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Minutes - 09/13/1999 - Committee of the Whole4� VILLAGE OF OAK BROOK MINUTES OF COMMITTEE - OF - THE - WHOLE HELD ON SEPTEMBER 13, 1999 UNOFFICIAL UNTIL APPROVED AS AS WRITTEN OR AS AMENDED /BY BY VILLAGE BOARD ON _19.�Y 1. MEETING CALL: The Committee -of- the -Whole meeting of Monday, September 13, 1999 was called to order by President Bushy in the Samuel E. Dean Board Room of the Village Commons at 7:35 p.m. Pledge of Allegiance was given. The Village Clerk called the roll with the following persons PRESENT: President Bushy, Trustees Butler, Caleel, Craig, Kenny, McInerney and Savino. ABSENT: None. IN ATTENDANCE: Stephen B. Veitch, Village Manager; Michael A. Crotty, Assistant Village Manager; Dale L. Durfey, Jr., Village Engineer; Debra J. Jarvis, Fire Chief; Robert L. Kallien, Jr., Community Development Director; Darrell J. Langlois, Finance Director /Treasurer; Richard A. Martens, Village Attorney; Ruth Martin, Library Director; Michael J. Meranda, Public Works Director; Allen W. Pisarek, Police Chief; Bonnie Sartore, Bath & Tennis Club Manager; Trey VanDyke, Golf Club Manager; William Garrigan, Jeffrey Marciniak, Tom McEllin, Lieutenant Robert Morton, Jr., Michael Pavlovic, Garry Naus, and Lieutenant Tom Stanfa, Fire Department employees. 2. REVIEW OF THE DRAFT 2000 -2004 FIVE -YEAR FINANCIAL PLAN: The Village of Oak Brook Five -Year Financial Plan is intended to provide the community with a long -range projection of financial condition for each of the twelve principal funds that comprise the financial structure of the Village of Oak Brook. Although it is neither as detailed nor as precise as the Village's annual Municipal Budget, it is an extremely useful tool for the budgeting process in that it provides a framework for preparation of the Budget and a means of assessing the long -range financial impact of current decisions. Each fund in the Village's financial stricture is a separate financial entity. Although the Village's audited financial statements are prepared on an accrual or modified accrual bases (as applicable and consistent with generally accepted COMMITTEE -OF- THE -WHOLE Minutes September 13, 1999 Page 1 of 18 L� accounting principles as promulgated by the Governmental Accounting Standards Board), the Five -Year Financial Plan, like the annual Municipal Budget, is prepared and presented on a cash basis. This results in a more easily understood and more useful document. The principal assumptions for the Five -Year Financial Plan involve the assumed rates for general inflation, "personnel inflation" (direct personnel costs as well as costs of fringe benefits and training), interest rates, and the rate of growth in sales tax, the principal revenue source of the Village. The 2000- 2004 Five -Year Financial Plan is based on the following assumptions: • General inflation at the rate of 2.5% per year. • Personnel inflation (including benefits, training and merit adjustments applicable to personnel not at top -of- grade) at 2.5% above the general inflation rate (or 5.0% per year). • Interest earnings on invested funds at rates ranging from 5% to 7 %, depending upon the fund and the assumed type and length of investment. • Annual growth in "same store" sales tax receipts equal to the general inflation rate, plus specific projections for phasing in new retail development and for significant payers known to be in the process of relocation. Receipts from "office sector" retail activity are projected to be unchanged. Operating expenditures are reduced in certain funds for "budget goal attainment," consistent with historical budget performance and to partially offset the effects of compounding of the inflation assumptions in the later years. Other assumptions specific to particular funds are described in the narrative preceding the presentation of each fund. The General Corporate Fund supports the majority of Village operations and is of paramount importance to the financial condition of the Village. Its resources are used for operations and capital improvements as well as for contributions to pension funds (in lieu of property tax levies), transfers to the Garage and Equipment Replacement Funds (through user charges), and loans to other funds as appropriate. The principal source of revenue to the General Corporate Fund, and to the Village, is the sales tax. Revenue from the State Income Tax is projected to increase at a rate of 3% per year. Other intergovernmental revenue is projected to grow at rates ranging from 0% to 3 %. Revenue from the telecommunications infrastructure COMMITTEE -OF- THE -WHOLE Minutes September 13, 1999 Page 2 of 18 F-01 maintenance fee ( "IMF ") is expected to grow at an annual rate of 3 %. Most other revenues in the General Corporate Fund are projected to be stable. This edition of the Five -Year Financial Plan reflects, for the first time, imposition of a telecommunications tax to support General Corporate Fund operations and capital improvements. The tax, authorized by State law to be levied on all telecommunications activity, replaces the 3 percent utility tax on local telephone service formerly allocated to the Infrastructure Fund. Legislative and General Management. The Plan reflects on additional Information Services Technician in 2000 in order to facilitate more timely and effective implementation of the Village's Technology Plan and maintenance of the Village's technology resources. Financial Services. There are no significant changes projected in the operating budgets of this department, beyond application of the inflation assumptions. Public Works. One Public Works employee is reassigned to the Garage Fund beginning in 2000. In 2001, a Building Maintenance Employee is added as a result of projected completion of the new Library and in anticipation of an expanded Village Hall facility to maintain. The Plan also includes resources to rehabilitate or replace all Village -owned street name signs over three years, beginning in 2000. Engineering. The Plan includes, on a provisions basis, addition of an engineering technician in 2000. There has been a significant increase in demand for service from the Engineering Department in connection with utility permits and other permit review activities which, if it continues, will make additional support necessary in order to provide an acceptable level of service to customers. The additional position should also allow for a reduction in consulting expenses to the extent that it can allow for more project engineering and inspection to be accomplished in- house. Library. The operating budget projections for the Library continue to reflect significant increases in staffing, service hours, collections and programs of the Library prior to and after occupancy of the new Library building. Full -time equivalent staffing increases gradually over the period in order to meet the service levels suggested by Serving Our Public, the standards promulgated by the Illinois State Library and utilized by Oak Brook Public Library as its benchmarking tool. Each staffing decision is carefully considered at both the budget and implementation stages. COMMITTEE -OF- THE -WHOLE Minutes September 13, 1999 Page 3 of 18 W Police. The Plan reflects addition of a Deputy Chief position and an additional Community Service Officer (civilian) position in 2000. The Plan also includes the addition of one detective position in 2002, a police officer and a clerk in 2003; all conditioned on a staffing analysis that demonstrated the need for personnel at that time. Fire. The Plan reflects addition of a day shift officer or other administrative position in 2000 (partially offset by a reduction in part time administrative support) and addition of nine firefighter /paramedics over the 2000 to 2002 period in order to upgrade staffing as recommended by the Fire Department's staffing study. The staffing study grew out of several 1999 program objectives in the Fire Department and discussion within the community on the issue of department staffing. Its recommendations are intended to enable the Department to meet generally accepted fire service practices and standards over the planning period and beyond. Community Development. The Plan reflects the establishment of Community Development as a department separate from the Fire Department, where its functions have been performed for many years. Financially, there are no material changes beyond application of the general inflation assumptions. However, it is anticipated that there will be a gradual shift toward full time inspection personnel in lieu of part time personnel in order to obtain the credentials needed to perform those functions. Exceptional Charges in the General Corporate Fund include: • Contributions to the Police and Firefighters' Pension Funds (in lieu of property taxes). • Vehicle replacement charges (based on anticipated replacement costs). • An annual transfer to the Sports Core Fund to cover the costs of general maintenance and administration of the property and to cover debt service on the tennis dome (expiring in 2002). Capital Improvements. Once again, the most significant capital projects reflected in this Five -Year Financial Plan are the construction of a new Library, projected to be completed in 2001, and completion of the multi -phase Municipal Building Project in 2003. These projects, now programmed with total costs of $11.2 Million, are projected to be completed without incurring debt. Other significant capital expenditures reflected in the Plan include implementation of the Technology Plan. COMMITTEE -OF- THE -WHOLE Minutes September 13, 1999 Page 4 of 18 Pip low The Plan has been prepared in a manner that funds building projects and increased levels of service without debt, predicated on imposition of a 2 percent telecommunications tax. There are alternative approaches available, including use of debt, increases in the existing utility tax rates and broadening the purposes to which those revenues are applied (including returning to the original policy of funding equipment replacement as well as infrastructure with the utility tax), acceptance of lesser service levels or any combination thereof. As presented, a cash reserve of at least 4.4 months operating expenses is maintained throughout the period. The Village Board financial policy prescribes a balance of 4 to 6 months. Although the indicated balance is within the prescribed range, it is the lowest balance ever projected in the fifth year of an Oak Brook Five -Year Financial Plan. Hotel/Motel Tax Fund. This fund is the repository for funds collected from imposition of the Village's 1% Hotel/Motel Tax. State law requires that this revenue be devoted solely to programs intended to increase overnight stays in hotels located within the Village. Expenditures of funds from the tax are recommended by the Hotel, Convention and Visitors Committee and are subject to the specific approval of the Village Board. Revenue from the tax is projected for planning purposes to increase at 3% per year. The projection reflects annual expenditures on approved activities of $360,000 per year, which approximates the annual revenue from the tax. As a result a sufficient cash balance is maintained to fund programs or needs not anticipated at the present time or other uses as may be authorized by law. Motor Fuel Tax Fund. The Motor Fuel Tax (MFT) Fund is the repository for funds distributed to the Village by the State of Illinois pursuant to the MFT distribution formula. State law limits use of these funds, and administrative procedures involved in expenditure of MFT funds are onerous. Therefore, it is the Village's policy to devote MFT funds exclusively to eligible street and reconstruction projects. The Village's current policy is to use MFT funds only for eligible capital improvements, specifically street resurfacing and reconstruction. Further, in view of the relatively small size of the annual distribution and the onerous administrative procedures involved in its use, the Plan continues reflecting transfer of MFT funds to the Infrastructure Fund on a periodic basis, as a supplement to Utility Tax funds. In the years the transfer is made, the annual paving program, or a portion thereof, is undertaken as an "MFT Project ", in compliance with IDOT regulations. The 2000 -2004 Plan reflects one such COMMITTEE -OF- THE -WHOLE Minutes September 13, 1999 Page 5 of 18 transfer, in 2000, in addition to the final payments for the 1998 MFT paving project, which will occur in 1999. Thereafter, the Plan anticipates accumulation of MFT funds in order to absorb any Village share of future traffic capacity improvements on State, County or Village streets. Even considering the programmed positive changes in the distribution formula, MFT revenues continue to play a relatively small role in the Village's infrastructure program and will not contribute significantly to the Village's ability to reduce reliance on the utility tax for these purposes. If the funds are not needed for capacity improvements, a substantial MFT balance will be available for future transfers to the Infrastructure Fund. Foreign Fire Insurance Tax Fund. This fund is the repository for funds collected from imposition of the 2% tax on fire insurance policies written in the Village by insurance companies not incorporated in the State of Illinois. By law, expenditures from the Fund must be for the maintenance, use and benefit of the Fire Department. Expenditures are directed by the Foreign Fire Insurance Tax Board elected by members of the Fire Department, and are subject to the approval of the Village Board. Revenue is projected to remain at the current level of $19,500 per year over the planning period. Operating expenditures are programmed for enhancing Fire Department training programs, uniform items, personal protective equipment, station furnishings and appliances, low impact physical fitness equipment, furniture and equipment for new Fire Department facilities. Infrastructure Fund. The Infrastructure Fund was established to separately account for revenues and expenditures related to certain categories of capital projects including street resurfacing/reconstruction, safety pathways and drainage projects. Currently, all utility tax receipts are deposited to this fund. This Fund also receives periodic transfers from the Motor Fuel Tax Fund in order to supplement the paving program. The Plan reflects elimination of the current 3% utility tax on local telephone service, which is replaced by a 2% telecommunications tax allocated to the General Corporate Fund. COMMITTEE -OF- THE -WHOLE Minutes September 13, 1999 Page 6 of 18 Transfers from the Motor Fuel Tax Fund are reflected in 1999 and 2000. Revenue from grants that have been secured for bikeway projects is also reflected. Water Fund. The largest enterprise operated by the Village is the water utility. The Water Fund supports both operations and capital improvements to the water system. Since the Water Fund is considered an enterprise fund, it is operated on a self - supporting basis. The retail water rate is projected to remain at the current level of $2.35 per 1,000 gallons through 2001 (four years longer than anticipated originally) and increase to $2.60 in 2002 and $2.85 in 2004. Both of these increases are reflected one year later in the 1999 -2003 edition of the Plan. DuPage Water Commission charter customer rebates ceased in 1998. As an offset, fixed cost payments to DuPage Water Commission were reduced 25 percent and are projected to remain unchanged for the duration of the planning period. 1999 operating expenditures are projected to exceed budget by approximately $124,000 due primarily to extraordinary outlays related to Y2K contingency planning. Equipment and services will be on hand to permit the utility to operate in the event of a major electrical service interruption during this time. The capital improvement program reflects various improvements to the distribution system, continued maintenance of the Village's wells in order to have them available for emergency service, ongoing maintenance of storage and pumping facilities and a gradual system -wide water meter replacement program. The primary objectives of the distribution system improvements continue to be (1) improving east to west circulation of water generally in order to derive greater benefit from the York Road storage facility, (2) looping of dead -end mains, and (3) replacement of deteriorating mains. Sports Core Fund. This fund supports the operation of the Oak Brook Sports Core, including uses of the Sports Core fields and forest areas, the Oak Brook Golf Club, the Oak Brook Bath and Tennis Club (both available for use by the general public) food and beverage services at the various Sports Core venues. It is considered an enterprise fund since the majority of its revenues are derived from user fees. The consolidated presentation shows a financial picture for the Sports Core Fund that is continuing to brighten. This is attributable to several factors: COMMITTEE -OF- THE -WHOLE Minutes September 13, 1999 Page 7 of 18 • Substantial new revenue from sale of real estate in the Westchester Park area (subject to authorization by referendum) and compensation for right -of -way needed for improvements to Oak Brook Road (by DuPage County). This revenue is designated as the principal funding source for the Capital Improvement Account. • Continuation of the annual transfer from the General Corporate Fund in support of general maintenance and administration of the property and debt service on the tennis dome facility. • Deferring repayment of long -term interfund loans until 2001, when revenue - enhancing capital improvements are projected to be completed. • Financing of the new irrigation system at the Golf Club with installment contract certificates. • Continued increases in operating revenues in all enterprise operations. Although future projections are encouraging, favorable operating results of the Sports Core Fund are largely dependent (as they have always been) on good weather, annual increases in user fees, and attention to cost control. Capital improvements have been planned with a view toward making more favorable operating results possible on an annual basis. Self Insurance Fund. The Self - Insurance Fund is an internal service fund used for funding the Village's employee welfare benefit programs, including the self - insured medical and dental plans, group life and accidental death insurance coverage. These programs also are made available to employees of the Oak Brook Park District, retired Village employees and separated employees pursuant to COBRA regulations. Revenue from equivalent premiums is projected to increase at a rate sufficient to fund projected expenses. A 12.5% equivalent premium increase was implemented on July 1, 1999. This fund is an internal service fund financed by charges to Village departments for maintenance of vehicle fleet equipment. Expenditures support the operation and maintenance of cars, trucks, fire equipment, public works construction equipment and related items. All costs associated with operating and maintaining the Village's vehicle and equipment fleet are charged to this fund. Annual transfers to the General Corporate Fund for administrative services are also included. The Plan reflects transfer of one Public Works employee from the General Corporate Fund to the Garage Fund (no impact on overall headcount). COMMITTEE -OF- THE -WHOLE Minutes September 13, 1999 Page 8 of 18 N Equipment Replacement Fund. This fund was created as a means of funding replacement of major capital equipment, primarily vehicles. It is supported by other funds, principally the General Corporate and Water Funds, through vehicle user charges. This fund is utilized solely for replacement of fleet equipment. Acquisition of new equipment (i.e. not as replacements) is reflected in the fund where the using department or division resides. Revenues are computed as charge -backs to various operating budget programs on the basis of future replacement cost and funded over the remaining life of existing vehicles and equipment. Police and Firefighters' Pension Funds. The Police and Firefighters' Pension Funds are separate financial entities mandated by Illinois law. The respective pension boards, in cooperation with the Village, strive to provide financially sound pension funds through application of proper actuarial practices and compliance with statutory requirements. The specific pension benefits are determined by the Illinois general assembly through legislative process. Traditionally, local pension systems are property tax supported. Having never levied a property tax, Oak Brook has met its funding requirements via contributions from the General Corporate Fund. Thus, the Police and Firefighters' Pension Funds have been supported primarily by the sales tax. The amounts contributed are based on payroll, and are made via percentage factors that are determined by actuarial studies and updated annually. Investment earnings are projected at 7% over the planning period. In both funds, the 1999 Village contribution is significantly lower than the amounts budgeted. The most recent actuarial studies indicate that both funds are substantially overfunded. The overfunded status resulted in a lower actuarial requirement than anticipated, in addition to which both pension boards requested amounts still lower in order to begin to reduce the increment of overfunding. The contribution to the Police Pension Fund going forward is based on the projected actuarial normal cost less a credit for projected investment earnings on the overfunded increment. Beginning in 2000, the Firefighters' Pension Fund is mandated to implement significant increases in pension benefits enacted by the General Assembly in 1999. This will have the effect of absorbing half or more of the current overfunded increment. Village contributions to the fiend are projected to increase accordingly. COMMITTEE -OF- THE -WHOLE Minutes September 13, 1999 Page 9 of 18 State tax cap legislation prohibits the Village from levying a property tax for pension purposes without vote approval. Therefore, the General Corporate Fund must continue to plan for contributions to the pension funds in amounts sufficient to fund future benefits in accordance with the actuarial requirements and applicable law. Significant increases in benefits for firefighters were enacted in 1999. Based on legislative history, it is deemed likely that the General Assembly will mandate similar increases in police pension benefits in 2000 or 2001. Since the premise nature of such benefit enhancements is not known, no provision has been made for them at this time. General Corporate Fund. The major building projects currently in process, particularly the Municipal Building Project, are likely to be affected by limitations on available funds given the current financing plan. Embellishments and enhancements to Village buildings, some of which could be substantial, will need to be addressed in future Financial Plans. Another issue that will be with the Village continuously, as it will be with business in general, is the ongoing cost of technology. The investments that have been made over the last several years have been substantial. However, as every business knows, technology investments are not one -time events. New technology will forever render existing technology obsolete. Staying reasonably current will be essential just to do business. Although it is implied in the actual and projected figures, the Plan has not included mention of electronic commerce and its effects on sales tax receipts. We cannot now know or quantify those impacts, but we believe we will start to see some effects over the next few years. Infrastructure Fund. The work accomplished over the last six years, pursuant to the Roadway Maintenance Plan and the drainage improvement policy, have enabled the Village to catch up with extensive unmet expenditures will be significantly lower than they have been. Beyond the horizon of the current Roadway Maintenance Plan, it should be anticipated that expenditures will again increase to a higher level for some period of time. Dependent upon utility tax policy, rate adjustments might become necessary. However, given continued attention to preventive maintenance and adherence to the Roadway Maintenance Plan schedules and procedures, the amount of reconstruction work required should be less than that incurred during the 1990's. COMMITTEE -OF- THE -WHOLE Minutes September 13, 1999 Page 10 of 18 rN Water Fund. The retail water rate ($2.35 per 1,000 gallons) has been artificially depressed for several years due to the availability of DuPage Water Commission rebates and revenue bond reserves. This Five -Year Financial Plan shows gradual increases in the rate (to $2.85) heading toward the ultimate and "true" rate of approximately $3.50. The timing of future rate increases is most dependent on capital needs of the Fund. The most significant capital needs that potentially face the Water Fund concern provision of and maintenance of water storage. A storage study is planned in 2000, which will provide an indication of whether additional storage will be necessary. Regardless, major maintenance of the York Road reservoir will be necessary in the 2005 -2010 timeframe. The Meyers Road reservoir is approximately 25 years newer. Ongoing requirements for painting and elevated tanks and the rapid aging of the system's telemetry combine to indicate a need for nearly $1 million in capital investment in existing storage and telemetry facilities by 2015. Additional storage, if required, will cost in excess of $1 per gallon to construct. Equipment Replacement Fund. There are many very substantial pieces of equipment scheduled for replacement beyond 2004. The funding of these replacements is being accomplished through user charges to the operating departments. These charges are themselves substantial and yield a cash balance in this fund that is at times very large but will be needed in the future to fund the scheduled replacements. President Bushy asked if the Village was incorporating any expenses associated with the census. The complete count effort is valuable to Oak Brook as the Village receives their motor fuel tax funds per capita. So every individual in Oak Brook needs to be counted in this census as the Village receives funds from motor fuel tax and income tax. She proposed that the homeowner association presidents work with the Village in the complete count census. Village Manager Veitch noted that it will be included in the 2000 budget as we have not built in any part-time help for the census or postage if needed. Nor has any assumptions been included for an increase in our population in terms of the per capita shared revenues. Trustee McInerney commented that the sales tax revenue is currently lagging the budget. It is higher than recent history and the Village has had a period of exceptional retail growth. He is concerned that there isn't any land available for future growth, we have tapped out any significant increases and the effect the internet will have on our retail sales tax revenue. He asked consideration of COMMITTEE -OF- THE -WHOLE Minutes September 13, 1999 Page 11 of 18 a six month cash balance rather than the 4.4 month proposed. The Board had discussed this before and requested this consideration. Finance Director Langlois explained that the six month period was contingent upon the Village borrowing funds. Fire Department Staffing Study Proposal: Fire Chief Jarvis addressed the Village Board on the Fire Department Staffing Study Proposal. The central conclusion of the study is that the Oak Brook Fire Department needs to increase its staffing levels in order to maintain (indeed, restore) its capacity to provide the level of service we believe the community expects from the Department. In practical terms, the Department seeks to achieve, over the next three years, an upgrade to the accepted minimum standard of three- person engines and two - person truck or rescue squad response for emergency incidents. The Department also seeks to equip its front line engines for advanced life support (ALS) service. This would multiply the Fire Department's ability to respond to overlapping EMS calls, which have become a very frequent occurrence in the Village. Currently, Oak Brook operates with only two person engines and one person on either the truck or rescue squad. In addition, the Chief seeks to strengthen the administration of the Department through addition of two 40 -hour operation/administrative positions. In this regard, it is important to remember that as a result of the Illinois Public Labor Relations Act, only personnel above the rank of Lieutenant are exempt from coverage by the bargaining unit represented by Teamsters Local 714. This means that only one person on each shift (the Captain/Shift Commander) and the Chief herself are not part of the union. Typically, fire chiefs are assisted by one or more assistants, or deputy chiefs who are chosen by and serve at the pleasure of the chief. Non -home rule municipalities in Illinois do not enjoy the opportunity to establish such positions, however. The estimated incremental cost of the staffing initiative (above 1999 costs) is approximately $209,000 in 2000, $411,000 in 2001 and $620,000 in 2002. These costs have been factored into the 2000 -2004 Five -Year Financial Plan and are conservative (meaning generous) estimates. Ten of the eleven positions are programmed as career sworn positions. To the extent contract personnel or civilian administrative personnel are employed, costs would likely be lower. Final decisions regarding these details will be reflected in the 2000 Budget. COMMITTEE -OF- THE -WHOLE Minutes September 13, 1999 Page 12 of 18 0 In the last twenty years, Oak Brook responses to emergency calls have increased by 149 %, yet staffing has only increased by 19% during that same time period. During the last 10 years alone, emergency calls have increased by 83 %, while staffing has only increased by 9 %. Nearly 25% of the time there were two or more emergencies occurring at the same time. This translates into longer response times for whichever emergency call came in second or third. Although mutual aid from other Fire Departments can partially cover these types of situations, the response times are generally 10 -20 minutes. This far exceeds the standard of no more than 4 -6 minutes before medical intervention in situations of a heart attack or major trauma where someone's heart has stopped beating. The largest percentage of calls by the Fire Department are the emergency medical calls. Hospitals dictate many of the protocols the department must follow. They may require completion of more paper work prior to going back to the fire station which is expected to increase over time. In addition to that, there are the regulations of the fire service, unfunded mandates, and many are designed for better safety for the firefighters and effective rescues for the citizens. In addition to a significant increase in the number of emergency calls, the types of emergency services provided by the Fire Department have increased dramatically. During the last ten years several types of specialized services have been added such as hazardous materials, confined space rescue, high angle rescue, CPR classes, trench rescue, surface water /dive rescue, ice water rescue and public safety education programs. Two of the eleven positions are weekday operations /administrative positions. The weekday Operations and Training Director position will enhance the continuity of emergency and non - emergency Operations between the three 24- hour shifts. Establishing the weekday Support Services Director as well as the Operations and Training Director will facilitate enhanced teamwork and administrative productivity within the Fire Chief's senior management team. The implementation of this staffing proposal will enhance the effectiveness of emergency scene operations, firefighter and citizen safety, provide an additional level of insulation from litigation involving citizen and/or firefighter deaths or injuries, and further minimize the need for overtime. Staffing surveys were mailed to approximately 40 fire departments that met the following criteria: • Boundaries were contiguous to Oak Brook COMMITTEE -OF- THE -WHOLE Minutes September 13, 1999 Page 13 of 18 NO • Or were in the MABAS Division 12 mutual aid group • Or were one of the fire union negotiation comparable communities • Or might be considered benchmark fire departments in terms of emergency operations, staffing, and leadership. Twenty -three surveys are recorded in the database. For purposes of identifying communities with comparable levels of risk in terms of lives and property, the following criteria was used: • Community Size: 7 -14 square miles • Assessed Valuation $700 Million to $1.1 Billion • Peak Population estimates of 35,000 to 100,000 Trustee Caleel asked if each area fire department has specialized teams. Fire Chief Jarvis explained that each of the twenty -six fire departments will have one to three specialized teams. Oak Brook has three teams as our district warrants it with 76 major bodies of water here. The technical rescue team works with confined space, high angle rescue and trench rescue for construction or high rise buildings. The hazmat team was developed due to the tollway with transportation of hazardous materials and many businesses have a risk with those types of materials. We do not have enough staff to handle a hazardous material incident, a dive incident or a TRS incident. The Village relies on a second mutual aid group from other departments. Trustee Craig inquired if the eleven additional personnel will be Oak Brook employees. Chief Jarvis stated this will be discussed at a later Village Board meeting with a specific 2000 budget. He asked if this would eliminate overtime. Chief Jarvis remarked it will reduce the overtime costs somewhat. However, because we are increasing minimum staffing levels, there will still be overtime as a result of some illnesses, injuries, and training activities. Trustee Caleel inquired if the additional staff would eliminate paid on call personnel. Chief Jarvis indicated it would not eliminate them at this point. Village Manager Veitch discussed the utility tax is 70% non - residential and the telecommunication tax is 80% non - residential. A 2% telecommunication tax in Oak Brook would raise funds to approximately $1,100,000 for the General Fund as compared to the 3% utility tax of $700,000 for the Infrastructure Fund. He indicated the proposed expenses of increased fire department personnel is factored into the overall numbers of the Corporate Fund. There wouldn't be any debt and there would be a cash balance of a 4.4 month period. COMMITTEE -OF- THE -WHOLE Minutes September 13, 1999 Page 14 of 18 NO Trustee Kenny asked if a third ambulance is needed. Chief Jarvis discussed bringing one or two of the fire trucks up to ALS (advance life support) engines. The engine responds with paramedic equipment which enables them to treat a patient until a mutual aid ambulance arrives. There wouldn't be any loss of quality of care during this time period. The engine is able to get back in service quicker than an ambulance and could handle another life support system call. The department is presently upgrading their third reserve ambulance to ALS standards, so that during peak times they may hire overtime personnel such as for the Y2K. Three ambulances will be staffed during that time. President Bushy recessed the meeting at 9:24 p.m. The meeting convened at 9:35 p.m. The Board then reviewed each of the funds to determine if the Board members had any further questions. President Bushy indicated the Timber Trails and Merry Lane project may not be approved by their vote by the residents to have the concrete shoulders implemented. Village Manager Veitch explained that the street resurfacing and drainage project would then be substantially less expensive. This will have a positive effect on the 2001 expenditures, increase the ending balance in 2001, solves the problem of a cash balance in 2002 and the possibility of reducing the utility tax %2% in 2003. President Bushy stated staff will have homeowner meetings in that subdivision to discuss this project to determine if the homeowners wish to have this project implemented. Village Manager Veitch clarified that the Timber Trails subdivision project of concrete shoulders is scheduled for 2001 and the Merry Lane project is scheduled for rehabilitation of curb and gutter in 2000. For the Sports Core Fund, President Bushy discussed the implementation of a food service division of the golf clubhouse. The Board had previously discussed this when proposing to build the clubhouse, as additional income could be provided by reserving parties and functions. This would allow purchasing and management of the room space with Sports Core staff. A vehicle will need to be considered for transporting food and food equipment between the different facilities and for off -site catering. Bath & Tennis Club Manager Sartore explained that an Oak Brook resident is interested in the purchase of the Tennis Dome in the spring of 2000. A full season has been budgeted this year of operation of the dome. COMMITTEE -OF- THE -WHOLE Minutes September 13, 1999 Page 15 of 18 nov Trustee Savino asked for an operating history of the Tennis Dome including fiscal 1998 and 1999 including the costs of deflating the dome and installation of it each season. President Bushy suggested the Board, at some point in time, consider the amount of Village funds needed to contribute to the operation of the Sports Core. She asked if the Board had any interest in considering a riverwalk along the banks of Salt Creek on the Sports Core property. Trustee McInerney discussed the high intensity of use of the Sports Core property during specific times of the year and asked what other activities could be implemented during the non - traditional months. One consideration is ice skating or other types of events. Historically, the Village has tried to in membership at the Bath & Tennis Club. He asked to reconsider whether or not to increase revenues this coming year and if in the Five -Year Plan, to consider a corporate membership that is not currently in place. Trustee Butler concurred with this recommendation as the facility needs some attention if fees are to be increased. Village Manager Veitch explained that Trustee McInerney had suggested that the fees not be increased in 2000 as the members this year did not enjoy the planned amenities this year. The improvements will occur at the close of this season. Trustee McInerney indicated it is hopeful the park district will consider some type of combined membership between the two entities. Trustee Savino suggested a social membership be offered to our residents. Bath & Tennis Club Manager Sartore stated the park district sent two gift passes to our residents to use their facility for a day, which seemed to be successful. This type of a mailing could be an incentive with the initial season mailing for the Bath & Tennis Club. Trustee Craig asked if the Wednesday lunch could continue throughout the year. Bath & Tennis Club Manager Sartore stated it could be feasible if a smaller room could be set aside so as to not interfere with the banquet room business. Many Wednesdays are already booked for the upcoming year. Bath & Tennis Club Manager Sartore observed, that under our family fee structure, a husband and wife are considered family members. She asked if a husband and wife and empty nesters that do not fall into the senior category could be considered for a lesser membership fee. Village Manager Veitch COMMITTEE -OF- THE -WHOLE Minutes September 13, 1999 Page 16 of 18 I stated the Five -Year Plan projection of revenue may be studied for methods of obtaining that goal. President Bushy remarked that staff is considering signage at the corner of 22nd Street and York Road that states Oak Brook Sports Core with surrounding vegetation. Village Manager Veitch suggested staff will present a new Sports Core Fund section of the Five -Year Plan. Under Longer Range Issues section, President Bushy asked the Board members to contact Village Manager Veitch if they wish to include anything beyond the Five -Year Plan. Village Manager Veitch explained that the Five -Year Plan reflects beginning the telecommunication tax in July. This date was chosen to provide adequate time by the Board to revisit the discussion of going to referendum for alternate source bonds in March. Trustee Caleel suggested that the Village not go to referendum so it doesn't obligate the Board to annually negate the reliance of a tax. This is more palatable and without a referendum. President Bushy recommended implementing the telecommunication tax sooner. Finance Director Langlois stated the issue is when it may be taken out of the Infrastructure Fund. It would be a decrease to the utility tax in 2000 to that Fund and revenue needs were such that the Infrastructure Fund needs that revenue longer. Staff will review this further. Village Manager Veitch explained that the installment contract financing is workable with buildings. Presently, we have planned not to have a general contractor on either of the building projects. Harbor is the construction manager and the Village is awarding subcontract bid packages. Those subcontractors would then enter into an installment contract with the Village. Trustee Savino recommended that Harbor assume one additional role as a general contractor. Village Manager Veitch suggested Harbor as the general contractor for the second project of the municipal building. President Bushy asked staff to review this for clarification to present to the Village Board. Village Manager Veitch suggested staff will review variations of the timing of the telecommunication tax and taking care, as need be, of the COMMITTEE -OF- THE -WHOLE Minutes September 13, 1999 Page 17 of 18 ER Infrastructure Fund. Staff will address options of an installment contract of all or partially of the municipal building project. Staff will state in quantified terms what affect it would have on the tax and the fund if that would occur, some installment contract financing, lesser reliance on the telecommunication tax than what is shown and how to pay for everything with a six month cash balance. This will be presented to the Village Board at their next meeting or their first meeting in October. 3. ADJOURNMENT: Motion by Trustee Caleel, seconded by Trustee Craig, to adjourn the meeting at 10:37 p.m. VOICE VOTE: Motion carried. ATTEST: r -A - � t-/ k:: �5'- � � -5- 66 , Lind . Gonnella, CMC /AAE Village Clerk Cow091399 COMMITTEE -OF- THE -WHOLE Minutes September 13, 1999 Page 18 of 18 0