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Minutes - 03/24/2015 - Board of Trustees MINUTES OF THE MARCH 24, 2015 REGULAR MEETING OF THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF OAK BROOK APPROVED AS WRITTEN ON APRIL 14, 2015 1. CALL TO ORDER The Regular Meeting of the Village Board of Trustees was called to order by President Gopal Lalmalani in the Samuel E. Dean Board Room of the Butler Government Center at 7:01 pm. President Lalmalani informed those present that the Police Department Honor Guard would be presenting the colors. A. Presentation of Colors The Police Department Honor Guard presented the colors and the Pledge of Allegiance was given. 2. SWEARING IN OF POLICE OFFICER President Lalmalani remarked that the Board is very honored tonight to have a new police officer to swear in and requested that Chief Kruger and the Board of Fire and Police Commissioners (BFPC) step forward with Clerk Pruss. BFPC Chairman Ed Main made some introductory remarks and Chief Kruger provided some background and introductions regarding Nicholas Montgomery. BFPC Commissioner Judy Lucas joined them at the podium. Chairman Main read the Appointment Order and Clerk Pruss swore Mr. Montgomery in as a police officer. President Lalmalani welcomed Officer Montgomery to the Village of Oak Brook. 3. ROLL CALL Village Clerk Charlotte Pruss called the roll with the following persons PRESENT: President Gopal Lalmalani, Trustees Donald Adler, John Baar, Michael Manzo, Mark Moy, Gerald Wolin, and Asif Yusuf. ABSENT: None IN ATTENDANCE: Village Manager Rick Ginex; Finance Director/Assistant Village Manager Sharon Dangles; Community Development Director Robert Kallien, Jr.; Engineering/Public Works Director Michael Hullihan; Information Technology Director Jim Fox; Sports Core Director Trey Van Dyke; Fire Chief Barry Liss, Police Chief James Kruger, Village Attorney Peter Friedman. 4. PRESIDENT’S OPENING COMMENTS A. Proclamation – Earth Hour B. Proclamation – Autism Awareness Month Clerk Pruss read the Earth Hour and Autism Awareness Month Proclamations. VILLAGE OF OAK BROOK MINUTES Page 1 of 6 REGULAR MEETING OF MARCH 24, 2015 President Lalmalani announced that long time resident, Dr. Joseph Graziano, a pioneer in the field of vascular surgery, had passed away on March 9th. President Lalmalani discussed Dr. Graziano’s medical background. President Lalmalani also mentioned the passing of Swede Roskam, father of Congressman Peter Roskam, on March 13th. A moment of silence was observed and President Lalmalani expressed sympathy to Mrs. Graziano. President Lalmalani reported that at the March 16th Greater Oak Brook Chamber of Commerce Awards Breakfast Trustee Wolin received the Municipal Leadership Award for his selfless and passionate service to Oak Brook. C. Presentation by Trustee Moy to the Heritage Center Trustee Moy presented a painting representing polo in Oak Brook to the Heritage Center and Kathy Maher thanked him and said it would be on display in the large classroom. President Lalmalani discussed the Electric Aggregation program and requested that Trustee Wolin update those present on the status. Trustee Wolin reported the following: The Village’s current contract expires in June and the Village has been contracted for over 3.5 years, which in retrospect was very good timing for the rates, about 30% less than ComEd . He remarked that ComEd & other generators will be closing a lot of coal plants over the next several years which will lead to more rate increases. He stated that the Village is going out for bid in April, seeking bids for one, two and three years and to determine what the best course of action will be. He added that a number of communities have already dropped out of Electric Aggregation because the current rates have not been that favorable. He stated that an update is anticipated for the end of April. 5. RESIDENT/VISITOR COMMENTS – No general comments. 6. APPROVAL OF MINUTES A. EXECUTIVE BOARD OF TRUSTEES MEETING OF FEBRUARY 24, 2015 Motion by Trustee Yusuf, seconded by Trustee Manzo, to approve the minutes of the Executive Board of Trustees Meeting of February 24, 2015. VOICE VOTE: Motion carried. B. REGULAR BOARD OF TRUSTEES MEETING OF MARCH 10, 2015 Motion by Trustee Baar, seconded by Trustee Manzo, to approve the minutes of the Regular Board of Trustees Meeting of March 10, 2015. VOICE VOTE: Motion carried. 7. CONSENT AGENDA All items on the Consent Agenda are considered to be routine in nature and will be enacted in one motion. There will be no separate discussion of these items unless a Board member so requests, in which event, the item will be removed from the Consent Agenda and VILLAGE OF OAK BROOK MINUTES Page 2 of 6 REGULAR MEETING OF MARCH 24, 2015 considered as the first item after approval of the Consent Agenda. A. Accounts Payable for Period Ending March 19, 2015 - $461,926.04 Significant Items included in Above: 1) Seyfarth, Shaw, LLP – Legal Services – January , 2015 - $3,725.25 (FY15– YTD - $3,725.25) 2) Ancel, Glink, Diamond, Bush, DiCianni & Krafthefer, P.C., - Legal Services – February, 2015 - $926.25 (FY15 – YTD - $2,670.49) 3) Rathje Woodward, LLC - Legal Services - February, 2015 - $3,333.33 (FY15 – YTD - $6,666.66) TOTAL LEGAL BILLS PAID FOR 2015 - YTD - $30,960.05 4) Thomas Engineering Group - 2015 Water Main Design Services – Payout #4 - $16,008.62 B. Approval of Payroll for Pay Period Ending March 14, 2015 - $674,213.69 C. Community Development Referrals 1) Referral – 2119 Clearwater Drive – Special Use – Outdoor Dining D. Ordinances & Resolutions 1) ORDINANCE 2015-BU-EX-S-1421, An Ordinance Authorizing Transfers Among Budget Line Items ......................................................................................................... 2) RESOLUTION 2015-PW-SALT-PG-R-1443, A Resolution Approving the Waiver of Competitive Bidding and Authorizing the Village to Join in the State's and DuPage County's Cooperative Purchasing Program for Deicer Salt 3) RESOLUTION 2015-FD-V-PG-R-1445, A Resolution Approving The Waiver Of Competitive Bidding and Authorizing the Purchase of an Ambulance and a Power Load System 4) RESOLUTION 2015-PW-FUEL-AG-R-1442, A Resolution Approving the Award of an Agreement to Remove and Replace the Reservoir A Fuel Tank 5) RESOLUTION 2015-SC-GOLF-EX-R-1444, A Resolution Authorizing the Purchase of Golf Commodities for the Oak Brook Golf Course 6) ORDINANCE 2015-LC-AL-G-1045, An Ordinance Amending Title 4, Chapter 1, Section 8A of the Village Code of the Village of Oak Brook, Illinois Relative to the Number of Authorized Liquor Licenses. (Baisi Thai Restaurant) VILLAGE OF OAK BROOK MINUTES Page 3 of 6 REGULAR MEETING OF MARCH 24, 2015 7) ORDINANCE 2015-PP-S-1422, A Ordinance Authorizing the Sale through Electronic Auction or Broker, Donation or Disposal of Certain Items of Personal Property Owned By the Village of Oak Brook ............................................................. E. Monthly Treasurer’s Report – February, 2015 & Major Fund Financial Motion by Trustee Baar, seconded by Trustee Manzo, to approve the Consent Agenda and authorize expenditures as presented or amended. ROLL CALL VOTE: Ayes: 6 – Trustees Adler, Baar, Manzo, Moy, Wolin, Yusuf Nays: 0 – None Abstain: 0 – None Absent: 0 – None Motion carried. 8. ITEMS REMOVED FROM CONSENT AGENDA -- None 9. BOARD & COMMISSION RECOMMENDATIONS A. 1715 York Road - Variation Motion by Trustee Moy, seconded by Trustee Manzo, to concur with the recommendation from the Zoning Board of Appeals to approve the requested variation to allow the construction of a new residence with a front yard setback of 20.5 feet and a rear yard setback of 24.9 feet for the property located at 1715 York Road subject to the following conditions: 1. The proposed development shall be constructed in substantial conformance to the approved plans which includes the building footprint depicted on elevation B; 2. Maintain and preserve the existing large trees on the property; 3. Add the condition “Notwithstanding the attached exhibits, the applicant shall meet all Village Ordinance requirements at the time of building permit application except as specifically varied or waived.” And, 4. Adoption of an ordinance necessary to grant the requested variation, which ordinance the Village Attorney shall by this motion be directed to prepare for consideration at the April 14, 2015 Board of Trustees meeting. Trustee Moy stated that this was a re-approval of an approval done in 2004 for this property after the home was destroyed by fire and subsequently demolished. He added that a new house was not built at that time and the variation lapsed. Community Development Director Kallien discussed that this is a very small oddly-shaped lot and without a variation, it is unbuildable. He stated that there have been no objections to this variation and it will be very well-sized for the property. He added that the relief granted in 2004 is being replicated here. VILLAGE OF OAK BROOK MINUTES Page 4 of 6 REGULAR MEETING OF MARCH 24, 2015 ROLL CALL VOTE: Ayes: 6 – Trustees Baar, Manzo, Moy, Wolin, Yusuf, Adler Nays: 0 – None Abstain: 0 – None Absent: 0 – None Motion carried. 10. ACTIVE BUSINESS A. Ordinances & Resolutions 1) Ordinance 2015-LC-AL-G-1046, An Ordinance Amending Chapter 1 of Title 4 of the Village Code of the Village of Oak Brook, Illinois Regarding Movie Theater Liquor Licenses (AMC Theatres Oakbrook Center 4) Village Manager Ginex explained that these are the four theaters that are being renovated and they are hoping to open towards the end of April. In a review of the Village’s Liquor Code, he stated that staff found that the Code needed to be amended to allow alcohol to be served inside movie theaters. He stated that staff is recommending that a new Class I Liquor License be issued for this location and that when the twelve new theaters are completed, they will have to come forward for another Class I Liquor License as they are given out per location. Mr. Ginex stated that staff is recommending the following amendments to the Village Code: Village Manager Ginex explained the amendments as follows: Section 4-1-7 1. Adding a new classification (Class I) specifically permitting retail sale of alcoholic liquor for consumption when the primary business conducted on the premises is that of a move theater, provided that the movie theater is not an adult motion picture theater. Section 4-1-8 1. Creating an application fee and annual license fee for the new Class I liquor license. 2. Proposing an application fee of $2,000.00 and an annual license fee of $2,750.00, consistent with the fees charged by the Village for other types of liquor licenses. 3. Permitting the Village to issue only one movie theater license at this time. Village Manager Ginex stated that in addition to the other applicable conditions and requirements Class I liquor licensees would sell alcoholic liquor subject to the following conditions and restrictions: Section 4-1-16 A. Alcoholic liquor shall only be drawn, poured, or mixed at the bar located in the lobby of the movie theater. B. Alcoholic liquor may be delivered and consumed only in the lobby bar area or in the movie theater auditoriums. VILLAGE OF OAK BROOK MINUTES Page 5 of 6 REGULAR MEETING OF MARCH 24, 2015 C. The movie theater may only serve alcoholic liquor in containers that are of a different color, size and design than those in which it serves non-alcoholic beverages. D. Beer may be sold only in individual containers holding 32 ounces or less. All other alcoholic liquor may be sold only in individual containers holding 16 ounces or less. E. Alcoholic liquor may not be sold unless the movie theater is open for the showing of movies or for the holding of private rentals and events. Alcoholic beverages may not be served more than one hour prior to the advertised showing time of the first movie shown on a particular day, except for private rentals and events. F. The lobby bar and the lounge area may comprise no more than 20 percent of the floor area outside of the movie theater auditoriums. Village Manager Ginex then discussed the Prohibited Acts in Section 4-1-24: Section 4-1-24 No holder of a liquor license shall present for public view on the premises films, movies, previews, trailers or advertisements which are distinguished by their emphasis on matters depicting, describing or relating to specified sexual activities or specified anatomical areas. Village Manager Ginex stated that staff is requesting approval of this Class I License. Motion by Trustee Manzo, seconded by Trustee Yusuf, to approve passage of Ordinance G-1046, “An Ordinance Amending Chapter 1 of Title 4 of the Village Code of the Village of Oak Brook, Illinois Regarding Liquor License Regulations”. Trustee Adler inquired regarding the size of the individual containers of beer and mentioned Naperville’s changes to their liquor code. Village Manager Ginex stated that staff had mirrored Lombard’s liquor code because there are AMC Theaters at Yorktown. Mr. Frank Lewis, of AMC Theaters, was present and explained that the 24-ounce size is the largest size beer served and replied that he would have no problem with the Oak Brook scaling down from the 32 ounces. Trustee Wolin also expressed concerns about this as well as 16 ounces of hard liquor. Mr. Lewis replied that the cup that a drink such as a margarita is served in is a 16-ounce cup, but that there is a maximum amount of 2 ounces of liquor in the drink. Discussion ensued regarding amendments and a specific cut-off time for serving liquor. Mr. Lewis expressed concern that the theater would be held to a higher standard than other liquor licenses when the way that they serve liquor is very similar. He added that the way they differ from other liquor establishments is that consumption tends to be lower at theaters because of the general nature of the movie business in that a guest getting up to get a secondary drink, means they will miss big parts of the movie. Mr. Lewis stated that the national average is 1.1 drink per person for consumption of alcohol in movie theaters and they have had no incidences of criminal activity or disturbances of any kind at any of the theaters in the Chicagoland area and across the nation. He said they have standards and policies in place to uphold their practices. Discussion ensued regarding restrictions and fine-tuning the ordinance. It was VILLAGE OF OAK BROOK MINUTES Page 6 of 6 REGULAR MEETING OF MARCH 24, 2015 suggested that this be approved as a First Reading. Consensus given to do the same. ROLL CALL VOTE: Ayes: 6 – Trustees Adler, Baar, Manzo, Moy, Wolin, Yusuf Nays: 0 – None Abstain: 0 – None Absent: 0 – None Motion carried. B. Police and Firefighters’ Pension Fund Actuarial Studies Trustee Adler stated that they are going to accept and approve the reports from Foster & Foster and Eisenberg Associates, as well as have Jason Franken, of Foster & Foster, provide follow-up on questions from the last meeting. Finance Director/Assistant Village Manager Dangles discussed the following timeline: • Recommended funding received from the Police and Fire Pension Boards; • Input from the Department of Insurance will probably be received in June; • On April 28th, Foster & Foster will be presenting a 25-year projected benefits for the pension funds; • In June/July, a decision will need to be made on how to fund the pensions this year. Foster & Foster’s (Village) Police Pension Recommendations Recommended Contribution – just under $1.6 million, 42.7% of payroll, with the current Village contribution at about 35% of payroll. Lauterbach’s (Pension Board) Police Pension Recommendations Recommended Contribution – about 33% of payroll, $1.2 million Eisenberg’s (Village) Fire Pension Recommendations Recommended almost 66% of payroll, $1.9 million, with the current Village contribution at about 43.46% Foster & Foster’s (Pension Board) Fire Pension Recommendations Recommended Contribution – 63.4% of payroll, $1.8 million Finance Director/Assistant Village Manager Dangles addressed the differences in the reports: • Village Actuary recommended 6.75% interest rate • Pension Board Actuary recommended 6.5% interest rate • Differences between the payroll growth and salary increases’ recommendations Jason Franken, of Foster & Foster, discussed that he had compared Lauterbach’s actuarial report with Foster & Foster’s. He stated that there were three main differences: 1. Mortality Table 2. Payroll Growth Assumption VILLAGE OF OAK BROOK MINUTES Page 7 of 6 REGULAR MEETING OF MARCH 24, 2015 3. Spousal Age Assumption Mr. Franken stated that Lauterbach used a mortality table from a 2012 study of their clients and that Foster & Foster had utilized the RP2000 Blue Collar Table. He compared the differences between the mortality tables regarding gender and life expectancies. He next discussed the differences between the actuarial reports regarding payroll growth assumption: Foster & Foster – 2.75%; Lauterbach – 4.00%. He stated that the this is the opposite of a salary scale, looking at the payroll for the entire department instead of just the individual. He added that the lower the rate, the higher the contribution and discussed a gender and age comparison and subsidized benefits. Mr. Franken addressed the salary increase difference in the two actuarial reports: Foster & Foster – 3.75%; Lauterbach – 4.00% and how it offsets the contribution amounts. He stated the other differences between the two reports were: retirement, disability and termination tables. He stated that the Police Fund has 26 years left on the amortization and unfunded liability is about $17.624 million, with an interest rate of 6.75% and discussed the payroll growth percentages and their relation to the contributions and unfunded liability. Mr. Franken then discussed contribution minimum requirements per the Illinois Pension Code. An inquiry was made about the credibility of the Lauterbach mortality table compared with the State’s mortality table. Discussion ensued regarding same, having Lauterbach attend a meeting to explain their report, 90% versus the 100% funding by 2040, and pension reforms. An inquiry was made regarding the difference between Tier I and Tier II employees. Mr. Franken affirmed that regarding the spousal benefit for Tier II employees, the amount is no longer 100%, rather, it is 66 2/3% and affirmed their five-year study can be amended to reflect the retirement of Tier I employees, subsequently replaced by Tier II employees. He discussed the GASB amendment regarding this. Discussion ensued duty disabilities and benefits. Motion by Trustee Adler, seconded by Trustee Manzo, to accept the Foster & Foster Police Pension Report and the Eisenberg Fire Pension Report. ROLL CALL VOTE: Ayes: 6 – Trustees Adler, Baar, Manzo, Moy, Wolin, Yusuf Nays: 0 – None Abstain: 0 – None Absent: 0 – None Motion carried. 11. INFORMATION & UPDATES A. VILLAGE MANAGER Village Manager Ginex discussed that an employee recognition luncheon was held last Thursday and thanked the following employees for their dedication: 25 years of service - - Diane Ross (Public Works), Tom Russell (Police), Norm Nemec (Police); 20 years of service – Mark King (Police), Sue Madorin (Library), Claudine Boettger (Golf); 15 years of service – Michael Pavlovic (Fire), Rose Marie Douglas (Fire), David Corkey (Fire), Robin Crook (Police), Bob Kallien (Community Development); 10 years of service – VILLAGE OF OAK BROOK MINUTES Page 8 of 6 REGULAR MEETING OF MARCH 24, 2015 Mark Johnson (Fire), Garrett Church (Police), Marcel Garcia (Public Works). Village Manager Ginex thanked the Village Attorneys for hosting the Managers’ Roundtable which he attended. Trustee Adler inquired regarding 2014 employee evaluations and that rankings have previously been made available, as well as reviews of employees who report to Village Manager Ginex. Trustee Adler also requested the agenda for the upcoming Homeowners Association Presidents’ meeting. President Lalmalani replied that the agenda is between the President and the Homeowners Association Presidents. Discussion ensued regarding authority of the Village Board members and Village Attorney Friedman agreed to re- circulate the memorandum he provided after the last election that delineates the structure of the Village government and authority of the various officials. B. VILLAGE CLERK Village Clerk Pruss discussed that the polls will be open two weeks from today from 6:00 a.m. to 7:00 p.m. and also talked about early voting and absentee ballot applications. C. TRUSTEES Trustee Yusuf and Trustee Adler urged that residents all get out to vote. Trustee Moy talked about a discussion he had with a member of the Fire Department who expressed that the morale of the Department was being affected by what they perceive as verbal attacks against the Department. Trustee Moy stated that he clarified with the individual that the talk has been against pension liabilities and not personnel. Trustee Moy added that Police and Fire personnel are valued. Trustee Baar thanked the Village staff and everyone involved in the pension issue and suggested a timeline and measured discussion about this and other important issues. Trustee Manzo echoed the sentiments expressed above and expressed that it was a pleasure to serve on the Board the last four years. Trustee Wolin echoed the sentiments of his fellow Trustees. D. VILLAGE ATTORNEY Village Attorney Friedman had nothing to report. E. VILLAGE PRESIDENT President Lalmalani urged that residents exercise their civic responsibility and vote. He asked staff members if they had anything to report. IT Director Fox reported that he will be coming back to the Board regarding a couple initiatives the IT Staff is working on to save money and increase efficiency for Village Staff. VILLAGE OF OAK BROOK MINUTES Page 9 of 6 REGULAR MEETING OF MARCH 24, 2015 Finance Director/Assistant Village Manager Dangles reported that she had sent out a sales tax analysis and that Trustee Adler had responded with some questions which he wanted her to respond during her commentary. The questions and answers were as follows: 1. Who are the top five sales tax payers in Oak Brook and what percentage do they make up out of the total revenues in the General Fund? She replied that they make up $4.7 million, 39% of the general sales tax, and the top five are: Apple, Nordstrom’s Macy’s, Tesla and Costco. 2. Who can see the sales tax information? She replied that Illinois law states that states that for a Village which does not levy any real property taxes, the officers that are eligible to receive the information from the Department of Revenue are the village manager and the chief finance officer. 3. Why is there a difference between the 1% which the Village receives from the general sales tax and the .5% received from the roadway improvements that goes into the Infrastructure Fund? She replied that non-home rule does not apply to the sale of groceries, drugs, medical appliances and vehicles. 4. Is there a resource in this area with a specialized firm which does contingent fee audits of municipal tax revenues? She replied that there is a firm called Azavar Audit Solutions and there can be a meeting with them at no charge. She added that for the first three months of the year, the Village is under budget by about $27,000 and she will be providing a first quarter financial update on April 28th. Trustee Adler requested that the Village Attorney Friedman provide an update at the next meeting regarding the status of the online hotel tax litigation. 12. ADJOURNMENT Motion by Trustee Adler seconded by Trustee Manzo, to adjourn the Regular Meeting of the Board of Trustees at 8:49 pm. VOICE VOTE: Motion carried. ATTEST: Charlotte K. Pruss /s/ Charlotte K. Pruss Village Clerk VILLAGE OF OAK BROOK MINUTES Page 10 of 6 REGULAR MEETING OF MARCH 24, 2015