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Minutes - 04/11/2006 - Board of Trustees2. 3. MINUTES OF THE APRIL 11, 2006 REGULAR MEETING OF THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF OAK BROOK APPROVED AS AMENDED ON MAY 9, 2006. CALL TO ORDER The Regular Meeting of the Village Board of Trustees was called to order by President Quinlan in the Samuel E. Dean Board Room of the Butler Government Center at 7:32 p.m. The Pledge of Allegiance was given. ROLL CALL Village Clerk Linda Gonnella called the roll with the following persons PRESENT: President Kevin M. Quinlan, Trustees Stelios Aktipis, John W. Craig, Jeffrey J. Kennedy, Kathryn F. Manofsky, Robert G. Sanford and Asif Yusuf. ABSENT: None. IN ATTENDANCE: Richard B. Boehm, Village Manager; Jeffrey P. Moline, Assistant Village Manager; Kenneth T. Kubiesa, Village Attorney; James Bodony, Fire Chief, Dale L. Durfey, Jr., Village Engineer; Bruce F. Kapff, Director of Information Services & Purchasing; Robert L. Kallien, Jr., Director of Community Development; Darrell J. Langlois, Finance Director; Michael J. Meranda, Public Works Director; Thomas Sheahan, Chief of Police; Trey VanDyke, Golf Club Manager; Nelson Patras, Interim Bath & Tennis Club Manager; Moin Saiyed, Member of the Plan Commission and Baker Imry, Member of the Zoning Board of Appeals. PRESIDENT'S OPENING COMMENTS President Quinlan announced that John Fagan was sworn in as a Firefighter /Paramedic; Mark King was sworn in as a Sergeant and Jason Cates was sworn in as a Lieutenant and Division Commander. President Quinlan reported that preliminary sales tax figures appeared to be less than expected, but the Finance Department researched the reason and discovered that there had been a reporting error to the Illinois Department of Revenue which will be corrected. He added that the corrected figures show that Village revenues are on target. President Quinlan reported that the Commercial Revitalization Task Force would meet on Wednesday, April 12 at 12:30 p.m. to determine the consultants for the 22nd Street /Butterfield Road Corridor Revitalization Plan. VILLAGE OF OAK BROOK Minutes Page 1 of 21 April 11, 2006 4. RESIDENTNISITOR COMMENT Mr. Vivek Sighal, resident of Oak Brook addressed the Board regarding the India Development Coalition of America who is sponsoring a "Water Summit" in conjunction with the Lions Club in June and urged everyone to become involved. 5. APPROVAL OF MINUTES A. REGULAR BOARD OF TRUSTEES MEETING OF MARCH 14, 2006 Trustee amended the Minutes on page 2, Agenda Item 4 to add after the first sentence, "Trustee Aktipis highlighted the excellent work that Chief Sheahan has done since his appointment as Police Chief." Motion by Trustee Kennedy, seconded by Trustee Sanford, to approve the Minutes of the March 14, 2006 Regular Board of Trustees Meeting as amended. VOICE VOTE: Motion carried. 6. CONSENT AGENDA All items on the Consent Agenda are considered to be routine in nature and will be enacted in one motion. A. Accounts Payable 1. Ratification of Period Ending March 28, 2006 - $323,646.72 Significant Items included in Above: a) DuPage Water Commission — 118,361.36 2. Period Ending April 7, 2006 - $ 455,359.14 Significant Items included in Above: None a) Chicagoland Paving Contractors - Payout # 1 — 2004 Water Main & Drainage Project - $22,292.00 B. Approval of Payroll 1. Pay Period Ending March 11, 2006 - $635,816.14 2. Pay Period Ending March 25, 2006 - $576,909.83 C. Community Development Referrals 1) Public Works Construction Standards — Objects Within Parkways 2) Beard's Resubdivision #2 — Final Plat, 4 Lot Subdivision D. Authorization to Seek Bids or Proposals or Negotiate Contracts - None E. Budget Adjustments - None F. Treasurer's Report — February, 2006 G. 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 2 of 21 April 11, 2006 6. Trustee Aktipis asked that Agenda Item 6.A.1) b) Kubiesa, Spiroff, Gosselar & Acker — Legal Fees - $26,508.45 and 6. H. An Ordinance Authorizing Transfers Among Budget Line Items be removed. Trustee Craig asked that Agenda Item 6. I. 2006 First Quarter Hotel/Motel Tax Receipts be removed. Motion by Trustee Kennedy, seconded by Trustee Aktipis, to approve the Consent Agenda and authorize expenditures as amended. ROLL CALL VOTE: Ayes: 6 - Trustees Aktipis, Craig, Kennedy, Manofsky, Sanford and Yusuf. Nays: 0 - None Absent: 0 - None. Motion carried. 7. ITEMS REMOVED FROM CONSENT AGENDA 6. A.1) b. KUBIESA, SPIROFF, GOSSELAR & ACKER — LEGAL FEES - $26,508.45 Trustee Aktipis expressed his concern about billing for $8,000 why on top of another $9,000 charge paid previously for legal fees incurred by Mrs. Mullins in her defense of a Federal Court suit brought by an Oak Brook resident. He questioned why public funds were being used to indemnify and defend a private citizen. Trustee Kennedy responded as the board liaison to the legal department indicating that Village Code provided that the Board had the discretion to indemnify and defend any Village officer or employee who was sued. He added that in February of 2005 the previous Board amended the Village Code to basically make it mandatory that the Village must defend any Village officer or employee who is sued. Trustee Kennedy indicated that the Joan Mullins, Village Prosecutor had been named as a defendant in her capacity as a Village officer. Discussion ensued related to whether she was actually an officer of the Village. Trustee Aktipis contended that she was not an officer or an employee of the Village. Trustee Aktipis explained that Ms. Mullins was retained as prosecutor on the basis of a letter of intent and not a contract. Trustee Kennedy reminded Trustee Aktipis that in August of 2004 she was specifically appointed as prosecutor of the Village. Motion by Trustee Kennedy, seconded by Trustee Sanford to pay the bill as presented by Kubiesa, Spiroff, Gosselar & Acker for Legal Fees in the amount of $26,508.45. ROLL CALL VOTE: Ayes: 4 - Trustees Kennedy, Sanford, Yusuf and President Quinlan. Nays: 3 — Trustees Aktipis, Craig and Manofsky Absent: 0 - None. Motion carried. VILLAGE OF OAK BROOK Minutes Page 3 of 21 April 11, 2006 7. 6.H. AN ORDINANCE AUTHORIZING TRANSFERS AMONG BUDGET LINE ITEMS Trustee Aktipis raised the issue that the attorney bills continue to escalate and therefore a transfer of approximately $34,000 to cover the Kubiesa firm bills and approximately $13,000 to cover other attorney fees must be made. He suggested that it was time to consider a more stringent way of spending funds for legal fees. Motion by Trustee Kennedy to approve Ordinance S -1151, An Ordinance Authorizing Transfers Among Budget Line Items. ROLL CALL VOTE: Ayes: 5 — Trustees Craig, Kennedy, Manofsky, Sanford andYusuf. Nays: 1 - Trustee Aktipis. Absent: 0 - . Motion carried. I. 2006 FIRST QUARTER HOTEL /MOTEL TAX RECEIPTS Trustee Craig reminded the Board that a suggestion had been made to address the issue of using these revenues to fund the fireworks display. He asked for an update from the staff indicating that this transfer would not jeopardize that possibility. Finance Director Darrell Langlois indicated that it would not. Motion by Trustee Craig, seconded by Trustee Yusuf that the village Board authorize the release of 20% of the 2006 first quarter hotel tax receipts to the DuPage Convention & Visitors Bureau in the amount of $14,797.80 as requested by the Oak Brook Hotel, Convention and Visitors Committee. ROLL CALL VOTE: Ayes: 6 - Trustees Aktipis, Craig, Kennedy, Manofsky, Sanford and Yusuf. Nays: 0 - None Absent: 0 - None. Motion carried. 8. BOARD & COMMISSION RECOMMENDATIONS A. Kariotis — 12 Natoma - Variations At its meeting on March 7, 2006, the Zoning Board of Appeals held the required public hearing and completed its deliberation on a petition submitted by Mr. David Kennedy, on behalf of Mr. Chris Kariotis, the owner of the home located at 12 Natoma Court. He is seeking approval of variations to Section 13- 12 -3.E4 and 13- 12-3.E5 of the Zoning Ordinance. The proposed variations are needed to accommodate the planned construction of a new loop driveway, while preserving two existing trees on the lot. Relative to the required distance between driveways, the applicant is seeking relief to permit a distance of 72.6 feet versus the code requirement of 101.98 feet. The other variation relates to the distance between a driveway and the intersection of an adjacent road. The applicant is seeking relief to permit the driveway to be located approximately 30 feet from Natoma Drive, which is less than the required 50.98 feet. VILLAGE OF OAK BROOK Minutes Page 4 of 21 April 11, 2006 8. A. Recommendation By a vote of 6 -0, the Zoning Board recommended approval of the variation for the property at 12 Natoma Court as amended subject to the following conditions: 1. The corrected dimensions are to be added to the Site Plan. 2. To be constructed in substantial conformance with the site plan as submitted and amended (page 9 of the case file depicts the corrected dimensions). In making this recommendation, the Zoning Board found that the applicant addressed the required factors in testimony and in writing on pages C -C.1 of the case file. In addition, no comments or objections were received from the neighboring property owners. Motion by Trustee Sanford, seconded by Trustee Kennedy, to concur with the recommendation from the Zoning Board of Appeals to approve the requested variation to permit the construction of a new driveway for the property at 12 Natoma Court and authorize the Village Attorney to draft the necessary ordinance for final consideration at the April 25, 2006 Board of Trustees meeting. VOICE VOTE: Motion carried. B. CHRIST CHURCH OF OAK BROOK — SPECIAL USE AMENDMENT AND VARIATION At its meetings on March 7 and April 4, 2006, the Zoning Board of Appeals held the required public hearing and completed its deliberation on several petitions submitted by the Christ Church of Oak Brook, which is the owner of several properties located at 501 Oak Brook Road as well as 3202, 3212, 3222 and 3306 York Road. The requests were for a special use to amend the existing site plan and variations to Sections 13- 12 -3 -E4 and 13- 12- 3 -E1(b) of the Zoning Ordinance in order to permit the construction of two new right -in, right -out driveways, one on Oak Brook Road (31St Street) and one on York Road. Initially, the Church also requested approval to increase the size of the special use area to include the property known as 3306 York Road. However, in consideration of issues identified by the surrounding residents, the applicant withdrew that portion of their request. The requested variation to Section 13- 12- 3 -E1(b) is necessary to accommodate the width of the proposed right -in, right -out driveways. The applicant is requesting a minimum driveway width of 73 feet (DuPage County standard) versus Oak Brook's maximum width of 44 feet. The requested variation to Section 13- 12 -3 -E4 is necessary to reduce the required spacing between a new right -in, right -out driveway on York Road with an existing full access driveway on York Road to 250 feet versus Oak Brook's standard of approximately 400 feet for the Christ Church parcel. They will abandon the existing driveway at 3202 York Road. VILLAGE OF OAK BROOK Minutes Page 5 of 21 April 11, 2006 8. B. Oak Brook Road (31St Street) and York Road are under the jurisdiction of the DuPage County Division of Transportation (DPC DOT) and grants final approval for the installation of any new access to their roadway system. The applicant has submitted information indicating that DuPage County Division of Transportation has approved both of these access requests. The applicant has also provided a detailed traffic study discussing the technical issues and impacts related to the addition of two new accesses. Recommendations Special Use — By a vote of 6 to 0, the Zoning Board of Appeals concurred with the findings of the Plan Commission, to recommend approval of the request to amend the existing special use for the property at 501 Oak Brook Road to allow the construction of the new right -in, right -out access points as proposed on Oak Brook Road and York Road subject to the following conditions: 1. Approval of the requested variations; 2. To be constructed in substantial conformance with the plans submitted on page L of the case file; 3. Final County approval; 4. Final Engineering approval; 5. Approval is subject to adequately addressing the following concerns: a. Improvement of the appearance of landscaping adjacent to the right in/right out access on Oak Brook Road that is across Lincoln Road and adjacent to the right in/right out access adjacent to York Road; b. Safety concerns that were raised about the right -in, right -out access on York Road and the internal traffic flow on the property, which were addressed at this hearing. If any further safety concerns or problems arise they will be sufficiently addressed by the church and will communicate with village staff, and c. Sufficiently address proper signage for both right in/right out accesses. Variations — By a vote of 6 to 0, the Zoning Board of Appeals recommends approval of the variations as requested for the property at 501 Oak Brook Road to allow the construction of the new right in/right out access points as proposed on Oak Brook Road and York Road subject to the following conditions: 1. To be constructed in substantial conformance with the plans submitted on page L of the case file; 2. Final County approval; and 3. Final Engineering approval VILLAGE OF OAK BROOK Minutes Page 6 of 21 April 11, 2006 8. B. Trustee Sanford assured residents that had concerns about this location that because of the Special Use status of this property there are many controls that would restrict what can be done on the property. Motion by Trustee Sanford, seconded by Trustee Kennedy, to concur with the recommendations from the Plan Commission and Zoning Board of Appeals and approve the request to amend the existing site plan to include a new access on both Oak Brook Road and York Road and authorize the Village Attorney to draft the necessary ordinance for final consideration at the April 25, 2006 Board of Trustees meeting. VOICE VOTE: Motion carried. Motion by Trustee Sanford, seconded by Trustee Yusuf, to concur with the recommendation from the Zoning Board of Appeals to approve the requested variations to Sections 13- 12 -3 -E4 and 13- 12 -3 -E 1(b) of the Zoning Ordinance in order to permit the construction of a two new right -in, right -out driveways, one on Oak Brook Road (31" Street) and one on York Road and authorize the Village Attorney to draft the necessary ordinance for final consideration at the April 25, 2006 Board of Trustees meeting. VOICE VOTE: Motion carried. 9. UNFINISHED BUSINESS A. CONFIRMATION OF APPOINTMENTS — None presented. B. ORDINANCES & RESOLUTIONS 1) AN ORDINANCE AMENDING ORDINANCES 5 -1114 AND S -1148 RELATIVE TO THE PLAT OF ANNEXATION The Board passed on February 13, 2006 Ordinance S -1148 which served to correct the legal description for all of the Promenade /TIF ordinances passed in 2005. On March 17, 2006 a Revised and Corrected Plat of Annexation was provided to the Engineering Department. Therefore, the Ordinance amends the Plat of Annexation so that it can be filed with the DuPage County Clerk and recorded at the DuPage County Recorder's office. Motion by Trustee Kennedy, seconded by Trustee Sanford, for passage of Ordinance S -11535 An Ordinance Amending Ordinances S -1114 and S -1148 Relative to the Plat of Annexation. ROLL CALL VOTE: Ayes: 6 - Trustees Aktipis, Craig, Kennedy, Manofsky, Sanford and Yusuf. Nays: 0 - None Absent: 0 - None. Motion carried. VILLAGE OF OAK BROOK Minutes Page 7 of 21 April 11, 2006 9. C. AWARD OF CONTRACTS 1) FENCING OF SWIMMING FACILITY Two sealed bids were received and opened on Friday, March 24, 2006. Staff recommends the second alternate bid submitted by Peerless Fence Inc. Master - Halco, Ameristar Fence Products is more reliable and has the shortest lead time than the other fence products quoted. Staff has checked references for Ultra Aluminum Fence Products (base bid) and Elite Fence Products (first alternate bid). Ultra Aluminum and Elite Fence Products are not as reliable, have more failures than the Master - Halco Product, and have long lead times. Staff has reviewed references for Peerless Fence Inc. and is satisfied. A survey done by IRMA found the swimming facility to have a "High Risk Hazard" since the pools were not enclosed and secured by continuous fencing. Also, the DuPage Health Department has consistently deducted points from inspections in previous years for not meeting code on proper perimeter fencing. Peerless Fence Inc will remove the small sections of existing fence and replace it with a 5 ft continuous fence that encloses all the pools. Work will begin immediately following award. Motion by Trustee Craig, seconded by Trustee Aktipis, that the Village Board award a contract, subject to staff review, to the lowest responsive and responsible bidder, Peerless Fence Inc., West Chicago, Illinois in the amount of $27,473 for Fencing of Swimming Facility as indicated in the bid tabulation. ROLL CALL VOTE: Ayes: 6 - Trustees Aktipis, Craig, Kennedy, Manofsky, Sanford and Yusuf. Nays: 0 - None Absent: 0 - None. Motion carried. 2) 2006 CRACK SEALING PROJECT Three sealed bids were received and opened on Monday, March 27, 2006. Prospective bidders were required to be IDOT prequalified for this work. The bid received by Scodeller Construction is lower than the engineer's estimate by $9,207.99. Scodeller was awarded the contract in the late 1990's and performed adequately. The contractor is responsible for providing any necessary traffic control to direct motorists around the work zones for the 2006 Crack Sealing Project. Disruption is minimal with this process. All work is scheduled to be completed by June 3, 2006. Trustee Craig noted that the bid came in under the budget for the project by almost $3,000. VILLAGE OF OAK BROOK Minutes Page 8 of 21 April 11, 2006 6. C. 2) Motion by Trustee Aktipis, seconded by Trustee Manofsky, that the Village Board award a contract for the 2006 Crack Sealing Project to the lowest responsive and responsible bidder, Scodeller Construction, Inc. South Lyon, Michigan, subject to staff review and IDOT approval, based on unit prices as indicated on the attached bid tabulation, for an estimated total project cost of $43,724.51. ROLL CALL VOTE: Ayes: 6 - Trustees Aktipis, Craig, Kennedy, Manofsky, Sanford and Yusuf. Nays: 0 - None Absent: 0 - None. Motion carried. President Quinlan moved Agenda Item l O.B.1) to this time in the Agenda 10. B. ORDINANCES & RESOLUTIONS 1) A RESOLUTION ADOPTING THE 2006 LEGISLATIVE POSITIONS OF THE DUPAGE MAYORS AND MANAGERS CONFERENCE The Village has in the past adopted the legislative positions of the DuPage Mayors and Managers Conference and the Illinois Municipal League (as expressed in their respective legislative programs and in other legislative positions taken in the course of the legislative session) as Village policy through adoption of formal resolutions to that effect. The motivation for this step was to provide guidance and clarity in those instances when professional municipal employee associations, (e.g., fire chiefs, police chiefs, public works) to which our Department Directors belong, adopt positions on legislation that are contrary to the positions taken by the municipal associations (e.g., DMMC and IML) to which their employer belongs. Although not a frequent occurrence, these situations do arise from time to time. Additionally, by adopting these positions, our area Legislators have knowledge as to where Oak Brook stands on these matters. In order to provide appropriate guidance to our Legislators and Village staff, President Quinlan encouraged the Board to adopt the legislative positions expressed by the DuPage Mayors and Managers Conference in its 2006 Legislative Action Program (LAP) and during the session via a resolution. Motion by Trustee Aktipis, seconded by Trustee Sanford, to approve Resolution 941 Adopting the 2006 Legislative Positions of the DuPage Mayors and Managers Conference. ROLL CALL VOTE: Ayes: 6 - Trustees Aktipis, Craig, Kennedy, Manofsky, Sanford and Yusuf. Nays: 0 - None Absent: 0 - None. Motion carried. VILLAGE OF OAK BROOK Minutes Page 9 of 21 April 11, 2006 10. NEW BUSINESS A. CONFIRMATION OF APPOINTMENTS 1) FIRE PENSION BOARD Illinois Public Act 94 -0317 mandates the creation of a Board of Trustees of the Firefighter's Pension Fund. The Firefighter's Pension Board shall consist of five (5) members; two (2) shall be appointed by the President of the Village Board of Trustees; two (2) members are to be active participants of the pension funds who are elected by the members of the following and one member shall be a retired member of the fund. President Quinlan recommended appointment of Darrell Langlois, Village of Oak Brook Finance Director who has done an excellent job of representing the Board of Trustees on the Pension Board. Trustee Aktipis suggested a matter of procedure for future appointments to any Board or Commission. He suggested that a subcommittee of the Board or the entire Board in closed session review the qualifications of various candidates and on the basis of a consensus the matter would be brought before the full Board for a final vote. He added that he has no reservations about the appointment of the two candidates for the Pension Board. President Quinlan agreed that this is a procedure that had been agreed to by the Board, but in this instance there was a legal requirement to make the appointments by a particular date. He indicated that he had asked Trustee Yusuf who is the liaison to Finance in addition to liaison to the Police and Fire Departments and Trustee Craig who has had pension experience to review the applications of the various candidates. Trustee Craig commented on some recent indictments to members of pension funds. He added that in his review of the candidates he was very impressed with the appointee's credentials. Trustee Yusuf agreed with Trustee Craig's comments. Motion by Trustee Aktipis, seconded by Trustee Sanford, to concur with President Quinlan's appointment of Darrell Langlois to the Firefighter's Pension Board. VOICE VOTE: Motion carried. Motion by Trustee Aktipis, seconded by Trustee Manofsky, to concur with President Quinlan's appointment of Timothy Schlindwein to the Firefighter's Pension Board. VOICE VOTE: Motion carried. VILLAGE OF OAK BROOK Minutes Page 10 of 21 April 11, 2006 10. B. ORDINANCES & RESOLUTIONS 2) AN ORDINANCE AMENDING CHAPTER 2 (VEHICLES FOR HIRE) OF TITLE 4 (BUSINESS AND LICENSE REGULATIONS) OF THE VILLAGE CODE OF THE VILLAGE OF OAK BROOK, ILLINOIS With the recent renewals of the 2006 -2007 Village of Oak Brook taxicab driver's licenses and taxi inspections, we are requesting further amendments to Chapter 2 (Vehicles for Hire) of Title 4) Business and License Regulations) of the Village Code to clarify the conduct necessary for an applicant to receive a Village of Oak Brook taxicab driver's license and taxicab sticker. The appeal process for denial of taxicab driver's license was also reinstated. Motion by Trustee Craig, seconded by Trustee Yusuf, to approve Ordinance G- 802, An Ordinance Further Amending Chapter 2 (Vehicles for Hire) of Title 4 (Business and License Regulations) of the Village Code of the Village of Oak Brook, Illinois. ROLL CALL VOTE: Ayes: 6 - Trustees Aktipis, Craig, Kennedy, Manofsky, Sanford and Yusuf. Nays: 0 - None Absent: 0 - None. Motion carried. C. AWARD OF CONTRACTS 1) REPLACEMENT SQUADS — STATE OF ILLINOIS JOINT PURCHASING Pursuant to the provisions of Section 1 -7 -10 of the Code of Ordinances and Compiled Statutes, the Village is permitted to join with other governmental units in order to benefit from cooperative purchasing arrangements. Units 304, 305, 308, and 309 are Patrol Vehicles, Unit 301 is a Sgt. Supervisor Vehicle, and Unit 300 is an Unmarked Investigation Division Vehicle. The following tables indicate pricing received through a bid conducted by the State of Illinois. The deadline for ordering is April 28, 2006. Fnnr 7006 Fnrd Prawn Virtnriac Replaces units Landmark Ford #304 — 2005 Crown Vic — marked — 64,623 miles (State of Illinois) #305 — 2005 Crown Vic — marked — 61,076 miles #308 — 2005 Crown Vic — marked — 44,564 miles #309 — 2005 Crown Vic — marked — 123,466 miles (mileage based on projected trade -in date) Base Price $19,027.00 Delete Cruise Control ($120.00) VILLAGE OF OAK BROOK Minutes Page 11 of 21 April 11, 2006 10.C. 1) Delivery Charge $150.00 Delete Rear Window Switches $25.00 Power Seat (Drivers Side) $360.00 Traction Control $166.00 Heated Mirrors $34.00 Engine Hour Meter $174.00 Silicone Hoses $315.00 Rear Lock Inoperable $25.00 Cars Keyed Alike $48.00 3.55 Limited Slip Disk Axle $155.00 Side Air Bags $271.00 Ballistic Door Panels $23400.00 Color Vibrant White Interior Charcoal Black Total Per Vehicle $23,030.00 Total for 4 Vehicles $92,120.00 One 2006 Ford Crown Victoria Replaces unit #300 — 1996 Chevy Lumina — unmarked 66,627 miles (mileage based on projected trade -in date) Landmark Ford (State of Illinois) Base Price $19,027.00 Delete Cruise Control ($120.00) Delivery Charge $150.00 Delete Rear Window Switches $25.00 Power Seat (Drivers Side) $360.00 Traction Control $166.00 Heated Mirrors $34.00 Engine Hour Meter $174.00 Silicone Hoses $315.00 Rear Lock Inoperable $25.00 Cars Keyed Alike $48.00 3.55 Limited Slip Disk Axle $155.00 Side Air Bags $271.00 Ballistic Door Panels $2,400.00 Street Appearance Group $159.00 Color Dark Blue Interior Charcoal Black Total $23,189.00 VILLAGE OF OAK BROOK Minutes Page 12 of 21 April 11, 2006 10. C. 1) 2006 Ford Expedition Replaces unit #301 — 2003 Ford Expedition — marked — 108,318 miles (mileage based on projected trade - in date) Bob Ridings, Inc. (State of Illinois) Base Price $23,202.00 Ignition Override $285.00 Extra Programmed Key $75.00 Wig Wag Headlights $185.00 Heated Mirrors $84.00 Power Pedals $118.00 Delivery Charge $175.00 Vinyl 2 Id Row Seat ($94.00) Running Boards $434.00 Cloth Bucket Seats $380.00 Color Oxford White Interior Medium Flint Grey Total $245844.00 Grand Total (6 vehicles ) $1409 153.00 Delivery is expected approximately 90 days after receipt of order. The vehicles being replaced will be sold through the June, 2006 DuPage Mayors & Managers Conference Vehicle Auction (an ordinance to declare them surplus will be presented prior to the auction). Trustee Yusuf asked why the vehicle with only 44,000 miles was being replaced. Village Manager Boehm responded that it was a vehicle that had been involved in an accident and was totaled. Motion by Trustee Yusuf, seconded by Trustee Sanford, that the Village Board waive further bidding since the State of Illinois already conducted the bid process and issue a purchase order to Landmark Ford, Taylor, Illinois for five 2006 Crown Victorias and one Ford Expedition in the amount of $140,153. ROLL CALL VOTE: Ayes: 6 - Trustees Aktipis, Craig, Kennedy, Manofsky, Sanford and Yusuf. Nays: 0 - None Absent: 0 - None. Motion carried. D. PUBLIC WORKS CONSTRUCTION STANDARDS The Village Board approved Ordinance 1999- PW- CR -EXI -S -946 on July 13, 1999 adopting the first Public Works Construction Standards to establish uniform policies VILLAGE OF OAK BROOK Minutes Page 13 of 21 April 11, 2006 10.D. concerning requirements for and procedures regarding construction standards in the Village. Staff has been working on the first revision for several years and started discussion at the Board meeting of February 27, 2006 of one particular section dealing with objects within the right -of -way. At that meeting, the Board directed staff to re -fine the issue, bring it back to the Board for further review and forwarding to the Plan Commission for a public meeting. Since the objects within the right -of -way is the only contentious item within the update, staff has temporarily deleted it from the update and wishes to proceed with the strictly mundane items. The following is a brief synopsis of these various suggested revisions: 1. Each page is now numbered sequentially for easy reference. 2. Code section references have been updated to reflect the new Title configuration. 3. The "Placement of Objects in Parkways" section (pages 2 -4) is left blank until further Board direction. 4. A new "Residential Driveways" section (page 15) has been added. 5. A new section entitled "Stormwater System" has been added (pages 17 - 20). This section refers, among other things, to the conventional detention lake section that has been in the Standards but also adds a new "Naturalized Lake Shoreline Section" that deals with bio- engineering practices that improves water quality and aims at reducing geese. 6. The "Utilities" section (pages 25 -27) adds a statement regarding underground utility preference over aboveground and standards when in close proximity with a water main. 7. Within the Water System Specific Standards (page 28), language has been revised to state that dead -end water mains "shall" not be constructed as opposed to the previous "should ". Dead -end water mains are problematic in that they usually do not have sufficient flow to keep the water fresh and the Public Works Department must flush them on a regular schedule, requiring manpower that could be better spent elsewhere. In those cases where a hardship exists or the Village wishes to grant an exception, a variation process would be used. 8. The "Subdivision Water Main Construction" section has updated material specifications. 9. Other minor revisions of a technical nature have been made. VILLAGE OF OAK BROOK Minutes Page 14 of 21 April 11, 2006 IO.D. Motion by Trustee Aktipis, seconded by Trustee Sanford, to direct the Village Attorney to draft an ordinance approving an update to the Public Works Construction Standards without the "Objects within Parkways" section, which will be a separate action item. VOICE VOTE: Motion carried. E. NEPOTISM Trustee Manofsky has requested a revision to section 7.09(b) "Employment of Relatives" contained in the Village of Oak Brook Personnel Manual. The current policy reads as follows: "Except with the approval of the Village Manager, it shall be the policy of the Village of Oak Brook not to employ relatives of any elected Village official, member of any Village Board or Commission, the Village Manager, department heads, or Village employees within the same office, department or division." Trustee Manofsky stated that her goal in introducing this policy change was to help further transparency in the hiring process. She felt that all job seekers should begin with a level playing field. Her opinion is that nepotism denotes political favoritism, elitism and pay back for favors rendered or expected. She believes that any job openings available should be duly posted within the Village Hall and then advertised outside. She felt that since we live in one of the largest metropolitan areas in the nation, presuming that there are about four to five million people within a forty minute drive, that it is not necessary to keep dipping into the same well. Her concern is for where allegiances might fall, agendas of which the Village has no knowledge. She emphasized that the policy would take effect from this day forward. She did agree with Manager Boehm's concern for seasonal employees and would not have a problem excluding that category. She provided copies of policies from approximately ten municipalities contiguous to Oak Brook that she contacted. Village Attorney Kubiesa made a suggested change to our policy as outlined in his memorandum of January 30, 2006. After considering the attorney's recommendation and following further research of other communities Trustee Manofsky suggested, in a March 24, 2004 memo to the Board, the following language: "After adoption of this policy, no person shall be hired or appointed by the Village to any office, position, employment, employment contract or duty for which the salary, wages, pay or compensation is to be paid out of public funds, if that person is part of the immediate family of any public officer or employee. For purposes of this section, immediate family shall include spouse, mother, father, sister, brother, son, daughter, mother -in -law, father -in -law, brother -in- law, sister -in -law, grandmother, grandfather, grandson, granddaughter, uncle, aunt, niece, nephew and first cousin." VILLAGE OF OAK BROOK Minutes Page 15 of 21 April 11, 2006 10. E. Some additional information has been assembled for the purpose of providing the Board information for its deliberation on this topic. A copy of a June 4, 2001 Crain's Chicago Business article on this subject has been attached. In addition the employment of relative's policy from the law firm of Seyfarth Shaw, as amended for municipal use, is as follows: Employment of Relatives/Domestic Partners /Significant Others The employment of relatives /domestic partners /significant others in the Village may create the potential for serious conflicts, favoritism and adverse employee morale. In addition, personal issues from outside the workplace may be carried into day -to -day working relationships. It is for this reason that candidates who have a relative /domestic partner /significant other currently employed are not eligible for employment unless such a restriction is prohibited by applicable law. In the event that employees become related, domestic partners or significant others subsequent to hire, such persons may not: • Report to or supervise another relative /domestic partner /significant other, either directly or indirectly. • Work in positions where such a person has access to sensitive information regarding relatives, domestic partners or significant others. While the Village will attempt to find a comparable or suitable position for such employees, the Village has no obligation to create a new position or make significant changes to achieve this result. For the purposes of this policy, relatives are defined to include spouses, parents, children, brothers, sisters, brothers- and sisters -in -law, fathers- and mothers -in -law, sons- and daughters -in -law, stepparents, stepbrothers, stepsisters, and stepchildren. The terms "domestic partner" and "significant other" apply to individuals who are not legally related but whose relationship with the employee is similar to that of persons who are related by marriage. Trustee Yusuf had concerns about including first cousins and adding an option to hire individuals that may fall into these categories with the approval of the Board of Trustees. President Quinlan had concerns using the term "appointment ". Village Attorney agreed because of statutory concerns. Trustee Sanford agreed with the issue of posting and advertising for any position, but has some concerns for discounting qualified individuals because of familial status and would like to move slowly on making such changes. Manager Boehm also addressed the issue of possible discrimination by having a very stringent policy that is so restrictive. VILLAGE OF OAK BROOK Minutes Page 16 of 21 April 11, 2006 10. E. Trustee Kennedy expressed his concern about excluding qualified individuals from a position in the Village of Oak Brook because they have a relative working for the Village. He did not believe that there was anything wrong with having related people work for the same village or company. His only concerns would be for situations where a related individual would be supervising a relative or where a relative would have access to sensitive employment records. He felt that any policy must have a safety valve that allows in certain situations the ability to make exceptions. Trustee Aktipis indicated that in every decision that the Board makes, there are competing public interests. The public interest of preventing nepotism clearly overshadows the possibility of exemption some qualified individual from employment by the Village Trustee Yusuf called the question. Motion by Trustee Aktipis, seconded by Trustee Manofsky, to amend Section 7.09(b) of the Village of Oak Brook Personnel Manual stating "After adoption of this policy, no person shall be hired by the Village to any position, employment, employment contract or duty for which the salary, wages, pay or compensation is to be paid out of public funds, if that person is part of the immediate family of any public officer or employee. For purposes of this section, immediate family shall include spouse, mother, father, sister, brother, son, daughter, mother -in -law, father -in -law, brother -in -law, sister -in -law, grandmother, grandfather, grandson, granddaughter, uncle, aunt, niece, nephew and first cousin. Seasonal workers will be exempt, but the Village Manager must notify the Village Board of these exemptions." ROLL CALL VOTE: Ayes: 3 - Trustees Aktipis, Craig and Manofsky. Nays: 4 — Trustees Kennedy, Sanford, Yusuf and President Quinlan. Absent: 0 - None. Motion carried. The Village Attorney was asked to provide a policy or ordinance that would fit the needs of the Village based on the input from this discussion. F. DISCUSSION OF PENSION ACTUARIAL STUDY An actuarial study of the Police Pension Fund and Firefighters' Pension Fund is performed annually in order to monitor the funding progress of the two funds as well as determining the Village's contribution for the coming year. Since it is in both the Village's interest and the two pension fund's interest that these studies be performed, 50% of the cost of each study is paid for by the Village and 50% is paid for by the respective pension fund. For approximately the last 10 years the actuarial studies have been performed by Timothy W. Sharpe, Actuary. VILLAGE OF OAK BROOK Minutes Page 17 of 21 April 11, 2006 10. F. The actuarial study process begins with the Finance Department providing the actuary with participant salary, contribution, and service credit data. From there, the actuary calculates various scenarios based on prior actuarial assumptions as well as what the impact would be for various changes in actuarial assumptions. The actuary then attends a meeting with each respective Pension Board where the preliminary results and various changes in actuarial assumptions are discussed. Based on the direction given at the meeting, the actuarial studies are completed and then approved by each Pension Board. Once approved, a funding request is forwarded to the Village Board (ultimately responsible for both the actuarial study as well ad funding the pension programs). When meeting with the pension boards, the two major assumptions discussed are the salary increase assumption and the interest rate assumption, with the interest rate assumption having the greatest impact on the Village's funding level and contribution amount. When setting the interest rate assumption, the higher the assumed interest rate results in a greater funded percentage and a lower current cost to the Village since it assumes that interest will fund a greater percentage of the cost of the pension (employer and employee contribution fund the remainder). For the 2005 studies, both the Police Pension Fund and Firefighters' Pension Fund used an interest rate assumption of 7.5 %. For the last several years, however, the interest rate assumption has been a significant issue with several Police Pension Fund board members. In the late 1990's, when the stock market kept setting all -time highs, a 7.5% interest rate assumption seemed quite achievable. Beginning in 2000, however, the large declines in the stock market coupled with near all -time lows for interest rates (the 90 -day Treasury Bill rate fell below 1% in 2003) made it difficult to expect a long term return of 7.5 %, even if the stock market returns return to historical averages of approximately 10 %. After experiencing four consecutive years of returns below 7.5% (1999- 2002), in 2003 the Police Pension Board requested and the Village Board concurred with a decrease in the interest rate assumption to 7.25 %. In 2003 and 2004, after the investment return assumption was reduced, the stock and bond markets enjoyed a rebound. For 2003, the overall investment return for the Police Pension Fund was 12.14% and in 2004 it was 8.03 %. Since the investment returns for these two years was over the 7.25% actuarial rate at that time, the Police Pension Board recommended and the Village Board approved increasing the actuarial interest rate to back to 7.5% for the 2005 valuation. Now that the 2005 results are in and the actual 2005 return was 4.77 %, the Police Pension Board is recommending returning to an interest rate assumption of 7.25 %. As indicated on Exhibit 1, the impact of a 0.25% reduction in the interest rate is significant. If the interest rate is reduced, the Village's funded percentage would be reduced from 86.3% to 83.8 %, the unfunded liability would increase by $847,804, the Village's contribution as a percentage of payroll would increase from 18.59% to 21.06% (17.75% was used in the budget), and the Village's estimated contribution VILLAGE OF OAK BROOK Minutes Page 18 of 21 April 11, 2006 10. $ F. would be approximately $74,000 higher than if no change was made. Also, the Village would now be using different rates (7.25% for Police and 7.50% for Fire) for funds that have a nearly identical investment allocation. When setting the interest rate assumption, the actuarial study should consider the long term nature of the Pension Fund, should consider long term investment performance, and should avoid reacting too much to positive or negative data that has been experienced for only one or two years. The following is information the Village Board may wish to consider in making this determination: Historical Investment Performance - Exhibit 2 shows the eight year average investment performance at 6.11% since Oak Brook Bank began managing the assets in 1998. When considering this table, it should be noted that legislation increasing the limit for equity investments from 10% to 45% did not happen until 1999. Thus, when the equity investment returns were strong during 1998 and 1999 the Fund only had about 10% of it's assets in equities. On the other hand, when the stock market declined in 2000 -2002, the fund had between 25% and 30% of it's assets in equities. If a consistent stock /bond allocation could have been used, investment performance would have been better. • Past Index Performance - Exhibit 3 was prepared by Oak Brook Bank in order to demonstrate what the index performance would have been over a 1, 3, 5, 7 and 10 year period assuming consistent equity /fixed income allocations. This was done to offset the effects of not having ten years of historical data and not having a consistent equity /fixed income allocation due to the change in State Statutes in 1999. The Police Pension Fund's investment policy provides for a limit of 45% on equity investments, and on December 31, 2005 the Fund had 42% in equity investments. As this table indicates, the ten year return data for a 35% and 45% equity allocation both exceed the 7.50% assumption used in the prior actuarial study. However, the return data for the 5 and 7 year period is substantially below the 7.50% actuarial rate. It is the 5 and 7 year data that give several Police Pension Board members their biggest concern. • What are other pension funds using? In the Police and Fire Pension Fund universe, most have similar equity /fixed income investment allocations and by law all are limited to a maximum of 45% in equity investments. Exhibit 4 is a survey done of 45 area pension funds and indicates that the investment return assumption for these funds ranged from 7.00% to 8.25 %; the average investment return assumption was 7.41%; and 30 of the 45 funds survey used an investment return assumption equal to or greater than 7.50 %. • Future expectations- despite some statistics based on historical data that indicate that 7.5% may be appropriate, a Police Pension Board member is concerned about the economy going forward as indicated by this comment: "The post 9/11 world environment is a different world from what we have experienced in the past. A VILLAGE OF OAK BROOK Minutes Page 19 of 21 April 11, 2006 10. F. world of terrorism, expensive energy costs, competition from new emerging economies such as China and a continuing decline in hard good production in the United States should be taken into consideration in determining future rates of returns expected from our investments." No matter what interest rate is used, it is likely that the actual investment returns will vary widely. The varying returns end up impacting the Village's unfunded liability. By state law the Village's unfunded liability is amortized as a percent of payroll to 2033. Since the biggest concern in setting an interest rate assumption is setting the rate too high, it is likely that in down market either 7.5% or 7.25% would both be too high. If the Village does not change the investment return assumption and investment returns are below 7.5 %, this would result in a higher unfunded liability and thus the amortization payment in future would be greater. By lowering the investment return assumption, the Village's would be paying an additional $74,000 today and in bad markets the amortization payment would be less in future years, but it would take until 2033 to even out the $74,000. In a good investment market, lowering the interest rate assumption and having returns in excess of the assumed rate would result in lower amortization payments in future years. Timothy Sharpe, the Village's actuary, was in attendance at the Board meeting and explained the actuarial process and interest rate assumptions used by other jurisdictions. Trustee Kennedy felt that the Board should follow the recommendation of the Police Pension Fund Board and take a more conservative position. Trustee Aktipis agreed with Trustee Kennedy. Trustees asked questions of the actuary to help them determine which direction they would vote for. Motion by Trustee Aktipis, seconded by Trustee Yusuf, that the Village Board direct the actuary to complete the 2006 actuarial study using an interest rate assumption of 7.50 %, which is unchanged from the prior study. ROLL CALL VOTE: Ayes: 5 - Trustees Aktipis, Craig, Manofsky, Sanford and Yusuf. Nays: 1 - Trustee Kennedy. Absent: 0 - None. Motion carried. 11. INFORMATION & UPDATES A. VILLAGE PRESIDENT — President Quinlan reminded residents to take advantage of of the early bird special members rates at the Bath & Tennis Club. He also reported that wedding bookings at the Bath & Tennis Club were way above budget. B. VILLAGE MANAGER — Village Manager Boehm announced that there was a job description for a Media Consultant posted on the website VILLAGE OF OAK BROOK Minutes Page 20 of 21 April 11, 2006 11. C. VILLAGE CLERK — Clerk Gonnella reported that there were four precincts voting at the Village Hall for the March 21St primary and that 146 residents voted in the primary which was a good turnout for a primary election. 12. ADJOURN TO CLOSED MEETING to consider litigation, when an action against, affecting or on behalf of the Village has been filed and is pending before a court or administrative tribunal, or when the public body finds that an action is probable or imminent (2c 11) Motion by Trustee Craig, seconded by Trustee Aktipis, to adjourn to Closed Meeting at 9:04 p.m. ROLL CALL VOTE: Ayes: 6 - Trustees Aktipis, Craig, Kennedy, Manofsky, Sanford and Yusuf. Nays: 0 — None. Absent: 0 - None. Motion carried. 13. ADJOURNMENT Motion by Trustee Craig, seconded by Trustee Kennedy, to adjourn the Regular Meeting of the Board of Trustees at 9:22 p.m. VOICE VOTE: Motion carried. ATTEST: s /Linda K. Gonnella Linda K. Gonnella, CMC Village Clerk VILLAGE OF OAK BROOK Minutes Page 21 of 21 April 11, 2006