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Minutes - 03/10/2015 - Board of Trustees MINUTES OF THE MARCH 10, 2015 REGULAR MEETING OF THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF OAK BROOK APPROVED AS WRITTEN ON MARCH 24, 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 7:02 pm. The Pledge of Allegiance was given. 2. 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; Village Attorney Peter Friedman. 3. PRESIDENT’S OPENING COMMENTS President Lalmalani expressed sympathy on the passing on February 28th of Herdis Peters, mother of Harry and Paul Peters, and asked for a moment of silence. President Lalmalani reported on the Senate Appropriations Committees’ joint hearing and remarked that many mayors testified regarding the Local Government Distributive Funds’ proposed decrease. He stated that the DuPage Mayors and Managers Conference will be conducting a workshop this week in the Village Board Room to discuss the Governor’s proposal to decrease the Funds to municipalities by 50%. He added that the Governor will be meeting with mayors on Friday in Chicago to discuss this issue and President Lalmalani stated that he will be attending this meeting. President Lalmalani remarked on the warmer weather and that Spring is around the corner. 4. RESIDENT/VISITOR COMMENTS Resident Harry Peters remarked on the additional pension contribution made in 2014 and the current related agenda item, and urged the Board to prioritize and deal with issues which are more timely than pensions. Resident Mario Vescovi discussed the pension issues and the need to get away from the VILLAGE OF OAK BROOK MINUTES Page 1 of 6 REGULAR MEETING OF MARCH 10, 2015 current pension funding through a constitutional amendment. He also discussed proposed legislation about allowing municipalities to file bankruptcy. Resident Terry O’Malley discussed his concerns with a recent Fox News show regarding the NAIT organization and the 90% tax break they are receiving. Trustee Adler discussed this matter and the confusing information about it and the response by Village Manager Ginex. Police Chief Kruger explained his investigation of the organization and that he has been reassured by the FBI and counter-terrorism that this is a lawful organization. Discussion ensued regarding this matter and how it was handled. 5. APPROVAL OF MINUTES A. EXECUTIVE BOARD OF TRUSTEES MEETING OF FEBRUARY 10, 2015 Motion by Trustee Yusuf, seconded by Trustee Moy, to approve the minutes of the Executive Board of Trustees Meeting of February 10, 2015. VOICE VOTE: Motion carried. B. REGULAR BOARD OF TRUSTEES MEETING OF FEBRUARY 24, 2015 Motion by Trustee Wolin, seconded by Trustee Manzo, to approve the minutes of the Regular Board of Trustees Meeting of February 24, 2015. VOICE VOTE: Motion carried. 6. 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 considered as the first item after approval of the Consent Agenda. A. Accounts Payable for Period Ending March 5, 2015 - $459,344.79 Significant Items included in Above: 1) Holland & Knight LLP – Legal Services – January, 2015 - $17,395.15 (Includes Monthly Retainer Fee) - (FY15 – YTD - $17,395.15) TOTAL LEGAL BILLS PAID FOR 2015 - YTD - $22,975.22 2) Christopher B. Burke – 2015 Street Improvement Project Design. Eng. Services – Payout #4 - $45,901.64 3) Ravenswood Event Services – 2015 Polo Event Services – Payout #1 per Agreement - $23,760.00 B. Approval of Payroll for Pay Period Ending February 28, 2015 - $657,503.61 C. Community Development Referrals 1) Application for 518 Wood Road – Variation VILLAGE OF OAK BROOK MINUTES Page 2 of 6 REGULAR MEETING OF MARCH 10, 2015 2) Application for 55 Breakenridge Farm – Variation D. Authorization to Seek Bids or Proposals or Negotiate Contracts 1) 2015 Water Main Replacement Project 2) 2015 Street Improvement Project 3) Leaf Vacuum Machine E. Ordinances & Resolutions 1) RESOLUTION 2015-GL-BD-LFDF-R-1441, A Resolution Urging the Governor and General Assembly to Protect Full Funding of Local Government Distributive Fund Revenues Motion by Trustee Baar, seconded by Trustee Yusuf, 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. 7. ITEMS REMOVED FROM THE CONSENT AGENDA -- NONE 6.D.2) 2015 Street Improvement Project Motion by Trustee Adler, seconded by Trustee Manzo, to discuss this item. Trustee Adler inquired of Engineering/Public Works Director Hullihan regarding street paving and the joint purchasing collective. Engineering/Public Works Director Hullihan replied that they look at several alternatives from other entities and are very selective, examining for cost effectiveness and quality. He also discussed Agenda Item #6.D.1. – 2015 Water Main Replacement Project -- in the same vein. Trustee Baar discussed the fiber optic conduit and placement as related to cost effectiveness and preserving the old water pipes. Engineering/Public Works Director Hullihan affirmed that they will be retaining these pipes for repurposing, such as fiber optic placement. Motion by Trustee Adler, seconded by Trustee Moy, to authorize seeking bids or proposals or negotiating contracts for the 2015 Street Improvement Project. ROLL CALL VOTE: Ayes: 6 – Trustees Adler, Baar, Manzo, Moy, Wolin, Yusuf VILLAGE OF OAK BROOK MINUTES Page 3 of 6 REGULAR MEETING OF MARCH 10, 2015 Nays: 0 – None Abstain: 0 – None Absent: 0 – None Motion carried. 8. ACTIVE BUSINESS A. Taste of Oak Brook Update Trustee Manzo thanked the staff for going out for Request for Proposal for the event management services. Sports Core Director Van Dyke reported on the process and responses received and stated that it was decided that the best value for the Village was to continue with Ravenswood. He added that it will be a one-day event scheduled for July 3, 2015, beginning at 4:00 p.m., and no significant changes are planned. He said they are in the process of securing bands and restaurants. Trustee Manzo and Sports Core Director Van Dyke expressed special thanks to McDonald’s for their generous support of this event. B. Actuarial Studies Trustee Adler stated that both of the Village actuaries had completed their actuarial studies for the fire and police pension plans. He stated that Jim Savio, of Sikich, and Jason Franken, of Foster & Foster, were in attendance to discuss the applicable GASB accounting changes. Finance Director/Assistant Village Manager Dangles explained the process and timeline. She stated that this meeting’s presentation is a general update and at the next meeting there will be a more detailed discussion regarding the actuarial reports and projected payments. She added that in June the Department of Insurance’s report will be received, based on only 90% funding. Mr. Savio discussed GASB 67 which addresses financial reporting changes for the pension plans regarding net pension liability, etc., including the IMRF pension reporting requirements. He affirmed that Sikich includes the pension plans in their audit and will be recording the unfunded pension liability in future financial reports. Finance Director/Assistant Village Manager Dangles referred to the draft actuarial reports and stated the following: Police Pension: Actuarial Value of Assets - $33 million; Accrued Liability - $49.8 million (last year-$45 million); Unfunded Liability - $16.7 million (last year-$13.4 million); Funded Percentage – 66.4% (last year-70%); Recommended Contribution by Foster & Foster – 42.7% of payroll; Current Contribution – 35.04%; Budgeted Contribution – 37.8%; Budgeted Covered Payroll - $3.7 million; Contribution Recommendation - $1.6 million, over Budget by just under $200,000. VILLAGE OF OAK BROOK MINUTES Page 4 of 6 REGULAR MEETING OF MARCH 10, 2015 Fire Pension: Actuarial Value of Assets - $25.2 million (last year-$24.3 million); Accrued Liability - $45.6 million (last year-$43 million) ; Unfunded Liability - $20.4 million (increased $1.5 million from last year); Funded Percentage – 55.3% (last year-%); Recommended Contribution by Foster & Foster – 65.9% of payroll; Current Contribution – 43.46%; Budgeted Contribution – 46.2%; Budgeted Covered Payroll - $2.9 million; Contribution Recommendation - $1.9 million, over Budget by $570,000. Finance Director/Assistant Village Manager Dangles stated that these were essentially the same assumptions used as last year except that this year the funding method used by the Village’s actuaries was “Entry Age”. Trustee Manzo discussed the discrepancies between the different assumptions last year. In response to an inquiry about the amortization method, Mr. Franken, of Foster & Foster, replied that using 90% instead of 100% would cause the amount to go down about $200,000. He added that last year they used the Projected Unit Credit funding method and this year went to the Entry Age method that Lauterbach used last year. It was brought up that the Village’s pension contributions have almost tripled since 2005. Discussion ensued regarding mortality tables used by the different actuaries. Mr. Franken stated that the biggest issue is the methodology of the funding if everything remains constant with the State, but he stated that he is developing a sound actuarial contribution requirement that is not going to triple in the next 25 years. Discussion ensued regarding 90% versus 100% funding, back loading, and legislative changes needed. Mr. Franken affirmed that he is using the RP2000 mortality table, not the RP2014 mortality table. Discussion ensued regarding Tier I and Tier II pension contributions and concerns of a Trustee liaison not receiving communications regarding the Village actuary decisions. 9. INFORMATION & UPDATES A. VILLAGE MANAGER Village Manager Ginex had nothing to report. In response to an inquiry regarding IMET, Mr. Ginex affirmed that there was nothing new to report. B. VILLAGE CLERK Village Clerk Pruss reminded those present that voter registration is closed at Village Hall and the Library, and that those wishing to still register must go out to the County until March 23rd. She added that Early Voting starts March 23rd through April 4th and stated that the Clerk’s Office has applications for Absentee Ballots. She also mentioned that Live Streaming of the Board meetings is available and that the issue last meeting has been resolved. C. TRUSTEES Trustee Wolin expressed appreciation for the work Foster & Foster have done. Trustee Manzo made a comment regarding all candidates being informed regarding a statement made at a recent Candidates’ Forum. He also shared that a Daily Herald article VILLAGE OF OAK BROOK MINUTES Page 5 of 6 REGULAR MEETING OF MARCH 10, 2015 reflected that the Village is in good financial standing regarding reserves. Trustee Yusuf urged caution in outdoor activities with the time change. He also commented on the effort made by the Board members to focus on real issues. D. VILLAGE ATTORNEY Village Attorney Friedman mentioned that oral arguments on a particular Supreme Court pension matter will be streamed live at 2:30 tomorrow. E. VILLAGE PRESIDENT President Lalmalani asked staff members if they had anything to report. Police Chief Kruger reported that the Police Department participated in a very successful lock-in at Hinsdale Central, with 34 children from Brook Forest included. He also mentioned an incident at Neiman Marcus. Engineering/Public Works Director Hullihan discussed that the crews are now out doing some forestry maintenance and also cautioned residents to notify Public Works if they notice any sewer drain issues or water where it should not be flowing. Community Development Director Kallien stated that The Drake Hotel still does not have occupancy because of outstanding life safety issues. He mentioned that the mall has submitted permits on the $50 million project. He also talked about the $100 million Duchossois project and that the building will be about 42,000 square feet. 10. ADJOURN TO CLOSED SESSION, For the purpose of discussing (1) minutes of meetings lawfully closed under this act, (2) collective negotiating matters, pursuant to 2c(21) and 2c(2) of the Illinois Open Meetings Act, respectively. Motion by Trustee Wolin, seconded by Trustee Manzo, to adjourn to closed meeting at 9:14 p.m. ROLL CALL VOTE: Ayes: 6 – Trustees Adler, Baar, Manzo, Moy, Wolin, Yusuf Nays: 0 – None Abstain: 0 – None Absent: 0 – None Motion carried. 11. RECONVENE – The closed meeting was adjourned and reconvened to open meeting at 10:00 p.m. 12. ADJOURNMENT Motion by Trustee Wolin seconded by Trustee Manzo to adjourn the Regular Meeting of VILLAGE OF OAK BROOK MINUTES Page 6 of 6 REGULAR MEETING OF MARCH 10, 2015 the Board of Trustees at 10:00 pm. VOICE VOTE: Motion carried. ATTEST: /s/Charlotte K. Pruss Charlotte K. Pruss Village Clerk VILLAGE OF OAK BROOK MINUTES Page 7 of 6 REGULAR MEETING OF MARCH 10, 2015