Minutes - 03/10/2009 - Board of Trustees2y
L
MINUTES OF THE MARCH 10, 2009 REGULAR MEETING OF
THE PRESIDENT AND BOARD OF TRUSTEES OF THE
VILLAGE OF OAK BROOK APPROVED AS WRITTEN OR AS
AMENDED ON APRIL 28, 2009.
1. CALL TO ORDER
The Regular Meeting of the Village Board of Trustees was called to order by President
Craig in the Samuel E. Dean Board Room of the Butler Government Center at 7:33 p.m.
The Pledge of Allegiance was given.
2. ROLL CALL
Village Clerk Charlotte Pruss called the roll with the following persons
PRESENT: President John W. Craig, Trustees Jeffrey J. Kennedy, Robert G. Sanford
and Gerald Wolin.
ABSENT: Trustees James Carson, Kathryn F. Manofsky and Moin Saiyed.
IN ATTENDANCE: David Niemeyer, Village Manager; Blaine Wing, Assistant Village
Manager; Mark Sterk, Village Attorney; Robert L. Kallien, Jr., Director of
Community Development; Darrell J. Langlois, Finance Director; James
Bodony, Fire Chief, Bruce F. Kapff, Director of Information Services &
Purchasing; Margaret Klinkow Hartmann, Library Director; Michael
Hullihan, Public Works Director; Thomas Sheahan, Chief of Police and
Trey VanDyke, Sports Core Director.
3. PRESIDENT'S OPENING COMMENTS
President Craig recognized Mr. Steven Young and Mr. Wayne Ziemer, members of the
Zoning Board of Appeals, who came to the aid of a resident in the audience who was
apparently having a heart attack. Their quick action and knowledge of CPR saved the
residents life. Fire Chief Bodony presented Certificates of Appreciation of Recognition.
The resident, Mr. William Lindeman thanked Mr. Young and Mr. Ziemer.
A. CERTIFICATE OF RECOGNITION — STEVEN YOUNG
B. CERTIFICATE OF RECOGNITION — WAYNE ZIEMER
C. RESOLUTION OF APPRECIATION — DARRELL LANGLOIS
Clerk Pruss read the Resolution of Appreciation for Darrell Langlois.
Motion by Trustee Kennedy, seconded by Trustee Wolin, for passage of Resolution R-
1034, a Resolution of Appreciation. VOICE VOTE: Motion carried.
VILLAGE OF OAK BROOK Minutes Page 1 of 23 REGULAR MEETING OF
March 10, 2009
3. D. RESOLUTION OF APPRECIATION — JAMES BODONY
Clerk Pruss read the Resolution of Appreciation for James Bodony.
Motion by Trustee Kennedy, seconded by Trustee Sanford, for passage of Resolution
R -1035, a Resolution of Appreciation. VOICE VOTE: Motion carried.
President Craig thanked them for their service to the Village.
4. RESIDENTNISITOR COMMENT
A. HISTORICAL SOCIETY PRESENTATION
Ms. Cathy Maher, President of the Oak Brook Historical Society and Krissy Howarth
provided a final report from the 50th Anniversary Committee.
B. Resident Al Knuth addressed the Board regarding meeting procedures and the public
comment section. He suggested that residents should be offered one opportunity to
ask for clarification after their presentation when someone on the dais has responded
to their comments. He commented on budget issues concerning salary increases and
the difference in surveys taken.
5. APPROVAL OF MINUTES — None presented.
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 6, 2009 - $322,455.02.
SIGNIFICANT ITEMS INCLUDED IN ABOVE:
1) Legal Bills
a) Odelson & Sterk, Ltd. — Legal Services — January 2009 - $25,120.26
2) Tran Systems Corporation — Payout #3 — 22nd St. Water Main Design -
$13,122.45
3) Hitchcock Design Services — 22nd Street Improvement Spring Road To Salt Creek
- $2,466.50
B. APPROVAL OF PAYROLL FOR PAY PERIOD ENDING FEBRUARY 21, 2009 -
$709,719.88
VILLAGE OF OAK BROOK Minutes Page 2 of 23 REGULAR MEETING OF
March 10, 2009
6. C. COMMUNITY DEVELOPMENT REFERRALS — None presented.
D. AUTHORIZATION TO SEEK BIDS OR PROPOSALS OR NEGOTIATE
CONTRACTS:
1) CROYDON LANE STORMSEWER EXTENSION
In mid 2008, the Village received a $30,000 grant from the Department of
Commerce and Economic Opportunity for drainage. It was determined that a
drainage concern on Croydon Lane would be the project area for this grant.
The Engineering Department is finishing plans for the Croydon Lane Storm
Sewer Extension Project and will be ready to proceed with bids. Due to the grant
involved, this will be bid separately from other forthcoming locations of the 2009
Drainage Project. Construction should take place in May.
This project installs approximately 300 feet of 6" storm sewer from the storm
system in front of 16 Croydon Lane to a problematic wet area along the curb and
gutter between 6 and 8 Croydon Lane.
The requested action was that the Village Board authorize staff to seek bids for
the Croydon Lane Storm Sewer Extension Project.
E. BUDGET ADJUSTMENTS — None presented
F. ORDINANCE S -1258, AN ORDINANCE AUTHORIZING THE SALE,
DONATION OR DISPOSAL OF CERTAIN ITEMS OF PERSONAL PROPERTY
OWNED BY THE VILLAGE OF OAK BROOK
This ordinance includes a Hasler- Neopost Postage Machine from the Administration
Department that has reached the end of its useful life and has been replaced with a
newer model.
The postage machine will be disposed of by first advertising for bids. If no bids are
received, it will be offered to local schools, churches and not - for - profit agencies. If
no one is interested, it will be disposed of.
The requested action was for passage of Ordinance 1258, An Ordinance Authorizing
the Sale, Donation or Disposal of Certain Items of Personal Property Owned by the
Village of Oak Brook.
VILLAGE OF OAK BROOK Minutes Page 3 of 23 REGULAR MEETING OF
March 10, 2009
6. G. I -88 WIDENING (YORK RD — RT 83) - I -88 /TUSCAN WOODS NOISE WALL —
YORKSHIRE WOODS LAND TRADE
At the Village Board meeting of September 9, 2008, the Board approved an
Intergovernmental Agreement with the Tollway concerning the Tollway giving 3
parcels to the Village and the Village giving 1 parcel to the Tollway (this was
previously discussed with the Board as area needed by the Tollway to build their
retaining wall and as area needed for a noise wall).
Since then, staff has been working with the Tollway to generate the required
documents which include:
1. Quitclaim Deed for Parcel T -6A -06 -011
This deed transfers a thin portion of Yorkshire Woods (said portion being Old Harger
Road) right -of -way to the Tollway and needs to be approved by the Village.
2. Quitclaim Deed for Parcels T- 6A- 1292EX, T- 6A- 1292.1 EX, and T -6A -13 6.4EX
This deed transfers 3 thin portions of Tollway land to the Village and will be
approved by the Tollway.
The requested action was to approve the Quitclaim Deed for Parcel T -6A -06 -011
transferring a thin portion of Yorkshire Woods (said portion being Old Harger Road)
right -of -way to the Tollway.
H. APPROVAL OF HIRING OF PART TIME TELECOMMUNICATION
OPERATORS
The Oak Brook Police Department is requesting to fill two open part time
Telecommunication Operators positions. Additionally, the department is
recommending changing one full time Telecommunication Operator position
vacancy to two part time Telecommunication Operator positions and filling one of
these part time positions for a total request of three part time positions.
Operational Overview of the Communications Center
• The center is staffed 24 hours per day, 7 days per week, 52 weeks per year
weekend and holidays included.
• Receives telephone inquiries and requests for police, fire and EMS protection
services; dispatches persons and equipment to scenes of fires, police incidents,
accidents and other emergencies through the use of radio, telephone, fire alarm
and other methods.
VILLAGE OF OAK BROOK Minutes Page 4 of 23 REGULAR MEETING OF
March 10, 2009
6.H. •
Broadcasts all police, fire and EMS communications; relays information to state
and other police agencies. Operators must remain familiar with patrol zones, fire,
EMS, districts and geographical locations.
•
Dispatch Public works during periods of severe weather or water related
problems.
•
Dispatch police units in response to non - emergency complaints and calls for
service. Assist in answering all non emergency telephone lines.
•
Monitor all radio frequencies including; Police, Fire, Point to Point, Public
Works, IFREN, ISPERN and DECERN.
•
Monitor and maintain all records of police and fire equipment.
•
Operates and makes necessary entries into the department's Computer Aided
Dispatch system.
•
Operates the Law Enforcement Agency Data System under the requisite
certification.
•
Maintains a log of all shift and teletype communications occurring on an
assigned shift in accordance with regulations and rules of the village.
•
Makes written entries into various logs.
•
Processes requests for information from field units.
•
Female operators perform matron duties when needed.
•
Maintains petty cash fund 24 hours per day.
The Communications Center for the Oak Brook Police Department is currently
staffed with 9 full time operators although they are authorized to be staffed with 10
full time operators and two part time operators.
Due to a recent vacancy of one of the authorized full time positions and the two
approved part time positions not being filled, the center will be experiencing a
staffing shortage during the prime time months, June, July and August, when
operators will be taking vacation time. Only being staffed with 9 full time operators
leaves the Communications Supervisor little time to work on administrative duties
and must perform line functions to cover the shifts. Also, many operators will be
taking approved time off during this period. Working with mandatory staffing levels
and approved time off will create a staffing shortage that ultimately will require
overtime to fill mandatory staffing levels.
The department proposes to fill the vacant full time position immediately with two
part time operators and hire a third part time operator once the first iwo part time
operators become trained and can count towards operational manpower. The third
part time operator, currently there are two part time positions vacant, can then be
hired, trained and count towards operational manpower by the prime time months of
November and December.
VILLAGE OF OAK BROOK Minutes Page 5 of 23 REGULAR MEETING OF
March 10, 2009
6. H. Using the two part time operators to replace one full time operator saves the Village
money in salary and benefits and gains more hours of coverage, 64 hours as
compared to 40 hours. This solution will also create a full time option in the future if
the Village decides to promote an operator to full time instead of filling the
remaining part time position. Additionally, recommending these part time positions
will provide the village flexibility if and when the village decided to pursue a
consolidated dispatch center. Finally, the part time operators also provide scheduling
flexibility with additional coverage during the busiest hours. Once the third part time
operator is hired and trained, the center adds an additional 32 hours of coverage and
again increases the flexibility•of scheduling during the busiest hours and the busiest
time of the year, November and December.
To date, the department has only used $ 2,856 out of a budgeted amount of $57,655,
or 4.95 %, for part time positions within the Communications Center.
The requested action was that the Board approve the proposal of hiring three (3) part
time Telecommuncation Operators for the Police Department.
I. RESOLUTION R -1036, A RESOLUTION OF LODGE, ASSOCIATION OR
OTHER SIMILAR ORGANIZATION — CHANGING BANK SIGNATORIES
Due to the resignation of Darrell Langlois as Finance DirectorNillage Treasurer, it is
necessary to update the banking resolution with MB Financial Bank. The primary
purpose of this document is to name the persons authorized to transact Village
banking business, which primarily consists of check signing and wire transfers.
It is recommended that Assistant Finance Director Sharon Dangles (who is
recommended to be named Acting Village Treasurer) be substituted wherever Darrell
Langlois formerly appeared. All of the existing controls remain in place, only that
Darrell Langlois has been replaced by Sharon Dangles in these documents.
The requested action was for passage of Resolution R -1036 regarding authorized
bank signatory
J. ORDINANCE S -1259, AN ORDINANCE AUTHORIZING TRANSFERS
AMONG BUDGET LINE ITEMS FOR THE YEAR ENDED DECEMBER 31, 2008
During the course of a year, there are numerous situations that may arise that cause
an account, program, or even a fund to exceed its budget. When this occurs, State
statutes provide that the corporate authorities may make transfers from "one
corporate object or purpose to another corporate object or purpose ". Additionally,
statutes provide that the corporate authorities may delegate authority to heads of
municipal departments to "delete, add to, change, or create sub - classes within object
VILLAGE OF OAK BROOK Minutes Page 6 of 23 REGULAR MEETING OF
March 10, 2009
6. J. classes budgeted previously to the department with the approval of the budget officer
or executive officer of the municipality ". The Village has defined a corporate object
or purpose to be an individual program or fund. Sub - classes within object classes
have been defined as accounts and categories within a budget program.
Now that all of the year -end accounting adjustments have been made, several budget
accounts, categories, and programs have been determined to have ended 2008 over
budget. The Village Board's policy on Finance, Taxation, and Budget, prepared
based on the previously mentioned statutes, outlines the following procedures for
budget administration and how these variances are to be addressed:
1. That the Budget Officer, with the approval of the Village Manager, may authorize
transfers of budgeted funds between accounts or between account categories within a
single budget program.
2. That any transfer of budgeted funds from one budget program to another shall be
subject to approval by the Board of Trustees upon the recommendation of the Village
Manager.
3. That any transfer from contingency shall be subject to approval by the Board of
Trustees upon the recommendation of the Village Manager.
4. That any increase in the total appropriation within any fund shall be subject to
approval by the Board of Trustees upon the recommendation of the Village Manager.
In order to make as few changes to the originally adopted budget as possible, formal
budgetary control has been established at the category level, i.e. personnel, materials
and supplies, operation and contractual, and capital. For example, if staff turnover
created a need for overtime, this may lead to the overtime account going over budget.
However, this would likely be offset by an underbudget salary account. By not doing
budget transfers for these types of situations we preserve the original budget as the
basis for evaluating our actual performance versus expected performance.
Through Budget Year 2002, staff approved an extensive listing of budget transfers
administratively due to budget variances in account categories within a single budget
program as provided for under Procedure #1. In practice, these transfers were only
reflected in the Village's audit report-our accounting records were never adjusted for
any budget transfers in order to maintain proper original budget/actual comparison
data. With the new reporting requirements associated with GASB Statement #34, the
Village is now required to publish original budget amounts in addition to revised
budget amounts in its audit report. This new requirement reduces the value of these
administrative transfers required under option #1. After consultation with the
VILLAGE OF OAK BROOK Minutes Page 7 of 23 REGULAR MEETING OF
March 10, 2009
6. J. Village's auditors, in Budget Year 2003 and thereafter only program -to- program
transfers and additional fund appropriations are recorded. These transfers are
required since this is the level of legal control where budget compliance is measured.
In addition to the budget transfers required under the Village's Financial Policy
ordinance, during 2004 the Village Board began requiring budget transfers during the
year when an individual line item account exceeded budget by more than 10 %. This
policy was revised in October, 2006 by eliminating the 10% threshold and instead
requiring line item transfers when an account exceeds its budget by $2,500 in a
material and supply, operation and contractual or capital account (6000 to 9000
account series) or $10,000 in a personnel series account (5000 account series). Many
of these transfers have already been approved by the Village Board and have been
posted to the accounting system; thus, these transfers are not reflected here.
Please note that all transfers are only for the amounts necessary to offset the
individual program budget variances, and in most cases the transfer is done only to
the individual line item that has the largest variance. In most cases it is several
accounts that would cause a program to exceed its budget. Also, in some cases the
variance in a particular line item may be greater than the amount of the transfer, with
offsets found in other line items within the budget program. After these transfers are
made, numerous line -items and categories will remain over budget; however, each
program in total will be within budget.
The following is a brief explanation of the causes of program transfers that exceed
$10,000:
Program 131 - General Management: Expenditures for line item account 131 -76950
Consulting Services is over budget due to the unbudgeted cost of the Public Works
Director search performed by the PAR Group.
Program 132 -Human Resources: Account 132 -50450 Early Retirement is over
budget by $83,185 since this was a mid -year program not originally budgeted for.
Account 132 -76300 Legal Services is over budget by $92,025 due to ongoing
personnel litigation, primarily related to PSEBA. The amount budgeted in account
132 -76600 Police and Fire Testing was over budget by $21,205 due primarily to costs
associated with the Police Sergeants and Fire Battalion Chief testing.
Program 181- Community Events: For budget purposes $30,000 was budgeted as a
"net" amount after donations and food vendor payments for the General Fund
contribution for Independence Day. On an accounting basis, we are required to
record the revenues and expenses separately. Thus, the expenditure variance of
$83,050 is significantly offset by donation and fee revenue of $73,248 in the General
Fund.
VILLAGE OF OAK BROOK Minutes Page 8 of 23 REGULAR MEETING OF
March 10, 2009
6. J. Program 321- Buildings & Grounds: The cost of electricity for General Fund
buildings, predominately Butler Government Center, was over budget by $22,655.
Program 341 - Garage Operations: Account 341 -71600 Maintenance of Vehicles is
over budget by $30,840 due to the cost of vehicle repairs exceeding budget.
Program 351 -Water Operations: Account 351 -71700 Maintenance of Distribution
System is over budget due to a large water main break at 14 Tower Road that
required hiring an outside contractor costing in excess of $37,000.
Program 360- Public Works Management: Full -time salaries are over budget due
primarily to separation payments (accrued vacation, partial sick leave, etc) made to
the former Public Works Director.
Program 363 - 50300: Salaries Overtime is over budget due to the number of snow
events well exceeding budget and Chemicals is significantly over budget due to the
number of snow events and the large price increase in the cost of de -icer salt.
Program 621 - Police Field Services: Full -time salaries are over budget due a
manpower allocation decision for part of the year which resulted in the number of full
time employees exceeding the budgeted number in this program (this is more than
offset by a reduction in salaries in Program 632 - Police Investigations). Police
Pension contributions are over budget due to the full -time salary variance and the
actual contribution rate of 18.60% being slightly over the rate of 18.50% assumed in
the budget.
Program 700 -Fire & Rescue General Salaries: Firefighters' Pension Fund
contributions are over budget due the actual contribution rate of 25.10% being above
of the rate of 22.80% assumed in the budget.
Program 711 -Fire Service Management: Account 711 -50000 Salaries Full Time is
over budget due primarily to the accounting requirement that the Village accrue the
sick leave portion of the separation payment expected to be made to an employee
who will take ERI in early 2009.
Program 731- Emergecy Medical Services: Account 731 -76700 for Contract
Paramedics is over budget by $11,490 due to the actual cost of contract paramedic
being slightly above what was assumed in the budget.
At the time the 2009 budget was prepared the Notes related to the Promenade TIF
Fund had not been issued and there were a number of questions regarding when we
would begin to receive the real estate tax increment. Due to these uncertainties the
VILLAGE OF OAK BROOK Minutes Page 9 of 23 REGULAR MEETING OF
March 10, 2009
6. J. Village did not budget to make an interest payment in 2009. The actual Note was
issued in early 2009, and on the scheduled payment date of August 1, 2009 there was
sufficient cash on hand to make a $150,000 interest payment. As there is only one
budget program in Fund 42- Promenade Special Tax Allocation Fund, no other
program is available to transfer funds from in order to address this budget variance.
Thus, in lieu of a budget transfer, a fund appropriation amendment is required.
The requested action was for passage of Ordinance S -1259, An Ordinance
Authorizing Transfers Among Budget Line Items for the year ended December 31,
2008.
K. REQUEST WAIVER OF FEES — OAK BROOK PARK DISTRICT — 1450 FOREST
GATE ROAD
The Village has received a request from Mr. Stan Motley, Executive Director of the
Oak Brook Park District to consider waiver of fees associated with a building permit
application to install a gazebo at the Dean Nature Sanctuary as part of the approved
special use.
In the past, the Village has received and approved requests for waiver of fees from
such entities. Section 1 -14 -2 of the Village Code permits waiver of such fees for
other governmental entities.
The requested action was to approve waiver of permit fees for a permit to construct a
gazebo at the Dean Nature Sanctuary as part of the approved special use.
Motion by Trustee Wolin, seconded by Trustee Sanford, to approve the Consent Agenda
and authorize expenditures as amended. ROLL CALL VOTE:
Ayes: 4 - Trustees Kennedy, Sanford, Wolin and President Craig
Nays: 0 - None.
Absent: 3 — Trustees Carson, Manofsky and Saiyed. Motion carried.
7. ITEMS REMOVED FROM CONSENT AGENDA — None presented.
8. BOARD & COMMISSION RECOMMENDATIONS
A. KINST SUBDIVISION — 37 & 38 YORKSHIRE WOODS — FINAL PLAT OF
SUBDIVISION INCLUDING VARIATIONS AND WAIVERS TO THE
SUBDIVISION REGULATIONS
At its meeting on February 16, 2009 the Plan Commission completed its review and
deliberations on an application from Thomas A. Kinst, as executor of the estate for
VILLAGE OF OAK BROOK Minutes Page 10 of 23 REGULAR MEETING OF
March 10, 2009
i
8. A. Arlene E. Kinst, the owner of lots 37 and 38 in the Yorkshire Woods Subdivision
who is seeking approval of a two -lot final plat of subdivision. The two existing lots
will be reconfigured from a north -south orientation to one that provides two lots with
an east -west orientation. As part of this request, the applicant is also seeking several
variations and waivers to the subdivision regulations to include:
1. Variation to Section 14 -6 -3B — to delay the extension and construction of water
service lines until time of building permit.
2. Variation to Section 14 -6 -3C — to delay the extension and construction of sanitary
service lines until time of building permit.
3. Waiver to Section 14 -6 -3E — paved sidewalks.
4. Waiver to Section 14 -6 -3F — street lights.
By a vote of 6 to 0, the Plan Commission recommended approval of the proposed
Kinst Subdivision including the requested variations and waivers to the Subdivision
Regulations
Motion by Trustee Wolin, seconded by Trustee Kennedy, to concur with the
recommendation from the Plan Commission and approve the requested Final Plat of
Subdivision including Variations and Waivers to the Subdivision Regulations for the
Kinst Subdivision located at 37 and 38 Yorkshire Woods and authorize the Village
Attorney to prepare the necessary resolution for final consideration at the March 24,
2009 Board of Trustees meeting. ROLL CALL VOTE:
Ayes: 4 - Trustees Kennedy, Sanford, Wolin and President Craig
Nays: 0 - None.
Absent: 3 — Trustees Carson, Manofsky and Saiyed. Motion carried.
9. UNFINISHED BUSINESS
A. CONFIRMATION OF APPOINTMENTS — None presented.
B. ORDINANCES & RESOLUTIONS
1) RESOLUTION 1033, A RESOLUTION, ADOPTING THE 2009
LEGISLATIVE POSITIONS OF THE DUPAGE MAYORS AND MANAGERS
CONFERENCE CONTINUED FROM FEBRUARY 24, 2009
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.
VILLAGE OF OAK BROOK Minutes Page 11 of 23 REGULAR MEETING OF
March 10, 2009
9. B. 1) 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 have knowledge as
to where Oak Brook stands on these matters.
Please note that on page 8 the Conference again supports the streamlined state
sales tax but only if it retains its current approach to sales tax allocation
(purchases are taxed at origin). With the addition the Village can support this
proposal. Also, the DMMC is proposing changes in the Public Safety Employee
Benefits Act as well as expansion of the use of sales and hotel taxes for non -home
rule towns.
In order to provide appropriate guidance to our Legislators and Village staff,
Manager Niemeyer encouraged the Board to adopt the legislative positions
expressed by the DuPage Mayors and Managers Conference in its 2009
Legislative Action Program (LAP) and during the session
Motion by Trustee Kennedy, seconded by Trustee Sanford, for passage of
Resolution 1033, A Resolution Adopting the 2009 Legislative Positions of the
DuPage Mayors and Managers Conference. ROLL CALL VOTE:
Ayes: 4 - Trustees Kennedy, Sanford, Wolin and President Craig
Nays: 0 - None.
Absent: 3 — Trustees Carson, Manofsky and Saiyed. Motion carried.
C. AWARD OF CONTRACTS
1) TREE MAINTENANCE SERVICES CONTINUED FROM FEBRUARY 24,
2009
Resident Ron Cullom addressed the Board regarding resident costs for Gypsy
Moth aerial spraying. He suggested some agreement that would allow residents
to tack onto the Village's spraying. Manager Niemeyer responded that staff was
working on that and Public Works Director Michael Hullihan added that a letter
was going to residents providing information. Trustee Sanford asked further
questions and Director Hullihan indicated that he would respond to them in his
information.
Five sealed bids were opened on Wednesday, January 28, 2009. The bid
submitted by Winkler's Tree & Landscaping was the lowest responsive and
VILLAGE OF OAK BROOK Minutes Page 12 of 23 REGULAR MEETING OF
March 10, 2009
9. C. 1) responsible. The bid they submitted was the lowest for labor rates and
equipment. The sample tree removal demonstrates what the cost would be to
remove a tree and it shows that Winkler's has the lowest total cost. Winkler's
Tree and Landscaping also has the lowest rate for Aerial Spraying for Gypsy
Moth control. This is a new service that will be included to this contract as well as
monitoring services for Gypsy Moth and Emerald Ash Borer. The other bids
submitted for this new service were either non- responsive or too high. Staff has
checked references for Winkler's Tree & Landscaping , Inc. and is satisfied.
The tree maintenance program was established in 1995 and has been undertaken
each year since inception. Tree pruning is scheduled for 2010, 2011 and 2012.
Major areas to be pruned over the course of the proposed contract include: Forest
Glen, Saddle Brook, York Woods, Trinity Lakes, Old Oak Brook, Robin Hood
Ranch, Ginger Creek, Brook Forest, and Woodside Estates.
The contract will be awarded for one year with three, one year options to renew
based on their unit prices in the tabulation for each future year. Their labor rates
increase 3.3% in 2010, 3.2% in 2011 and 4.7% in 2012. Renewal will be at the
Village's option.
Motion by Trustee Wolin, seconded by Trustee Sanford, that the Village Board
award a contract for tree maintenance services to the lowest responsive and
responsible bidder, Winkler's Tree & Landscaping, Inc., LaGrange Park, IL,
subject to staff review, based on the unit prices on the attached bid tabulation.
The total estimated cost for 2009 is $200,000. ROLL CALL VOTE:
Ayes: 4 - Trustees Kennedy, Sanford, Wolin and President Craig
Nays: 0 - None.
Absent: 3 — Trustees Carson, Manofsky and Saiyed. Motion carried.
2) 2009 CRACK SEAL PROJECT
Bids were opened for the 2009 Crack Seal Project on Monday, March 2nd. The
sole bid received from SKC Construction is higher than the engineer's estimate
by $8,204.77 (16 %). Only one other company (from Peoria) took a bid package.
This year's bid unit price of $1.59 per pound for rubberized asphalt sealant
(mostly routed first and applied along concrete gutter /shoulders and on larger
cracks) is 29% higher than the unit price of $1.23 per pound for the Village's
2007 Crack Seal Project (2008 did not have a project). This year's bid unit price
of $1.52 per pound for fiber - asphalt sealant (on smaller cracks which are not
routed first) is 36% higher than the unit price of $1.12 per pound done in 2007.
VILLAGE OF OAK BROOK Minutes Page 13 of 23 REGULAR MEETING OF
March 10, 2009
9. C. 2) World oil prices jumped significantly from 2007 to 2008 and have since fallen
some. The attached IDOT sheet shows the monthly price indices since July 2006
for a ton of bituminous asphalt which is the basic material for crack sealing. Two
years ago, it was $315.00 per ton and today it is $468.33 per ton with a peak price
of $714.44 per ton occurring last September. Moreover, per our calls to two
suppliers, the cost of supplying to contractors 30 -pound blocks of rubberized
sealant is 150% to 200% the cost from two years ago.
SKC has more -or -less become the only Chicagoland contractor doing fiber -
asphalt. A recent, very large project in Naperville with 306,000 pounds of fiber -
asphalt had only three bidders. The lowest bidder was SKC followed by
Scodeller Construction from Wixom, Michigan and Fahrner Asphalt Sealers from
Plover, Wisconsin. SKC has indicated that the major factor for this is due to the
required equipment for fiber- asphalt including the loss of a major manufacturer.
The attached bids for Naperville's project show that SKC bid $1.29 per pound for
fiber - asphalt and $1.42 per pound for rubberized asphalt. However, Naperville's
project required more than twenty times the amount of fiber - asphalt and twice the
amount of rubberized sealant than that of the Village's project. Naperville's
second lowest bidder had $1.62 per pound for fiber- asphalt and $1.56 per pound
for rubberized sealant, and its third lowest bidders had $1.71 per pound for both
fiber- asphalt and rubberized sealant.
Another factor causing increased prices is the increased availability of projects
this year for SKC. This is primarily due to the Northwest Municipal Conference
no longer seeking bids as one project for its municipal members. SKC has
indicated NWMC discontinued such because of too many problems with the
recent lowest bid contractors of which SKC was not one of them. This means
that possibly dozens of northern suburbs must individually seek their own bids
where as before they all had only one contractor. Thus, SKC seems not quite as
desperate to get the Village's crack sealing project this year.
In conclusion, SKC has very satisfactorily performed the last seven projects in
Oak Brook from 2001 to 2007. The use of both types of sealant, fiber - asphalt and
rubberized asphalt, based on the type of cracking, has worked very well for the
Village to maximize the amount of cracks sealed while minimizing the amount
plowed onto the parkway over winter due to under -body plows.
Included within the 2009 Budget is $52,000 for the 2009 Crack Seal Project.
Additionally, $8,000 of funds can be transferred from the budget I- 88/22nd Street
Bridge Improvement since only $1,600,000 has been recently estimated for such
versus the $2,200,000 budgeted this year.
VILLAGE OF OAK BROOK Minutes Page 14 of 23 REGULAR MEETING OF
March 10, 2009
X
10
C. 2) Motion by Trustee Wolin, seconded by Trustee Kennedy, that the Village Board
award a contract to the lowest responsive and responsible bidder, SKC
Construction, Inc., West Dundee, Illinois, subject to staff review, for the 2009
Crack Sealing Project based on the unit prices listed on the tabulation, for an
estimated total contract price of $60,000.22. ROLL CALL VOTE:
Ayes: 4 - Trustees Kennedy, Sanford, Wolin and President Craig
Nays: 0 - None.
Absent: 3 — Trustees Carson, Manofsky and Saiyed. Motion carried.
NEW BUSINESS
A. CONFIRMATION OF APPOINTMENTS
1) ACTING TREASURER
Due to the resignation of Village Treasurer and Finance Director, Darrell
Langlois, it is recommended that Sharon Dangles, Assistant Finance Director to
temporarily perform the responsibilities of Acting Village Treasurer and Acting
Finance Director. This appointment will remain in effect until such time as a
new Village Treasurer and Finance Director is selected and takes his/her post.
Motion by Trustee Kennedy, seconded by Trustee Sanford, to approve the
appointment of Assistant Finance Director, Sharon Dangles appointment as
Acting Village Treasurer and Acting Finance Director of the Village of Oak
Brook. ROLL CALL VOTE:
Ayes: 4 - Trustees Kennedy, Sanford, Wolin and President Craig
Nays: 0 - None.
Absent: 3 — Trustees Carson, Manofsky and Saiyed. Motion carried.
2) FIRE CHIEF ANNOUNCEMENT
Due to the retirement of Fire Chief Jim Bodony, President Craig will be asking
the Board to approve the appointment of Deputy Chief Tom McEllin to Fire
Chief. It is expected that the Board will support this appointment, but the formal
recommendation will be made at the March 24th meeting for approval of this
appointment when all of the trustees are present. In the interim, President Craig
appointed Deputy Chief McEllin Acting Chief from March 16th to March 24th
B. ORDINANCES & RESOLUTIONS — None presented.
VILLAGE OF OAK BROOK Minutes Page 15 of 23 REGULAR MEETING OF
March 10, 2009
10. C. AWARD OF CONTRACTS
1) AERIAL MAPPING SERVICES
The Village Board approved membership in the GIS Consortium at its meeting of
February 10, 2009. The Village's 2009 Budget for GIS includes a line item in the
amount of $52,733 for Mapping Services. The attached Agreement with Ayres
Associates includes pricing and terms negotiated by the GIS Consortium and
MGP (consultant and staffing source for Consortium members). Our mapping
costs are spread over 4 years, primarily for cash -flow purposes.
The mapping products that we receive for the years 2009 — 2012 are as follows:
2009
• Map (not a picture) of all ground features for the northern half of the Village,
including roads, bridges, buildings and rivers.
2010
• Map of ground features for the southern half of the Village.
• Orthophotography (color picture) for the entire Village — 3 in. resolution and
6 in. accuracy.
2011
• Topography for the northern half of the Village — 1 ft. contours, 6 in. vertical
accuracy, 1.6 ft. horizontal accuracy.
2012
• Topography for the southern half of the Village.
Costs for mapping services for years 2010 — 2012 have been estimated and are
contained in the Village's Five -Year Financial Plan for GIS.
The proposed Agreement has been reviewed by our Village Attorney and staff.
Motion by Trustee Sanford, seconded by Trustee Kennedy, that the Village Board
waive bidding, since the competitive selection process has already been
conducted by the GIS Consortium, and approve a Professional Services
Agreement for 2009 Aerial Mapping Services with Ayres Associates, Inc.,
Madison, Wisconsin, in the total amount of $52,733. ROLL CALL VOTE:
Ayes: 4 - Trustees Kennedy, Sanford, Wolin and President Craig
Nays: 0 - None.
Absent: 3 — Trustees Carson, Manofsky and Saiyed. Motion carried.
VILLAGE OF OAK BROOK Minutes Page 16 of 23 REGULAR MEETING OF
March 10, 2009
10. D. DISCUSSION OF FIRE/POLICE PENSION FUND ACTUARIAL STUDIES
Finance Director Darrell Langlois presented information regarding pension funds.
He reported that Oak Brook Employees are covered by one of three pension funds:
• The Police Pension Fund covers all sworn Police personnel -41 active members
and 33 beneficiaries. v
• The Firefighters' Pension Fund covers all sworn Firefighters -34 active members
and 33 beneficiaries.
• IMRF covers all other employees regularly scheduled to work over at least 1,000
hours per year.
He went on to describe the makeup of the Police and Firefighters' Pension Funds
indicating that:
• Each fund is governed by 5 member board -2 active members, 1 beneficiary, 2
Village President appointments.
• Both funds have written investment policies, employ professional investment
managers, and the resident members all have significant investment experience.
• Benefits are controlled by State Statutes and current benefit levels are protected by
the Illinois Constitution.
• Employees earn pension benefits at the rate of 2.5% per year of their final salary
up to a maximum of 75% and car retire as early as age 50.
• The rate of employee contributions fixed and is set by law - currently 9.91% for
Police and 9.455% for Firefighters.
• The Village is required to finance the remainder of the program and ultimately
bears the risk of investment returns, disability pensions, and changes in life
expectancy.
• Changes in benefits levels enacted by the State over the last 10 years has had an
impact on the Village's contribution levels and funded percentages as most of the
cost has been borne by the Village.
Director Langlois explained the finance of the Police and Fire Pension Funds. In most
municipalities pensions are funded by a separate tax levy with an unlimited tax rate,
but total tax levy still subject to the tax cap. This has resulted in pensions consuming
a much greater portion of most taxing districts property tax levy. For 2010 this will
create a huge problem with the tax cap set to increase by only 0.1 %. In Oak Brook
contributions are funded by the General Corporate Fund based on a percentage of
payroll, similar to how social security is funded. As Oak Brook has actually
experienced declines in revenue, funding of pensions is a major problem.
By law, on an annual basis the Police and Firefighters' Pension Funds are required to
request a certain contribution from the Village. The requested contribution should be
VILLAGE OF OAK BROOK Minutes Page 17 of 23 REGULAR MEETING OF
March 10, 2009
10. D. based on the "normal cost" (the actuarial cost of benefits to be earned in a given year)
as well as an amount sufficient to amortize the "unfunded liability" to 2033. The
Village actually determines the pension contribution. The Village contribution must
be based on an actuarial study -can not arbitrarily set a specific dollar amount. The
Village has final say as to the assumptions used in the actuarial study, which can
dramatically impact the amount of the required contribution.
He also explained the actuarial process in Oak Brook. The Village has the option to
use actuarial calculations provided by the Pension Division of the Department of
Professional Regulation (using very old state -wide assumptions) or to retain its own
private actuary. Since the early 1990's the Village has used a private actuary. For
over 10 years the Village and both pension funds have used Timothy Sharpe to
perform the actuarial study. The cost of the study is shared 50 -50 between the
Village and the two pension funds.
He described recent investment returns:
• Dow Jones
-33.8%
• S &P 500
-37.0%
•NASDQ
-40.5%
• Wilshire 5000
-37.2%
• MSCI EAFE
-43.4%
• ML Treasury Master
12.78%
• ML 90 Day T -Bill
2.06%
• Lehman 1 -3% Government
5.18%
• Oak Brook Police Pension
-10.91%
• Oak Brook Fire Pension
- 12.74%
• IMRF
- 24.80 %,
and the impact of those negative investment returns. Both the Police and Firefighters
Pension Fund's use a 7.50% investment return assumption for the actuarial study.
For the Police Pension Fund, with beginning assets of $27.8 million, the fund was
expected to earn $2.1 million but instead declined by $2.8 million. This a negative
variance of $4.9 million. For the Firefighters' Pension Fund, with beginning assets of
$22.5 million, the fund was expected to earn $1.7 million but instead declined by
$2.8 million. This a negative variance of $4.5 million. The major reason why the
Firefighters' Pension Fund had an investment return below that of the Police Pension
Fund is due to that Board having its investment allocation in equity investments
closer to the statutory maximum of 45 %.
He added that there have been concerns regarding actuarial assumptions in that over
the last several years both pension fund Boards have expressed concern about some
of the assumptions used in the actuarial study. For the Police Pension Fund, their
VILLAGE OF OAK BROOK Minutes Page 18 of 23 REGULAR MEETING OF
March 10, 2009
10. D. biggest concern has been that the investment return assumption (7.50 %) is too high.
For the Firefighters' Pension Fund, their biggest concern has been the mortality table
used in the calculations of the liabilities (a 1984 table has always been used and more
recent tables are available).
In preparation for this year's actuarial study, last April the Firefighters' Pension Fund
Board hired an independent actuarial firm (Goldstein & Associates) to review the
assumptions used in the actuarial study. The review indicated that based on the
Funds investment allocation and the limitations mandated by state law, a more
reasonable long -term investment return would be 6.55 %. The fund's investment
manager has indicated that although 7.5% is possible, a rate of 7% is probably more
realistic. The review indicated that based on data from the State regarding Police and
Firefighters, changing the 1984 mortality table to newer table (a 1990 or 1994 were
considered) at some time would be appropriate. The report also recommended
increasing the disability pension rate assumption due to the Fund's high disability
rate (would impact Fire only).
The actuarial assumption study recommended that the assumption changes be
prioritized as follows:
1) Lowering the investment return assumption.
2) Changing the mortality table for active pension fund members.
3) Changing the mortality table for all other pension fund members.
4) Changing the disability pension rates.
Both the Police Pension Fund and Firefighters' Pension Fund have requested
lowering the investment return assumption from 7.5% to 7.0 %. In order to partially
offset the cost of this change, both Boards also recommend lowering the long -term
salary increase assumption by 0.50% in recognition of the impact this economy will
have on salary increases for a number of years. The other actuarial changes will wait
until the investment markets stabilize as it would be cost prohibitive to make further
changes at this time.
Director Langlois indicated reasons for lowering the investment return assumption.
The long term actual performance of a model portfolio with 55% fixed income assets
and 45% equity assets is closer to 7 %. The ten year investment return of both funds
is well below 7.5 %. The current low interest rate environment will put a "drag" on
the fixed income investment returns when/if the equity markets improve. If and
when interest rates rise this will have a negative effect on the fund's fixed income
investments. Terrible equity investment returns for the first two months of the year.
In summary he indicated that leaving all actuarial assumptions unchanged will result
in total contributions for both the Police and Firefighters' Pension Fund of
$1,743,000, which is a $182,000 over the 2009 budget amount and $517,000 over the
VILLAGE OF OAK BROOK Minutes Page 19 of 23 REGULAR MEETING OF
March 10, 2009
10. D. 2008 budget amount. Lowering the interest rate and salary increase assumption by
0.50% will result in a combined contribution of $1,990,000, which is $429,000 over
the 2009 budget amount and $764,000 over the 2008 budget amount. Direction is
needed whether to concur with the Pension Board recommendations to lower the
interest rate and salary increase assumption by 0.50 %, to leave the assumptions
unchanged, or to consider other changes in the actuarial study.
Director Langlois added the issues regarding the IMRF. IMRF covers approximately
115 active employees, an annual payroll of approximately $7,000,000, and a number
of former employees no longer working for the Village. IMRF acts as an agent for
the Village -the Village has its own separately calculated liabilities based on IMRF
assumptions, and the Village has a roportionate share of IMRF Assets. The IMRF
contribution rate for 2009 is 10.27 %. The target investment allocation for IMRF is
30% in fixed income investment and 70% in equity and alternative investments.
IMRF investments declined by 24.8% or $6.1 billion in 2008.
For a number of years IMRF has used a "smoothing" technique whereby investment
gains and losses are averaged in over 5 years. Although on a market value basis the
overall IMRF funded percentage would decline from 100% to 69.7 %, on an actuarial
bases the overall funded percentage would decline only to 80.2 %. The remaining
investment losses would be phased in over the next four years. Following current
actuarial practices, the overall IMRF contributions would increase from 9.27% to
16.63% for 2010 (the 2009 rate is already set), which is a 79% increase. Will cause
obvious rate shock and is a major challenge for those employers subject to the tax cap
with only a 0.1 increase.
The smoothing technique IMRF employs to value assets requires that the actual
market value of assets be within 15% of actuarial value -this "corridor" has been
widened to 20 %, which in effect increases the actuarial asset value and lowers the
contribution. The amortization of the unfunded liability is being changed from a
"closed end" amortization period with 22 years remaining to an "open" 30 year
amortization period. The resulting contribution from these two changes would lower
the required contribution from 16.63% to 14 %. Employers would have the option to
adopt a lower rate that is limited to 10% of the prior year amount -in Oak Brook that
would be about 11.5 %. If the lower contribution is selected, the difference must be
recorded as a liability in the Village's audited financial statements and disclosed in
the footnotes.
Cost increase if the Village does not select the artificially capped rate would be
approximately $275,000 for 2010. If the 10% rate cap is adopted the Village will not
get to the "real" numbers for about 7 or 8 years. In future years, further increases will
be required as IMRF recognizes more of the 2008 investment losses. Whereas with
our local pension funds we are considering making more conservative actuarial
VILLAGE OF OAK BROOK Minutes Page 20 of 23 REGULAR MEETING OF
March 10, 2009
10
D. changes, the IMRF changes are considerably less conservative and shift significant
costs to the future. The rolling 30 year amortization period for unfunded liabilities
could mean the Village will never be 100% funded. There will a funded percentage
"shock" as people retire in that IMRF removes 100% of liability as employees retire.
In a severe economic downturn the Village Board will be in the unenviable position
of having to decide whether or not to fund its required pension contribution.
Trustee Kennedy commented how complex this issue is, but he emphasized the
difference between other municipalities' funding issues was due to the fact that other
municipalities levy a property tax to pay for Police and Fire Pensions. Since Oak
Brook has no property taxes, the Village funds these pensions out of the General
Corporate Fund which is basically sales tax revenues. The other issue he wanted to
emphasize was the reason that the Village is facing a shortfall in the funding is
because of the decline in equity markets and interest income.
He commented that it came down to two or three decisions the Board needed to
make. The first decision was what rate of return investments is expected. The
second issue was whether the Board would downscale the assumptions used in terms
of salary increases for firefighters and police officers. He recommended that the
Village assume a 7% expectation on rate of return and assume a reduced rate of
salary increases by I%. Trustee Wolin concurred.
Trustee Carson arrived at 9:05 p.m.
E. 22" STREET (BUTTERFIELD ROAD — RT 83) WATER MAIN AND TIMBER
TRAILS SUBDIVISION WATER MAIN
At the Village Board meeting of October 14, 2008, staff requested that the existing
12" water main on 22nd Street could be replaced with a 16" water main in conjunction
with IDOT's project. The Board approved the design contract and the water main
replacement project has proceeded with design. IDOT has approved only that portion
of 22nd Street between Butterfield Road and Midwest Road for inclusion into their
project.
Since the beginning of this year, the water system in the Timber Trails subdivision
has experienced a very large number of breaks. Staff analyzed break history and
notes the following:
Time # of Water Main
Frame Breaks in Timber Trails
2009 (Jan -Feb) 15
2008 7
2007 14
2006 13
VILLAGE OF OAK BROOK Minutes Page 21 of 23 REGULAR MEETING OF
March 10, 2009
10. E. It is apparent that the Timber Trails water system needs immediate help. A
preliminary estimate is approximately $2,500,000 to replace all the mains including
engineering.
The 2009 Budget contains these 22nd Street water main items:
• $95,000 for Engineering Services
• $1,800,000 for Construction
The 2010 Budget would provide for any remaining carry -over amounts.
In reviewing the 5 -Year Financial Plan (pages 40 — 44 attached), it is difficult to
allocate additional projects without either raising water rates or postponing projects.
It will be later this year before staff can accomplish additional study to confirm the
New Ground Storage Tank and the 2 New Elevated Tanks listed for 2011 and 2012
Staff also notes the following:
• Staff looked at the existing 12" main on 22nd Street and noted it has had 4 breaks
in 17 years and therefore is not in need of immediate attention.
• If Oak Brook chose not to proceed with the 22nd Street water main replacement at
this time, we would still have to pay for water main conflicts mitigation (where
Oak Brook water mains are in conflict with IDOT's improvements) which is
estimated to cost $444,000.
Whenever staff replaces a water main, staff also replaces the service lines and
valves that belong to Oak Brook so that all infrastructure is up to date. There are
several commercial services that go across 22nd Street between Butterfield Road
and Midwest Road that would be replaced. If the Village did not proceed with
the 22nd Street main replacement project, staff recommended that those services
be replaced now (a very rough initial estimate could be $50,000). This is desired
so that whenever the 22nd Street water main is replaced, fairly new service pipes
are already present and new service pipes do not have to be installed at that time
(there is the possibility that 22nd Street would need to be open cut).
Lastly, if Oak Brook did proceed with the 22nd Street main replacement now, the
Village would save approximately $100,000 in restoration costs since IDOT will
do the restoration as part of their project.
Trustee Kennedy recognized the complexity and need to move quickly on this project
and commented on the discussions involved in the decisions for the final
recommendations.
VILLAGE OF OAK BROOK Minutes Page 22 of 23 REGULAR MEETING OF
March 10, 2009
10. E. Motion by Trustee Wolin, seconded by Trustee Kennedy, that the Village Board
approve proceed with the west 22nd Street water main replacement between
Butterfield Road and Midwest Road at this time; proceed with other mitigation of the
water main conflicts that IDOT has identified that must be resolved at our cost, that
cost is estimated to be $444,000 between Route 83 and Midwest Road, and authorize
staff to negotiate a contract with a consultant to design the replacement of the Timber
Trails water mains in 2 phases: In 2009, design phase 1 (roughly 1/2 of the area); In
2010, construct phase 1 and design phase 2 (the second 1/2 of the area); and In 2011,
construct phase 2. ROLL CALL VOTE:
Ayes: 4 - Trustees Carson, Kennedy, Sanford and Wolin.
Nays: 0 - None.
Absent: 2 - Trustees Manofsky and Saiyed. Motion carried.
11. INFORMATION & UPDATES.
A. VILLAGE MANAGER — Manager Niemeyer thanked Darrell Langlois and Jim
Bodony for their skills, leadership and devotion to the Village.
B. VILLAGE CLERK — Clerk Pruss provided voter registration and early voting
information. She also reminded residents of the Easter Brunch at the Bath and Tennis
Clubhouse.
C. VILLAGE PRESIDENT — President Craig concurred and again thanked them.
D. TRUSTEES — Trustee Sanford commented on resident concerns regarding litigation.
12. ADJOURNMENT
Motion by Trustee Kennedy, seconded by Trustee Wolin, to adjourn the Regular Meeting
of the Board of Trustees at 9:19 p.m. VOICE VOTE: Motion carried.
ATTEST:
i
ff
Charlotte K. Pruss
Village Clerk
VILLAGE OF OAK BROOK Minutes Page 23 of 23 REGULAR MEETING OF
March 10, 2009