2008 6 2014 30,000 21,245 299 FORD ECONOLINE VAN 2009 6 2015 70,000 2,031 292 CHEVROLET IMPALA 2009 6 2015 30,000 13,684 294 CHEVROLET IMPALA 2009 6 2015 30,000 7,497 225 FORD AMBULANCE 2007 8 2015 270,000 82,383 226 FORD AMBULANCE 2008 8 2016 270,000 80,681 224 FORD E450 AMBULANCE 2009 8 2017 270,000 59,630 298 FORD EXPLORER 2010 8 2018 30,000 10,710 237 KME CUSTOM QUINT 2003 15 2018 916,829 490,055 248 FORD F-250 CREW CAB 2008 10 2018 50,443 19,600 227 Ford Ambulance F450 2012 8 2020 270,000 140,320 246 INTERNATION 440 2005 15 2020 283,500 152,696 5 year replacement schedule costs 3,047,332 1,080,532 N 3 a L Q. a a L ILL N N Cr c 0 E 0 as a M U O 0 LO M O O O C d E s v M a Packet Pg. 188 The schedule of replacements and impact to the reserves are: 2015 $1.2 million 2016 $0.9 million 2017 $0.6 million 2018 $0.04 million 2019 $0.0 million 2020 $0.1 million The cost of fire equipment makes it difficult to manage reserve balances. While most department work on a linear line of funding and purchasing, the fire department purchasing creates peaks and valleys. The purchases proposed will deplete the balance over the next two years. Although the reserve is working as intended, there will need to be a budget commitment over the next six years to allocate, at a minimum, $400,000 per year back into the reserve so that all identified replacements a can continue to be cash financed. At the end of the six years the $2 million balance will be restored to c today's balance. That will be a significant budget increase over the current $125,000 annual L contribution and will restore the reserve to a 23 percent funding level. Staff has not included any u- additional fire impact fees that could be generated through the building, or annexing, of commercial or N industrial buildings. Cr M L Financing ; There are three options to pay for the equipment. The decision as to which option to use may be influenced by the State of Illinois budget concerns. If the State approves either a property tax freeze o and/or reduction in Local Government Distributive Funds (LGDF) it may prudent to protect cash balances. a Option #1 - Entire Purchase Paid upon Acceptance (Cash Finance) U 0 The balance in the reserve for capital replacement for fire apparatus is approximately $2 million and will allow the village to cash finance the $1.2 million in proposed equipment purchases. Over the next M six years there will be nearly $2.8 million in equipment that will be scheduled to be replaced. Several o of the vehicles have well surpassed their service lives and the cost to maintain that equipment is exceeding the value of delaying purchasing. s U c� Option #2 — Tax Exempt Lease Purchase Agreement a If the State of Illinois opts to withhold funding to the Village on either a temporary or permanent basis, the Village may want to protect its cash reserves. Staff completed a review of the option to lease the equipment. The typical lease is for ten years with an interest rate around 2.5 percent. The lease payment for $1.3 million would be about $166,837 annually. The total interest cost would be nearly a quarter of a million dollars to finance. In order to qualify for a tax exempt lease purchase, the intent of the purchase must be ownership and include principal and interest in the contract and structure with no residual or balloon payments at the end of the contract. From a budget perspective, the principal and interest payment would be paid from the fire department operating budget along with the continued reserve transfer of $125,000. Packet Pg. 189 Recommendation Absent a reduction in state shared funding, or freeze on property taxes, the most prudent approach would be to use reserved dollars for this purchase. While refurbishing is initially less expensive per vehicle, the useful life of the vehicle will only be extended 5-7 years, have a 1-2 year warranty and will not have the latest safety advancements in heavy duty vehicle design. New vehicle purchases would start the useful life of fire apparatus at 15 years, allow for extended warranties, be compliant with the most recent safety and vehicle construction standards and allow for the reduction of one ladder truck from the fire department fleet due to the increased reliability of the new apparatus. Staff will be evaluating which approach to take and will not begin the process to purchase or lease any new vehicles until it is known how the State's budget decisions will impact the Village. Packet Pg. 190 3.J Action Item : Stormwater Management Fee ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ Recommendation of Action Staff recommends discussion. Update & discussion of the implementation of a Stormwater Management Fee. Trustee Liaison Trustee Stein Monday, July 20, 2015 Staff Contact Michael Reynolds, Public Works Updated: 7/16/2015 9:49 AM Page 1 Packet Pg. 191 3.K Information Item : Sunset Provision on Utility and Home Rule Sales Tax ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ Recommendation of Action Staff recommends acceptance. 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 .5% to 1.0%. 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. 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 ordinances was a requirement that by January 15th, 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. In the FY 2015 budget anticipated revenues of $4.3 million are estimated to be collected through these three revenue sources representing 11 percent of General Fund revenues. As staff continues to work towards presenting a balanced budget in November 2015, it is imperative that these revenues are not diminished in order to continue providing the same level of services to the community. Trustee Liaison Staff Contact Board Member Johnson Scott Anderson, Finance Monday, July 20, 2015 Updated: 7/16/2015 3:29 PM Page 1 Packet Pg. 192