Minutes - 02/10/2004 - Board of TrusteesMINUTES OF THE FEBRUARY 10, 2004 REGULAR
MEETING OF THE PRESIDENT AND BOARD OF
TRUSTEES OF THE VILLAGE OF OAK BROOK
APPROVED AS WRITTEN ON FEBRUARY 24, 2004.
1. CALL TO ORDER:
The Regular Meeting of the Village Board of Trustees was called to order by
President Quinlan in the Samuel E. Dean Board Room of the Butler
Government Center at 7:31 p.m. The Pledge of Allegiance was given.
2. ROLL CALL:
Village Clerk Linda Gonnella called the roll with the following persons
PRESENT: President Kevin M. Quinlan, Trustees Stelios Aktipis, George T.
Caleel, Susan Chase Korin, Elaine Miologos and Asif Yusuf.
ABSENT: Trustee John W. Craig
IN ATTENDANCE: Richard B. Boehm, Village Manager; Jeffrey P. Moline,
Assistant Village Manager; Robert L. Kallien, Jr., Director of
Community Development; Darrell J. Langlois, Finance Director;
Kenneth T. Kubiesa, Village Attorney; Sue Madorin, Acting
Library Director; Michael J. Meranda, Public Works Director;
Allen W. Pisarek, Police Chief and Nelson Patras, Acting Bath
& Tennis Club Manager
3. RESIDENT /VISITOR COMMENT
President Quinlan announced that Police Sgt. Jason Cates was appointed the
SWAT Team Commander for the FIAT (Felony Investigative Assistance Team)
Unit. This is a multi jurisdictional task force of 14 municipalities. It is an
honor for Sgt. Cates and the Village of Oak Brook as this is another outstanding
achievement of one of our police officers under the leadership of Police Chief
Allen Pisarek.
President Quinlan explained that last week he and Manager Boehm met with
our homeowner association presidents to share the Village's ideas, successes
and some ideas they are considering for the future. The main purpose was to
create a channel of communication with the presidents and to share information
with the Village and to receive feedback from them. He thanked the
homeowner association presidents for their time, leadership and enthusiasm in
sharing their ideas with staff. They discussed the Village's sales tax increase
referendum and asked for their support of the referendum. The community
leaders overwhelmingly supported the proposition as they understood the
necessity of this.
VILLAGE OF OAK BROOK Minutes
Page 1 of 15 February 10, 2004
CALL TO ORDER
ROLLCALL
ANNOUNCE
3. He then discussed the feedback from the group of their support for the Village
looking at new venues of opportunities and thanked the Village for this. The
feedback received from the homeowner association presidents, residents and the
Village Board members is that the Ravinia West proposal was a nice concept
but not at this time. He then asked for a consensus from the Village Board
members that the Board concentrate in another direction to improve the Village
rather than the Ravinia West concept.
It was the consensus of the Village Board to direct staff not to pursue the
Ravinia West proposal any further at this time.
He stated the homeowner association presidents meetings will continue. He
indicated a joint Oak Brook Park District Commissioners meeting with the
Village of Oak Brook Board of Trustees will occur tomorrow morning at the
Oak Brook Park District facility and welcomed anyone to attend. He explained
that Trustee Korin, representing the Village Board, has worked with Park
Commissioner Peters to coordinate joint efforts in providing recreational
services to the Village residents. Two agenda items of that meeting is
discussion of the Old Butler School facility being a landmark as the premier
entrance point to our Village. Another agenda item is a 5K and IOK race to
benefit a charity.
President Quinlan commented that changes have and will occur at the Oak
Brook Bath & Tennis Club. He indicated that he was overwhelmed with the
enthusiasm and ideas generated by that staff as the Village Board had directed
them to suggest changes to improve operations of that facility. He then asked
for a consensus from the Village Board that Trustee Miologos be the oversight
representative from the Board for the Oak Brook Bath & Tennis Club. She will
work directly with President Quinlan and staff to implement ideas that have
been proposed to the Village to determine if they are feasible and the impact
they would have to the facility. He further recommended that there would be
monthly reporting to the Village Board of the progress and effects of those
changes and fee structure be developed for Village Board approval at the next
Village Board meeting or a special meeting be called if necessary. This will
allow participants of the Oak Brook Bath & Tennis Club to be informed of the
fee structure as soon as possible.
Trustee Korin also requested specific information of the financial system to be
included in the report and tracking of items. She also asked to include the
option of catering events, rental of the facility, its feasibility and financial
implications and the basics of an improved marketing plan and cost of
implementation.
Trustee Caleel requested the exploration of other institutions such as the Hyatt,
Marriott or another management agency for the overall function of our food and
beverage operation at the Oak Brook Bath & Tennis Club. He noted that due to
VILLAGE OF OAK BROOK Minutes Page 2 of 15 February 10, 2004
'91
3. time constraints the Village may not be able to contract with such a provider
but asked for consideration of inclusion of their management fees, advise the
Village on marketing, review staffing, controls and inventory.
Trustee Miologos asked if the Board was accepting the responsibility of
management of the Oak Brook Bath & Tennis Club and not, for the time being,
pursue an outside management company but institute the necessary systems for
the benefit of our residents effectively and as soon as possible.
It was the consensus of the Village Board to direct Village Manager Boehm and
to appoint Trustee Miologos as the oversight person in working with President
Quinlan and staff to implement recommended staff procedures to determine if
they are feasible and the impact they would have to the Oak Brook Bath &
Tennis Club.
Resident Nancy Hayden thanked the Village Board for listening to the
sentiments of the residents and homeowner association presidents regarding the
Ravinia West proposal to not go forward with the project and thanked them for
opening up the Oak Brook Bath & Tennis Club to different ideas and not just
fixed with one management company.
4. APPROVAL OF MINUTES:
MINUTES
COMMITTEE -OF- THE -WHOLE MEETING OF JANUARY 26, 2004 COW Mtg.- 01 -26 -04
Motion by Trustee Caleel, seconded by Trustee Aktipis, to approve the Minutes
of the Committee -of -the -Whole Meeting of January 26, 2004 as presented.
VOICE VOTE: Motion carried.
REGULAR BOARD OF TRUSTEES MEETING OF JANUARY 27, 2004 Reg. Mtg- 01 -27 -04
Motion by Trustee Aktipis, seconded by Trustee Caleel, to approve the Minutes
of the Regular Board of Trustees Meeting of January 27, 2004.
Trustee Aktipis asked that the Minutes be amended on page 3, his comments
should read: "Trustee Aktipis stated that given the adverse affects of traffic and
noise, what would really be the benefits of the residents to accept such a venue
in the Village ?"
Motion by Trustee Caleel, seconded by Trustee Yusuf, to approve the Minutes
of the Regular Board of Trustees Meeting of January 27, 2004 as amended.
VOICE VOTE: Motion carried.
5. CONSENT AGENDA:
All items on the Consent Agenda are considered to be routine in nature and will
be enacted in one motion.
VILLAGE OF OAK BROOK Minutes Page 3 of 15 February 10, 2004
4f
C. AGENDA
5. Motion by Trustee Caleel, seconded by Trustee Yusuf, to approve the Consent
Agenda and authorize expenditures as presented or amended. ROLL CALL
VOTE:
Ayes: 5 - Trustees Aktipis, Caleel, Korin, Miologos and Yusuf
Nays: 0 — None.
Absent: 1 - Trustee Craig. Motion carried.
A. ACCOUNTS PAYABLE FOR PERIOD ENDING FEBRUARY 6, 2004 - ACCTS. PAYABLE -
$221,089.28 $221,089.28
B. APPROVAL OF PAYROLL FOR PAY PERIOD ENDING JANUARY 31, PAYRL- $611,271.36
2004 - $611,371.36
C. COMMUNITY DEVELOPMENT REFERRALS:
REFERRALS
1) ZONING ORDINANCE REVIEW PROJECT — PLANNED UNIT ZONING ORD.
REVIEW EVIEW PROJ.
D. AUTHORIZATION TO SEEK BIDS OR PROPOSALS OR NEGOTIATE SK BDS, PROP OR
CONTRACTS: NEG CNTRCTS
1) 2004 CRACK SEAL PROJECT 2004 CRACK SEAL
2) 2004 PAVEMENT REJUVENATION PROJECT 2004 PVMT REJ PRJ
3) GOLF CAR REPLACEMENT GOLF CAR REPLAC
4) WATER SYSTEM LEAK DETECTION SERVICES WATER SYS LEAK
E. ORDINANCE 2004- ZO -TA -G -740, "AN ORDINANCE AMENDING ORD 04- ZO -TA -G-
740 -AMEND TITLE
TITLE 13 ( "ZONING REGULATIONS ") OF THE VILLAGE CODE OF 13, SECT. 13 -3 -6
THE VILLAGE OF OAK BROOK, ILLINOIS BY AMENDING ACCESS. USES &
SECTION 13 -3 -6 ( "ACCESSORY USES AND STRUCTURES")" STRUCTURES
F. ORDINANCE 2004- ZO -TA -G -741, "AN ORDINANCE AMENDING ORD 04- ZO -TA -G-
741 -AMEND TITLE
TITLE 13 ( "ZONING REGULATIONS ") OF THE VILLAGE CODE OF 13, SEC-F.13-3-14
THE VILLAGE OF OAK BROOK, ILLINOIS BY AMENDING DRIVEWAY GATES
SECTION 13 -3 -14 ( "DRIVEWAY GATES")'
6. ITEMS REMOVED FROM CONSENT AGENDA: None.
7. BOARD & COMMISSION RECOMMENDATIONS:
VILLAGE OF OAK BROOK Minutes Page 4 of 15
February 10, 2004
RMVD C AGNDA
13D/COMM RECOM
7. A. 700 — 800 COMMERCE DRIVE — FINAL PLAT OF RESUBDNISION 700-800 COMM.
DRV- F.PLAT -RESUB
Plan Commission Recommendation
Final Plat of Subdivision — At its meeting on January 19, 2004, by a vote of
7 to 0, the Plan Commission recommended approval of an application from
Oak Brook Pointe LLC and Petula Oak Brooke Pointe requesting approval
of a final plat of resubdivison for the parcel commonly known as 700 and
800 Commerce Drive. At the present time, the two existing office buildings
are located on a single lot. The applicant is seeking a plat of resubdivision
so that each building is on separate parcels. Upon approval of this request,
lot 1 would contain 10.3231 acres and the building known as 700
Commerce, and lot 2 would contain 4.6534 acres and the building known as
800 Commerce. All required setback and floor area ratios (FAR) in the
ORA -1 zoning district are met in this request.
The Plan Commission recommendation is subject to the applicant
satisfactorily addressing the following issues:
1. Address all issues contained in the memorandums dated January
12, 2004 and January 30, 2004 from Village Engineer Durfey
including final engineering approval.
In making this recommendation, the Plan Commission found that the plat of
resubdivision meets the applicable standards required for approval of a final
plat of subdivision.
Motion by Trustee Aktipis, seconded by Trustee Caleel, to accept the
recommendations of the Plan Commission to approve the requested Final
Plat of Resubdivision at 700 and 800 Commerce Drive and direct the
Village Attorney to draft the necessary resolution for final consideration at
the February 24, 2004 Board of Trustees meeting. VOICE VOTE: Motion
carried.
8. UNFINISHED BUSINESS: UNFINISHED
BUSINESS
A. CONFIRMATION OF APPOINTMENTS: cNFRM APPTS
1) AUTUMN FESTIVAL COMMITTEE AUTUMN.FEST
President Quinlan recommended the appointment of Linda K. Gonnella
as Representative of the Oak Brook Women's Club to the 2004 Autumn
Festival Committee.
VILLAGE OF OAK BROOK Minutes Page 5 of 15 February 10, 2004
8. A. 1) Motion by Trustee Caleel, seconded by Trustee Korin, to accept
President Quinlan's recommendation and appoint Linda K. Gonnella to
the 2004 Autumn Festival Committee. VOICE VOTE: Motion carried.
B. ORDINANCES & RESOLUTIONS: ORD/RES
1) RESOLUTION 2004 -AG- TELECOM - IMF -EXI -R -872 RESO4 -AG-
TELCOM- IMF -EXI-
"RESOLUTION TO ENTER INTO AN INTERGOVERNMENTAL R- 8721NTGOV.
AGREEMENT FOR JOINT DEFENSE OF THE PRIMECO AGRMNT DEFEND
LITIGATION„ PRIMECO
In December, the Village Board approved an Intergovernmental
Agreement that required fifteen (15) communities to enter into that
Agreement before it became effective. Only thirteen (13) communities
entered into that Agreement and subsequently, attorneys from all of the
DuPage County municipalities prepared a revised Agreement for joint
defense that appears now that twenty five (25) DuPage County
Municipalities will be entering into. The Intergovernmental Agreement
provides for sharing of costs for defense of the Infrastructure
Maintenance Fee class action cases that seek refunds of those fees
collected from 1998 through January of 2002, when the Illinois
Supreme Court determined that the local Infrastructure Maintenance
Fees for wireless were unconstitutional. The Village of Oak Brook's
total exposure on both wireless and landline IMF is approximately
$1.575 million.
Motion by Trustee Korin, seconded by Trustee Caleel, for passage of
Resolution 2004 -AG- TELECOM - IMF -EXI -R -872, "Resolution to
Enter Into an Intergovernmental Agreement for Joint Defense of the
Primeco Litigation ", authorizing entry into a Joint Defense
Intergovernmental Agreement by and between certain DuPage County
municipalities for defense for a current or future Infrastructure
Maintenance Fee (IMF) class action litigation. ROLL CALL VOTE:
Ayes: 5 - Trustees Aktipis, Caleel, Korin, Miologos and Yusuf
Nays: 0 - None.
Absent: 1 - Trustee Craig. Motion carried.
C. AWARD OF CONTRACTS: None.
9. NEW BUSINESS:
A. CONFIRMATION OF APPOINTMENTS: None.
B. ORDINANCES & RESOLUTI
VILLAGE OF OAK BROOK Minutes Page 6 of 15
1
February 10, 2004
AWARD CT
NEW BUSINESS
CNFRM APPTS
ORD /RES
9. B. 1) RESOLUTION 2004- BD -CL- MIN -EXI -R -873 "A RESOLUTION RES 04- 13D- CL -MIN-
APPROVING THE RELEASE OF CLOSED MEETING MINUTES — cL .1MTG.3RELEASE I
JULY, 2003 THROUGH DECEMBER 2003"
Effective January 1, 1982 ILSC 120/2.06 required that all public bodies
shall keep written minutes of all their meetings, whether open or closed.
The public body shall periodically, but no less than semi - annually, meet
to review minutes of all closed sessions that had not been released to the
public. At this time, it is recommended that these minutes be released.
Motion by Trustee Aktipis, seconded by Trustee Caleel, for passage of
Resolution 2004- BD -CL- MIN -EXI -R -873, "A Resolution Approving
the Release of Closed Meeting Minutes," approving the release of
Closed Meeting minutes of July through December, 2003 with items
still pending and requiring continued confidentiality having been
redacted. ROLL CALL VOTE:
Ayes: 5 - Trustees Aktipis, Caleel, Korin, Miologos and Yusuf.
Nays: 0 - None.
Absent: 1 - Trustee Craig. Motion carried.
2) RESOLUTION 2004 - DUMM -LP -R -874, "A RESOLUTION RES 04- DUMM -LP-
R- 874 -ADOPT 04
ADOPTING THE 2004 DUPAGE MAYORS AND MANAGERS DMMC LEGISLATw
CONFERENCE LEGISLATIVE ACTION PROGRAM" PROGRAM
The Village has in the past adopted the legislative positions of the
DuPage Mayors and Managers Conference and the Illinois Municipal
League (as expressed in their respective legislative programs and in
other legislative positions taken in the course of the legislative session)
as Village policy through adoption of formal resolutions to that effect.
The motivation for this step was to provide guidance and clarity in
those instances when professional municipal employee associations,
(e.g., fire chiefs, police chiefs, public works) to which our Department
Directors belong, adopt positions on legislation that are contrary to the
positions taken by the municipal associations (e.g., DMMC and IML)
to which their employer belongs. Although not a frequent occurrence,
these situations do arise from time to time. Additionally, by adopting
these positions, our area Legislators has knowledge as to where Oak
Brook stands on these matters.
Motion by Trustee Korin, seconded by Trustee Caleel, for passage of
Resolution 2004 - DUMM -LP -R -874, "A Resolution Adopting the 2004
Legislative Positions of the DuPage Mayors and Managers Conference"
providing appropriate guidance to Village of Oak Brook legislators and
VILLAGE OF OAK BROOK Minutes
Page 7 of 15 February 10, 2004
9. B. 2) staff. ROLL CALL VOTE:
Ayes: 5 - Trustees Aktipis, Caleel, Korin, Miologos and Yusuf.
Nays: 0 - None.
Absent: 1 - Trustee Craig. Motion carried.
3) ORDINANCE 2004 - SAP -EXI -S -1061, "AN ORDINANCE ORD04- SAP - EXI -S-
APPROVING THE 2004 SALARY PLAN AND AN AMENDMENT PLN &AMENDY
TO THE SALARY ADMINISTRATION POLICY FOR NON- ADMN. POLICY
FOR NON -
REPRESENTED EMPLOYEES OF THE VILLAGE OF OAK REPRESNTD
BROOK, ILLINOIS" EMPLOYEES
The proposed 2004 Salary Plan and 2004 Salary Administration Policy
for the Village of Oak Brook effective January 1, 2004 is as follows:
The Major Tenants of the 2004 Salary Plan and Salary Administration
Policy Include:
A)2004 Maximum Base Salary Increase of 7.00% (Combined
Adjustment and Merit);
B) Extension of an Annual Base Salary Adjustment based on the Hay
Group Study and Staff Review and Recommendation;
C) Revision to the Performance Based Merit Pay Program for Full Time
Employees;
D)Replacement of the Merit Bonus Pay Plan for Topped Out
Employees with a new Longevity Pay attached to the Performance
Appraisal; and
E) Institute a new 7 and 1/2 percent employee contribution towards
health insurance premiums.
The Plan, similar to the Salary Plan and Policy of previous years, is
comprised of a two tiered approach to adjust the annual salaries of full
time employees. The first tier, annual base salary escalator, is an
increase aimed at maintaining external market equitability. The second
tier, the meritorious pay increase, is an increase to an employee's base
salary measured by individual performance and structured to recognize
and reward performance.
Tier 1: Annual Base Salary Adjustment
The Village's Salary Administration Policy provides for pay ranges to
be adjusted as of each January 1 with due consideration given to the
following annual variables:
1) The Change in the Chicago- Gary -Lake County "All Items"
Consumer Price Index ( "CPI ") for the twelve months ending on
VILLAGE OF OAK BROOK Minutes Page 8 of 15 February 10, 2004
9. B. 3) 1)
the preceding September 30, the Employment Cost Index for
wages & Salaries ( "ECI ") published for the third quarter or
retaining an independent consultant to perform a salary study of
pay grades;
2) The pay practices of the municipalities established through
collective bargaining as the Village's labor comparables; and
3) The Village of Oak Brook Budget Constraints.
The proposed Salary Administration Policy also provides that the
Salary Plan be further monitored by means of a consultant pay and
classification study on a triennial basis. As such, the Village retained
the Hay Group in 2003 to complete a Salary Review to be reviewed and
implemented in 2004. That review consisted of both an internal
assessment of job responsibilities relative to pay and an external market
wage survey using the comparable communities that were identified in
the 1997 arbitration proceeding involving the Village and Teamsters
Local 714 — Law Enforcement Division. The market data included in
the Hay Group analysis came from Downers Grove, Elmhurst, Glen
Ellyn, Lombard, Westchester, Western Springs, Wheaton, and
Willowbrook. In addition, staff reviewed and researched various
elements of the pay plan against similar programs of additional
communities (i.e., longevity pay, merit pay plans).
As proposed, 2004 will stand as an overall salary adjustment year with
distinct percentage increases to the pay ranges at both the minimum and
maximum ends of the range. Similarly, employees receive the similar
grade percentage increase.
Tier 2: Annual Performance Based Merit Increase
The second tier of the annual salary adjustment for employees is the
meritorious performance appraisal. As stated in the Personnel Manual
and Salary Administration Policy, the objectives of a performance
appraisal are several:
1. To develop and improve performance and to maintain performance at
the highest possible level.
2. To provide for variation in compensation and incentive based as
directly as possible upon merit.
3. To assist supervisors in personnel administration and organizational
management.
Merit adjustments are determined based upon the employee's
performance as measured through the standard Employee Performance
Appraisal approved by the Village Manager for all the departments.
VILLAGE OF OAK BROOK Minutes Page 9 of 15 February 10, 2004
9. B. 3)
Merit adjustments shall occur within the parameters of the Salary Plan
and in no event shall it exceed the maximum of the range for the
position, nor shall the combined merit increase with the annual
adjustment increase exceed a base salary increase of 7.00% . As FY
2004 stands as an overall Salary Adjustment Year, each Employment
Grade will have a different maximum merit increase that employees
within the range can receive for that respective grade. For example,
employees moving within the pay range in Grade 3 can earn an
additional 2.08% increase to their base salary assuming the employee has
earned the equivalent in his/her performance review. Likewise,
employees moving within the range in Grade 7 can earn an additional
3.25% increase to their base salary.
Longevity Pay:
Also included in the Salary Plan for 2004 is the replacement of the
Merit Bonus Pay for topped out employees with a new Meritorious
Longevity Pay based on years of service. The premise of this benefit
is that employees are recognized for dedicated service in that full time
Oak Brook employees that receive a performance review score equating
to "Meets All Standards" performance shall receive an annual one (1)
time lump -sum longevity pay beginning in their tenth (10th) year of
employment and commencing annually thereafter according to the
following schedule:
Years 10 —14: $400.00
Years 15 — 19: $500.00
Years 20 and on: $600.00
Motion by Trustee Caleel, seconded by Trustee Korin, for passage of
Ordinance 2004 - SAP -EXI -S -1061, "An Ordinance Approving the 2004
Salary Plan and an Amendment to the Salary Administration Policy for
Non - Represented Employees of the Village of Oak Brook, Illinois."
ROLL CALL VOTE:
Ayes: 5 - Trustees Aktipis, Caleel, Korin, Miologos and Yusu£
Nays: 0 - None.
Absent: 1 - Trustee Craig. Motion carried.
4) RESOLUTION 2004 - FLSA -R -875, "A RESOLUTION AMENDING RES 04- FLSA- R -875-
FAIR LABOR SIDS.
THE FAIR LABOR STANDARDS ACT POLICIES FOR THE POLICIES
VILLAGE OF OAK BROOK"
The Resolution amends the Village of Oak Brook Fair Labor Standards
so that they conform to current law and alters certain titles of positions
as they are defined in the Personnel Manual.
VILLAGE OF OAK BROOK Minutes Page 10 of 15 February 10, 2004
'NO
9. B. 4)
Motion by Trustee Korin, seconded by Trustee Aktipis, for passage of
Resolution 2004 - FLSA -R -875, "A Resolution Amending the Fair Labor
Standards Act Policies for the Village of Oak Brook," conforming to
current law and altering certain titles of positions. ROLL CALL VOTE:
Ayes: 5 - Trustees Aktipis, Caleel, Korin, Miologos and Yusuf.
Nays: 0 - None.
Absent: 1 - Trustee Craig. Motion carried.
5) ORDINANCE 2004- PL -RR -S -1062, "AN ORDINANCE AMENDING ORD 04- PL -RR -S-
062 - AMENDS
ARTICLE V OF THE PERSONNEL MANUAL OF THE VILLAGE ART.V- PERSONEL
OF OAK BROOK, ILLINOIS" MANUAL.
The ordinance amends the Village of Oak Brook Personnel Manual
raising the employee contribution to health and dental insurance,
replacing the words "fire captains" with "battalion chief', and raising
the amount of accrued sick leave that can be paid upon separation
following ten (10) years of continuous full -time service.
Motion by Trustee Korin, seconded by Trustee Caleel, for passage of
Ordinance 2004- PL -RR -S -1062, "An Ordinance Amending Article V of
the Personnel Manual of the Village of Oak Brook, Illinois," raising the
employee contribution to health and dental insurance, replacing "fire
captains" with "battalion chief' and raising the amount of accrued sick
leave allowed. ROLL CALL VOTE:
Ayes: 5 - Trustees Aktipis, Caleel, Korin, Miologos and Yusuf.
Nays: 0 - None.
Absent: 1 - Trustee Craig. Motion carried.
C. AWARD OF CONTRACTS:
AWARD CC
1) THIRD PARTY ADMINISTRATION SERVICES FOR EMPLOYEE THIRD PARTY
ADM IN. SERV-
HEALTH AND DENTAL INSURANCE HEALTH & DENTAL
The Village of Oak Brook is self - insured for most employee benefit
programs. The Village utilizes the services of Mack & Parker, Inc. (on a
monthly retainer basis) for plan administration and benefit consulting
services. Incentus Benefits is the current third party administrator for
claims processing. The plan renewal normally takes place on July 1
each year with both Mack & Parker and the third party administrator
assisting the Village in obtaining quotes for the various stop -loss
insurance coverage, PPO access charges, etc.
VILLAGE OF OAK BROOK Minutes Page 11 of 15 February 10, 2004
N
9. C. 1)
When the Village began the self - insurance program in 1993, Health Plan
Management was selected as the third party administrator and over the
years the Village was satisfied with the level of service received. In
2002, Health Plan Management was purchased by Cemara, and later that
year Cemara was purchased by Incentus. During the renewal last year
STAFF had concerns about these changes. Incentus paid for a Mack &
Parker representative to fly to Texas to assess their claims operations
and STAFF WS INFORMED that account administration would stay in
Illinois. Based on a satisfactory site visit and due to concerns about the
disruption a change in administrators would have on Village employees,
staff recommended renewing with Incentus through June 30, 2004.
Soon after completing the renewal STAFF began to see very poor
claims paying.
It is staff's recommendation that the Village finds their own new claims
administrator and move claims paying as soon as possible. Although in
the past the Village has issued a formal RFP for this process, the RFP
was directed more towards consideration of alternative plan
arrangements (fully insured, HMO's etc.). Since the Village has stop -
loss contracts in place through June 30, 2004 and only have a third party
administrator problem (not a plan problem), it is staff's opinion that it
would not be worth the cost of having Mack & Parker prepare and
coordinate a formal RFP process (approximately $18,000). As the
Village's consultant, they are familiar with the marketplace as to which
firms are capable of satisfactory claims paying and are knowledgeable
about pricing to assure the Village is paying a competitive price. This
service would be performed by Mack &Parker under the Village's
normal retainer arrangement and thus the Village would avoid the cost
of an RFP. Mack & Parker prepared a spreadsheet comparing three
quotes from other third party administrators. Although priced lower
than the Village's current contract with Incentus, the proposal from
Midwest Benefits Administrators is not recommended since this
company is a small start-up firm of a former Health Plan Management
without a proven track record.
The second lowest proposal from Group Administrators is
recommended for the following reasons:
• From a size standpoint the company has the capability to handle
the Village's account. Group Administrators has over 100
employees, 28 full time claims examiners, and handles benefits
for over 55,000 employee lives. The company also would offer
internet access for claims information for both the Village and
individual employees (neither is offered at the present time).
VILLAGE OF OAK BROOK Minutes Page 12 of 15 February 10, 2004
E__
9. C. 1)
• While claims processing would increase 27.5% (an increase
would be expected in any transition since in prior RFPs Health
Plan Management's cost have been significantly lower than the
next quoted), the size of Group Administrators will enable the
Village to reduce its PPO access costs by 24 %. The overall
estimated cost would be only 3.2% higher than currently paid.
• The firm is local (claims would be handled in Schaumburg as
opposed to Texas) and has experience working with local
governments and school districts. Staff was impressed with a site
visit to their facility and reference checking indicates that their
clients are satisfied with their work.
• Other than changing the third party administrator other
disruptions would be minimal. Our stop -loss insurance vendor
has consented to the change (which is required) and they have
worked extensively with both the Village's preferred provider
(PHCS) and the Village's prescription card vendor.
Motion by Trustee Korin, seconded by Trustee Yusuf, that the Board of
Trustees waive the formal request for proposal process and authorize the
Village Manager to enter into a contract with Group Administration,
Ltd., Schaumburg, Illinois for third party claims administration services
and Section 125 flexible spending account administration services.
Manager Boehm requested that the motion be amended to include
"following Village Attorney review ".
Motion by Trustee Yusuf, seconded.by Trustee Korin, that the motion
be amended to include following Village Attorney review, the Board of
Trustees waive the formal request for proposal process and authorize the
Village Manager to enter into a contract with Group Administration,
Ltd., Schaumburg, Illinois for third party claims administration services
and Section 125 flexible spending account administration services.
ROLL CALL VOTE:
Ayes: 5 - Trustees Aktipis, Caleel, Korin, Miologos and Yusuf
Nays: 0 - None.
Absent: 1 - Trustee Craig. Motion carried.
10. INFORMATION & UPDATES INFO & UPDATES
A. VILLAGE PRESIDENT: VLLG PRES
President Quinlan noted that the current Agenda lists adjournment to a close
meeting. He indicated that a closed meeting is not necessary at this time.
VILLAGE OF OAK BROOK Minutes Page 13 of 15 February 10, 2004
NO
10. B. VILLAGE MANAGER:
Manager Boehm explained that staff is still completing the new design of our
Village website. The website www.oak - brook.org should be launched shortly.
C. VILLAGE CLERK:
Clerk Gonnella announced that the last day for voter registration is February
17th and in person absentee voting will begin February 23rd in her office from
8:30 a.m. to 4:30 p.m. Monday through Friday and Saturday from 9:00 a.m. to
12:00 p.m.
Trustee Caleel asked Manager Boehm if any discussion have occurred with the
Hinsdale Sanitary District of their water charges for sprinkling and swimming
pool. Manager Boehm indicated that the Hinsdale Sanitary District considers
their adopted ordinance a year ago allowing for deduct meters to be placed was
adequate. The Village is still asking the District to reconsider this issue. At the
homeowner association presidents meeting that issue was discussed as they
were pleased with this ordinance as they had installed the unit. Trustee Caleel
noted the expensive installation as it requires plumbing. Trustee Caleel asked
that the Village discuss this further as the Village provides them the meter
reading.
Trustee Yusuf congratulated our Police Department in Sgt. Cates FIAT
commander position as it speaks well of the professionalism of the department
from its leadership through its ranks. It is a source of pride for the Village and
enhance our reputation in the surrounding communities. Police Chief Pisarek,
under his leadership, has done an excellent job, with his guidance, planning and
administration the department was able to place Sgt. Cates in this position. It
speaks well to the professionalism of our Police Department.
VLLG MGR
VLLG CLK
11. ADJOURN TO CLOSED SESSION ADJRN TO CLSD
M TG
President Quinlan stated earlier in the agenda that the Board would not be
adjourning to a closed meeting.
A. To consider the appointment, employment, compensation, discipline,
performance, or dismissal of specific employees of the public body or legal
counsel for the public body, including hearing testimony on a complaint
lodged against an employee of the public body or against legal counsel for
the public body to determine its validity.
B. To discuss minutes of meetings lawfully closed under the Open Meetings
Act, whether for the purpose of approval by the body of the minutes, or for
semi - annual review of the minutes as required by the Open Meetings Act.
VILLAGE OF OAK BROOK Minutes Page 14 of 15 February 10, 2004
12. ADJOURNMENT:
Motion by Trustee Caleel, seconded by Trustee Yusuf, to adjourn the meeting
at 8:05 p.m. VOICE VOTE: Motion carried.
ATTEST:
Linda K. Gonnella, CMC
Village Clerk
VILLAGE OF OAK BROOK Minutes Page 15 of 15 February 10, 2004
IN
ADJ RN