Minutes - 05/13/2003 - Board of TrusteesMINUTES OF THE MAY 13, 2003 REGULAR MEETING
OF THE PRESIDENT AND BOARD OF TRUSTEES OF
THE VILLAGE OF OAK BROOK APPROVED AS
WRITTEN ON MAY 27, 2003.
1. CALL TO ORDER - PLEDGE OF ALLEGIANCE: 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 Village Commons
at 7:30 p.m. The Pledge of Allegiance was given.
2. ROLL CALL: ROLL CALL
Village Clerk Linda Gonnella called the roll with the following persons
PRESENT: President Kevin M. Quinlan, Trustees Stelios Aktipis, George T.
Caleel, John W. Craig, Susan Chase Korin, Elaine Miologos and
Asif Yusuf.
ABSENT: None.
IN ATTENDANCE: Richard B. Boehm, Village Manager; Dale L. Durfey, Jr.,
Village Engineer; Debra J. Jarvis, Fire Chief, Robert L. Kallien, Jr., Director of
Community Development; Darrell J. Langlois, Finance Director; Richard A.
Martens, Village Attorney; Ruth A. Martin, Library Director; Michael J.
Meranda, Public Works Director; Allen W. Pisarek, Police Chief, Bonnie
Sartore, Bath & Tennis Club Manager; Trey VanDyke, Golf Club Manager;
Deputy Police Chief William Haas; Fire Battalion Chiefs Robert Morton and
Rob Cronholm; Police Commissioner John Baar and K. Sue Sanford, former
Chairman Board of Fire & Police Commissioners; DARE Officer Casey
Cavello; Detective John Verdera; Robert G. Sanford, Zoning Board of Appeals
and Ron Norene, R. V. Norene and Associates.
3. ANNOUNCEMENTS AND OPEN FORUM: ANNOUNCE
President Quinlan on behalf of the Village Board recognized Sue Sanford for
her service on the Police and Fire Commission for the past twelve years.
David Rice, First Folio Shakespeare Festival, Mayslake Peabody Estate
addressed the Village Board of their program. He and his wife are cofounders
of this summer event for the past six seasons. He addressed the Board with the
importance of the arts to our community on a financial and economic basis. He
stated visitors come from a four state area to these events and it is their hope
that First Folio will be available year -round in the Peabody Mansion. He issued
a performance of the arts invitation to the Board to come and see their "A
Comedy of Errors" production for this summer.
16 VILLAGE OF OAK BROOK Minutes Page 1 of 15 May 13, 2003
3. Robert Waite, 3609 Madison Street, President of Fullersburg Area Association,
addressed the Board on the speed limit and paving of Madison Street. He stated
that several of their Board members have been in contact with the Village
Engineering Department and several Board Trustees to discuss these issues.
They wish to reduce the speed limit from 30 mph to 25 mph. He indicated
there isn't a pathway for residents to walk or bicycle on this street. He asked
that minor crack filling be done also on the street. President Quinlan stated the
Village Manager will review these two issues with staff.
4. APPROVAL OF MINUTES: MINUTES
Regular Board of Trustees Meeting of April 8, 2003 REG BOT MTG
04 -08 -03
Motion by Trustee Aktipis, seconded by Trustee Caleel, to approve the
Minutes of the Regular Board of Trustees Meeting of April 8, 2003 as
presented and waive the full reading thereof. VOICE VOTE: Motion carried.
Regular Board of Trustees Meeting of April 22, 2003
REG. BOT MTG
Motion by Trustee Caleel, seconded by Trustee Korin, to approve the Minutes 04 -22 -03
of the Regular Board of Trustees Meeting of April 22, 2003 as presented and
waive the full reading thereof. VOICE VOTE: Motion carried.
Special Board of Trustees Meeting of April 28, 2003
SPEC. BOT MTG
04 -28 -03
Motion by Trustee Caleel, seconded by Trustee Aktipis, to approve the
Minutes of the Special Board of Trustees Meeting of April 28, 2003 as
presented and waive the full reading thereof. VOICE VOTE: Motion carried.
5. CONSENT AGENDA: CONSNT AGNDA
All items on the Consent Agenda are considered to be routine in nature and will
be enacted in one motion. There will be no separate discussion of these items
unless a Board member so requests, in which event, the item will be removed
from the Consent Agenda and considered as the first item after approval of the
Consent Agenda.
Trustee Caleel requested that Agenda Item 5. H., Receive and Place on File —
Comprehensive Annual Financial Report and Management Letter, are removed
for further discussion.
Motion by Trustee Aktipis, seconded by Trustee Caleel, to approve the Consent
Agenda as amended. ROLL CALL VOTE:
Ayes: 6 - Trustees Aktipis, Caleel, Craig, Korin, Miologos and Yusuf.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
VILLAGE OF OAK BROOK Minutes Page 2 of 15 May 13, 2003
A. APPROVAL OF BILLS - $924,819.11 APVL OF BILLS -
S924,819.1 1
Significant items included above:
1) Water Resources, Inc. — Payout 42 — Automated Meter Reading Project
- $74,900.00
2) DuPage Water Commission - $183,888.94
B. APPROVAL OF PAYROLL FOR PAY PERIOD ENDING APRIL 26, APVL PYRL -
2003 - $625,470.16 S625,470.16
C. CHANGE ORDERS: None CHNGE ORDRS
D. REFERRALS: REFERRALS
1) SIDDIQI — 1715 YORK ROAD — VARIATION TO TITLE 13, 1715 YK RD - VAR
ZONING ORDINANCE — REFER TO THE ZONING BOARD OF ZNG ORD
APPEALS MEETING OF JUNE 3, 2003
E. AUTHORIZATION TO SEEK BIDS OR PROPOSALS OR NEGOTIATE BDS, PROPS., NEG
CTRCTS
CONTRACTS: None
F. APPROVAL OF REQUEST FOR RELEASE OF FUNDS — OAK BROOK RIS FNDS - OB
HTL, CONV & VIS
HOTEL CONVENTION AND VISITORS COMMITTEE — 20% OF THE CTE TO DP CONV
2003 FIRST QUARTER HOTEL TAX RECEIPTS TO THE DUPAGE & VIS BURE -
CONVENTION & VISITORS BUREAU IN THE AMOUNT OF 513,538.71
$13,538.71
G. APPROVAL OF PLAT OF ABROGATION — 3006 COOLIDGE STREET
— LOT 1 OF KEEHN'S SUBDIVISION
H. RECEIVE AND PLACE ON FILE — COMPREHENSIVE ANNUAL
FINANCIAL REPORT AND MANAGEMENT LETTER
I. APPROVE FIVE -YEAR EXTENSION TO SPECIAL USE S -919 —
CHRIST CHURCH OF OAK BROOK
J. APPROVE "LOCAL AGENCY AGREEMENT FOR FEDERAL
PARTICIPATION" FOR THE YORK ROAD/HARGER ROAD
BICYCLE/PEDESTRIAN PATH
K. CONSTRUCTION ENGINEERING SERVICES AGREEMENT FOR
FEDERAL PARTICIPATION — YORK ROAD/HARGER ROAD
BICYCLE/PEDESTRIAN PATH
VILLAGE OF OAK BROOK Minutes Page 3 of 15
Z6
PLT OF ABROGTN
3006 COOLIDGE ST
ANN FIN RPT &
MNGMNT LTR
EXTND SPEC USE -
S919 - CHRST
CHRCH OF OB
IDOT AGRMNT -
YK RD /HRGR RD
BIKE PATH
ENG SERV
AGRMNT -YK
RD /HRGR RD BIKE
PATH
May 13, 2003
6. ITEMS REMOVED FROM CONSENT AGENDA:
Trustee Caleel noted on page 4 of the Management Letter of the Financial
Report that they indicate the Village make an evaluation of inclusion of the
Library Foundation and the financial statements based on these criteria and if
determined inclusion is required an annual audit be prepared using the same
fiscal year -end as the Village is required. He felt it was an undue expense upon
the Foundation as the Foundation was formed as a separate private foundation
for the benefit of the Library. The Foundation is meeting next week and will
not be in favor of this. Finance Director Langlois explained that this
accounting standard is presently in draft form and gave notice that it is being
discussed at this time. He indicated it is unlikely that it will be required .
Motion by Trustee Caleel, seconded by Trustee Korin, to approve Agenda Item
5. H., Receive and Place on File — Comprehensive Annual Financial Report and
Management Letter as presented. ROLL CALL VOTE:
Ayes: 6 - Trustees Aktipis, Caleel, Craig, Korin, Miologos and Yusuf.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
BOARD & COMMISSION RECOMMENDATIONS: BD & COMM RECM
A. REMOVE FROM THE TABLE — OAKBROOK SHOPPING CENTER REMVE FRM TBLE
LLC — ROUTE 83 AND 22ND STREET — TEXT AMENDMENTS TO AMNDM rs & TxT
TITLE 13 OF THE VILLAGE CODE AND SPECIAL USE TO SPEC USE
FACILITATE THE CREATION OF A SPECIALTY RETAIL PROGRAM
TO BE LOCATED THROUGHOUT THE INTERIOR COMMON AREAS
OF THE OAKBROOK SHOPPING CENTER
Motion by Trustee Caleel, seconded by Trustee Korin, to remove from the
table - Oakbrook Shopping Center, LLC — Route 83 and 22nd Street — Text
Amendments to Title 13 of the Village Code And Special Use to facilitate
the creation of a specialty retail program to be located throughout the
interior common areas of the Oakbrook Shopping Center. VOICE VOTE:
Motion carried.
B. CONCUR WITH THE RECOMMENDATIONS OF THE PLAN OAKBROOK CTR -
TXT AMNDMNTS -
COMMISSION AND THE ZONING BOARD OF APPEALS TO SPEC USE
APPROVE THE OAKBROOK SHOPPING CENTER, LLC — ROUTE 83
AND 22ND STREET — TEXT AMENDMENTS TO TITLE 13 OF THE
VILLAGE CODE AND SPECIAL USE TO FACILITATE THE
CREATION OF A SPECIALTY RETAIL PROGRAM TO BE LOCATED
THROUGHOUT THE INTERIOR COMMON AREAS OF THE
OAKBROOK SHOPPING CENTER
VILLAGE OF OAK BROOK Minutes Page 4 of 15 May 13, 2003
Plan Commission and Zoning Board of Appeals Recommendations — Text
Amendments - The Plan Commission by a vote of 5 to 0, and the Zoning
Board of Appeals by a vote of 5 to 0, have recommended approval of the
request from the property owner, Oakbrook Shopping Center LLC for a text
amendments to the Zoning Ordinance to facilitate the creation of a Specialty
Retail Program to be located throughout the interior common areas of the
Oakbrook Center. Specifically, the request seeks amendments to Sections
13 -2 -2, 13 -7 -3 and 13 -7B -2 (underlined for additions, strikethrough for
deletions):
1. Section 13 -2 -2 Definitions: Add Specialty Retail Program — one or
more of the following uses and structures, when located within
designated interior areas of a shopping center, in districts where
permitted as a special use, and where authorized as a special use: a)
permanent pavilions and kiosks for the preparation, sale and
consumption of food and beverages, including adjacent outdoor seating,
b) permanent pavilions for providing customers with information and
assistance gift certificates, strollers /wheel chairs and similar services; c)
seasonal portable carts for the sale of pre - packaged food and beverages,
including adjacent outdoor seating; d) seasonal merchandising zones
containing a defined number of portable carts selling_ primarily non -food
merchandise and packaged food gift items not intended for immediate
consumption; e) defined zones for product introduction or promotional
activities, such as demonstrations and fashion shows; fl entertainment
and performance zones, including tables and chairs; and g) enclosed and
unenclosed children's play areas. Seasonal shall mean that weather
permits the operation of the portable carts.
2. Section 13 -7 -3A: Add approved Specialty Retail Programs and exempt
them from the requirement that all goods produced on the premises shall
be sold on the premises where produced.
3. Section 13 -7 -3B: Replace reference to seasonal portable carts serving
limited menu food and/or beverage items with improved Specialty Retail
Programs.
4. Section 13 -7B -2: Add and Specialty Retail Programs.
5. Section 13 -7B -2: Amend text
limited feeds and/or- bevefage items- Specialty Retail Programs in
outdoor areas of a shopping center as a convenience to pedestrian
shoppers, provided: (1) all aspects of the operation and sales meet the
applicable requirements of the DuPage County Health Department: and
(2)_^^i* ',,,.atie Specialty Retail Program facilities have appropriate
utilities provided, are not convenient to drive -up business, and do not
materially interfere with access to or visibility of other establishments
within the shopping center.
VILLAGE OF OAK BROOK Minutes Page 5 of 15 May 13, 2003
�6
7. B.
In making this recommendation, the Zoning Board of Appeals concurred
with the Plan Commission finding that the petitioner has satisfactorily
addressed the applicable factors for approval of text amendments to the
Zoning Ordinance.
Special Use — The Plan Commission by a vote of 5 to 0, and the Zoning
Board of Appeals by a vote of 5 to 0, have recommended approval of the
request from the property owner, Oakbrook Shopping Center LLC for a
special use in the B -2 District (Section 13 -713-2) for the proposed Specialty
Retail Program to be located throughout the interior common areas of the
Oakbrook Center.
The petitioner is seeking a special use in Section 13 -713-2 for the proposed
Specialty Retail Program. As proposed by the petitioner, the Specialty
Retail Program will be implemented over two phases with the second phase
dependent upon the success of the first phase. In making this
recommendation, the Board found that the petitioner has satisfactorily
addressed the factors as required by the Zoning Ordinance for approval of a
special use subject to the following conditions:
1. The development shall be in substantial conformance with the plans
as submitted.
2. The food pavilion originally planned for the turnaround area has
been moved to an area adjacent to the Express Store.
3. The 17 conditions listed in the attachment found on pages 16.4 of
the case file with a modification to condition #6 to read, "at the
close of each operating season, carts and mobile units shall be stored
in a completely enclosed building within Oakbrook Center."
4. Add a condition #18 to read, "The goods marketed and sold through
the Specialty Retail Program will not be materially different
character or quality than the goods sold throughout the remainder of
the property."
In recommending approval of this request, the Zoning Board of
Appeals concurred with the findings of the Plan Commission and
found that the petitioner has satisfactorily addressed the factors
required for approval of a special use. In particular, it was found
that this request was in keeping with the neighborhood and would
not affect the public health, safety and welfare in the area.
Motion by Trustee Caleel, seconded by Trustee Craig, to concur with the
recommendations of the Plan Commission and the Zoning Board of Appeals
to approve the Oakbrook Shopping Center, LLC — Route 83 and 22nd Street
— Text Amendments to Title 13 of the Village Code and Special Use to
facilitate the creation of a specialty retail program to be located throughout
the interior common areas of the Oakbrook Shopping Center, but to exclude
the playground phase.
VILLAGE OF OAK BROOK Minutes Page 6 of 15 May 13, 2003
L/-
C
Trustee Korin requested discussion of the Phase Two portion of the
proposal. She voiced her opposition to the two proposed kiosks as they are
located too close to proposed kiosks in Phase One. Her concern it would
affect the open beauty of Oak Brook with cluttered kiosks and she is in
favor of restroom facilities in a general area not inside another store.
Trustee Caleel noted that the problems of several of the Trustees is in Phase
Two and if agreeable he would like to amend the motion to only approve
Phase One which eliminates the play area and two additional kiosks. The
applicant could return after the first phase is completed with their second
phase.
Trustee Caleel moved and Trustee Craig the seconder agreed to amend this
motion to approve only Phase One.
Trustee Yusuf asked that the entire proposal be approved without the
children's play area. General Manager Chuck Fleming, Oak Brook
Shopping Center, addressed the Board of the significant amount of work
that is required including a significant amount of infrastructure for water,
sewer, electric and telephone so that it would be costly to come back and do
it again for Phase Two. He suggested moving it all in one phase for one
program. The number of food carts is what the clients wish and they should
not interfere with the traffic flow as their locations have been selected
carefully so they do not disrupt visual observation areas between stores.
Trustee Caleel asked if the restrooms have been addressed. Mr. Fleming
stated they are reviewing this further as they are trying to find a convenient
location possibly in the remodeling of the theatre and not considered as part
of this project.
Trustee Korin voiced her opposition again to the two kiosks and requested
restroom facilities not to be located inside a store. Trustee Caleel stated that
Trustee Korin's concern is in Phase Two and asked to approve Phase One
only at this time. Trustee Miologos suggested that the Board consider
approving the final design of these buildings. Trustee Caleel requested that
his motion be amended to the original motion.
Trustee Caleel the mover, and Trustee Craig the seconder, agreed to amend
their motion to read to approve the project as a single -phase project with the
exclusion of the children's play area.
Trustee Miologos amended that motion, seconded by Trustee Korin, to
include final approval of design drawings by the Village Board.
VILLAGE OF OAK BROOK Minutes Page 7 of 15 May 13, 2003
President Quinlan requested a roll call vote to the amendment to the main
motion to include final approval of design drawings by the Village Board.
ROLL CALL VOTE:
Ayes: 5 - Trustees Aktipis, Craig, Korin, Miologos and Yusuf.
Nays: 1 - Trustee Caleel.
Absent: 0 - None. Motion carried.
Village Attorney Martens indicated that this motion directs the Village
Attorney to draft the necessary ordinance to implement the Board's
direction this evening including a condition that the special use would be
conditioned upon the Board's review of the final drawings of this project
assuming that the main motion passes.
Mr. Fleming addressed the Board of the concern of their cost for this
proposal. Trustee Aktipis suggested that the Board receives those plans and
reviews them without the shopping center giving a formal presentation, then
the Board could approve them at their Board meeting. Trustee Miologos
asked that their working drawings be given to the Community Development
Department. Mr. Fleming suggested giving the Board the canopy design.
Trustee Yusuf stated he is satisfied with the sketch they have presented and
time is of the essence for their project. Trustee Caleel also agreed that time
is of the essence in this project.
Community Director Kallien stated that if a deviation of the drawings were
made he would not bring it before the Village Board for their approval and a
permit would not be issued. Trustee Yusuf suggested elevation drawings
would be acceptable. Trustee Korin asked that the Board review the
conditions they have proposed that the program will be implemented and
requested a condition of the elevation of a building. Trustee Korin
requested a presentation rather than an additional approval of working
drawings. Mr. Fleming stated they will submit the drawings and asked for a
time process. Trustee Miologos asked that the Board receive a copy of the
drawings from Community Development without a formal presentation.
Attorney Martens indicated the Village Board would need to meet to
approve the drawings.
President Quinlan stated to the Board that there is a motion on the floor and
that an amendment has been approved. Trustee Caleel requested to call the
question.
Trustee Korin stated that she still had concerns of the proposal and would
vote no on the project.
VILLAGE OF OAK BROOK Minutes Page 8 of 15 May 13, 2003
I
Motion by Trustee Caleel, seconded by Trustee Craig, to approve Phase
One and Phase Two as one phase, excluding the children's play area and
conditioned upon the Village Board having final approval of the design
drawings.
ROLL CALL VOTE:
Ayes: 5 - Trustees Aktipis, Caleel, Craig, Miologos and Yusuf.
Nays: 1 - Trustee Korin.
Absent: 0 - None. Motion carried.
8. ACTIVE AGENDA (Items for Final Action):
A. CONFIRMATION OF APPOINTMENTS: None. CONFRM APPTS.
B. ORDINANCES & RESOLUTIONS:
ORDS /RES
1) ORDINANCE 2003 SC -B &T- FOP -S -1036 , "AN ORDINANCE ORD 03- SC -B &T-
FOP -S -1036 ,
APPROVING AN AMENDED AND RESTATED INSTALLMENT INSTLMNT
PURCHASE AGREEMENT AND AUTHORIZING ISSUANCE OF PURCH AGR -
ISSUE GEN FND
$890,000 GENERAL FUND REFUNDING CERTIFICATES, SERIES CERT - SERIES 2003
2003, OF THE VILLAGE OF OAK BROOK, ILLINOIS"
At the Village Board meeting of March 25, 2003, staff was directed by
the Village Board to proceed with the refinancing of the 2000
installment contract for the Bath and Tennis Clubhouse project. The
primary purpose of this refinancing is to extend the remaining
amortization period from 4.5 years (2007) to 10 years (2012). This will
result an annual debt service level that the Sports Core Fund is more
able to afford.
The documents have all been prepared by Katten, Muchin, & Zavis, the
Village's bond counsel. The following is a brief explanation of the four
documents related to this certificate issue:
1. The enabling ordinance provides for the issuance of the Refunding
Certificates, Series 2003. In the third year, the certificates are
callable at 102% of par (similar to a prepayment penalty), in the
fourth year the certificates are callable at 101% of par, and the
certificates are callable at 100% of par (no penalty) anytime after
December 1, 2007.
2. The initial certificate issue provided for the execution of an
"installment purchase agreement" for the project. Since the 2000
Certificates are being refunded, an amended and restated
installment purchase agreement is required. The new enabling
ordinance authorizes the execution of this document.
VILLAGE OF OAK BROOK Minutes Page 9 of 15 May 13, 2003
70
8. B. 1)
3. The assignment agreement assigns the right to receive installment
payment to Bank One, the paying agent for the issue. The bank will
then make payments to the actual certificate holders.
4. The opinion of bond counsel regarding the certificate issue. The key
component of the opinion is that the certificates are exempt from federal
income taxes, which has the effect of significantly lowering the
Village's borrowing costs.
Ron Norene of R.V. Norene and Associates was in attendance at the
Village Board meeting to answer any questions.
Trustee Yusuf suggested paying off the debt and use the $8,000,000 in
reserve to pay off the debt. Trustee Caleel explained that these funds
are a six -month reserve that the Village Board has requested for the
operating funds. Finance Director Langlois explained that this would
impact the General Fund and a concern of the ability of the Sports Core
to repay the debt at the level it is required now. If there isn't enough
funds to repay the debt there is a concern that this will have a negative
cash flow for the Sports Core at the end of the year as those shortfalls
have had to be funded by the General Fund. This would reduce the
likelihood that this would happen.
Motion by Trustee Aktipis, seconded by Trustee Caleel, to approve
Ordinance 2003 SC -B &T- FOP -S -1036 , "An Ordinance Approving an
Amended and Restated Installment Purchase Agreement and
Authorizing Issuance of $890,000 General Fund Refunding Certificates,
Series 2003, of the Village of Oak Brook, Illinois." ROLL CALL
VOTE:
Ayes: 5- Trustees Aktipis, Caleel, Craig, Korin and Miologos.
Nays: 1- Trustee Yusuf.
Absent: 0 - None. Motion carried.
2) ORDINANCE 2003-PP-S-1037, "AN ORDINANCE AUTHORIZING ORD 03 -PP -S -1037 ,
AUTH SLE OF PERS
THE SALE OF CERTAIN PERSONAL PROPERTY OWNED BY PRPTY OWNED By
THE VILLAGE OF OAK BROOK" VOB
Chief Pisarek and Sergeant Weber advised Village Attorney Martens
that the court has awarded five (5) vehicles to the Village, which were
seized and forfeited because of their use in certain criminal activities.
The Village has no use for these vehicles, therefore the Village Attorney
drafted an ordinance that declares these vehicles as surplus personal
property and authorizes their sale at auction.
VILLAGE OF OAK BROOK Minutes Page 10 of 15
0
May 13, 2003
41
B. 2)
Trustee Caleel noted the 1993 Ford pickup truck and asked if the Fire
Department could use it. Village Manager Boehm stated if it is usable,
staff will bring it back to the Village Board. Trustee Caleel asked if
staff has researched purchasing on a five -year basis at a no interest rate.
Manager Boehm explained that they are reviewing this presently.
Motion by Trustee Korin, seconded by Trustee Craig, that the Village
Board approve Ordinance 2003-PP-S-1037, "An Ordinance Authorizing
the Sale of Certain Personal Property Owned by the Village of Oak
Brook ". ROLL CALL VOTE:
Ayes: 6 - Trustees Aktipis, Caleel, Craig, Korin, Miologos and Yusuf.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
3) 2003 -FI- FACS -SA -R -846. A BANKING RESOLUTION - RES 03-FI- FACS -sA-
R -846 , BANKNG
AUTHORIZED SIGNATURES RESOLUTION
Due to the election of Kevin Quinlan as Village President, it is
necessary to update the Village's banking resolution with Bank One.
The primary purpose of this document is to name the persons authorized
to transact Village banking business, which primarily consists of check
signing. All of the existing controls will remain in place, the primary
one being that all checks over $10,000 require two signatures. The only
change is that Karen Bushy is being replace by Kevin Quinlan.
Motion by Trustee Aktipis, seconded by Trustee Caleel, that the Village
Board approve Resolution 2003 -FI- FACS -SA -R -846, A Banking
Resolution with Bank One authorizing signatures. ROLL CALL VOTE:
Ayes: 6 - Trustees Aktipis, Caleel, Craig, Korin, Miologos and
Yusuf.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
C. AWARD OF CONTRACTS: AwD OF
CONTRCTS
1) PREPARATION OF AN RFP FOR VILLAGE HEALTH & DENTAL RFP - VOB HLTH &
DNTL INS. PROG
INSURANCE PROGRAMS
President Quinlan noted that this item has been removed from the agenda.
This agenda item was a request to authorize the Village Manager to
enter into an agreement with Mack and Parker, Inc. for benefit
consulting services related to the issuance of a request for proposal for
its employee benefits programs in the not -to- exceed amount of $19,125.
VILLAGE OF OAK BROOK Minutes Page 11 of 15 May 13, 2003
8. C. 1)
The primary cause driving this request was the unacceptable
performance of the Village's third party administrator, Incentus
Corporation.
Subsequent to the preparation of the agenda item, staff and Mack and
Parker (the Village's insurance consultant) have had an opportunity to
meet with the new Incentus representatives to discuss their performance
sinced they shifted the claims paying function to Texas. Based on the
site visit and reference checking, staff is hopeful that the claims
problems are due solely to transition issues. Staff will strive to work
through the transition issues and recommended deferring a decision as to
whether to issue an RFP until next year.
D. ACCEPT THE ACTUARIAL REPORTS OF THE POLICE PENSION AcTRL "TS PoL &
FIR PENSN FNDS
FUND AND FIREFIGHTERS' PENSION FUND
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.
The studies presented were once again performed by Timothy W. Sharpe,
Actuary.
Firefighters' Pension Fund
The actuarial report indicates that the Firefighters' Pension Fund was 77.8%
funded as of December 31, 2002, a decrease of 10.4% from the funded
percentage in 2001. This large decrease continues a negative trend that has
been experienced over the last several years. The percent funded has
decreased over time from a high of 110.9% as of January 1, 1999 to 77.8%
today. The first large decrease occurred in 1999 and reduced the funded
percentage by nearly 10 %, primarily due to benefit enhancements approved
by the Illinois legislature. Since that time, the fund's investments have
performed at substantially less than the actuarially assumed rate of 7.50 %,
and thus the percent funded has continued to decrease. During 2001 and
2002, the fund actually had negative investment returns. This is due to the
poor performance of the Fund's (and the entire market in general) equity
investments.
The Firefighters' Pension Fund employs a professional investment manager
and spends a substantial amount of time at every meeting discussing its
investments.
VILLAGE OF OAK BROOK Minutes Page 12 of 15 May 13, 2003
m
Hl-H
01
For 2002, the Fund's equity investments returned —19.7% as compared to
the Fund's benchmark (S & P 500 index) rate of — 22.1 %. Although the
return was negative, the equity performance was much better than the
market rate of return. The Fund is concerned, however, about the
performance of it's fixed income investments. The returns for the last few
years have trailed the benchmark rates. The Pension Board has had recent
discussions with other investment managers and has deferred any possible
decision about changing the investment manager until the end of the year.
The Firefighters' Pension Fund is no different than any other pension funds:
it is imperative that investment returns begin to increase in order to halt the
dramatic increases in the Village's required contribution.
The actuary has recommended a Village contribution of 23.13% of payroll
for 2003, an increase of 3.53% of payroll from the 2002 rate. In dollar
terms, this is an increase of $93,963 or 22% from the recommended 2002
contribution. The major cause of the contribution increase is the Fund's
investment returns, which will require a substantial increase in the unfunded
liability amortization payment. A contribution of 22.0% of payroll was
assumed in the preparation of the 2003 budget. The budget variance of
1.13% of payroll, which is due to poor investment returns continuing in the
fourth quarter of 2002 after the rate was estimated, will be made up in other
areas of the Fire Department budget.
Police Pension Fund
As the report indicates, the Police Pension Fund was 87.0% funded as of
December 31, 2002, a decrease of 6.80% from the funded percentage in
2001. Like the Firefighters' Pension Fund, benefits enhancements as well
investment returns in recent years being below the actuarially assumed rate
of 7.50% have reduced the funded percentage from a high of 109.8% in
1999 to the 87.0% funding level today. For 2002, investment earnings were
1.85°/x, which although low was still a positive return.
When the Pension Board met with the actuary this year to review results,
retirements, and the assumptions used, they directed that the actuary lower
the interest rate assumption from 7.50% to 7.25% due to low investment
returns continuing into 2003. This change results in further increases in the
Village's contribution rates. In order to somewhat mitigate this impact, the
salary increase assumption was also lowered from 5.25% to 5.00 %.
The actuary has recommended a Village contribution of 17.15% of payroll
for 2003, an increase of 3.55% of payroll from the prior year. In dollar
terms, this is an increase of $113,600 or 31.9% from the recommended 2002
contribution.
VILLAGE OF OAK BROOK Minutes Page 13 of 15
May 13, 2003
The major cause of the contribution increase is the Fund's investment
returns, which will require a substantial increase in the unfunded liability
amortization payment, as well as the change in investment return
assumption previously noted. A contribution of 15.75% of payroll was
assumed in the preparation of the 2003 budget. The difference of 1.4% will
be made up in other areas of the Police Department budget.
Motion by Trustee Aktipis, seconded by Trustee Craig, that the Village
Board accept the actuarial reports of the Police Pension Fund and
Firefighters' Pension Fund. ROLL CALL VOTE:
Ayes: 6 - Trustees Aktipis, Caleel, Craig, Korin, Miologos and Yusuf.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
E. APPROVE A VILLAGE CONTRIBUTION OF 17.15% OF PAYROLL VOB cONTRBTN
FOR FF & PO
FOR POLICE OFFICERS AND 23.13% FOR FIREFIGHTERS
RETROACTIVE TO JANUARY 1, 2003
Motion by Trustee Aktipis, seconded by Trustee Caleel, that the Village
Board approve a Village contribution of 17.15% of payroll for police
officers and 23.13% of payroll for firefighters retroactive to January 1,
2003. ROLL CALL VOTE:
Ayes: 6 - Trustees Aktipis, Caleel, Craig, Korin, Miologos and Yusu£
Nays: 0 - None.
Absent: 0 - None. Motion carried.
9. INFORMATION & UPDATES:
A. Village President:
President Quinlan announced that under the leadership of Police Chief Pisarek,
Officer Casey Cavello has graduated another officer to teach the DARE
program. Officer Cavello was recognized in the audience for his new role as
DARE Officer for the Police Department.
He acknowledged that the Village has sought corporate sponsorship for the July
4t" fireworks. Staff is currently negotiating with the sponsor for 100%
sponsorship of the cost for our fireworks event. The Board will be updated at
their next Village Board meeting on the progress of this. He also
acknowledged that the Village Board and Oak Brook Park District
Commissioners would hold a joint breakfast meeting on June 5, 2003 at 7:30
a.m. at the Oak Brook Park District. This is due to efforts by Trustee Korin in
her interest in the two Boards working together. She has proposed having a
park liaison Trustee and has requested to serve in that capacity with the
President's concurrence.
INFRM & UPDATES
VILL PRES
VILLAGE OF OAK BROOK Minutes Page 14 of 15 May 13, 2003
D
10
11
I
B. Village _Manager: — No report was given. VILL MGR
C. Village Clerk: VILL cLK
Clerk Gonnella reported of her attendance at the DuPage Mayors and Managers
Conference drive down to Springfield to lobby our legislators. She spoke of
SB1586 regarding audio or videotaping closed meetings and the difficulties of
this legislation and lobbied her opposition of this bill. She also noted the
DuPage Water Commission bill ,HB3402, and that she joined the lobbying
efforts of the municipal officials representing the DuPage Water Commission
when they met with Republican Leader Tom Cross.
D. Village Board Comments :— No one spoke. VILL BD
ADJOURN TO CLOSED MEETING ADJRN To cLSD
MTG
Motion by Trustee Craig, seconded by Trustee Caleel, to adjourn to a closed
meeting to consider the appointment, employment, compensation, discipline,
performance, or dismissal of specific employees of the public body at 8:48 p.m.
ROLL CALL VOTE:
Ayes: 6 - Trustees Aktipis, Caleel, Craig, Korin, Miologos and Yusuf.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
ADJOURNMENT: ADJRN
Motion by Trustee Craig, seconded by Trustee Caleel, to adjourn the meeting
at 9:12 p.m. VOICE VOTE: Motion carried.
ATTEST:
xf 10 hK
Linda K. Gonnella, CMC
Village Clerk
VILLAGE OF OAK BROOK Minutes Page 15 of 15 May 13, 2003