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Minutes - 05/10/2005 - Board of Trustees2 0 MINUTES OF THE MAY 10, 2005 REGULAR MEETING OF THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF OAK BROOK APPROVED AS AMENDED ON MAY 24, 2005. 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 7:35 p.m. The Pledge of Allegiance was given. R01.1, CAL1,- 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 Moline, Assistant Village Manager; Kenneth Kubiesa, Village Attorney; Dale L. Durfey, Jr, Village Engineer; Bruce F. Kapff, Director of Information Services & Purchasing; Robert L. Kallien, Jr., Director of Community Development; Margaret G. Klinkow, Library Director; Michael J. Meranda, Director of Public Works; Thomas F. Sheahan, Police Chief, Nelson Patras, Interim Manager of Bath & Tennis Club and Thomas McEllin, Fire Battalion Chief. PRESIDENT'S OPENING COMMENTS: President Quinlan welcomed the three new Village Trustees Jeffrey Kennedy, Kathryn Manofsky and Robert Sanford. He announced that he has distributed to the Board of Trustees policies that he has drafted for input from the Board that will be discussed at the next regular Board meeting. RESIDENTNISITOR COMMENT: Ms. E. M. Bloom, who represented her parents at 2700 Meyers Road, addressed the Board of her concerns and objection to the Illinois Tollway's expansion of four lanes south of I- 88 at the Meyers Road area with a service road immediately adjacent to their property. She recommended that the expansion be placed on the north side of I -88 in the commercial area. She indicated that Chateaux Loire, Chateaux Woods, Ginger Creek, Chambord and adjacent subdivisions will be affected by the sounds of vehicular traffic and she suggested that it would devalue their property. VILLAGE OF OAK BROOK Minutes Page 1 of 21 May 10, 2005 4. Chief Engineer Jeff Riley, Illinois Tollway Authority, addressed the Board of their proposed open road tolling project of the Ronald Reagan Memorial Tollway (I -88) widening and plaza relocation to alleviate congestion. On May 5th they met with adjacent property homeowners regarding this issue and on May 10th with Village staff to explain their proposal. He indicated that the Tollway Authority will listen to the affected homeowners concerned of their proposal and that they will be able to develop a solution to satisfy all concerned. The tollway will be expanded to eight lanes from Route 59 to the Eisenhower Expressway with completion by the end of 2006. He suggested that they would be willing to present a more detailed plan later if the Village requests it. He explained that the Tollway Authority has 12 acres located west of Meyers Road and I- 88 on the south side where they plan to implement the expansion with only 5 acres of their property. He indicated that the affected residents voiced their concern of lack of noise walls, proper drainage, landscaping and open space. He stated that the Tollway Authority believes they can address all of these issues. A noise wall will be implemented in this area also President Quinlan asked if Mr. Riley had a more detailed presentation addressing all of these issues for another meeting in which all concerned parties could be invited to attend. Mr. Riley explained that the design process has just begun. President Quinlan asked if there was a consensus of the Village Board to discuss this issue at the May 23, 2005 of the Committee -of -the -Whole meeting. Trustee Aktipis noted that there is a discussion of the future redevelopment of the Village that could be a lengthy discussion at that meeting. President Quinlan asked for input from the Village Board. The Trustees concurred that a special Village Board meeting be held for a public forum and presentation by the Illinois Tollway Authority of their expansion of the I -88 toll plaza. President Quinlan announced that all of the affected residents in the area will be given a minimum of a five day notice of the special meeting. Interested residents may contact the Village Manager and it will also be posted on the Village's website. Resident Ernest Karras asked if the wetlands at the location that is to be expanded would be addressed. He commented of the drainage problems that they have experienced over many years from the Tollway property and that none of the drainage problems have ever been addressed. He then addressed the issue of the noise level from the tollway and lighting of the expanded plaza. He asked that the expansion be placed in the commercial area rather than the residential area. Resident Dr. Raj Lal emphasized what the other residents have stated. He believes that the traffic on Meyers Road is a safety concern along with pollution, noise and the devaluation of properties. Resident Moinuddin Saiyed congratulated the three new Village Trustees. He also requested that with the swearing in ceremony of the new Trustees to include the other VILLAGE OF OAK BROOK Minutes Page 2 of 21 May 10, 2005 4. candidates from the election to attend the ceremony and interact with and learn from them. Thomas Cunningham, Board President of Grade School District 58, addressed the Board on behalf of their Board of Education to voice their concern that the proposed TIF District for the Promenade Project would take away tax revenue for school districts. He stated that they perceive TIF's as being adverse to the interest of children and students in their school districts. He explained that with the redevelopment of Ogden Avenue in Downers Grove that the School District reached an agreement with the Village of Downers Grove that holds the School District harmless from any adverse impact. He provided the Village with a copy of that agreement. He asked that the Village consider working with the School District to find a way of insuring that their District is not adversely impacted by the Promenade Redevelopment TIF. A. OAK BROOK AREA ASSOCIATION OF COMMERCE AND INDUSTRY President Quinlan noted that the person to address this topic was not in attendance of the meeting. 5. APPROVAL OF MINUTES: A. REGULAR BOARD OF TRUSTEES MEETING OF APRIL 26, 2005 Motion by Trustee Craig, seconded by Trustee Yusuf, to approve the Minutes of the Regular Board of Trustees Meeting of April 26, 2005 VOICE VOTE: Motion carried. Trustee Aktipis indicated that he has notified Village Clerk Gonnnella that he had some minor wording changes that would not substantially change the nature of the minutes. 6. CONSENT AGENDA: All items on the Consent Agenda are considered to be routine in nature and will be enacted in one motion. Trustee Aktipis asked that Agenda Item 6. J., An Ordinance Granting Variations from the Provisions of Section 13 -3 -5 and 13- 6B -3F(3) of Title 13 (Zoning Regulations) of the Village Code of the Village of Oak Brook Relative to Front and Rear Yard Setback Requirements — 3305 York Road — Bohne be removed for further discussion. Motion by Trustee Yusuf, seconded by Trustee Kennedy, to approve the Consent Agenda and authorize expenditures as presented or amended. ROLL CALL VOTE: Ayes: 6 - Trustees Aktipis, Craig, Kennedy, Manofsky, Sanford and Yusuf. VILLAGE OF OAK BROOK Minutes Page 3 of 21 May 10, 2005 6. Nays: 0 - None. Absent: 0 - None. Motion carried. A. Accounts Payable for Period Ending May 6, 2005 - $415,011.13 Significant Items included in Above: 1) Kubiesa, Spiroff, Gosselar & Acker P.C. — Legal Services — April, 2005 - $15,104.50 B. Approval of Payroll for Pay Period Ending April 23, 2005 - $635,431.78 C. Community Development Referrals D. Authorization to Seek Bids or Proposals or Negotiate Contracts: 1) Police Department Weapons E. Authorization to Hire, Promote or Reassign Duties of Village Employees F. Budget Adjustments G. Village Manager Salary Adjustment H. An Ordinance Authorizing the Sale by Public Auction of Personal Property Owned by the Village of Oak Brook I. Resolution Approving the Revised Primeco Settlement Agreement K. A Resolution Approving the Preliminary Plat of Subdivision Known as Villas of Oak Brook Subdivision and Granting a Variation from the Provisions of Section 14 -6 -3A of Title 14 (Subdivision Regulations) of the Village Code of the Village of Oak Brook, Illinois Relative to Public Right -of -Way L. Release of Funds — Oak Brook Oak Brook Hotel, Convention and Visitors Committee — 1St Quarter 2005 Receipts - $13,763.05 M. DuPage County Community Development Block Grant Program N. 2005 Paving Project -Change Order #1 O. A Resolution in Opposition to Legislation Relative to Fire Union Control Over Fire Pension Boards P. A Resolution in Support of Legislation Relative to Non -Home Rule Sales Tax Rate Increase Q. A Resolution in Opposition to Legislation Relative to Abolishing Local Electoral and Canvassing Boards 7. ITEMS REMOVED FROM CONSENT AGENDA: 6. J. An Ordinance Granting Variations from the Provisions of Section 13 -3 -5 and 13 -6B- 3F(3) of Title 13 (Zoning Regulations) of the Village Code of the Village of Oak Brook Relative to Front and Rear Yard Setback Requirements — 3305 York Road — Bohne Trustee Aktipis indicated that he had made a mistake and that this may be passed as well. Motion by Trustee Aktipis, seconded by Trustee Kennedy, to approve "An Ordinance Granting Variations from the Provisions of Section 13 -3 -5 and 13- 6B -3F(3) of Title 13 (Zoning Regulations) of the Village Code of the Village of Oak Brook Relative to Front VILLAGE OF OAK BROOK Minutes Page 4 of 21 May 10, 2005 7. 6. J. and Rear Yard Setback Requirements — 3305 York Road — Bohne." ROLL CALL VOTE: Ayes: 6 - Trustees Aktipis, Craig, Kennedy, Manofsky, Sanford and Yusuf. Nays: 0 - None. Absent: 0 - None. Motion carried. 8. PRESENTATION OF PROMENADE /TIF ELIGIBILITY: Mary Riordan, representing the developer NIA Hiffman, introduced Jeanne Lindwall who was the primary author of the plan, project and eligibility study for TIF eligiblity. Ms. Lindwall, Camiros Ltd, then explained the Camiros findings. NAI Hiffman ( "Developer ") has submitted a plan for, and the Village Board of Oak Brook has approved, the redevelopment of the southwest corner of Meyer and Butterfield Roads ( "Project "). As the site exists now, there are two older three story office buildings and one single story office building with a combined vacancy rate of 70 %. Other unique qualities of the site include, but are not limited, to an approximately 5 acre on -line detention pond and two underground garages. The redevelopment includes the demolishment of the existing buildings and the building an approximately 171,000 square foot upscale retail and commercial development. The Project will also require that modifications be made to both the detention pond and underground parking garages. Because of the certain existing conditions and hardships inherent to this site, the Developer is requesting the Village of Oak Brook provide it with economic assistance in the form of tax increment financing ( "TIF ") in the amount of $4 million. As discussed in detail below, without the Village's assistance, the redevelopment of this site will not be economically viable for this Developer or any other developer and as a result, the property will continue to decrease in value while at the same time costing the Village the sum of its public services without generating any benefit to the Village in return. Existing Conditions and Hardships Require TIF Assistance. As noted above, the redevelopment site is plagued by certain inherent conditions that propose a unique situation and increased cost to the Developer. Typically, when a developer starts a project, the developer is financially responsible for the following: 1. the property; 2. the foundation and buildings; 3. all site work, including, but not limited to, utilities and detention; and 4. site amenities, including, but not limited, landscaping, benches, etc. The developer would incur the above costs up front. Upon the completion of the project, however, the developer will lease the property to retail and commercial users and the tenants will pay enough rent for the developer to reimburse itself for its initial up front costs, and make a reasonable profit. VILLAGE OF OAK BROOK Minutes Page 5 of 21 May 10, 2005 A In contrast, before the Developer can even begin working on the Oak Brook Promenade shopping center, in addition to the four (4) "typical" costs, the Developer has to bear the costs of: 1. the cost of three office buildings; 2. the cost of terminating existing leases; 35 the cost of relocating the remaining tenants; 4. the costs of tearing down the buildings; 5. asbestos abatement; 6. the cost of lowering and expanding the detention pond including the removal of bad soils; and 7. the cost of the structural design, materials and actual construction required to rebuild over the underground garage. Unless the Developer of the Promenade can somehow mitigate the increased costs associated with redeveloping the site, it will be forced to charge a much higher rent than any tenant will be willing to pay. A list of extraordinary costs associated with the redevelopment of the subject property. The "higher rent" problem is not unique to NAI Hiffman or its proposed Oak Brook Promenade development. The increased costs are a result of conditions inherent to this property, not the Project. Any developer who attempts to redevelop this property, therefore, will encounter the same problems with the same result. Without outside financial intervention, the property cannot be redeveloped and be competitive in the market place. The only viable form of financial assistance for projects such as the Promenade is tax increment financing. Special service areas simply result in an extra tax. If the tenant pays the tax, the rents will be lower. If the developer pays the additional tax, the costs will be higher. Neither of these scenarios helps defray extraordinary project costs. The TIF Act requires that in order to use TIF, the property to be redeveloped must first qualify as either a "conservation" or "blighted" area. To qualify for TIF assistance, certain factors prescribed by the TIF Act, must be present on the property. For this purpose, the term "blight" is a technical term specifically defined by the TIF Act for the limited purpose of qualifying /disqualifying a particular property for tax increment financing assistance. A finding of "blight," therefore, is site specific, not community based. Accordingly, making a finding of "blight" on a property within a certain village does not mean that village is blighted; it simply means that there is an area that will not develop without public intervention. Some of the wealthiest and most affluent communities in Illinois have used tax increment financing and have declared certain areas "blighted" in order to do so. Those VILLAGE OF OAK BROOK Minutes Page 6 of 21 May 10, 2005 8. communities include Bannockburn, Lake Forest, Riverwoods, Deer Park, Highland Park, and Barrington. Obviously, none of these communities are blighted in the colloquial meaning of "blight "; but, in each, there existed property or properties that qualified as blighted as defined by the TIF Act. Each of the aforementioned municipalities took advantage of the assistance offered by the TIF Act to spur redevelopment within their respective communities. In fact, several of these communities have median home prices and incomes that even exceed those of the Village of Oak Brook thereby illustrating that designating an area as "blighted" for the purpose of TIF and redevelopment has no causal connection with the wealth or success of a community. Because of the extraordinary costs associated with the redevelopment of this site, the Developer is requesting that the Village of Oak Brook pledge 20% of the estimated $1,000,000 projected sales tax of the Project for a period of 15 years. In addition, the Developer is requesting the Village pledge 100% of the incremental real estate taxes for the same time frame. Whenever TIF is proposed, its impact on the relevant taxing bodies must be a consideration, especially as it affects school districts which rely so heavily on property taxes. The money received by a taxing district, is based on the equalized assessed value ( "EAV ") of the property. In the case of the Oak Brook Promenade site, the EAV has declined over the last few years and there is every reason to believe will continue to decline without intervention and redevelopment (the 2004 EAV for the property has been established and it has declined another $500,000). Freezing the EAV at its current level, therefore, will immediately benefit the taxing bodies by stabilizing the money it receives. Moreover, the taxing bodies will benefit in the future from the greatly increased EAV of a completely redeveloped high -end retail and commercial center. Pursuant to the TIF Act, the Village of Oak Brook was required to convene a meeting of a representative from each taxing bodies empowered to levy directly on the subject property. During that meeting, Jeanne Lindwall from Camiros, Ltd. reviewed the eligibility qualifications for the property, and a discussion of TIF, the redevelopment plan and the proposed TIF ordinances were discussed. At the Oak Brook Promenade meeting, there were representatives from five taxing districts, and the vote was in favor of the TIF District by a count of five -to -one. Ms. Reardon explained that she did meet with School District 58 members and there was a discussion of a hold harmless agreement. One question raised was that with the agreement with the Village of Downers Grove, did the Village participate with any sales taxes. At the Joint Review Board meeting, they were told that at a prior School Board meeting this question was raised and no one could answer that question. She noted that this is a rare TIF situation, where she has never seen a Village is actually contributing as much or more than the taxing districts. She believes that this is unique from the Downers VILLAGE OF OAK BROOK Minutes Page 7 of 21 May 10, 2005 8. Grove situation. 9. PUBLIC HEARING /TIF: President Quinlan called the Public Hearing to order at 8:26 p.m. on Tuesday, May 10, 2005 and that the petitioners for the TIF have already made their presentation and questions from the Village Board of Trustees or any interested parties in the audience at this time are welcomed. Trustee Sanford stated he had three concerns of the TIF. The issue of the vacancy rate of the buildings which has caused economic blight at 70 %. He asked if the problem is a 70% vacancy rate or is the problem, if the use of the property is changed, the 30% occupancy rate. Normally commercial land value is set by the highest and best use of real estate and there are problems with the property. He believes with the value of the land that there may be a discrepancy between the seller and buyer in the price of the land, which is negotiated rather than relieved through a tax incentive. His third concern is that Oak Brook has never had a TIF as Oak Brook is a good commercial area is the fact that there is a level playing field by adhering to our zoning regulations and codes. He believes that if a developer is given an advantage, then it will bring the element of negotiating with the Village of Oak Brook to attract businesses. Ms. Reardon addressed his concerns with the issue of precedence. She explained that a property owner does not have the right to obtain economic assistance from a municipality. It is 100% discretionary with a municipality. This project is unique, they believe, due to the existing conditions and the reasons previously stated. Information of the value of the property as vacant land has been submitted to the Village Manager from St. Paul and it would be available on a confidential basis to the Board of Trustees. The occupancy rate is due to the nature of the buildings being obsolete with no loading docks, or the ability to redesign space, which has reduced the vacancy rate. Trustee Kennedy discussed the term "uniquely troubled property" and how troubled is the property and is it unique. He indicated the following problems with the property: the property cannot be expanded and it has a 5 acre water retention basin which has to be increased if the property is redeveloped to a 6 acre basin. The retention basin serves as a regional stormwater control system that occupies 35% to 40% of the property. He asked staff if this is unique in the Village. Village Engineer Durfey and Community Development Director Kallien both indicated that there is no other property in Oak Brook with this type of situation. With only 60 % -65% of the site as buildable, it requires underground parking in order to locate the shopping center. Ms. Reardon responded that the only way for the developer to comply with the Village Code, since there isn't enough surface area, is by providing underground parking. It is estimated that the demolition and reuse of the garages will be approximately $6,000,000. In addition to this cost, there is a $2,000,000 cost for site and pond reconstruction. Also VILLAGE OF OAK BROOK Minutes Page 8 of 21 May 10, 2005 9. there are existing tenants that are in negotiation with the developer for existing leases that have to be bought and require payment for relocation costs. Trustee Kennedy indicated that there are many properties in Oak Brook that are obsolete and have to be demolished for mixed use or retail. Many of these offices, if redeveloped, would require the developer to relocate tenants so this is not as compelling to him as the unique problem of the retention pond to be expanded and the demolition of the buildings without damaging the garages to be utilized in the new center. He believes that this is a uniquely troubled property in Oak Brook. He is concerned about precedence but he believes that granting a TIF in this situation would not establish a precedence that would occur in other situations. His concern is the unique negative factors but the positive is that this is an affluent community in an affluent area, which could support the upscale center. This is a recognized retail designation in the Chicagoland area and the Village does not have a real estate tax. He researched with the Illinois Tax Increment Association website which stated the following question: "When considering an area for TIF designation, municipal officials must ask the question will the same kind of private investment occur here without an incentive ?" In order to designate that area as a TIF District the answer to this question must be no. But for the incentive provided by the tax increment financing, the development would not occur at the designated area. He stated that he has to be convinced that the developer needs the $6,000,000 of tax abatement half from the school districts, park district, etc. and half from the Village of Oak Brook from sales tax revenue to make the project viable. Ms. Reardon responded that $6,000,000 is not being asked but they are asking for assistance in the area of $4,000,000. It is proposed that they can recoup this amount in a 15 -year period whereby the property will be fully assessed and funds will go to the appropriate taxing districts and to the Village of Oak Brook. She indicated that the project would not be built without the TIF. She responded to a question from Trustee Kennedy that the development will be built if the TIS is granted. Trustee Aktipis stated he shares some of the concerns of Trustee Kennedy and they have discussed this matter prior to the meeting. He suggested that an effective way of allaying the concerns that have been expressed at the meeting would be if the developer were to provide the Board of Trustees, their feasibility study of the estimated cost of construction, rehabilitation of the site, cost of leasing, the total cost of the project to a fully leased state, the analysis of the income, and obtaining the value of the completed project. He asked if this could be provided to the Board, with assurance of confidentiality, from the developer. This would be helpful although it would represent the builder's analysis. Ms. Reardon responded that the developer would provide this with the caveat that this information is not subject to the Freedom of Information Act because it does have proprietary and confidential information. If Village Attorney Kubiesa does decide that it is subject to FOIA, that it be returned to NAI Hiffman. VILLAGE OF OAK BROOK Minutes Page 9 of 21 May 10, 2005 9. President Quinlan noted that Attorney Kubiesa has indicated that there is a method in which this may be accomplished and it will be communicated accordingly. Trustee Yusuf stated he is excited of the proposed project and that it would be an enhancement to the Village. The revenue is a factor with generating sales tax revenue, as sources of revenue are important. Again, the question does arise if the developer needs the TIF to make it feasible. He explained that the Village does not receive real estate tax funding as the Village receives revenue from the minor utility taxes and sales tax revenue. The Village will be providing public services for the proposed project in fire and police protection. The school districts do receive a certain amount of real estate tax from that property and the Village receives none. In the calculation of the sales tax, he asked that this be taken into account. President Quinlan again noted that this is the only public hearing held on this issue and asked the audience to address this issue at this time. Resident Dr. Forutan indicated to the Board that this is a commercial project put together by experts. He does not see a role as a taxpayer in this case to help the developer for his project when he will make money for it. He does not believe the Village of Oak Brook is in a blighted area for the TIF district. Resident William Lindeman voiced his concern regarding if the TIF is granted, will it be built. He recalled property on Kensington that was requested to be rezoned for five story office buildings and was never built. The property has remained vacant while the property value has been enhanced with the zoning change but does not generate any taxes because the property is assessed as vacant property. He asked if it isn't built, what would happen President Quinlan explained that if the TIF is granted that it be tied to a development contract. Dr. Dale Martin, Superintendent of Grade School District 58, explained that school districts are in trouble because of TIF's and asked the Board to review TIF's to determine how many have been successful or haven't been successful and what that impact has caused. He stated that 80% of the school districts in the State of Illinois are in trouble due to tax caps including TIF's. He suggested that if the TIF does not cost the school district anything then, why not consider holding School District 58 harmless. He believes that over the next fifteen years that it will cost District 58 funding for a developer to make revenue from the project. Fifteen years later, hopefully the project will produce a higher quality property that is worth more value so that the School District may have increased funding. Resident Al Knuth explained that TIF's do work as he did research at the York Township Assessor's Office and the Elmhurst Planning Division. In Elmhurst there was a TIF at the VILLAGE OF OAK BROOK Minutes Page 10 of 21 May 10, 2005 9. corners of Route 83 and St. Charles Road. The property in question is in decline as their taxes declined from $194,000 in 1991 to the present of $137,000. This is an opportunity to convert this project to a multi -use development. He hopes that something could be worked out with the school districts. Mario Vescovi inquired what type of retail outlets will be at the outlet facility and is it really necessary. Ms. Reardon responded that the Manager of the Oakbrook Shopping Center indicated that he wished that their center had ten more acres at their location due to the number of retailers wanting to locate at their center. She suggested that the area would be a regional shopping center and that this shopping center will happen whether in Oak Brook or outside of the Village's boundaries. This development will not have any affect with the Oakbrook mall. Trustee Kennedy agreed with Ms. Reardon that he had previously spoken with the General Manager of the Oakbrook Shopping Center who is not the least concerned of the competition but rather believes that it will enhance the area. He also noted that there is no retailer or retail developer at the meeting complaining of this project. Community Development Director Kallien explained that the Oakbrook Shopping Center does a traffic count of the cars in their center. They estimate that 25,000,000 people come to the mall each year. Trustee Sanford also stated that he had met with the people at the Oakbrook Shopping Center and their only complaint was that the developer move to the property south of them due to the synergy of the shopping. Resident Baker Nimry commented that the Highland Avenue project will open in 2006 and he asked why the retailers would wait until 2008 for this project Ms. Reardon explained that the developer expects that some of the stores will be delivered in 2006 with the completion in 2007. She was referring to 2008 as the full assessment from the tax assessor's office and the collection process. Stores will be open for Christmas next year. President Quinlan officially closed the Public Hearing of the TIF at 9:17 p.m. 10. BOARD & COMMISSION RECOMMENDATIONS —None presented. 11. UNFINISHED BUSINESS: A. CONFIRMATION OF APPOINTMENTS — None presented. B. ORDINANCES & RESOLUTIONS — None presented. VILLAGE OF OAK BROOK Minutes Page 11 of 21 May 10, 2005 11. C. AWARD OF CONTRACTS: C. 1) COPIERS — WEST WING AND POLICE DEPARTMENT Four sealed bids were opened on Wednesday, April 26, 2005. The bid specification was for a Ricoh 2051 and 2075. During the bid review process, staff learned that Savin is a subsidiary of Ricoh. It was confirmed by Ricoh that the Savin 4051 and 4075 are the same machines as the Ricoh 2051 and 2075. Staff is recommending acceptance of the bid submitted by Advanced Business Solutions based on the total cost of ownership of each machine. Staff has received and reviewed references and is very satisfied with the level of service offered by Advanced Business Solutions . The copier located in the west wing was purchased in 1991 by the Engineering Department. It has over 514,000 copies and has reached the end of its useful life. At the time it was purchased it was intended to be used by one department only (it was a low volume machine). When the addition to the Municipal Complex Building was complete, the copier was moved to the West Wing and is now being used by multiple departments. The recommended Savin 4051 SP is a higher volume machine. The copier located in the Police Department Records Division was purchased in 2000. It has over 1,600,000 copies and will be put in the lower level Police Department for the officer's use. Motion by Trustee Yusuf, seconded by Trustee Aktipis, that the Village Board award a contract to the lowest responsive and responsible bidder, Advanced Business Tech, 3860 N. Ventura Drive, Arlington Heights, Illinois 60004, subject to staff review, for a Savin 4051 SP Copier in the amount of $11,460.00 and a maintenance cost of $0.005 per copy for three years, and a Savin 4075 Copier in the amount of $12,859.00 and a maintenance cost of $0.004 for three years, based on the attached bid tabulation, for a total purchase price of $24,319.00. ROLL CALL VOTE: Ayes: 6 - Trustees Aktipis, Craig, Kennedy, Manofsky, Sanford and Yusuf. Nays: 0 - None. Absent: 0 - None. Motion carried. 2) 2005 INDEPENDENCE DAY CELEBRATION CONCESSIONS In January of 2005, staff solicited proposals from vendors for parking and concessionaire services for the 2005 Independence Day Event in Oak Brook. The two services were separated for presentation and consideration by the Village Board. In March 2005, the parking /valet service was presented to the Village Board and staff's recommendation was approved. The second service for VILLAGE OF OAK BROOK Minutes Page 12 of 21 May 10, 2005 11. C. 2) consideration is the concessionaire services which are presented herein. Staff has been reviewing various options for operating the 2005 Independence Day Celebration. These options include: Option 1: Village Staff act as full concessionaire for the event; Option 2: Award the contract to RB Enterprises, the sole proposal received through the RFP process; and Option 3: Modified approach: Bath and Tennis Club staff act as concessionaire for beverages (beer and wine) and RB Enterprises act as concessionaire for food sales and novelty sales (including a 20% commission on gross novelty sales). 2004 Food and Beverage Concession: In 2004, RB Enterprises served as food, beverage and novelty concessionaire for the Fireworks Display for the Independence Day Celebration. In addition, Village staff added the element of ticket sales to concession operations for the Fourth of July event. Although this exercise gave the Village a better understanding of where profits were made on concessions, it also demonstrated the risk involved in the operations should the event fall on cold or inclement weather. The result was that the Village lost approximately $250.00 on Concession Sales after adding in the Village Novelty commission of approximately $1,000.00, not including staff labor (This was also the result of the guarantee the Village provided RB Enterprises, the concessionaire, of $5,250 in sales; total ticket sales were $41000.00). In the past few years, concessions have not shown to be a profit maker for the Sprorts Core. Although staff has reviewed at length taking over the full concession operations, the risks associated with the event (short duration for sales and possible inclement weather) weighed against the opportunity for a booked event in the clubhouse, a guaranteed revenue generator, makes the decision to recommend that labor intensive and riskier product sales, food preparation and sales and novelty item sales, be contracted out. (The Bath and Tennis Club has a wedding reception booked for the Clubhouse on the Saturday night of this weekend.) The Bath and Tennis Club staff do plan to take on beverage (beer and wine) sales for the event. The labor and risk are minimal due to the ability to use the unsold product at other events. Staff has discussed this revision to the original scope of services of the RFP with RB Enterprises and RB Enterprises has agreed to act as concessionaire for the food and novelty sales as well as return a 20% commission to the Village on the sale of the novelties. VILLAGE OF OAK BROOK Minutes Page 13 of 21 May 10, 2005 11. C. 2) After review of the revenues generated from the concessions at the Independence Day event over the past two years, the additional events at that Bath and Tennis Club, and the overall risk involved in making a profit on the concessions, staff is recommending that the Village Board direct staff to approve the staff recommendation of Option 3 as presented. Trustee Manofsky noted that there is a wedding reception on Saturday and therefore the fireworks will be on Friday, July 1st. She asked how the Village verifies novelty sales from RB Enterprises. Interim Bath & Tennis Club Manager Patras explained that in the past the Village has just accepted the numbers they submitted. Trustee Manofsky indicated that last year there was a loss of $250 on concession sales. President Quinlan explained that this was partly due to the Village Board's request with a different method of payment. The Village implemented a guaranteed payment system of a flat fee and the sales did not cover the guaranteed amount due to poor weather conditions. Trustee Manofsky asked if there had been a consideration of eliminating food. President Quinlan commented that the Bath & Tennis staff will be selling alcohol this year and that food should be available due to this. She asked if staff may determine if the Village receives the proper share of the food sales. President Quinlan remarked that last year there was a ticket booth operated by staff that sold food tickets and collected the revenue. RB Enterprises collected the tickets and it was reconciled at the end. He noted that this process slowed down sales last year and there hasn't been a reason to question the integrity of RB Enterprises as the Village has had a long- standing relation with them. Manager Patras interjected that in years past R & B has given the Village a 10% commission on gross sales of concessions. Trustee Manofsky asked that the record should show that the Village has no way to verify what the sale of the novelties was in the past. If the Village does not have ticket sales this year, then there isn't a way to know the food sales Manager Patras noted that this is correct but the Village is not taking on any risk due to poor weather and RB Enterprises has not been given a guarantee this year. Trustee Manofsky then asked how the Village would know what they sold in food. Manager Patras explained that there isn't any commission on the food sales, as the Village will be selling the liquor. She asked what the Village is paying RB Enterprises for the parking. President Quinlan explained that the parking arrangements have been previously approved by the Village Board. Manager Patras indicated that RB Enterprises is being paid $22,000 for traffic control, field preparation, lighting equipment, barricades and caution taping. VILLAGE OF OAK BROOK Minutes Page 14 of 21 May 10, 2005 11. C. 2) Motion by Trustee Craig, seconded by Trustee Kennedy, to approve a motion to direct staff to enter into an Agreement with RB Enterprises for Food and Novelty Concessions for the 2005 Independence Day Celebration (Fourth of July Fireworks). ROLL CALL VOTE: Ayes: 6 - Trustees Aktipis, Craig, Kennedy, Manofsky, Sanford and Yusuf. Nays: 0 - None. Absent: 0 - None. Motion carried. D. RECONSIDERATION OF PLAT OF ABROGATION OF CONSERVATIO EASEMENT AND FLOOD PLAIN EASEMENT — LOT 22 — OLD OAK BROO SUBDIVISION — 3315 SPRING ROAD At the Board meeting of April 26, 2005, the Plat of Abrogation of Conservation Easement and Flood Plain Easement were not approved. The applicant has requested that the Village reconsider that action. One correction Village Engineer pointed out is that the new flood plain maps depict a lowering of the high water level by 0.7 feet as previously his memo incorrectly stated it as 1.2 feet. This type of abrogation is also available to any property owner along Salt Creek where less land is now within the flood plain due to the latest flood plain maps. He has sent letters to all of the homeowners in the Old Oak Brook Subdivision along Salt Creek informing them of this. The petitioner has indicated that the land under consideration is no longer in the flood plain as per letter dated September 16, 2003 from the Federal Emergency Management Agency. This letter clearly states that "The Flood Insurance Study (FIS) Flood Insurance Rate Map (FIRM) and the Flood Boundary and Floodway Map (FBFM for the village of Oak Brook have been revised by this Letter of Map Revision (LOMR) to reflect the Salt Creek channel Improvement project along Salt Creek ." This revision was initiated by Mr. Mark Hoskins, P.E., of Baker Engineering, Inc., in a letter dated September 17, 2002. This letter also states that a copy of the public notification of the revised Base (1% annual chance) Flood Elevations (BFE' S) was published in the Daily Herald on May 15, and May 23, 2003 and in the Federal Register. The revision was to become effective by October 16, 2003, 30 days from the date of the LOMR letter. Any request to change these documents should have been made during that time and must be based on technical and scientific data. President Quinlan noted that this agenda item may not have been placed on the agenda correctly as the Village Board denied this request at their last meeting. Dr. Forutan suggested that this agenda item should not have been placed on the agenda in this manner. Trustee Sanford explained that he spoke with Dr. Forutan and that there were a VILLAGE OF OAK BROOK Minutes Page 15 of 21 May 10, 2005 11. D. number of issues brought to his attention that he then discussed with Village Engineer Durfey. He indicated that the property is in compliance with the Village's zoning code. On the abrogation for the flood plain, the concern is how the flood plain was determined. Trustee Sanford explained that FEMA designated the flood plain and basically if the Village Board agreed with this, the abrogation should be issued, then this would be a housekeeping issue of bringing the Village and the federal flood plain in agreement. Dr. Forutan brought up the issue of trust and confidence. He is confident that the Village Engineer's research is correct and he spoke with Mrs. Sait if she would be willing to let the Old Oak Brook Homeowners Association have an opportunity to speak with the Village Engineer to confirm that the project is valid. Mrs. Sait has been very cooperative in this issue. He stated the benefit from this is that all of the residents that back up to Salt Creek would benefit from this as they will be able to expand the buildable area of their land if this abrogation is allowed. He suggested that the homeowners association may contract with an outside firm to confirm Engineer Durfey's findings. He recommended that this agenda item be continued until the Old Oak Brook Homeowners Association has had an opportunity to evaluate the findings of Engineer Durfey. President Quinlan recommended that this be amended to encompass all parties for continuation to the first meeting in June. During this time frame staff could work on behalf of both parties to have this issue resolved. Trustee Kennedy asked Engineer Durfey if the easements are embedded in the deeds of the property owners along Salt Creek, the plat of subdivision or in the zoning ordinance. Engineer Durfey explained that they are on the plat of subdivision. Trustee Kennedy asked if there is a way to do this on a global basis and abrogate for the entire subdivision so that the Village does not force residents to come before the Village Board and Engineering staff for approval. Village Attorney Kubiesa indicated that since this applies to various homeowners of property that he believes that they would have to be involved in this process. He does believe that the Village Board may unilaterally abrogate the easements going across private property without the involvement of the homeowners Trustee Kennedy stated if all the residents in that subdivision along Salt Creek agreed that they wanted this done, could it be done on an aggregate basis by amending the subdivision plat. Attorney Kubiesa stated that this could be done. Trustee Kennedy suggested that theoretically this appears to be more efficient. President Quinlan explained that this is part of what Dr. Forutan is suggesting that this affects more residents in his subdivision but he could not speak on behalf of all of those residents affected. It could also affect other residents along Salt Creek. VILLAGE OF OAK BROOK Minutes Page 16 of 21 May 10, 2005 11. D. Mrs. Sait addressed the Village Board that she has been working with the Village of Oak Brook for fourteen months on this project and it has been processed legally. She asked that this review process be performed in one month and not postponed until September. She stated that she needs to have her easements approved by the Village then she has to have the DuPage Forest Preserve approve her conservation easement and other work. Trustee Yusuf asked if the revised high water levels do not include calculations for the Elmhurst Quarry. Engineer Durfey stated this is correct. Trustee Yusuf stated that there could be a further drop in their high water marks along Salt Creek. Engineer Durfey agreed with this statement also. Trustee Yusuf suggested that those affected may want to wait for an approved plat of abrogation until the recalculations are completed because they could have more usable area in their yards as the flood control mechanisms are in place at the Elmhurst Quarry but they have not recalculated how it would impact the high water marks along Salt Creek. Old Oak Brook Homeowners Association President Dr. Forutan stated that only two weeks ago the association was notified of this. He reaffirmed that the vote taken by the Board of Trustees two weeks ago was to deny the request by a 3 to 1 vote. He suggested that this should not have been placed on the agenda because it was defeated. However, in a sense of cooperation and accommodation, Dr. Forutan stated that he is willing to work with the residents along Salt Creek. Unfortunately, three of the residents will be unavailable for the next two weeks. He has spoken to them and they have all agreed that they are willing to commission an engineering firm to inform them what can be done and that is why he asked this to be continued until September. President Quinlan asked for a motion to continue this agenda item for two Board meetings. Motion by Trustee Sanford, seconded by Trustee Yusuf, to continue this agenda item to the first regular Village Board meeting in June, 2005. VOICE VOTE: Motion carried. 12. NEW BUSINESS: A CONFIRMATION OF APPOINTMENTS - None presented. B. ORDINANCES & RESOLUTIONS,- None presented. C. AWARD OF CONTRACTS 1) LEATHER PURCHASE VILLAGE OF OAK BROOK Minutes Page 17 of 21 May 10, 2005 12. C. 1) The new Glock handguns have a larger frame and presently will not fit in the police officers holsters. The magazines that the new handguns use are also larger and will not fit in the current magazine pouches. All of the new handguns will be equipped with an M3 flashlight which stays mounted on the handgun. The Department's current holsters are also not designed to hold a handgun equipped with a flashlight. Motion by Trustee Craig, seconded by Trustee Yusuf, to approve a purchase order to Kale Uniforms in the amount of $5,100.00. ROLL CALL VOTE: Ayes: 6 - Trustees Aktipis, Craig, Kennedy, Manofsky, Sanford and Yusuf. Nays: 0 - None. Absent: 0 - None. Motion carried. D. AUTHORIZATION TO PURCHASE 1) CONCRETE PATIO — LIBRARY The Library has worked with the Friends of the Library to design a new entrance garden. The Friends participated in the selection of a landscape architect, gave suggestions for plant material and general appearance and paid for the design. The Library Commission has reviewed the garden design and is anxious to have the garden in place as soon as possible. On the recent Patron Satisfaction Questionnaire conducted by the Library, the second highest priority with respondents for Library initiatives was landscaping and outdoor seating. The Village has budgeted approximately $18,000 for the entrance garden in 2005. In order to include as many planned features as possible and keep administrative costs low, Library Director Klinkow is acting as the general contractor on the project. Proposals were solicited from three concrete patio vendors working from the drawing and they offered several solutions. The one staff recommends supplies 5" of concrete surfaced with colored pebbles in a decorative design and sealed as well being the lowest cost proposal. President Quinlan asked for a motion to continue this agenda item to the May 24, 2005 Village Board meeting. Motion by Trustee Craig, seconded by Trustee Yusuf, to continue this agenda item to the May 24, 2005 Village Board meeting. VOICE VOTE: Motion carried. Trustee Kennedy pointed out that this contract as proposed does not provide for any reinforcement bar in the concrete, which the other bids did provide, and he would assume that on a slab of 265 square feet that reinforcement should be included. He asked if staff would review this further. VILLAGE OF OAK BROOK Minutes Page 18 of 21 May 10, 2005 12. D. 1) Trustee Aktipis indicated that there was a meeting regarding this matter and it appears that conceivably the concept of the design would change and the concrete may be removed totally. 2) CONSULTANT RETENTION A detailed presentation on the financial need will be presented by the petitioner for the Oak Brook Promenade project which is followed by the Public Hearing on the TIF proposal. In an effort to be prepared to retain the services of an independent consultant, this item has been placed on the agenda. Should the members of the Board of Trustees feel that they are in need of additional assistance in evaluating the Tax Increment Financing proposal they could adopt the above suggested motion. Trustee Kennedy remarked that after listening to the presentation for the TIF proposal, he recommended that the Village should hire an independent financial consultant to review the NAI Hiffman proposal. He has collected the names of five firms that were recommended by respected sources and he volunteered to work with the Village Manager in selecting the consultant if legal and feasible. President Quinlan asked that Trustee Kennedy, Trustee Yusuf who is the finance liaison and Village Manager Boehm work on this proposal. Attorney Kubiesa recommended, upon interviews of the consultants, that a contract then be presented to the Village Board for their approval. President Quinlan explained that the Board is trying to restore Manager Boehm's authority in his capacity to hire an outside consultant so that it does not have to be presented to the Board. In his discussion with the Assistant Village Manager Moline, it was discussed to move this expeditiously in order to have a recommendation before the Village Board's next regular meeting so that the Board may vote on the TIF proposal. Motion by Trustee Kennedy, seconded by Trustee Aktipis, to authorize the Village Manager to retain the services of an independent consultant to review a financial matter for the Board. Trustee Yusuf asked that the cost of services be capped. The Board discussed this issue and an amount of $5,000 was agreed upon. Motion by Trustee Kennedy, seconded by Trustee Aktipis, to amend the original motion to authorize the Village Manager to retain the services of an independent consultant, in a not -to- exceed amount of $5,000, to review a financial matter for the Board. ROLL CALL VOTE: VILLAGE OF OAK BROOK Minutes Page 19 of 21 May 10, 2005 12. D. 2) Ayes: 6 - Trustees Aktipis, Craig, Kennedy, Manofsky, Sanford and Yusuf. Nays: 0 - None. Absent: 0 - None. Motion carried. Trustee Aktipis asked to give a brief comment. He reminded everyone that a Committee -of -the -Whole meeting is scheduled to discuss the process of putting together a mechanism for the redevelopment project for the Village. In preparation for that, Trustee Aktipis had a brief conversation with the Director of Planning for DuPage County's Economic Development and Planning Authority, and he provided useful information to him in terms of analytical data that they have collected in the County that would be helpful in this process. He also mentioned a number of state incentives in terms of grants that could be applicable to the process. He indicated that he would be available if the Trustees would want to confer with him on these possible options and how they could help the Village with this.project. 13. INFORMATION & UPDATES: A. VILLAGE PRESIDENT — President Quinlan explained that the official Board liaison assignments for the next two years will be given to the Board before the next Village Board meeting. B. VILLAGE MANAGER — Manager Boehm explained that starting May 17, 2005 the 31s' median landscaping project will commence. DuPage County has planned this project to last approximately one week. At 11:00 p.m. this evening there will be intermittent lane closures on Route 83 for the preparation of the placement of the 31St pedestrian bridge. This is a significant improvement to the pathway system in Oak Brook. The extended pathway on 31St Street should be completed by July. C. VILLAGE CLERK — No report was given. President Quinlan announced that the closed meeting agenda item to consider the appointment, employment, compensation, discipline, performance, or dismissal of specific employees of the public body will be removed at this time. The item was placed on the agenda to discuss fire personnel. He indicated that he would discuss this issue on an individual basis with each Trustee. 14. ADJOURNMENT TO CLOSED MEETING to consider litigation, when an action against, affecting or on behalf of the or administrative tribunal. Village has been filed and is pending before a court Motion by Trustee Craig, seconded by Trustee Yusuf, to adjourn to a Closed Meeting at 9:50 p.m. to consider litigation, when an action against, affecting or on behalf of the VILLAGE OF OAK BROOK Minutes Page 20 of 21 May 10, 2005 14. 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 and to consider the appointment, employment, compensation, discipline, performance, or dismissal of specific employees of the public body. ROLL CALL VOTE: Ayes: 6 - Trustees Aktipis, Craig, Kennedy, Manofsky, Sanford and Yusuf. Nays: 0 - None. Absent: 0 - None. Motion carried 15. ADJOURNMENT Motion by Trustee Manofsky, seconded by Trustee Kennedy, to adjourn the Regular Meeting of the Board of Trustees at 10:34 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 May 10, 2005