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Minutes - 03/25/2003 - Board of TrusteesMINUTES OF THE MARCH 25, 2003 REGULAR MEETING OF THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF OAK BROOK APPROVED AS WRITTEN ON APRIL 22, 2003. 1. CALL TO ORDER: CALL TO ORDER The Regular Meeting of the Village Board of Trustees was called to order by President Bushy in the Samuel E. Dean Board Room of the Village Commons at 7:30 p.m. The Pledge of Allegiance was given. 2. ROLL CALL: Deputy Village Clerk Carol Harty called the roll with the following persons PRESENT: President Karen M. Bushy, Trustees Stelios Aktipis, George T. Caleel, John W. Craig, Susan Chase Korin, Elaine Miologos and Alfred P. Savino. ABSENT: None. IN ATTENDANCE: Michael A. Crotty, Acting Village Manager; Dale L. Durfey, Jr., Village Engineer; Debra J. Jarvis, Fire Chief, Robert L. Kallien, Jr., Director of Community Development; Darrell J. Langlois, Finance Director; Richard A. Martens, Village Attorney; Michael J. Meranda, Public Works Director; Allen W. Pisarek, Police Chief; Bonnie Sartore, Bath & Tennis Club Manager; Trey VanDyke, Golf Club Manager; William Haas, Deputy Police Chief; Stephen Larson, Police Lieutenant; Sue Srch, Police Lieutenant and Sean Creed, Golf Course Superintendent. ROLL CALL 3. ANNOUNCEMENTS AND OPEN FORUM: ANNOUNCE President Bushy thanked Trustee Korin for chairing the previous Board of Trustees meeting while she attended the Federal Emergency Management conference. President Bushy provided a history of the $500,000 pledge from McDonald's Corporation to aid the building of our new Village Library that is channeled through the Oak Brook Library Foundation. She presented to Trustee Caleel, President of the Oak Brook Library Foundation, a check for $100,000 from the McDonald's Corporation. She added that there would probably be another check during the next calendar year. Trustee Caleel asked if the Village would be increasing the mosquito abatement program because of the West Nile Virus. VILLAGE OF OAK BROOK Minutes Page 1 of 20 March 25, 2003 N rd Public Works Director Meranda responded that significantly more dollars have been budgeted. He added that the program would begin soon, but that the full program would begin in mid -May. Trustee Savino also suggested that the normal flag display that is usually begun for Memorial Day start earlier to show support of our troops overseas. Director Meranda indicated it could be done as soon as the Board gave direction. It was the consensus of the Board that it should be done immediately. APPROVAL OF MINUTES: Motion by Trustee Caleel, seconded by Trustee Aktipis, to approve the Minutes of the Special Board of Trustees Meeting of March 5, 2003 as presented and waive the full reading thereof. VOICE VOTE: Motion carried. Motion by Trustee Caleel, seconded by Trustee Aktipis, to approve the Minutes of the Regular Board of Trustees Meeting of March 11, 2003 as presented and waive the full reading thereof. VOICE VOTE: Motion carried. CONSENT AGENDA: All items on the Consent Agenda are considered to be routine in nature and will be enacted in one motion. Trustee Miologos requested that item 5.E.1) SNOW REMOVAL SERVICES — LIBRARY be removed from the Consent Agenda for further discussion. Motion by Trustee Caleel, seconded by Trustee Aktipis, to approve the Consent Agenda as amended. ROLL CALL VOTE: Ayes: 6 - Trustees Aktipis, Caleel, Craig, Korin, Miologos and Savino. Nays: 0 — None. Absent: 0 - None. Motion carried. A. APPROVAL OF BILLS - $498,351.47 Significant items included above: 1) DuPage Water Commission - $169,250.78 2) Harbour Contractors, Inc. — Payout #25 - Municipal Complex Project - $75,521.66 3) Mid -State Surety — Payout #3 - Municipal Complex Project - $6,480.00 MINUTES C. AGENDA APVL BILLS - $498,351.47 B. APPROVAL OF PAYROLL FOR PAY PERIOD ENDING MARCH 15, APVL - PYRL - 03- 2003 - $471,526.31 15-03 - $471,526.31 VILLAGE OF OAK BROOK Minutes Page 2 of 20 March 25, 2003 5. C. CHANGE ORDERS: None. CHNG ORDERS G D. REFERRALS: REFERRALS 1) OAK BROOK PARK DISTRICT - 1450 FOREST GATE ROAD — Os PK DSTRC - REQUEST FOR SPECIAL USE AMENDMENT - REFERRAL TO - SEE FOREST USE RD THE PLAN COMMISSION AT THEIR APRIL 21, 2003 MEETING AMNDMNT AND TO THE ZONING BOARD OF APPEALS AT THEIR MEETING OF MAY 6,200 2) DUPAGE FOREST PRESERVE DISTRICT — 1717 OAK BROOK DUPGE FOR PRSV DIST -- 1717 OAK ROAD (PEABODY MANSION) — REQUEST FOR SPECIAL USE BROOK RD - SPEC AMENDMENT REFERRAL TO THE PLAN COMMISSION AT USE AMNDMNT THEIR APRIL 21, 2003 MEETING AND TO THE ZONING BOARD OF APPEALS AT THEIR MEETING OF MAY 6, 2003 E. AUTHORIZATION TO SEEK BIDS OR PROPOSALS OR NEGOTIATE SK BIDS, PROP OR NEG CTRCTS CONTRACTS: 1) SNOW REMOVAL SERVICES — LIBRARY Removed from the LIB - SNW11MVL Consent Agenda for further discussion. F. ACCEPT AND PLACE ON FILE — TREASURER'S REPORT OF TREAS RPT - 02 -28- 03 FEBRUARY 28, 2003 G. WAIVER OF FEES — OAK BROOK PARK DISTRICT WVE FEES - OB PK DIST H. WAIVER OF FEES — FOREST PRESERVE DISTRICT WVE FEES DUPGE FOR PRES DIST L YORKSHIRE GLEN OF OAK BROOK SUBDIVISION — RENAMING NM CHANGE - YKSHR GLEN OF TO TUSCAN WOODS SUBDIVISION AND RENAME GLEN COURT OB SUBDIV TO TUSCAN COURT ITEMS REMOVED FROM CONSENT AGENDA: RMVD C AGNDA 5. E. 1) SNOW REMOVAL SERVICES — LIBRARY Removed from the LIB -SNW RMVL Consent Agenda for further discussion. Trustee Miologos asked why the Village did not plow the Library. Public Works Director Meranda responded that presently some snow removal was already contracted out due to insufficient staff. VILLAGE OF OAK BROOK Minutes Page 3 of 20 March 25, 2003 6. 5 7 M. E. 1) He added that during discussions relative to the building of the new Library, it had been determined that providing snow removal for the Library would be contracted out. Motion by Trustee Miologos, seconded by Trustee Korin, to authorize staff to seek bids for snow removal services at the Library building. ROLL CALL VOTE: Ayes: 6 - Trustees Aktipis, Caleel, Craig, Korin, Miologos and Savino. Nays: 0 - None. Absent: 0 - None. Motion carried. BOARD & COMMISSION RECOMMENDATIONS: None. ACTIVE AGENDA (Items for Final Action): A. CONFIRMATION OF APPOINTMENTS: 1) OAK BROOK HOTEL, CONVENTION AND VISITORS COMMITTEE President Bushy recommended that the Village Board approve the following appointments to the Oak Brook Hotel, Convention & Visitors Committee, with their terms expiring February 28, 2004: 1. Reappointment of John Merrill, General Manager, Hyatt Regency Oak Brook 2. Reappointment of Steve Thayer, General Manager of the Wyndham Drake Hotel 3. Reappointment of Tony Mira, General Manager, Renaissance Oak Brook Hotel 4. Reappointment of Ted Selogie, General Manager, Marriott Oak Brook 5. Reappointment of Julie Coker, General Manager, The Lodge at McDonald's Campus 6. Appointment of Heather Wehling, General Manager of the new Residence Inn by Marriott -Oak Brook 7. Reappointment of Chuck Fleming, General Manager, JMB Retail Properties 8. Reappointment of Ralph E. Maxson, Oak Brook Resident 9. Reappointment of Laurie Adams, President & CEO of the Oak Brook Area Association of Commerce & Industry VILLAGE OF OAK BROOK Minutes 0 Page 4 of 20 March 25, 2003 BD /COMM RECOM ACTIVE AGENDA CONFRM APPTS. OB HTL, CONY & VIS CTE 8. A. 1) Motion by Trustee Savino, seconded by Trustee Korin, that the Village Board approve the reappointments of John Merrill, General Manager, Hyatt Regency Oak Brook; Steve Thayer, General Manager of the Wyndham Drake Hotel; Tony Mira, General Manager, Renaissance Oak Brook Hotel; Ted Selogie, General Manager, Marriott Oak Brook; Julie Coker, General Manager, The Lodge at McDonald's Campus; Chuck Fleming, General Manager, JMB Retail Properties; Ralph E. Maxson, Oak Brook Resident; Laurie Adams, President & CEO of the Oak Brook Area Association of Commerce & Industry and the appointment of Heather Wehling, General Manager of the new Residence Inn by Marriott -Oak Brook to the Oak Brook Hotel, Convention & Visitors Committee, with their terms to expire February 28, 2004. VOICE VOTE: Motion carried. B. ORDINANCES & RESOLUTIONS: ORD /RES 1) RESOLUTION 2003- AG -TX- PRPTY -EXI -R -838, "A RESOLUTION RES- 03- AC -TX- PRPTY -EXI -R -838 - AUTHORIZING EXECUTION OF REAL ESTATE SALE SL OF LOT 3 SPTS CONTRACT ( LOT 3 -- SPORTS CORE/WESTCHESTER PARK COP El SCHSTR PK SUBDIVISION)." Sealed offers to enter into a real estate sale contract for Lot 3 in the Sports Core /Westchester Park Subdivision were opened on Wednesday, March 12, 2003. Ravi and Radha Nallakrishnan submitted the offer to enter into a real estate sale contract with the highest proposed purchase price at Six Hundred, Fifty -Six Thousand, One and No /One Hundredths Dollars ($656,001.00). Resolution 2003- AG -TX- PRPTY -EXI -R -838 is a resolution approving the Real Estate Sale Contract submitted by Mr. and Mrs. Nallakrishnan. This Contract is in substantial conformity with the form of real estate sale contract which was included in the Offeror's Package. Mr. and Mrs. Nallakrishnan have submitted an earnest money check in the amount of Fifty Thousand Dollars ($50,000.00) as required under the terms of the Real Estate Sale Contract. The price submitted by Mr. and Mrs. Nallakrishnan is well in excess of the appraised value of Five Hundred, Fifty Thousand Dollars ($550,000.00). Village Attorney Martens recommended that the Village President and Board of Trustees pass Resolution 2003- AG -TX- PRPTY -EXI -R -838 as presented. A two - thirds (2/3) vote of the corporate authorities holding office is required to pass the resolution. VILLAGE OF OAK BROOK Minutes Page 5 of 20 March 25, 2003 E S. B. 1) Motion by Trustee Caleel, seconded by Trustee Korin, that the Village Board approve Resolution 2003- AG -TX- PRPTY -EXI -R -838, "A Resolution Authorizing Execution of Real Estate Sale Contract (Lot 3 — Sports Core /Westchester Park Subdivision)." ROLL CALL VOTE: Ayes: 6 - Trustees Aktipis, Caleel, Craig, Korin, Miologos and Savino. Nays: 0 — None. Absent: 0 - None. Motion carried. Discussion ensued relative to the process and marketing of the remaining parcels. C. AWARD OF CONTRACTS: AWARD CT 1) COMMERCIAL WATER METER TESTING, REPAIR & COM WTR MTR REPLACEMENT TST, RPR & REPLC One sealed bid was received on March 13, 2003. The Village owns a number of larger water meters (1 1/2" to 8 ") located in commercial structures, that requires periodic testing, repair and replacement. These activities are particularly important since the water usage is high, breakdowns are more frequent for large meters, and significant revenue is lost when the meters are inoperable. Frequent maintenance helps ensure accuracy and reduce unaccounted for volume. M.E. Simpson has been awarded the large water meter testing contract for the past 6 years; they were the low bid time before last and the only bid last time. The Village has found their work to be accurate, professionally administered and in compliance with the American Water Works Standards for large water meter testing and repair. The contractor will be testing, repairing and replacing these large water meters on an as- needed basis, prompted by Village work orders. The total estimated cost is based on an estimate of the number of meters requiring maintenance during each year. The cost of any required major maintenance parts will be supplied at a 5% discount from manufacturers' retail price. Motion by Trustee Miologos, seconded by Trustee Savino, that the Village Board award a three year contract, subject to staff review, to the lowest responsive and responsible bidder, M.E. Simpson Company, Inc., 3406 Enterprise Avenue, P.O. Box 1995, Valparaiso, IN 46384 -1995 at the bid unit prices for the testing, repair and replacement of water meters, at an estimated annual cost of $19,325. ROLL CALL VOTE: VILLAGE OF OAK BROOK Minutes 1 Page 6 of 20 March 25, 2003 8. C. 1) Ayes: 6 — Trustees Aktipis, Caleel, Craig, Korin, Miologos and Savino. Nays: 0 — None. Absent: 0 — None. Motion carried. C. 2) REMOVE FROM THE TABLE PARKING & SECURITY — RMV TBLE PKG & SEC - [ND DAY INDEPENDENCE DAY CELEBRATION CEEEB Motion by Trustee Korin, seconded by Trustee Caleel, to remove from the table the Award of Contract for Parking and Security at the Independence Day Celebration. VOICE VOTE: Motion carried. At the Committee -of- the -Whole meeting of February 24, 2003, the Village Board discussed services associated with the 2003 Independence Day celebration. The Board requested a proposal from RB Enterprises that would incorporate a parking fee component. Consideration of any agreement with RB Enterprises was tabled at both the February 25, 2003 and March 11, 2003 regular Board meetings in order to provide staff with the necessary time to work out the logistics and develop a plan in this regard. The Board was provided with information outlining the logistics of charging for parking, additional costs involved and assumptions underlying the costs. Parking for the event is accomplished using three lot areas. The general parking areas on the Sports Core property are Field 3 and the Show Field. Parking is also available at Christ Church, however the Church has confirmed that it will not permit the collection of a parking fee for vehicles parked on its property. As such, the only areas where a parking fee could be collected are at the entrance to Field 3 and the entrance to the Show Field. RB Enterprises recommends that there be 10 incoming lanes (two for residents only) for the Field 3 area, and two incoming lanes for the Show Field area, based on the total number of vehicles anticipated. Due to the compressed time period during which traffic is expected (most vehicles are anticipated to arrive between 7:00 p.m. and 9:15 p.m.), the inability to collect a fee for 1,400 vehicles parked at Christ Church, and based on the assumptions concerning the amount of time it will take to process each vehicle, it is estimated that the "chargeable flow" will be 2,190 vehicles. With a parking fee of $5 per vehicle, the income to the Village would be $10,950, however with the corresponding costs involved in the process, the net income to the Village would be $43.85. VILLAGE OF OAK BROOK Minutes Page 7 of 20 March 25, 2003 46 S. C. 2) The collection of a parking fee will likely result in traffic backed up onto 31" Street. Additional Police personnel will be required to provide for the safety of pedestrians and through traffic on this roadway, especially given its new, four -lane configuration. Additional Police personnel will also be required to provide security where money is being collected, and for increased patrol on 22nd Street and Jorie Boulevard to prevent motorists from stopping in the roadway, parking on bike paths, etc. The collection of a parking fee will result in the need for additional labor, signage, cones/barricades, light towers, and mobile units due to the unique venue. The additional cost relating to the services provided by RB Enterprises is $6,206.15 (total cost of $27,036.15 compared to $20,830 without the parking fee component). The additional cost relating to safety and security provided through the Oak Brook Police Department is approximately $4,700. If the rain date were required, there would be additional costs due to required holiday pay for Oak Brook Police personnel. Depending on when the decision was made to reschedule the event due to rain, there would also be additional personnel and rental costs incurred by RB Enterprises. Because of the logistics involved with collecting a fee on this property for an event of this magnitude, it will not be possible to collect a fee for every vehicle. Those who choose not to pay the fee may search for other parking alternatives, such as street parking, nearby lots (both public and private), etc. If these visitors are already in the parking fee queue and wish to turn around, the ability to do so will be difficult, if not impossible, and the time required to process each vehicle will be impacted by these situations. Because this will be the first time that a fee has been collected, there undoubtedly will be other challenges that present themselves. It will be important for staff to "de-brief" following the event, in order to prepare for future years. The Village has worked with RB Enterprises for the past 17 years, and its understanding of the logistics concerning the Sports Core property is excellent. The analysis was developed based on the comprehensive consideration of these logistics, both by RB Enterprises and the Oak Brook Police Department. It is the recommendation of staff that the Village enter into an agreement with RB Enterprises to conduct parking and security services for the 2003 Independence Day celebration, in the manner approved by the Board. VILLAGE OF OAK BROOK Minutes Page 8 of 20 March 25, 2003 C. 2) Ray Rocke of RB Enterprises and Lieutenant Larson of the Village of Oak Brook Police Department made presentations to the Board related to this topic and were ready to answer questions. Concern was expressed that since the idea to charge for parking was to help subsidize the event, the $5.00 fee did not accomplish that goal. Discussion ensued relative to raising the fee to $10.00 with a caveat that Oak Brook residents would not pay for parking. Further discussion revealed the problems and concerns that charging for parking would create. Additional discussion began relative to other means to raise funds or reduce the budget to offset the cost of this event instead of charging for parking. Kerry Krafthefer, 5 Oak Brook Club, commented that he was not in favor of a parking fee as he felt that the Village of Oak Brook does serve a larger community and that the Board was seeking to keep people away. He suggested options to offset costs of this event. The Board discussed accessing the Hotel/Motel Tax to support this event. Trustee Aktipis suggested that the Board move to find that fireworks do promote tourism within the Village and falls within the purview of the appropriate use of these funds. He added that he felt the Village Board should meet with the Oak Brook Hotel, Convention and Visitors Committee to address this issue again. Robin Zahran, 718 Acorn Hill Lane, spoke to the responsibilities of the Board relative to making decisions. Terry O'Malley, 30 Breakenridge Farm, spoke to the additional security of the event. Asif Yusuf, 18 Kingsbury Court, also suggested the use of the Hotel /Motel Tax for this event. He added that he felt that charging for parking would be a logistic mess and bad public relations. Ray Rocke stated that his company has committed resources for the day, the decision as to whether to charge for parking or not charge does not affect his commitment, however, he noted that scheduling for the Police Department could be a problem if the decision was delayed. VILLAGE OF OAK BROOK Minutes Page 9 of 20 March 25, 2003 NO 8. C. 2) Motion by Trustee Miologos, seconded by Trustee Caleel, to table the award of contract for parking services in conjunction with the 2003 Independence Day celebration. VOICE VOTE: Motion carried. Trustee Savino voted Nay. There was a consensus that the Board would find that it was an appropriate use of Hotel/Motel Tax funds to support the Independence Day Celebration because the event would promote "heads in beds" for local establishments. It was suggested that representatives of the Board attend the next Oak Brook Hotel, Convention and Visitors Committee to advise them of the Board's direction. Trustee Craig and Trustee Miologos plan to attend the next Oak Brook Hotel, Convention and Visitors Committee. 3) GOLF COURSE COMMODITIES Bid packages were sent to eleven companies. Competitive sealed bids were received on March 12, 2003 from ten companies; two were received late and could not be considered. Staff recommended acceptance of some bids that were not the lowest submitted price because the proposed substitutions did not meet specifications. Bids were not submitted on additional items and those items will be purchased through quotes as needed. Contracts with these companies will operate as requirement contracts, which means that orders will only be placed when and if the Golf Course has such needs. Bid prices are firm for the entire calendar year. There is no requirement that the Village purchase a set quantity because the Village retains the right to either increase or decrease quantities. The Village also has the option to purchase the same items through other sources. Motion by Trustee Korin, seconded by Trustee Caleel, that the Village Board award requirements contracts to the following eight companies: Bojo Turf Supply, Frankfort, Illinois; Central Sod Farms, Naperville, Illinois; Consery FS, Tinley Park, Illinois; Lesco, Rocky River, Ohio; Simplot Partners, Butler, Pennsylvania; Eagle One, Chicago, Illinois; Chicagoland Turf, Addison, Illinois and Growing Solutions, New Lenox, Illinois, subject to staff review, based on unit prices bid by the lowest responsive and responsible bidders. ROLL CALL VOTE: Ayes: 5 - Trustees Aktipis, Caleel, Craig, Korin and Miologos. Nays: 0 - None. Absent: 1 - Trustee Savino. Motion carried. VILLAGE OF OAK BROOK Minutes Page 10 of 20 March 25, 2003 GLF CRS COMMOD 8. C. 4) GOLF MAINTENANCE EQUIPMENT GLF MAINT EQUIP Bid packages were sent to five companies. Three of those companies do not supply this type of equipment. Two sealed bids were received on March 19, 2003. Staff's recommendation is to trade -in the used cultivator instead of either selling it through the Mayors and Managers Auction or selling it directly ourselves. Motion by Trustee Caleel, seconded by Trustee Korin, that the Village Board declare the existing unit surplus, accept the trade -in value indicated. and award a contract, subject to staff review, to the lowest responsive and responsible bidder Illinois Lawn Equipment, Inc., 16450 104'h Avenue, Orland Park, IL 60467 for the Total Award including trade -in of $24,713. ROLL CALL VOTE: Ayes: 4 - Trustees Aktipis, Caleel, Korin and Miologos. Nays: 0 - None. Absent: 2 - Trustees Craig and Savino. Motion carried. 5) INTEGRATED VIDEO AND COMPUTER SYSTEMS — POLICE IVAC sys - PD DEPARTMENT The IVAC System will replace the existing mobile data terminals and in -car video systems. The IVAC camera system is digital and the data is stored on CD's where our current system uses VHS tapes which are more expensive to purchase and use more storage space. The digital video wireless camera system in the squad cars can send real time pictures from a scene to monitors in the police station or in the emergency operating center. The IVAC maintenance contract provides that mobile data terminals and video cameras will be repaired and replaced on an as needed basis. This means that the Village will not have to replace existing equipment every year and will save approximately $31,800 per year. The IVAC System is also compatible with the new communications equipment in the dispatch center, which would also be a one time cost savings of $10,000 for the Communications Center. Last year the Village did not spend $29,000 that was budgeted to replace two mobile data terminals and video cameras in order to purchase all new equipment at one time. VILLAGE OF OAK BROOK Minutes Page 11 of 20 March 25, 2003 0 8. C. 5) The purchase of the IVAC System will give the Police Department cutting edge technology as well as an annual cost savings for the Village. If the IVAC System is not purchased by March 31, 2003, there will be a $1,500 per unit price increase, which would be a total of $19,500. Trustee Caleel asked if this was a sole source product. Police Chief Pisarek responded that it was a sole source. Motion by Trustee Caleel, seconded by Trustee Savino, that the Village Board approve the purchase of thirteen (13) Integrated Video and Computer Systems for $161,200 and the Purchase Agreement which includes an annual maintenance fee Of $11,700. ROLL CALL VOTE: Ayes: 6 - Trustees Aktipis, Caleel, Craig, Korin, Miologos and Savino. Nays: 0 - None. Absent: 0 - None. Motion carried. D. REMOVE FROM THE TABLE CHANGE ORDER # 3- MUNICIPAL RMV TeL - CHNGE ORD #3 - MCP - COMPLEX PROJECT - $35,000.00 - EARTH TECH, INC. — REVISED EARTH TECH & TOTAL CONTRACT AMOUNT - $686,549.45 and EARTH TECH INC. EARTH TECH - PAYOUT #28 AND 29 — MUNICIPAL COMPLEX PROJECT - PAYOUT #zs & z' $8,567.56 Motion by Trustee Korin, seconded by Trustee Caleel, that the Board of Trustees remove from the table Change Order # 3- Municipal Complex Project - $35,000.00 - Earth Tech, Inc. — Revised Total Contract Amount - $686,549.45 and Earth Tech, Inc. — Payout 428 And 29 — Municipal Complex. VOICE VOTE: Motion carried. The Village Board at its March 5, 2003 meeting, tabled Earth Tech's request for a fee increase and payouts #28 and #29 to the March 25`h Village Board of Trustees meeting to allow time for Earth Tech and Harbour to respond in writing to the Board's concerns and meet with the Board's subcommittee on this subject. Staff has met with Earth Tech and Harbour to discuss these items and are awaiting written responses from both firms. Following a staff review of the responses, the subcommittee will meet with both companies, prior to returning this subject to the Village Board for consideration. Motion by Trustee Craig, seconded by Trustee Caleel, that the Board of Trustees again table Change Order # 3- Municipal Complex Project - $35,000.00 - Earth Tech, Inc. — Revised Total Contract Amount - $686,549.45 and Earth Tech, Inc. — Payout #28 And 29 — Municipal Complex Project - $8,567.56 until Earth Tech and Harbour respond in writing to the Board's concerns and meet with the Board's subcommittee on this subject. VOICE VOTE: Motion carried. VILLAGE OF OAK BROOK Minutes Page 12 of 20 March 25, 2003 `6 S. E. REMOVE FROM THE TABLE - EARTH TECH INC. — PAYOUT #28 PREVIOUS MOTION AND 29 — MUNICIPAL COMPLEX PROJECT - $8,567.56 Action on this item was included in the previous motion. F. REFINANCING OF INSTALLMENT CONTRACT FOR THE BATH & REFIN INSTLMNT CONTR OBB &T TENNIS CLUBHOUSE PROJECT When the installment contract of $1.8 million was issued in 2000 for the financing of the Bath and Tennis Clubhouse expansion project, it was deemed advisable to negotiate the terms of this issue with only two local banks due to various litigation issues involving the Sports Core property. The installment contact certificates totaling $1,170,000 due through 2007 at the rate of 4.96% were sold to American National Bank and certificates totaling $630,000 due 2008 through 2010 at the rate of 5.15% were sold to Oak Brook Bank. Since the installment contract financing was done as a negotiated issue, the Village was able to incorporate terms so that remaining principal would be callable at any time. The Oak Brook Bank portion was called using proceeds from the sale of the 31st Street right -of -way. Last fall the Village Board considered several options that would enable the Village to take advantage of lower interest rates. The Board decided to leave the remaining amortization period the same (through 2007), and a lower rate (2.5 %) was negotiated with American National Bank. This was done as a simple rate change agreement and we were able to avoid many of the costs associated with a new debt issue. At the present time the total amount of principal payable through 2007 is $875,000. Due to cash flow issues at the Sports Core, direction was informally given to investigate extending the maturity schedule out to ten or fifteen years. In order to possibly lower the cost of issuance, staff first approached American National Bank to get its best rate. As staff worked with them, it became apparent that changing the amortization period would likely require drafting of new ordinances and documents. This would require incurring the costs of bond counsel and nearly all of the costs associated with a new issue. In the opinion of the Village's financial adviser, R.V. Norene and Associates, the rate quoted by American was not competitive enough to avoid a competitive process. R. V. Norene and Associates addressed both a 10 year and 15 year refinancing plan. The ten -year refinancing plan appears to go a long way towards meeting the objectives previously indicated. VILLAGE OF OAK BROOK Minutes Page 13 of 20 March 25, 2003 8. F. Debt Service payments for 2003 will be decreased from the budgeted amount of $181,875 to approximately $90,000 (this includes interest from 12/1/02 to 5/15/03, which is not reflected on the debt service schedule). However, interest costs overall will increase due to extending the maturity schedule for a longer period of time. Based on today's market rates, the average coupon rate will be increased from 2.5% to approximately 2.95% due to the longer term. A competitive process is recommended for the issue. Thus, the actual interest costs and coupon rates are subject to normal market changes and will not be determined until the bid process is completed. It is recommended that the total amount of principal to be issued is $890,000 in order to include the estimated costs of issuance ($15,000 to cover the financial adviser, bond counsel, and underwriter's discount). It is also likely that the issue will not be callable for at least five years in order to obtain the best interest rates. The proposed plan is somewhat different than normal in that the Village would continue to make principal payments in December, not twelve months from the issuance date (expected to be May). This was done intentionally since having principal payment due in May would cause a large annual outlay at a point of the year when cash balances at the Sports Core are traditionally low. Although the average annual debt service in 2008 -2012 will increase approximately $20,000 from the previous four years, continued improvements in operating results as well as completion of the debt service payments on the irrigation system installment contract in 2009 should enable the Sports Core Fund to fund the increased costs. Discussion ensued relative to pre - payment fees and the timeframe and break -even amounts involved because of a five year callable issue. Trustee Caleel asked whether the use of a consultant to proceed with this refinancing was necessary. Finance Director Langlois provided the reasons that made this action advisable. Discussion ensued related to providing the funds through an interfund loan. Motion by Trustee Caleel, seconded by Trustee Aktipis, that the Village Board authorize staff to proceed with refinancing the installment contract on the Bath and Tennis Clubhouse expansion project. ROLL CALL VOTE: Ayes: 6 - Trustees Aktipis, Caleel, Craig, Korin, Miologos and Savino. Nays: 0 - None. Absent: 0 - None. Motion carried. VILLAGE OF OAK BROOK Minutes Page 14 of 20 March 25, 2003 N 10. 11 INFORMATION & UPDATES: INFO & UPDATES A. VILLAGE PRESIDENT: VLLG PRES President Bushy provided a report on her participation in the Federal Emergency Management Agency conference on Emergency Management. She commented that the Village of Oak Brook was far ahead of many municipalities in preparedness for emergency situations. She also reported on the DuPage Mayors and Managers Conference's information on legislative issues. Included were concerns about legislation relative to the use of Hotel/Motel Tax for non -home rule communities, affordable housing, Freedom of Information Act and the Metropolis 2020 plans. President Bushy thanked Michael Crotty for the work he performed as Acting Village Manager over the last eight months in addition to his position as Assistant Village Manager. B. VILLAGE MANAGER: VLLa MGR Acting Village Manager Crotty reported that he had received the Salt Creek Greenway Master Plan which is a plan for future development of the Salt Creek Greenway. He indicated that the plan would be available at the Library or in the Manager's office. DEPARTMENTAL REPORTS: None. DEPT. RPTS UNFINISHED AND NEW BUSINESS: UNFIN & NEW BUSINESS A. INTERIM FINANCIAL REVIEW INTERIM FINAN REV W In 2002, the Village Board added a new feature as part of the Budget Calendar whereby there are two formal interim financial reviews in advance of the five -year planning process. As this new feature proved to be very beneficial, staff has once again incorporated two interim financial reviews as part of the 2003 Budget Calendar. The following is the first of these two financial reviews (the second will be on June 23, 2003 based on May results). The commentary is based primarily on actual February results as compared the monthly budget allocations, which is staff's best estimate of where the Village would be at this point in the year. As the Village is only two months into 2003, the number of significant variances is limited. February financial reports have been provided to the Board, as well as the report of sales tax revenue through March, 2003 receipts. VILLAGE OF OAK BROOK Minutes 0 Page 15 of 20 March 25, 2003 11. A. Based on data through March collections, sales taxes were approximately 6.5% over budget and 9.9% over the first three months of 2002. The primary cause of this variance is that February receipts were $302,995 or 35% over 2002. This payment was due to a single one -time event and that the payment is properly Oak Brook's. This will have a positive variance on collections for 2003. However, it is too early in the year to predict where sales taxes will end up. State shared revenues (income tax, use tax, and replacement tax) are over budget by $7,233. The monthly revenue budget for scheduled January payments were very close to the actual receipts. As most of these revenues are very economically sensitive, it is also too early to predict where it will end up. At the end of February revenue from utility and telecommunications taxes (General Fund portion) was $138,274 under budget. The following are the causes of several of the large and complex issues underlying the variance: • For a subsidiary company of the largest payer of telecommunications taxes, the Village received a $ -0- return for the December liability period (over $33,000 was paid for November). The Village has been told by the preparer that they were taking a credit for overpaid taxes and have been referred to their audit department for further information as to the cause, whether there is more credit coming, and what impact it will have on future collections. Based on past experience with this company it may take several months to resolve this issue. • Only one remittance was received this year from the second largest telecommunication tax payer since they made 13 payments in 2002. This accounts for a timing variance of approximately $45,000. Please note, however, that since September 2002 receipts from this payer are approximately 15% under budget (the December 2002 remittance was $43,758, which is $15,010 or 25% less than the same period in 2001). If this trend does not reverse itself it could have a negative impact in excess of $100,000. • During the third quarter of 2002, a decline of over 50% was noted in the receipts for the Village's third largest telecommunications tax payer. After several contacts, staff was advised at the end of 2002 that the decrease was due to correction of miscoding on several large resale customers (these sales are tax exempt). This will have a negative impact in excess of $100,000 annually. VILLAGE OF OAK BROOK Minutes Page 16 of 20 March 25, 2003 N 1 I. A. • On the positive side, receipts from NICOR for the December 2002 and January 2003 liability period are 85% more than the same period in the prior year, due primarily to higher natural gas prices. Since it is only two months into the year, some questions with the larger payers remain, and over 75 other payers impact this revenue source, it is estimated that a negative variance of $200,000 to $400,000 is possible due to decreased telecommunications taxes. The actual variance may be difficult to follow once the State begins collections of this revenue as there will likely be timing differences in addition to the permanent differences previously noted. The negative telecommunications tax variance will likely be partially offset by positive variances from NICOR. Finally, utility tax revenue from ComEd will be heavily dependent on the summer weather. Revenue from licenses and permits is $48,139 over budget due primarily to the building permit revenue for the new Bloomingdale's store. There is a positive variance of $125,000 in donation revenue due to a timing delay in receiving the Library Foundation's 2002 donation in early 2003. A second donation of $105,000 is anticipated in the fall. Miscellaneous revenue is over budget due to an unbudgeted refund of approximately $35,000 from the Du Page County Solid Waste Committee. In Program 131- General Management, a positive variance of approximately $25,000 will result due to vacancy of the Village Manager position. In Program 134 -Risk Management, there is a negative variance of $50,319 due to the Village's contribution to IRMA being significantly over budget. The hardening of the overall insurance market due to 9/11 resulted in the contribution rate being 7% higher than rates provided by IRMA at the time that the budget was prepared. Also, the Village's actual "experience modifier" was $25,000 over the budgeted amount. In Program 181- Community Events, a positive variance is possible depending on the outcome of revenue issues related to Independence Day. There is a negative variance of $250,000 in Program 271 - Interfund Transfers due to the usual temporary loan given to the Sports Core at the beginning of the year until the major seasonal revenues come in. This will reverse later in the year. VILLAGE OF OAK BROOK Minutes Page 17 of 20 March 25, 2003 In 11. A. There is a negative variance of $93,260 in Program 426 - Municpal Complex Project due to timing of payments on the project occurring faster than budgeted. To the extent that the project comes in below $9.9 million (the most recent revised project budget based on Village Board approved change orders was approximately $9.8 million), this variance will have no impact. The personnel accounts in Program 621- Police Field Services are over budget by $24,737. This is due to a staff allocation issue and is more than offset by positive variances in the personnel accounts in other Police Department programs. Finally, the 2003 actuarial studies of the Police and Firefighters' Pension Funds indicate, as expected, poor investment returns due to overall market conditions will result in increased contributions of approximately $200,000 over the prior year. All but approximately $30,000 was considered in preparing the budget. The negative variance in utility taxes is due primarily to timing since only one receipt from NICOR had been received during the first two months of the year. This revenue source has an excellent chance to exceed budget due to the increase in taxes on natural gas. It is too early to predict payments of the electricity tax from ComEd. Grant revenue, which in this fund relates to safety pathway projects, is under budget by $100,000. Any variances that would usually occur here are timing related. In the normal process, the Village fronts the cost of engineering and is reimbursed by the state a set percentage. Sometimes there are delays in the timing of reimbursement or delays in the pathway projects which causes the revenue amount to be under budget the same percentage as the expense amounts. This account usually ends the year under budget, as do the expenditure accounts in Program 463 - Safety Pathway Improvements. The bid results for 2003 Paving Project will result in a positive variance of approximately $181,000 in Program 461 - Roadway Improvements. The Sports Core Fund usually receives a lot of attention, two months into the year is too early to derive any meaningful information. The special reporting for the Food and Beverage operations indicates that revenues are trailing budget by approximately $13,000. It should be noted, however, that through February revenues are slightly more than last year. There is a significant Food and Beverage multi -day event that also involves use of the open fields scheduled for the end of spring that will be very profitable. VILLAGE OF OAK BROOK Minutes Page 18 of 20 March 25, 2003 11. A. Finally, staff is working on a proposal that will spread the remaining debt service payments on the Bath & Tennis Clubhouse installment contract over ten years. This may result in a positive cash flow impact of approximately $80,000 in 2003. For the remainder of the Fund, there are no significant variances through February. Staff is closely monitoring health claim expenses since claims through February are $32,213 over budget. There is no single cause for this variance that we can isolate at this time. The cost of health claims rises much faster than the rate of inflation. Staff will continue to monitor this trend on a monthly basis. Trustee Aktipis summarized that through the first two months of 2003, all of the Funds appear relatively on target for most of their budget goals. The telecommunication tax is a situation that must continue to be monitored. Although the sales tax data is encouraging for three months of the year, it is important to "filter out" the one time payment so staff has a firm base for making projections in the future. He added that expenditures are being maintained at or below the level of projections. He reported that the Sports Core Fund was projected to be positive partly as a result of a single multi - day event booking. Finance Director Langlois commented that the Operating Reserve at the end of February was below the $8,000,000 reserve goal, but that it has risen to $8.5 million as of today. Trustee Caleel commented that since 1997 the Village has always operated under budget in relation to expenses and also that the Government Finance Officers Association has awarded the Certificate of Achievement for Excellence in Financial Reporting each year in excess of 25 years. 12. OTHER BUSINESS PERTAINING TO VILLAGE OPERATIONS: None. OTHER Bus. 13. ADJOURN TO CLOSED MEETING — To consider litigation, when an action ADJRN 10: 13 p.m. against, affecting or on behalf of the Village has been filed. Motion by Trustee Caleel, seconded by Trustee Savino, to adjourn to Closed Meeting to consider litigation, when an action against, affecting or on behalf of the Village has been filed. ROLL CALL VOTE: Ayes: 6 - Trustees Aktipis, Caleel, Craig, Korin, Miologos and Savino. Nays: 0 - None. Absent: 0 - None. Motion carried. VILLAGE OF OAK BROOK Minutes s Page 19 of 20 March 25, 2003 14. ADJOURNMENT: Motion by Trustee Craig, seconded by Trustee Korin, to adjourn the meeting at 10:33 p.m. VOICE VOTE: Motion carried. ATTEST: Linda K. Gonnella, CMC Village Clerk VILLAGE OF OAK BROOK Minutes N... Page 20 of 20 March 25, 2003 ADJRN 10:33 P.M.