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Minutes - 07/12/1999 - Committee of the Wholer� f VILLAGE OF OAK BROOK MINUTES OF COMMITTEE - OF - THE - WHOLE HELD ON JULY 12 1999 UNOFFICIAL UNTIL APPROVED AS WRITTEN ✓ OR AS AMENDED BY VILLAGE BOARD ON a s I. MEETING CALL: The Committee -of -the -Whole meeting of Monday, July 12, 1999 was called to order by President Busily in the Samuel E. Dean Board Room of the Village Commons at 7:40 p.m. Pledge of Allegiance was given. The Clerk called the roll with the following persons PRESENT: President Bushy, Trustees Butler, Craig, Kenny and Savino. ABSENT: Trustees Caleel and McInerney. IN ATTENDANCE: Stephen B. Veitch, Village Manager; Michael A. Crotty, Assistant Village Manager; Darrell J. Langlois, Finance Director/Treasurer; Allen W. Pisarek, Chief of Police; Bonnie Sartore, Bath and Tennis Club Manager; and Stelios Aktipis, Plan Commission Chairman. 2 1999 LEGISLATIVE SESSION REVIEW WITH SENATOR THOMAS WALSH AND REPRESENTATIVE JAMES DURKIN: a. GENERAL OVERVIEW: President Busily announced that the Village was honored to have two elected officials, Senator Thomas Walsh and Representative James Durkin, in attendance of this evening's meeting to address the Village Board of the legislative action that has occurred in Springfield and the status of some of the legislation that approaches the Governor's office. The Board may address the legislators to discuss issues or needs relating to our Village. b. DISCUSSION OF SPECIFIC LEGISLATIVE TOPICS: President Bushy acknowledged appreciation by the Village of their accessibility when the Village President or Village Manager visits the legislators in Springfield to address specific issues for our community. She asked the legislators for assistance in the Illinois FIRST program, as it does not list the widening of 22nd Street at the I -88 underpass. She indicated this is a major arterial roadway that benefits the regional suburban area and needs to be addressed. The Village has sent information to Springfield and the Governor's office, but the Village has not seen that it is included in the Illinois FIRST project. Senator Walsh indicated that the Illinois FIRST list is ongoing, and he and Representative Durkin have communicated with the Illinois Department of Transportation (IDO "C) that this project is one of their priorities for the region. Trustee Savino commented on the Village's request for access to southbound 1 -294 from eastbound 22nd Street. Senator Walsh indicated changes are being made on the Tollway Authority Board, and that some issues are not being addressed presently. COMMITTEE -OF- THE -WHOLE Page 1 of 5 Minutes July 12, 1999 President Bushy expressed the Village's concern of the passage of Senate Bill 856 and the effect it will have of a 5% increase to our payroll. The Bill proposed an assumption of a 1.5% increase but after actuarial review, it is a 5% payroll increase to our Firefighter's Pension Fund. Representative Durkin indicated there was a miscommunication of this Bill as presented on the House floor. He spoke to the actuary on the Pension Law Commission, and he still states it is a 1.5% increase in the payroll. They looked to the Illinois Municipal League (IML) for guidance on this issue, and they changed their position on this Bill as their Pension Task Force approved the legislation in its completed form. The IML Board took a neutral position, since their Task Force recommended approval but not the entire IML Board. Village Manager Veitch explained the provision that increases the pension formula from 2% of final earnings to 2 -1/2% each year for the 21st through 30th year of service. According to the Pension Law Commission's actuary, the cost of that provision alone would be 1.09 %. The Village is concerned that this will be higher than that, as their assumption was there would be no change in the retirement pattern for employees. The Village feels that the change will impact the age at which employees decide to retire, because there isn't an incentive in terms of an increase in the pension benefit for working beyond thirty (30) years. We anticipate employees will retire earlier. When you adjust downward the maximum age of retirement assumption in the actuarial analysis, our own contribution would be 4.6% rather than the 1.09% that the Pension Laws Commission actuary assumed. That amounts to an increase in our unfunded liability today of between $600,000- $700,000. Village Manager Veitch addressed unfunded mandates that are of great concern to the Village Board. He inquired into why the constitutional amendment that is introduced annually hasn't ever moved in the general assembly. Representative Durkin stated there are split chambers now, and he doesn't foresee that the House Democrats would move to restore and allow a vote. President Bushy explained that the Village, being a non - homerule community, does not have tax funding for such unfunded mandates as the Prevailing Wage Act. President Bushy asked that this be discussed with their caucus and show our concern for funding such bills. President Bushy discussed a proposal initiated by the City of Chicago's Mayors Management Institute for a sales tax amnesty day. The Institute is developing a case study to determine the feasibility of a sales -tax -free event in Chicago. On such event, no sales tax would be due for purchases of clothing and shoes of less than $500 per item. The event would be citywide with possible statewide participation pending legislation. There has been indication that one of the sponsors is Senator Walsh. Senator Walsh indicated he has not sponsored nor would sponsor such legislation. Representative Durkin will follow up with this and indicated legislators would not be in favor of this in Springfield. Trustee Savino inquired into passage of a bill for non - homerule communities to allow passage of sales tax. Village Manager Veitch explained that HB523 allows a non - homerule municipality to impose a 1/2 -cent local option sales tax with referendum approval. Funds collected from the tax may be only used for public infrastructure projects. With referendum approval, this would generate $5,500,000 for the Village, which is almost three (3) times what we receive from the current utility tax. The utility tax revenue is used for public infrastructure projects currently. A quarter percent would essentially replace our utility tax, but the utilization of that revenue is limited to infrastructure improvements. This local option sales tax for the infrastructure projects COMMITTEE -OF- THE -WHOLE Page 2 of 5 July 12, 1999 Minutes ffix could be adjusted by the Village Board to adjust the policy of the use of utility tax revenue. The Village would need to shift the utility tax to operations instead of capital. President Bushy addressed the Metropolis 2020 Project from the Commercial Club of Chicago. The Metropolitan Mayors Caucus is addressing issues proposed by this Project and has formulated an Economic Development Committee. President Bushy serves on this Committee which is developing an economic development plan for northeastern Illinois. They have received foundation funding for this Plan which they hope to propose to the Governor's office in November. Some of the components of the 2020 Project, if enacted in which they are currently crafted, would bankrupt the Village of Oak Brook in less than a year due to loss of our sales tax revenue. The Commercial Club plans to piecemeal this through the legislature in Springfield. She asked if they could present the Metropolitan Mayors Caucus view on this 2020 Project to the legislators at a meeting, and they concurred with the request. Trustee Kenny commented on the Village's concern of regional revenue sharing of our sales tax revenue that could reduce it by 40 %. All of the funding for our public safety services is from the sales tax revenue generated in Oak Brook. President Bushy voiced her concern of their proposed fifteen (15)- member regional board to control zoning, planning, land use, potable water, sewers, transportation and flood control for municipalities. President Bushy publicly thanked Senator Walsh and Representative Durkin for their taking time to address the Village Board. President Bushy recessed the meeting at 9:05 p.m. President Bushy called the meeting to order at 9:20 p.m. 3. BATH AND TENNIS CLUBHOUSE CONCEPT DESIGN PRESENTATION: President Bushy gave an outline of the history of the Clubhouse operations. She indicated that the maintenance of the building itself was never addressed in depth over the years in operation. Now that the Golf Clubhouse has been renovated and the project almost completed, the second component of addressing the needs of the Sports Core property has now been prepared so that Mr. Kramer, Larson Kramer Kjelstrom and Associates, Ltd., may present plans for improving the Bath and Tennis Clubhouse. Mr. Kramer described the proposed improvements to the operational functions of the Clubhouse to the Village Board. President Bushy inquired if his firm had considered removing the loft from the Clubhouse and have the fireplace two- sided. Mr. Kramer indicated they were considering that option Trustee Savino asked if the purchase of a new generator would accommodate the larger facility design and if it would be effective. Bath and Tennis Club Manager Sartore commented that the generator was not designed to power up the entire facility, but that it may work more efficiently with the new design. Mr. Kramer remarked that he did not think the generator would be detrimental to the new plan. Trustee Savino voiced his concern of 240 to 300 guests in the Clubhouse and addressing their comfort needs. Mr. Kramer said that the State of Illinois Plumbing Code requires one (1) water closet for seventy -five (75) people. Mr. Kramer will re- evaluate this. Bath and Tennis Club COMMITTEE -OF- THE -WHOLE Page 3 of 5 July 12, 1999 Minutes 00 Manager Sartore remarked that the locker room facilities may be opened up for a large event. Trustee Kenny suggested that since the locker rooms are over - sized, maybe space could be used in the locker rooms for expanded restroom facilities. Trustee Savino questioned the cost of improving the facility for $1,000,000 and would the Village be able to recoup these costs, and what is the intent of the expansion. President Bushy remarked that in the first or second year of operation, the Clubhouse may not recoup these expenses, but as it is presently operated, it would continue to deteriorate if it weren't upgraded. Village Manager Veitch explained that staff is working on that presently in the context of the Five -Year Financial Plan as it relates to the food and beverage operation. Trustee Craig remarked that the improved Clubhouse would make a tremendous profit if it could accommodate more people. The Clubhouse sells itself with the lovely location and scenery, and he sees improvements each year with its operation. Trustee Kenny commented that it is critical to have a specific detailed business plan in place to show how the Village will recapture the funds that have been spent on this project, as the Board will come under significant criticism in making this decision. Village Manager Veitch observed that the two principal sources of revenue for the Sports Core capital improvements is the sale of property in Westchester Park and the compensation for the right -of -way associated with the 31st Street roadway improvement project. The sale of the Westchester Park property should pay for all of the Golf Clubhouse improvements and a small portion of the golf course irrigation system. Funds are to be borrowed to pay for the irrigation system, and staff is developing recommendations for funding this project for Village Board approval. Funding for the Bath and Tennis Clubhouse will occur from the compensation of the 31st Street widening project. Approximate funds of $840,000 are expected from the compensation of the 31st Street transaction, and staff will review the approximated cost of $1,000,000 to determine where costs could be adjusted. He indicated that on a short-term interim basis, interfund financing might be available for this project. Trustee Kenny asked if the pool deck is being addressed. Village Manager Veitch explained that the plans are completed, and the Village is prepared to go to bid on this project. The project will begin after the close of this swim season. Village Manager Veitch commented that he has developed a report he will forward to the Village Board which shows operating revenue and expenses for the Golf operation and the Bath and Tennis operation with a subtotal combining the two called total recreation. These figures do not involve food and beverage. The report indicates ho%v the recreational operation is more than covering its operational costs. The food and beverage operation is indicated on the report separately. It shows over time how its financial results have improved. Revenues do not exceed the Bath and Tennis Club operational expenses, but staff may indicate the list of events that are underwritten by the Village for use of the Clubhouse by community organizations. President Bushy asked if the wooden sidewalk that is located in back of the Bath and Tennis Clubhouse could be a covered walkway. Mr. Kramer will include this in the proposal to address the needs of guests entering that portion of the facility. COMMITTEE -OF- THE -WHOLE Page 4 of 5 July 12, 1999 Minutes Z4 4. ADJOURNMENT: Motion by Trustee Savino, seconded by Trustee Craig, to adjourn the Committee -of -the -Whole meeting at 10:30 p.m. VOICE VOTE: Motion carried. ATTEST: C � � IM-6d, - &:-� Linda K. Gonnella, CMC /AAE Village Clerk Co%%071299 COMMITTEE -OF- THE -WHOLE Page 5 of 5 July 12, 1999 Minutes /Z�