Minutes - 05/23/2006 - Board of TrusteesMINUTES OF THE MAY 23, 2006 REGULAR MEETING OF THE
PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF
OAK BROOK APPROVED AS WRITTEN ON JUNE 139 2006.
1. 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.
2. ROLL CALL
Deputy Village Clerk Carol Harty 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; Robert L. Kallien, Jr.,
Director of Community Development; Darrell J. Langlois, Finance Director;
Margaret Klinkow, Library Director and Nelson Patras, Interim Bath &
Tennis Club Manager.
3. PRESIDENT'S OPENING COMMENTS
President Quinlan had no announcements other than to indicate that a Closed Meeting was
scheduled at the beginning of the meeting and asked for the audience's patience while the
Board discussed some personnel issues.
4. RESIDENT /VISITOR COMMENT
Two residents signed in to speak to the Board and President Quinlan asked if they wished
to address the Board at the time of the Agenda Item discussion or at this time. They chose
to speak during the discussion regarding the York Tavern.
5. ADJOURN TO CLOSED MEETING to consider selection of a person to fill a public
office, including a vacancy in a public office, when the public body is given the power to
appoint under law or ordinance.
Trustees Aktipis and Craig stated that they agreed with the philosophy of reappointing
members who have served on Village committees or commissions and felt no need to
discuss appointments in a Closed Meeting. Discussion emphasized that the purpose of
meeting in a closed session was to have a discussion, determine the level of agreement or
VILLAGE OF OAK BROOK Minutes Page 1 of 18 May 23, 2006
5. disagreement, find the consensus and act accordingly after reconvening to the regular
meeting. Additional discussion centered on the issue that discussion of this nature relating
to personnel issues should be done privately.
Motion by Trustee Kennedy, seconded by Trustee Sanford, to adjourn to Closed Meeting
to consider selection of a person to fill a public office, including a vacancy in a public
office, when the public body is given the power to appoint under law or ordinance at 7:39
p.m. ROLL CALL VOTE:
Ayes: 5 - Trustees Aktipis, Kennedy, Manofsky, Sanford and Yusuf.
Nays: 1 - Trustee Craig
Absent: 0 - None. Motion carried.
Trustee Aktipis abstained from the vote. An abstention becomes part of the prevailing
vote.
RECONVENE REGULAR MEETING
President Quinlan reconvened the meeting at 8:12 p.m.
Deputy Village Clerk Carol Harty 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.
6. APPROVAL OF MINUTES
A. Regular Board of Trustees Meeting of May 9, 2006
Motion by Trustee Kennedy, seconded by Trustee Yusuf, to approve the Minutes of the
May 9, 2006 Regular Board of Trustees Meeting as presented or amended. VOICE
VOTE: Motion carried.
7. CONSENT AGENDA
All items on the Consent Agenda are considered to be routine in nature and will be enacted
in one motion.
Trustee Manofsky asked that Agenda Item 7.A. Accounts Payable for Period Ending May
191 2006 - $643,755.84 be removed for further discussion.
Motion by Trustee Aktipis, seconded by Trustee Yusuf, to approve the Consent Agenda
and authorize expenditures as presented. ROLL CALL VOTE:
Ayes: 6 - Trustees Aktipis, Craig, Kennedy, Manofsky, Sanford and Yusuf.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
B. Approval of Payroll for Pay Period Ending May 6, 2006 - $672,974.63
VILLAGE OF OAK BROOK Minutes Page 2 of 18 May 23, 2006
7.
C. Community Development Referrals
1) Kitsutkin - 506 Wood — Variation — Side Yard Abutting a Street
2) Starbuck's Coffee Company — 2407 22nd Street — Map Amendment, Special Uses
and Variations
D. Authorization to Seek Bids or Proposals or Negotiate Contracts — None presented.
E. Budget Adjustments — None Presented.
F. DuPage Mayors and Managers Conference 2006 -2007 Membership Dues and Annual
Assessment
G. Tuscan Woods Subdivision, Yorkshire Glen Subdivision — Extension of Completion
H. A Resolution Approving the Final Plat Known as Villas of Oak Brook Subdivision
and Granting Waivers and a Variation from the Provisions of Section 14 -6 -3 of Title
14 ( "Subdivision Regulations ") of the Village Code of the Village of Oak Brook
Relative to Private Streets, Sidewalks and Street Lights
8. ITEMS REMOVED FROM CONSENT AGENDA
7. A. Accounts Payable for Period Ending May 19, 2006 - $643,755.84
Significant Items included in Above:
1) DuPage Water Commission - $133,228.37
2) Debt Service Payment — 2001 Installment Contract Certificates - $69,515.63
3) Debt Service Payment — 2003 Installment Contract Certificates - $8,950.00
4) Payout # 1 — 2006 Paving Project — Brothers Asphalt Paving - $186,597.00
Trustee Manofsky questioned a payment for stormwater engineering consultants for an
evaluation of stormwater needs for the petition of a final plat for Brittwood. Village
Engineer Durfey responded that these were considered "pass through" costs which will
be paid by the petitioner.
She also questioned a payment for cigars and cigarettes. Staff responded that the Golf
Course sold tobacco in the pro -shop.
Motion by Trustee Kennedy, seconded by Trustee Craig, to authorize payment of
Accounts Payable for Period Ending May 19, 2006 in the amount of $643,755.84.
ROLL CALL VOTE:
Ayes: 6 - Trustees Aktipis, Craig, Kennedy, Manofsky, Sanford and Yusuf.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
9. BOARD & COMMISSION RECOMMENDATIONS
A. YORK TAVERN — 3702 YORK ROAD — CERTIFICATE OF APPROPRIATENESS
— HISTORIC GRADE GATEWAY AREA
VILLAGE OF OAK BROOK Minutes Page 3 of 18 May 23, 2006
9. A. At its meeting on May 15, 2006, the Plan Commission completed its review and
deliberation on an application from Vito, Marianna and Pasquale Moreci, the owners
of the York Tavern located at 3702 York Road for a building permit as well as an
application and all required supporting documents seeking approval of a Certificate of
Appropriateness in the Historic Graue Mill Gateway Area in order to modify the
existing building by adding approximately 1100 sq.ft. and making interior
modifications to address issues raised by the DuPage County Health Department and
to come into compliance with the requirements of the Americans with Disabilities Act
(ADA).
The York Tavern structure has existed since 1843 at its present location and
encompasses approximately 1055 square feet. Because the tavern use has existed prior
to the incorporation of Oak Brook and adoption of the current zoning provisions for
the property, the subject property is classified as a legal nonconforming use under
Chapter 13 of the Zoning Ordinance. Normally, any modification to a nonconforming
use is limited to ordinary repairs and alterations, which do not involve an expansion of
the nonconforming nature of the use. However, in Section 13 -13 -2;
"Repairs And Alterations: Ordinary repairs and alterations
may be made to a nonconforming building or structure,
provided that no structural alterations shall be made in or to
such building or structure, all of which is designed or
intended for a use not permitted in the district in which it is
located, except those required by law, or except to make the
building or structure and use thereof conform to the
regulations of the district in which it is located."
As such, the proposed building alterations and addition is in response to issues raised
by other governmental entities, specifically DuPage County Health Department and
the State of Illinois Americans with Disabilities Act (ADA).
Mr. Vito Moreci, the owner of the York Tavern located at 3702 York Road has
submitted an application and required supporting documents seeking approval of a
Certificate of Appropriateness in the Historic Graue Mill Gateway Area in order to
modify the existing building to address issues raised by the DuPage County Health
Department and to come into compliance with the requirements of the Americans with
Disabilities Act (ADA).
Recommendation
By a vote of 7 to 0, the Plan Commission recommended approval of the petitioner's
request for the issuance of a Certificate of Appropriateness in the Historic Graue Mill
Gateway Area subject to the following conditions:
1. Maintain the current policy towards establishing capacity based upon current
adopted codes;
VILLAGE OF OAK BROOK Minutes Page 4 of 18 May 23, 2006
9. A. 2. Parking to be constructed as shown on the existing site plan;
3. The applicant is encouraged to seek landmark status;
4. To be constructed in substantial conformance with the plans submitted and
contained in the case file, including: Foodservice Equipment Plans approved
by the DuPage County Health Department dated April 20, 2006 on page 6;
Proposed building elevations on pages O (concept plan) and R (Sheet A -5,
dated April 17, 2006); Site Plan dated April 17, 2006 on page P (Sheet A -1,
dated April 17, 2006); Landscape Plan page Q; and Floor Plans on page S
(Sheet A -4, dated April 17, 2006).
5. Final Engineering and DuPage County Health Department approval.
In making the recommendation, the Plan Commission found that:
1. The York Tavern structure has existed since the mid 1840's at its present
location. The existing building encompasses approximately 1055 square feet.
2. Even though the tavern use has existed prior to the incorporation of Oak Brook
and adoption of the current zoning provisions for the property, the subject
property is zoned R -2 Single- Family Detached Residence District and is
classified as a legal nonconforming use under Chapter 13 of the Zoning
Ordinance.
3. Normally, any modification to a nonconforming use is limited to ordinary
repairs and alterations, which do not involve an expansion of the
nonconforming nature of the use.
4. However, Section 13 -13 -2 of the Zoning Ordinance states:
"Ordinary repairs and alterations may be made to a nonconforming building or
structure, provided that no structural alterations shall be made in or to such
building or structure, all of which is designed or intended for a use not
permitted in the district in which it is located, except those required by law, or
except to make the building or structure and use thereof conform to the
regulations of the district in which it is located."
Therefore, the proposed modifications to the building addresses issues raised
by the DuPage County Health Department and to also come into compliance
with requirements of the Americans with Disabilities Act (ADA). Without
these building improvements, the DuPage County Health Department has
stated in writing that, "they will not have a valid permit to serve food or
beverages and must cease operations."
5. In accordance to Section 13 -8 -3 of the Zoning Ordinance, the applicant has
submitted all documents and information to satisfy the Gateway Development
Plan requirements, which must be included in the application for a certificate
of appropriateness.
6. The plans that have been submitted for this request have been reviewed and
VILLAGE OF OAK BROOK Minutes Page 5 of 18 May 23, 2006
9. A. approved by the DuPage County Health Department.
7. The plans have also been reviewed and approved by the Oak Brook Historical
Society as well as the LZT /Filiung Architects, an architectural firm who has
experience in working with historical structures.
8. The proposed interior modifications will include improvements that relate to
the Village's life safety and building codes that enhance the public, health,
safety and welfare of those persons who work and visit the York Tavern
facility.
9. The proposed building elevations and site improvements appear to be
consistent with the Graue Mill Gateway area and historical area that is adjacent
to the York Tavern property.
10. Even though the building will be physically improved, the integrity of the
residential zoning of the area has not been compromised.
Staff Comments
In addition to the issues raised by the Plan Commission as part of their deliberations
on the Certificate of Appropriateness, Staff has received several comments relative to
the potential opportunity to locate a bike path on the west side of York Road as part of
the planned improvements to the York Tavern property. These comments have been
communicated with the applicant and his Attorney.
In addition, one of the conditions attached to the recommendation from the Plan
Commission was final engineering approval. To comply with the Village's
engineering standards for parking lots, specifically stall dimensions and drive aisle
location/spacing, the paved parking area will need to be increased by several feet in
some specific locations including the west edge of the lot.
Finally, two individuals (Audrey Muschler and Jean Follett) who spoke on the matter,
requested that the Village Board consider adding language to the Village Code that
would permit the reconstruction of the York Tavern if ever destroyed. Such a
provision could also be extended to the other historic structures in the Graue Mill area.
Resident Larry Herman addressed the Board regarding York Tavern and spoke on
behalf of the residents in the area. He stated that they were pleased with the
cooperative attitude the owners and their representatives have shown and are generally
pleased with and in support of the proposal before the Board. He reiterated the
concerns of the neighbors. He stated that they were surprised that the addition which
is needed to fulfill the DuPage County requirements was actually larger than the
existing structure, but were not planning to challenge the stated requirements. Their
primary concern was the historical nature of the property and the fact that the property
is a residential district but has had a nonconforming special use. It was asked that the
Board be very specific about the limitations of the occupancy and outside use of the
building. It was suggested that the Board mandate that the owners request historical
VILLAGE OF OAK BROOK Minutes Page 6 of 18 May 23, 2006
9. A. landmark status which would give the neighbors assurance that future expansion
would not happen. They also suggested that the back portion of the lot which is not
currently part of the development plan be sold to the Forest Preserve District which
would also assure no further development of the property.
Resident Samuel Gurgis indicated that he did not wish to be redundant, so he indicated
that he and other neighbors agreed with the comments made by Mr. Herman.
Discussion ensued regarding the legal implications of mandating that the owner seek
landmark status. The conclusion was that the Village cannot impose that requirement.
The owner was asked whether his intent was to pursue that status. Mr. Walter
O'Brien, attorney to the owners responded that it was in the owner's economic interest
because of tax credits to pursue that status. He commented however that the
timeframe required by the County to commence the redevelopment would not allow
time to proceed through the process of the national registry.
Motion by Trustee Kennedy, seconded by Trustee Aktipis, to concur with the findings
and recommendation from the Plan Commission and approve the request for a
certificate of appropriateness to permit the expansion of the York Tavern and related
site developments with the additional condition that there be compliance with the
commitments made in the May 18 letter of the petitioners counsel regarding the
construction of a bike path subject to engineering review and consideration of safety
and other pertinent considerations and authorize the Village Attorney to draft the
necessary ordinance for final consideration at the June 13, 2006 Board of Trustees
meeting. VOICE VOTE: Motion carried.
10. UNFINISHED BUSINESS
A. CONFIRMATION OF APPOINTMENTS — None presented.
B. ORDINANCES & RESOLUTIONS — None presented.
C. AWARD OF CONTRACTS
1) LIBRARY LANDSCAPING
Four sealed bids were received and opened on Thursday, May 18, 2006. The bid
tabulation that shows pricing received for the Base Bid, Alternate A (installation of
shrubs and perennials), and Alternate B (installation of benches and picnic tables).
Staff is recommending the Base Bid and Alternate A for a total project cost of
$37,600. JJR, LLC, the consultants for this project, has worked with the Kenneth
Company in the past and have found them to be responsive and reputable. All jobs
performed were completed successfully, on time and on budget.
VILLAGE OF OAK BROOK Minutes Page 7 of 18 May 23, 2006
10. C. 1) Staff is also requesting to proceed with extending the present irrigation system as
desired by the Village. Halloran and Yauch, Inc. of Lake Forest, Illinois, installed
the present irrigation system in 2004. They are proposing to add irrigation to the
west side lawn and ground cover /perennials adjacent to the Library and change the
existing irrigation to pop up spray heads (to not overwater shrubs and trees) for a
total of $7,540. Combining the irrigation work ($7,540) with the recommended
landscape work ($37,600) exceeds the budget ($40,000) by $5,140. Spending the
additional $5,140 is a matter for Board direction.
Motion by Trustee Aktipis, seconded by Trustee Kennedy, that the Village Board
award a contract for the Base Bid and Alternate A work, to the lowest responsive
and responsible bidder, The Kenneth Company, Bolingbrook, Illinois for a lump
sum total cost of $37,600 and to Halloran and Yauch, Inc. of Lake Forest, IL for
expansion of existing irrigation for a total of $7,540 subject to staff review, for the
Library Landscape Improvements project. ROLL CALL VOTE:
Ayes: 6 - Trustees Aktipis, Craig, Kennedy, Manofsky, Sanford and Yusuf.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
2) 2006 CRACK SEAL 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
numeric low bid received by Scodeller Construction was rejected by IDOT due to
the lack of participation by the company in the apprenticeship program. Dale
Durfey, Village Engineer, polled five (5) Board Members and the Village,
President on May 9, 2006 and all concurred to awarding the Crack Sealing Project
to the second numeric low bidder, SKC Construction. The bid received by SKC
Construction is lower than the engineer's estimate by $4,399.02. SKC was
awarded the contract for the past five years and performed adequately.
The contractor is responsible for providing any necessary traffic control to direct
motorists around the work zones. Disruption is minimal with this process. All
work is scheduled to be completed during the month of June.
Motion by Trustee Akitipis, seconded by Trustee Kennedy, that the Village Board
award a contract to the lowest responsive and responsible bidder, SKC
Construction, West Dundee, 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 $48,533.48. 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 8 of 18 May 23, 2006
10. D. POLICE AND FIREFIGHTERS' PENSION FUND ACTUARIAL STUDIES
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.
The actuarial study process begins with the Finance Department providing the actuary
with participant salary, contribution and service credit data. 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 then completed and a funding request is forwarded to
the Village Board (ultimately responsible for funding the pension programs). For
2006, the process was a little different in that the Police Pension Fund requested a
change in the the interest rate assumption from 7.5% to 7.25 %. Due to the
significance of this potential change, the single issue of whether or not to change the
interest rate assumption was discussed by the Village Board at the meeting on April
11, 2006. At this meeting, the Village Board elected to leave the interest rate
unchanged at 7.5 %. Thus, the studies of both the Police and Firefighters' Pension
Fund were completed using an interest rate assumption of 7.5 %. The following is a
brief summary of the two reports:
Police Pension Fund
As the actuarial report indicates, the Police Pension Fund was 86.3% funded as of
December 31, 2005, a decrease of 2.77% from the funded percentage in 2004. The
primary cause of the decrease in the funded percentage is that for 2005 the Fund's
investment return was 4.73 %, which is 2.80% below the actuarially assumed rate of
7.50 %. Although the investment return for 2005 was below the assumed rate, the
trailing three year investment return has averaged 8.20 %, which is over the assmumed
rate of 7.50 %. For 2006, the actuary recommends a Village contribution of 18.59% of
payroll, an increase of 0.93% of payroll from 2005.
The recommended Village contribution of 18.59% of payroll for 2006 is slightly over
the 17.75% of payroll used in preparation of the 2005 Budget; however, offsets will
likely be available in other accounts within in the Police Department to offset the
potential variance. To date in 2006 the Village has continued to contribute to the
Police Pension Fund at the 2005 rate of 17.66 %. The past practice has been that the
contribution rate is made retroactive to January 1. Accordingly, if the contribution
VILLAGE OF OAK BROOK Minutes Page 9 of 18 May 23, 2006
10. D. rate of 18.59% is approved, a retroactive payment of $9,480.99 will be made to the
Police Pension Fund.
Firefighters' Pension Fund
The actuarial report indicates that the Firefighters' Pension Fund was 77.1 % funded as
of December 31, 2005, a decrease of 3.30% from the funded percentage in 2004. The
cause of approximately 0.66% of the decrease in the funded percentage is that during
the year two firefighters took advantage of a 2004 legislative change that now allows
portability of service credit between downstate pension funds. The remainder of the
decrease in the funded percentage was due to the Fund's investment return of 5.55%
being 1.95% below the actuarially assumed rate of 7.50 %. Although the investment
return for 2005 was below the assumed rate, the trailing three year investment return
has averaged 9.46 %, which is over the assmumed rate of 7.50 %. For 2006, the
actuary recommends a Village contribution of 23.68% of payroll, an increase of 2.25%
of payroll from 2005.
The recommended Village contribution of 23.68% of payroll for 2006 is over the
21.50% of payroll used in preparation of the 2006 Budget; however, offsets will likely
be available in other accounts within in the Fire Department to offset the potential
variance. To date in 2006 the Village has continued to contribute to the Firefighters'
Pension Fund at the 2005 rate of 21.43 %. The past practice has been that the
contribution rate is made retroactive to January 1. Accordingly, if the contribution
rate of 23.68% is approved, a retroactive payment of $18,463.89 will be made to the
Firefighters' Pension Fund.
Trend Information
Trend data on both pension funds for the last eight years indicates from year to year
the actuarial results can vary greatly. The two biggest reasons for the variations have
been State - mandated benefit enhancements and the volatile investment markets. Also,
when comparing investment returns between the two funds it should be noted that in
general the Firefighters' Pension Fund has had a greater percentage of their assets in
equity investments when compared to the Police Pension Fund. Thus, when the
equity markets have performed well the Firefighters' Pension Fund has had better
performance, and when the equity markets have performed poorly (more frequently in
this eight year period) the Police Pension Fund had better performance.
Trustee Kennedy reiterated his position that he disagreed because he felt that the
Village was using too high of an estimate on the level of return, but would not oppose.
Motion by Trustee Yusuf, seconded by Trustee Sanford, that 1) The Village Board
accept the attached actuarial reports of the Police Pension Fund and Firefighters'
Pension Fund and 2) approve a Village contribution of 18.59% of payroll for police
VILLAGE OF OAK BROOK Minutes Page 10 of 18 May 23, 2006
10. D. officers and 23.68% for firefighters retroactive to January 1, 2006. ROLL CALL
VOTE:
Ayes: 6 - Trustees Aktipis, Craig, Kennedy, Manofsky, Sanford and Yusuf.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
11. NEW BUSINESS
A. CONFIRMATION OF APPOINTMENTS
1) OAK BROOK POLICE PENSION FUND BOARD
President Quinlan stated that this item would be removed from the Agenda.
2) LIBRARY COMMISSION
The Library Commission is made up of seven (7) members with terms that expire
every three years. President Quinlan recommended that the Village Board approve
the following appointments to the Oak Brook Library Commission, with their
terms expiring May, 2009: Randa Bishlawi, Melissa Salazar, Lucia Sutton, Veena
Mendiratta and Janice Skowron to the Library Commission.
Motion by Trustee Aktipis, seconded by Trustee Yusuf, to concur with President
Quinlan's recommendation to reappoint Randa Bishlawi, Melissa Salazar, Lucia
Sutton, Veena Mendiratta and Janice Skowron to the Library Commission with
their terms expiring May, 2009. VOICE VOTE: Motion carried.
3) BOARD OF FIRE AND POLICE COMMISSIONERS
The Board of Fire and Police Commissioners is made up of three (3) members
with terms that expire every three years. President Quinlan recommended that the
Village Board concur with his reappointment of Albert Guisfredi to the Board of
Fire and Police Commissioners, with the term expiring May, 2009.
Motion by Trustee Craig, seconded by Trustee Yusuf, to concur with President
Quinlan's reappointment of Albert Guisfredi to the Board of Fire and Police
Commissioners, with the term expiring May, 2009. VOICE VOTE: Motion
carried.
4) PLAN COMMISSION
The Plan Commissioners is made up of seven (7) members with terms that expire
every three years. President Quinlan recommended the reappointment of Raju Iyer
and Lexi Payovich as Chairman to the Plan Commission with their terms expiring
May, 2009.
VILLAGE OF OAK BROOK Minutes Page 11 of 18 May 23, 2006
11. A. 4) Motion by Trustee Kennedy, seconded by Trustee Aktipis, to concur with President
Quinlan's recommendation for reappointment of Raju Iyer and Lexi Payovich as
Chairman to the Plan Commission with their terms expiring May, 2009. VOICE
VOTE: Motion carried.
B. ORDINANCES & RESOLUTIONS
1) AN ORDINANCE AMENDING THE 2006 BUDGET
Consistent with past practice, the 2006 Budget for the Village of Oak Brook
includes $75,000 of General Corporate Fund funding of the annual Independence
Day celebration. At the present time the Board is considering that funding of this
event be shifted from the General Corporate Fund to the Hotel/Motel Tax Fund. If
this proposal is approved, a Budget Amendment is required in order to increase the
total appropriation in this fund in order to budget this amount in the Hotel /Motel
Tax Fund. Fund reserves are available to fund this proposal.
Trustees Sanford and Manofsky agreed to use these funds for this year, but were
not sure that these funds should be used for this purpose. It was suggested that the
Board review the recommendations made by the Oak Brook Hotel, Convention
and Visitors Committee for expenditure of the tax. Additional discussion ensued
regarding the appropriate use of this tax revenue.
Motion by Trustee Yusuf, seconded by Trustee Craig, for passage of Ordinance
S 1161, An Ordinance Amending the 2006 Budget. ROLL CALL VOTE:
Ayes: 5 - Trustees Aktipis, Craig, Kennedy, Sanford and Yusuf.
Nays: 1 - Trustee Manofsky.
Absent: 0 - None. Motion carried.
C. AWARD OF CONTRACTS
1) INDEPENDENCE DAY CELEBRATION - PYROTECHNICS
Melrose Pyrotechnics has been the fire works vendor of choice for the Village of
Oak Brook due to the safety precautions executed, their understanding of the event
and the needs of the Sports Core Property and their ability to meet our Insurance
Requirements.
Due to the long standing relationship and the reasons listed above, Staff
recommends that the Village Board waive competitive bidding and award a
contract to Melrose Pyrotechnics for the 2006 Fireworks Display in the amount of
$3300.00.
Motion by Trustee Craig, seconded by Trustee Aktipis, that the Village of Oak
Brook waive competitive bidding and award a contract to Melrose Pyrotechnics
VILLAGE OF OAK BROOK Minutes Page 12 of 18 May 23, 2006
11. C. 1) for the 2006 Fireworks Display in the amount of $33,000.00. ROLL CALL
VOTE:
Ayes: 6 - Trustees Aktipis, Craig, Kennedy, Manofsky, Sanford and Yusuf.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
2) INDEPENDENCE DAY CELEBRATION — PARKING AND CONCESSIONS
Over the past two years the Bath and Tennis staff have reviewed the costs, risks
and initiated new ways to measure the overall expenses of the Independence Day
event as these costs relate to the Village of Oak Brook. As such, staff is
recommending that based on knowledge gained through these efforts, the Village
contract with a third party with experience of our facility for both the
concessionaire service and parking and field set -up service. The following is a
summary of the activities of the 2004 and 2005 event planning and costs for the
Oak Brook Fireworks Display.
As you may recall, in 2004, the Village utilized RB Enterprises for Valet Services
and Field Set -up for the Independence Day event; RB Enterprises also served as
the concessionaire for the event. In addition to the standard procedures, staff also
added ticket sales for all food and beverage sales as an accounting measure to
gauge sales and determine relative risk for the Village should we decide to take on
the full operations. 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
$49000.00).
In 2005, the Village took over the sale of beer for the event. Based on the weather
conditions and attendees providing their own picnicking needs, Bath and Tennis
staff estimated that 9 cases of beer were sold in total. Overall, both options
performed in the prior years have demonstrated that the risks to the Village for a
one time event outweigh the possibility of making a profit by taking the
concessions in house.
Valet Parking Services:
In 2005 staff prepared a Scope of Services in order to solicit proposals from
companies that perform valet services as well as field set -up including safety
lighting and generators. The total cost for this service was approximately $20,000
in 2004. As a result of the 2005 RFP, two separate proposals were received and
VILLAGE OF OAK BROOK Minutes Page 13 of 18 May 23, 2006
11. C. 2) upon staff recommendation, the Village Board approved the proposal from RB
Enterprises in the amount of $22,945.00. Additional cost of rain date of Tuesday,
July 4th - $4,589.00. Pricing will be valid through June 1, 2006. Note, Parking
Concepts Inc., Lincolnwood was the second bidder in 2005 and although their
proposal was less than RB Enterprises, RB's proposal was much more complete in
terms of the type of equipment provided for barricading and communications as
well as overall experience with parking /valet services and field set -up for this size
venue.
2006 Proposal Overview from RB Enterprises:
Based on the performance by the contractor over the past years, coupled with the
information gained in 2004 and 2005, staff requested a proposal from RB
Enterprises to perform the Parking and Traffic Control Services and the
Concession Services for 2006. The Proposal is as follows:
A. Set -up personnel — 25 (approximately 225 man - hours)
B. Park and Traffic personnel — 45 (approximately 315 man - hours)
C. Tear -down and Clean -up personnel — 30 (approximately 270 man - hours)
D. All Equipment necessary to perform operation.
E. Any additional equipment deemed necessary.
Motion by Trustee Craig, seconded by Trustee Aktipis, that the Village of Oak
Brook waive competitive bidding for contracts for Parking and Traffic Control
Services in the amount of $22,945.00 and Concessionaire Services, with
commissions paid to the Village on Concession sales, both with RB Enterprises for
the 2006 Oak Brook Independence Day Celebration. ROLL CALL VOTE:
Ayes: 6 - Trustees Aktipis, Craig, Kennedy, Manofsky, Sanford and Yusuf.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
D. INTERGOVERNMENTAL AGREEMENT BETWEEN THE EMERGENCY
TELEPHONE SYSTEM BOARD (ETSB) OF COOK COUNTY AND THE
VILLAGE OF OAK BROOK
The Village of Oak Brook Fire Department provides fire and EMS service to a small
area in Cook County, east of I -294. This area has 19 phone lines that are under the
jurisdiction of the Cook County ETSB and as such, qualifies the Fire Department to
receive funds under the Surcharge Reallocation Program. The minimum distribution
under the program, for which the Fire Department qualifies this year, is $1,000.00.
Staff recommended the Village Board enter into an intergovernmental agreement with
the ETSB Board of Cook County to allow the distribution of Surcharge Reallocation
Funds in the amount of $1,000.00 to the Village of Oak Brook Fire Department. The
use of the funds, under the guidelines established by the ETSB, will offset the cost of
providing GPS software in the mobile data terminals installed in the fire apparatus and
ambulances.
VILLAGE OF OAK BROOK Minutes Page 14 of 18 May 23, 2006
11. D. Motion by Trustee Yusuf, seconded by Trustee Kennedy, that the Village Board enter
into an intergovernmental agreement with the ETSB of Cook County to secure funds
provided under the Surcharge Reallocation Program. ROLL CALL VOTE:
Ayes: 6 - Trustees Aktipis, Craig, Kennedy, Manofsky, Sanford and Yusuf.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
E. DISCUSSION — RESIDENTIAL SCAVENGER SERVICE
At the Board meeting of April 25, 2006, Trustee Aktipis, speaking from the podium,
requested that the Board reinstitute a Village subsidized refuse collection program
beginning in June of this year; he also requested that the matter be discussed at the
May 23, 2006 meeting. The rationale for this request was that the Village has been
spending General Fund monies on several planning efforts and the fact that staff
anticipates that there will be a 6 -month reserve surplus at the end of this year.
Based on the current waste hauling contract a Village subsidized residential refuse
program would cost approximately $237,500 for the last half of 2006. That cost would
obviously increase in the subsequent years with the 2007 amount being between
$475,000 and $500,000. In the event the Board authorizes the subsidy of residential
waste collection, cost projections have been formulated under several scenarios based
on increases in the housing unit count and inflation. Staff has also prepared a
projected 5 -year financial plan; this plan assumes all aspects of the one adopted for
2005 plus the refuse collection and the now known obligation to partially fund the
reconstruction and widening of the I -88 bridge over 22nd Street.
To assist in framing the Board's discussion on this issue several significant budgetary
issues need to be considered, they are as follows:
Revenues
• In the 2006 Budget, General Fund revenues are budgeted at $19.5 million and
operating expenses (total expenses of $20 million less capital of $952,000 and
Village Board contingency of $100,000) are budgeted at $18.9 million. In order to
produce a balanced budget, this leaves approximately $600,000 available for any
capital expenditures, Village Board contingency, or any discretionary spending. It
should also be noted that the revenue budget of $19.5 million includes $250,000
from a new business license program that has not yet been implemented.
• Absent new revenue or any change in the tax base, projecting these numbers
forward to 2007 would likely result in less than $600,000 available since operating
costs (primarily personnel) have tended to increase a greater percentage than
inflation on the Village primary tax revenues.
• Based on data from the developer, the Promenade is projected to eventually
generate $700,000 annually to the Village after taking out the Village's pledged
VILLAGE OF OAK BROOK Minutes Page 15 of 18 May 23, 2006
11. E. 20 %. For 2007, $400,000 to $500,000 is possible, depending on the construction
schedule. Due to a possible four month delay from the time a store is opened until
the Village begins to receive tax revenue, even this amount may be high. The
village should probably be more conservative on the Promenade revenue for 2007.
• Telecommunications tax receipts through May are approximately $185,000 below
budget. These receipts continue to decline from prior years. For the first 5 months
in 2005 receipts averaged $195,000 per month; for the first 5 months this year
receipts averaged $170,000. This is partially offset by utility tax receipts on natural
gas being $47,000 over budget. For the year, a negative budget variance of
$250,000 to $350,000 is possible, and most would project into the future. The
potential negative variance in the future could increase if the record high natural
gas prices were to decrease.
• The continued decline in telecommunications taxes has been significant. In 2002,
when the Village collected the tax, receipts averaged $255,000 per month. In 2003
the State began collecting the tax- receipts for 2003 averaged $233,000 per month;
in 2004 - $205,000 per month, and in 20054195,000 per month. Thus, from 2002
until 2006, the difference of $85,000 per month projects to a $1,000,000 annual
decline in this revenue source.
• The Village could increase the telecommunications tax from 5% to 6% to generate
additional funds and to offset the significant decline in the tax base. The additional
1% would generate approximately $425,000 annually; at the present time the
earliest we could expect receipts would be April, 2007, making only $325,000
available in 2007.
Expenditures
• Pursuant to the Village's agreement with IDOT the Village will be required to pay
approximately $4,000,000 for the bridge over 22nd Street. This outlay was not
included during the 2006 -2010 Five -Year Financial Plan process and the Village
will need to find a way to pay for this. Even if paid the Illinois State Toll Highway
Authority allows this obligation to be paid over time this will absorb a great deal of
any new revenue.
• The most recent actuarial reports indicate that the unfunded liability in the Police
Pension Fund was $4 million and the unfunded liability in the Firefighters' Pension
Fund was $6 million. Although the Village is making it's statutory contribution in
order to achieve 100% funding by 2033, the Village Board has expressed a priority
to accelerate the retirement of these liabilities.
• The costs of any recommendation from the Revitalization Task Force beyond an
annual amount of $75,000 generically programmed as "beautification" have not
been included in the Five -Year Financial Plan.
• Staff tried for several years to increase staffing in the Building and Grounds
Department by one full time employee (this is currently staffed with only one
employee despite the significant number of buildings added over the last several
years). The estimated annual cost for this position would be $80,000 to $90,000.
• For the last several years during the budget staff has been unable to include a GIS
VILLAGE OF OAK BROOK Minutes Page 16 of 18 May 23, 2006
11. E. technician in the Engineering Department, an additional full -time inspector in the
Building Department, and several positions in both public safety departments.
• The financial and Sports Core software packages were deferred last year and need
to be replaced (maintenance is a significant issue and cost is $100,000 to
$200,000), replacement roof for the Public Works Building has been deferred for 3
years (at least $300,000), and what if any outlay will be required for Old Butler
School?
Given the above information the Board could use some or all of the following
strategies if they wish to authorize the refuse collection program:
• Increase revenues such as sales tax;
• Combine deferrals of projects with an increase in revenues;
• Dedicate all new Promenade sales tax to this program;
• Raise the Telecom Tax and earmark the entire tax base to this program.
Trustee Aktipis stated that the information provided by Village Manager Boehm
concluded that the resumption of a Village subsidized refuse collection program could
only be achieved through an increase of revenue. The Board had received a
substantial and complex amount of financial information and he felt that the Board
needed time to read, study and digest the information. He asked that the discussion of
resumption of a Village subsidized refuse collection program be continued to the next
meeting.
12. INFORMATION & UPDATES
A. VILLAGE PRESIDENT — President Quinlan wished everyone a pleasant, happy and
safe Memorial Day.
B. VILLAGE MANAGER — Manager Boehm announced that the Village offices would
be closed on Monday, May 29 in observance of Memorial Day.
C. VILLAGE CLERK — No report was presented.
13. ADJOURN TO CLOSED MEETING to discuss minutes of meetings lawfully closed under
the Open Meetings Act, whether for the purpose of approval by the body of the minutes, or
for semi - annual review of the minutes as required by the Open Meetings Act (2c 17) and 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 Kennedy, to adjourn to Closed Meeting to
discuss minutes of meetings lawfully closed under the Open Meetings Act, whether for the
purpose of approval by the body of the minutes, or for semi - annual review of the minutes
VILLAGE OF OAK BROOK Minutes Page 17 of 18 May 23, 2006
13. as required by the Open Meetings Act (2c 17) and to consider litigation, when an action
against, affecting or on behalf of the Village has b3een 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) at 9:17 p.m. ROLL CALL VOTE:
Ayes: 6 - Trustees Aktipis, Craig, Kennedy, Manofsky, Sanford and Yusuf.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
14. ADJOURNMENT
Motion by Trustee Craig, seconded by Trustee Kennedy, to adjourn the Regular Meeting
of the Board of Trustees at 9:50 p.m. VOICE VOTE: Motion carried.
ATTEST:
Carol Harty
Carol Harty
Deputy Village Clerk
VILLAGE OF OAK BROOK Minutes Page 18 of 18 May 23, 2006