Minutes - 05/27/2008 - Board of Trustees2
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MINUTES OF THE MAY 27, 2008 REGULAR MEETING OF THE
PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF
OAK BROOK APPROVED AS WRITTEN ON NOVEMBER 11,
2008
CALL TO ORDER
The Regular Meeting of the Village Board of Trustees was called to order by President
Craig in the Samuel E. Dean Board Room of the Butler Government Center at 7 :34 p.m.
The Pledge of Allegiance was given.
ROLL CALL
Village Clerk Charlotte Pruss called the roll with the following persons
PRESENT. President John W. Craig, Trustees James Carson, Jeffrey J. Kennedy,
Kathryn F. Manofsky, Moin Saiyed, Robert G. Sanford and Gerald Wolin.
ABSENT: None.
IN ATTENDANCE: David Niemeyer, Village Manager; Blaine Wing, Assistant Village
Manager; Mark Sterk, Village Attorney; Robert L. Kallien, Jr., Director of
Community Development; Dale L. Durfey, Jr., Village Engineer; Darrell J.
Langlois, Finance Director; James Bodony, Fire Chief, Bruce F. Kapff,
Director of Information Services & Purchasing; Margaret Klinkow
Hartmann, Library Director; Michael J. Meranda, Public Works Director;
Nelson Patras, Bath & Tennis Club Operations Manager and Thomas
Sheahan, Chief of Police.
PRESIDENT'S OPENING COMMENTS
RESIDENT /VISITOR COMMENT
APPROVAL OF MINUTES
A. RESCHEDULED COMMITTEE -OF- THE -WHOLE MEETING OF MARCH 24,
2008
Motion by Trustee Kennedy, seconded by Trustee Wolin, to approve the Minutes of
the March 24, 2008 Rescheduled Committee -of -the -Whole Meeting as presented.
VOICE VOTE- Motion carried.
B. SPECIAL BOARD OF TRUSTEES MEETING OF APRIL 22, 2008
Motion by Trustee Kennedy, seconded by Trustee Carson, to approve the Minutes of
the April 22, 2008 Special Board of Trustees Meeting as presented. VOICE VOTE:
Motion carried.
VILLAGE OF OAK BROOK Minutes Page 1 of 17 REGULAR MEETING OF
MAY 27, 2008
5. C. REGULAR BOARD OF TRUSTEES MEETING OF APRIL 22, 2008
Motion by Trustee Kennedy, seconded by Trustee Saiyed, to approve the Minutes of
the April 22, 2008 Regular Board of Trustees Meeting as presented. VOICE VOTE:
Motion carried.
6. CONSENT AGENDA:
All items on the Consent Agenda are considered to be routine in nature and will be
enacted in one motion. 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.
A. ACCOUNTS PAYABLE FOR PERIOD ENDING MAY 23, 2008 - $608,245.74
Significant Items included in Above:
1) Civiltech Engineering — Payout #2 — North York Road Study - $10,767.28
2) Odelson, Sterk — Legal Services - March, 2008, $28,294.60
3) Odelson, Ster - Legal Services - March, 2008 - Mucha Civil Rights' matter -
$2,675.60
4) Seyfarth, Shaw, services for March, 2008, $477.17
5) Kubiesa, Spiroff, Gosselar, Acker & DeBlasio, services for April, 2008,
$11,302.34
6) DuPage Water Commission - $111,858.79
B. APPROVAL OF PAYROLL FOR PAY PERIOD ENDING MAY 17, 2008 -
$761,664.00
C. COMMUNITY DEVELOPMENT REFERRALS — None presented
D. AUTHORIZATION TO SEEK BIDS OR PROPOSALS OR NEGOTIATE
CONTRACTS:
1) 2008 WATER MAIN PROJECT — WOODSIDE ESTATES (MEADOWOOD
DRIVE TO PALISADES DRIVE)
The Engineering Department is finishing plans for the 2008 Water Main Project
and will be ready to proceed with bids. Construction should commence in early
August and be completed by the end of September.
This project installs approximately 500 feet of 6" water main so that an existing
inaccessible water main within several residents' rear or side yards can be
abandoned. Several water services will also be disconnected from the water
main to be abandoned and reconnected to an existing or new water main along
the street in front of their houses.
VILLAGE OF OAK BROOK Minutes Page 2 of 17 REGULAR MEETING OF
MAY 275 2008
6. D. 1) The requested action is that the Village Board grant approval for advertising the
bids for the 2008 Water Main Project.
E. BUDGET ADJUSTMENTS
1) COMMUNITY DEVELOPMENT — CODE ENFORCEMENT — OTHER
SERVICES
F. TREASURER'S REPORT APRIL, 2008
Motion by Trustee Kennedy, seconded by Trustee Manofsky, to approve the Consent
Agenda and authorize expenditures as presented. ROLL CALL VOTE:
Ayes: 6 - Trustees Carson, Kennedy, Manofsky, Saiyed, Sanford and Wolin.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
7. ITEMS REMOVED FROM CONSENT AGENDA
8. BOARD & COMMISSION RECOMMENDATIONS
A. VILLAGE OF OAK BROOK — TEXT AMENDMENT — PORTABLE STORAGE
UNITS
The Plan Commission, at its meeting on February 18, 2008 completed its review and
recommendation. The Zoning Board of Appeals, at its meetings held the required
public hearing on April 1, 2008 and May 6, 2008 and completed its review and
deliberations on a request from the Village of Oak Brook to add a new provision to
the General Provisions of the Zoning Ordinance, which would regulate portable
storage units on private property.
The use of portable storage units on private property is a relatively new issue that is
growing in popularity. During the process of either moving into or out of an existing
home or business, the portable storage unit is delivered to a property and is used
temporarily to store items that are to be moved.
At the present time, the Village of Oak Brook has no specific regulations which
address the portable storage unit issue. As such, there have been occasions where the
storage unit has been placed on a property for extended periods of time and has
created an "eyesore" on the neighborhood. In those instances, a number of
complaints have been received by the Village.
To address this issue, Staff reviewed ordinances from several area communities who
now regulate portable storage units on private property. These communities include
VILLAGE OF OAK BROOK Minutes Page 3 of 17 REGULAR MEETING OF
MAY 27, 2008
8. A. Wheaton, Tinley Park, Elmhurst, Glen Ellyn, and Naperville. A matrix was prepared
which compared the key components of these regulations against those of the other
communities.
Discussion
The Zoning Board of Appeals concurred with the Plan Commission's unanimous
recommendation that the Village adopt regulations that would control the placement,
duration, safety and size of portable storage units on private property and that
appropriate language be added to the General Provisions located in Chapter Three of
the Zoning Ordinance.
Recommendation
On February 18, 2008, by a vote of 6 to 0, the Plan Commission recommended that
the Village adopt regulations to control the placement of portable storage units on
private property and that the recommended language be added to Chapter Three —
General Zoning Provisions of the Zoning Ordinance.
In making the recommendation, the Plan Commission found that the requested
amendment was reasonable and necessary to protect and promote the health, safety,
and general welfare of the public.
On May 6, 2008, by a vote of 7 to 0, the Zoning Board of Appeals recommended that
the Village adopt regulations to control the placement of portable storage units on
private property. In making the recommendation, the Zoning Board found, based
upon the testimony by village staff and favorable comments received from the
homeowner associations that the requested amendment was reasonable, beneficial
and protected property values.
In addition to the recommendation of the Plan Commission the Zoning Board of
Appeals recommended an additional requirement that would prohibit the storage of
hazardous material and that the unit cannot be located closer than 10 feet from the
principal structure to allow for emergency access. Also, the Zoning Board of
Appeals recommended that the homeowner associations be notified of these
regulations should they be adopted.
The recommended language including a definition of a portable storage unit is as
follows:
Portable Storage Unit Definition: An enclosed container that is delivered to a private
property and is normally used for the short -term storage of items and materials
associated with a move into or from the principal use of the property.
VILLAGE OF OAK BROOK Minutes Page 4 of 17 REGULAR MEETING OF
MAY 273 2008
8. A. Portable Storage Unit Regulations
a. There shall be no more than two (2) portable storage units permitted on a property.
b. Stacking of portable storage units is prohibited.
c. The property must be occupied by a principal use or dwelling.
d. Timeframe: No portable storage unit shall remain on a property for more than 15
consecutive days. An additional 15 days period may be approved by Department
of Community Development for cause. Special circumstances allowing for longer
periods of time or frequency may be approved as determined by the Department of
Community Development.
e. A portable storage unit on residential property shall not exceed 16 feet in length.
A portable storage unit on non - residential property shall not exceed 40 feet in
length.
f. Portable storage units shall be placed on the driveway or other paved surface on
the lot.
g. The portable storage unit cannot be located closer than 10 feet from the principal
structure.
h. The portable storage unit cannot be used to store hazardous materials or
flammable liquids.
i. The portable storage units shall not placed on public property or permitted to
obstruct traffic visibility /sight distance.
j. A permit and fee (an amount, if any to be determined by the Village Board) shall
be required by the Department of Community Development for the placement of a
portable storage unit(s) on private property. Time extensions may require the
payment of an additional fee (as determined by the Village Board).
k. The portable storage unit shall be maintained in good repair, free from rust,
peeling paint, graffiti and other forms of deterioration.
1. Signage on the portable storage unit is limited to the name and address of the
storage unit rental company.
m. The portable storage unit is to be locked when not in use.
Staff Comments
In order to regulate the placement of portable storage units on private property, a
permit will be required. To recoup Staff's costs to issue a permit for a portable
storage unit and conduct the required inspection to ensure compliance, Staff is
recommending a $50 fee be assessed for this type of permit. With regards to the
imposition of an additional fee to permit a portable storage unit to remain on a
property for an additional 15 days, Staff is requesting the input from the Village
Board.
VILLAGE OF OAK BROOK Minutes Page 5 of 17 REGULAR MEETING OF
MAY 27, 2008
8. A Motion by Trustee Sanford, seconded by Trustee Kennedy, to concur with the
recommendation from the Plan Commission and Zoning Board of Appeals and
approve the requested text amendment to adopt regulations for the control and use of
portable storage units on private property and authorize the Village Attorney to
prepare the necessary ordinance for final consideration at the June 10, 2008 Board of
Trustees meeting. VOICE VOTE: Motion carried.
9. UNFINISHED BUSINESS
A. CONFIRMATION OF APPOINTMENTS
1) BOARD OF FIRE AND POLICE COMMISSIONERS CONTINUED FROM
MAY 13, 2008
The Oak Brook Board of Fire and Police Commission is comprised of three (3)
members. Each Commissioner serves for a term of three years. Per the Board's
request, Trustees recently had the opportunity to interview each candidate
recommended for appointment.
President Craig recommended the re- appointment of Edward Nielsen for a term to
expire May 2010 and the appointment of Frederick Cappetta to fill a vacant term
to expire in May, 2009 to the Oak Brook Board of Fire and Police Commissioners.
Motion by Trustee Kennedy, seconded by Trustee Sanford, to concur with
President Craig's recommendation to re- appoint Edward Nielsen to the Oak Brook
Board of Fire and Police Commissioners for a term to expire May 2010.
Motion by Trustee Manofsky, to concur with President Craig's recommendation to
appoint Frederick Cappetta to the Oak Brook Board of Fire and Police
Commissioners to fill a vacant term to expire in May, 2009. Motion fails due to
lack of second.
B. ORDINANCES & RESOLUTIONS
1) DISCUSSION OF AN ORDINANCE AMENDING TITLE 1
(ADMINISTRATION) CHAPTER 10 OF THE VILLAGE CODE OF THE
VILLAGE OF OAK BROOK — ETHICS
The latest draft of the ethics ordinance was provided with the comments from
previous meetings and a few additional comments /suggestions:
Trustee Manofsky noted that there is a section in the personnel manual that
prohibits employees from accepting gifts, gratuities or related donations from
citizens, vendors, or other persons with whom they may come in contact with in
VILLAGE OF OAK BROOK Minutes Page 6 of 17 REGULAR MEETING OF
MAY 2712008
9. B. 1) the course of their official duties. The only exception is for gifts that don't have
essential or intrinsic value, such as food consumed on the premises by the
department as a whole or receipt of calendars, pocket notebooks of an advertising
nature or similar items.
Relative to this, Manager Niemeyer asked the Board to consider adding an
exception for food and refreshments served at Oak Brook grand openings,
Chamber events, professional functions such as DuPage Mayors and Managers
Conference dinners and similar type events. Manager Niemeyer indicated that he
had emphasized to staff the importance of being involved in the community and
professional organizations and that it would be part of their performance
evaluations. The way the current section of the personnel manual is written is that
it could be interpreted that staff could not attend business grand openings,
Chamber events and some professional functions. Likewise, many of the Elected
Officials should and do attend these type of events.
Trustee Kennedy felt that the current version is about as close to perfection as
possible and that it should move forward. Trustee Kennedy suggested that there
be a threshold to cover inadvertent violations. There was consensus.
Discussion ensued regarding prohibited sources and whether or not it is
appropriate to allow a minimal amount for each prohibited source or cumulative
for all prohibited sources. Attorney Sterk recommended that the allowance be for
each prohibited source.
There was consensus to move forward with the current changes.
2) RESOLUTION R -1018, A RESOLUTION APPROVING THE YORKFIELD
AREA WATER SYSTEM PURCHASE AGREEMENT BY AND BETWEEN
THE CITY OF ELMHURST AND THE VILLAGE OF OAK BROOK
A number of years ago, Oak Brook and Elmhurst began discussions on the sale of
the Yorkfield portion of the Village of Oak Brook water system to the City of
Elmhurst. Elmhurst Hospital is in need of tying into this system as a result of
their expansion. The area is generally an unincorporated area north of Roosevelt
Road, south of Butterfield Road, east of Euclid Avenue, and west of Caldwell
Avenue adjacent to Elmhurst.
In 2004 the Village engaged Alvord, Burdick, and Howson to come up with a
valuation for the area. The report outlined a low value of $110,000 based on an
economic value to the City of Elmhurst to a high of $889,000 based on
reproduction cost for a new system less depreciation. The two communities
Board's eventually agreed on a sale price of $350,000. According to previous staff
VILLAGE OF OAK BROOK Minutes Page 7 of 17 REGULAR MEETING OF
MAY 27, 2008
9. B. 2) memos, this represented seven years of net revenue to the area. Over the past
several months Attorney Sterk and staff had been working on a purchase
agreement for the sale of this part of the system to Elmhurst. The final draft of the
agreement was approved by the Elmhurst City Council last week. The sale closing
is scheduled for May 28, 2008.
It should be noted that if the Village decided not to sell the system we would have
to spend upwards of $4.5 million between 2016 and 2018 for water main and
hydrant replacement. The proceeds from the sale will go into the water fund for
Oak Brook water main replacements.
Motion by Trustee Manofsky, seconded by Trustee Wolin, for passage of
Resolution R -1018, A Resolution R -1018 approving the Yorkfield Area Water
System Purchase Agreement by and between the City of Elmhurst and the Village
of Oak Brook subject to final approval of the Village Attorney. ROLL CALL
VOTE:
Ayes: 6 - Trustees Carson, Kennedy, Manofsky, Saiyed, Sanford and Wolin.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
C. AWARD OF CONTRACTS
1) JANITORIAL SERVICES
A Request for Proposals was published and placed on the Village website on
February 5, 2008. Ten sealed proposals were received and opened on Tuesday,
March 4, 2008.
A committee that included Michael Meranda, Public Works Director; Meg
Klinkow- Hartmann, Library Director; Trey Van Dyke, Golf Club Manager;
Nelson Patras, Bath & Tennis Operations Manager and Rania Serences,
Purchasing Clerk was formed to review the proposals submitted, conduct
interviews and recommend a company that best met the Village's janitorial needs
and had the best value package. The three companies that were selected for an
interview were Nationwide Janitorial, Crystal Maintenance (our current vendor)
and Perfect Cleaning. They were selected because they had a better
understanding of our objectives for all the buildings, made no mistakes on their
figures and filled out the proposal forms correctly.
The reasons that other companies were not selected for an interview are: incomplete
proposals and incorrect or high proposal amounts.
VILLAGE OF OAK BROOK Minutes Page 8 of 17 REGULAR MEETING OF
MAY 27, 2008
a
10
C.
1) Nationwide appeared very professional, motivated and knowledgeable of our
objectives. The approach they proposed will meet all of the objectives we have.
Our objectives are cleaner buildings, more attention to problem areas such as
bathrooms, locker rooms and break rooms, training of personnel, appropriate
supervision of personnel and a good quality control program. Nationwide screens
all their employees on a yearly basis, have a low turn -over rate and an aggressive
training program. The price submitted is approximately 7% higher than what we
currently pay. They are also willing to spend extra time at all our buildings to
bring the cleaning up to expectations.
Staff has received adequate references as to the quality of work provided by
Nationwide Janitorial Corp. All report a good and responsive working
relationship. However, as with other contracts of this type, our specifications
allow the Village to cancel the contract if the quality of work fails to meet our
expectations.
Village buildings included in the contract to be cleaned are the Butler
Government Center, Public Works, Library, Sports Core Admin, Bath and Tennis
Clubhouse, and the Golf Club.
Motion by Trustee Wolin, seconded by Trustee Kennedy, that the Village Board
award a three year contract to the proposer with the best overall value,
Nationwide Janitorial Corp., Willowbrook, Illinois, subject to staff review, for
Janitorial Services in an amount of $226,725 ($75,575 for 2008, $75,575 for
2009, and $75,575 for 2010) as indicated on the bid tabulation. ROLL CALL
VOTE:
Ayes: 6 - Trustees Carson, Kennedy, Manofsky, Saiyed, Sanford and Wolin.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
NEW BUSINESS
A. CONFIRMATION OF APPOINTMENTS
1) OAK BROOK OAK BROOK HOTEL, CONVENTION AND VISITORS
COMMITTEE
The Oak Brook Hotel, Convention and Visitors Committee is made up of nine (9)
members with terms that expire every February 28th. At the Village Board
meeting of May 13, 2008, the Village Board approved the addition of one
resident -at -large to participate on this Committee thereby expanding this Committee
to ten (10) members. With this in mind, President Craig recommended the
appointment of Joanne Bell Cascio to the Oak Brook Oak Brook Hotel,
Convention and Visitors Committee for a term to expire February 28, 2009.
VILLAGE OF OAK BROOK Minutes Page 9 of 17 REGULAR MEETING OF
MAY 275 2008
10. A 1) Motion by Trustee Manofsky, seconded by Trustee Saiyed, to confirm President
Craig's recommendation to appoint Joanne Bell Cascio to the Oak Brook Hotel,
Convention and Visitors Committee for a term to expire February 28, 2009.
VOICE VOTE: Motion carried.
B. ORDINANCES & RESOLUTIONS — None presented
C. AWARD OF CONTRACTS — None presented
D. STRATEGIC PLAN FACILITATOR SERVICES
Strategic planning is one of the most important projects a Village Board will
undertake. Strategic planning in Oak Brook will provide a systematic process that
will enable the Village Board to understand the numerous future environments in
which the Village of Oak Brook will exist, establish consensus about how best to
achieve the Village's vision, and focus on the actions that will most likely make that
happen, all within the context of expected available resources.
The strategic plan will be the Village's guide for priorities for the next 5 -10 years.
Achievable goals, objectives and timetables are the outcomes of the process.
A good strategic planning process begins with an announcement of support of the
process from the Mayor and other key officials. At the May 27th meeting, the Village
President should announce the start of the process and the importance of resident,
business and employee involvement. Also at that meeting, the Board will be asked to
approve sending out an RFP to hire a facilitator.
The facilitator is an important component of the process and $10,000 has been placed
in the budget for this purpose. A facilitator has the following advantages because this
person can:
• Smooth the transition from one phase of the process to the next.
• Enforce the already agreed upon rules of discussion and debate
• Ensure that everyone participates and no person dominates discussion
• Draft difficult issue statements devoid of emotional or political overtones.
Communities in the Chicago area have used a number of facilitators. Staff has
collected information on them as well as the strategic plans that they have produced
for these communities. The cost for these facilitators ranges from $10,000 to over
$30,000. Most of the difference in cost is because of the depth of the process and the
amount of stakeholders that get involved in the process.
It should be noted that the cost of this facilitator will be spread out over two budget
VILLAGE OF OAK BROOK Minutes Page 10 of 17 REGULAR MEETING OF
MAY 27, 2008
years. Also, costs can be reduced by eliminating some of the stakeholder workshops
or have staff conduct one or more of the workshops.
Once the facilitator is hired, the next steps normally are as follows, though additional
steps can be added or consolidated depending on the process and facilitator chosen:
• The facilitator meets with key Village officials.
• The facilitator meets with the stakeholder groups. Community forums, citizen
surveys, and interactive websites are sometimes used to collect more information
from stakeholders.
• Information gleaned from the stakeholders is then presented to the Village Board.
• The Board meets in a half -day to day long session to develop a list of
strength/weakness /opportunities /threats (SWOT).
• The Board will also review the stakeholders report and then develop a list of
goals and objectives with priorities.
• The Manager's office will take this list and work with the facilitator to develop a
list of timetables and staff responsibilities.
• The final report with the stakeholder input and goals and objectives is then
brought back to the Village Board for final approval.
• On an annual basis, this report is reviewed and updated with the Village Board,
typically in June or July before the budget for the next year is prepared.
Normally, this process takes any where from 6 -18 months, depending on the amount
of stakeholder input sought and the type of detail in the final report. This has been
identified as a top priority in the Village Manager's goals this year, so I would like to
move forward with this immediately. The recommendation for the facilitator is
scheduled for the July 22 agenda. The process is then scheduled to begin in August
and end next March.
President Craig suggested that local colleges and universities be contacted to ask for
students of strategic planning to help work on this project since he has concern for
spending $10,000 - $30,000 for this project.
Suggestions were made that strategic planning had already been ongoing and that
maybe there were some "gap" areas that had not been addressed in previous strategic
planning. These might include village services, organizational structure and staffing,
revenue /financial issues, sports core mission and activities, residential neighborhoods
and public safety issues. It will not include areas that had already been addressed by
the Commercial Revitalization Task Force and the Beautification Committee.
Trustee Wolin indicated that there was no question in his mind that a trained,
experienced facilitator is a small price to pay for the benefit that comes from it.
VILLAGE OF OAK BROOK Minutes Page 11 of 17 REGULAR MEETING OF
MAY 275 2008
10. D. Trustee Carson suggested that a task force of one or two board members and staff
could narrow the scope. President Craig asked both Trustees Carson and Kennedy to
tighten up the scope of the RFP before the board authorizes staff to put out an RFP.
Manager Niemeyer agreed that the possibility of using local universities was
plausible and he added that he had worked with Northern Illinois University on
projects. He added that when he was hired, a strategic plan was a major goal and that
his concern was more for operational issues, staffing issues, etc.
10. E. POLICE & 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. From there, the
actuary calculates various scenarios based on prior actuarial assumptions as well as
what the impact would be for various changes in actuarial assumptions. The actuary
then attends a meeting with each respective Pension Board where the preliminary
results and various changes in actuarial assumptions are discussed. Based on the
direction given at the meeting, the actuarial studies are then completed and a funding
request is forwarded to the Village Board (ultimately responsible for funding the
pension programs). The following is a brief summary of the two reports:
Police Pension Fund
As the actuarial report indicates, the Police Pension Fund was 86.6% funded as of
December 31, 2007, an increase of 0.4% from the funded percentage in 2006. The
Fund's approximate investment return was 7.49 %, which is nearly right at the
assumed rate of 7.50 %. For 2007, the actuary recommends a Village contribution of
18.6% of payroll, an increase of 0.07% of payroll from 2007.
The recommended Village contribution of 18.60% of payroll for 2008 is slightly
above the 18.50% of payroll used in preparation of the 2008 Budget. To date in 2008
the Village has continued to contribute to the Police Pension Fund at the 2007 rate of
18.53 %. The past practice has been that the contribution rate is made retroactive to
January 1. Accordingly, if the contribution rate of 18.60% is approved, a retroactive
payment of $845.16 will be made to the Police Pension Fund.
VILLAGE OF OAK BROOK Minutes Page 12 of 17 REGULAR MEETING OF
MAY 27, 2008
Firefighters' Pension Fund
The actuarial report indicates that the Firefighters' Pension Fund was 77.6% funded
as of December 31, 2007, a decrease of 1.2% from the funded percentage in 2006.
The cause of the decrease in funded percentage was due primarily to the award of a
new disability pension as well as the Fund's investment return of 7.06% being 0.44%
below the actuarially assumed rate of 7.50 %. For 2008 the actuary recommends a
Village contribution of 25.10% of payroll, an increase of 2.29% of payroll from 2007.
More than 50% of this increase is due to an increase in the amoritzation payment
required due to the decline in funded percentage previously noted.
The recommended Village contribution of 25.10% of payroll for 2008 is over the
22.80% of payroll used in preparation of the 2008 Budget. Due to this increase a
budget transfer later in the year will likely be required. To date in 2008 the Village
has continued to contribute to the Firefighters' Pension Fund at the 2007 rate of
22.81%. The past practice has been that the contribution rate is made retroactive to
January 1. Accordingly, if the contribution rate of 25.10% is approved, a retroactive
payment of $22,427.71 will be made to the Firefighters' Pension Fund.
During the actuarial process some members of the Firefighters' Pension Board
expressed concern about some of the assumptions used in the actuarial study, the
primary concern being the mortality table used to predict mortality. As indicated in
the report, the actuarial study uses the 1984 Unisex Pensioners Mortality Table,
which is widely used by local police and fire funds and is more recent than the 1971
Group Annuity table used by the Division of Insurance (DOI) in their calculations of
contribution requirements (funding and contribution calculations are made by DOI
for every public pension fund in the state -these calculations are used by funds not
employing an actuary).
The concern expressed by some on the Board is that in light of the fact that people
generally are living longer, a more recent mortality table should be used. That being
said, there are other issues surrounding mortality such as Oak Brook's actual
experience, the experience of other police and fire funds in the State, the inherent
risks of public safety occupations, advances in safety procedures, etc. In the opinion
of our actuary, the 1984 Table is a reasonable table to use for our funds.
The cost and impact of changing the mortality table could be significant. Even
though there are newer tables available, during this process we reviewed estimates
resulting from changing the mortality table to the "1 990 Commissioners Mortality
Table ". If this table were adopted, the funded percentage would decrease by an
additonal 5% and the Village contribution would increase by an additional $125,000
per year. This would be Fire only, so to make a similar change for Police Pension
VILLAGE OF OAK BROOK Minutes Page 13 of 17 REGULAR MEETING OF
MAY 27, 2008
would at least double the additional cost. The Board did not come to a consensus to
change the assumption this year, but did agree to further study this and other
assumptions in advance of the next study. Please remember it is the Firefighters'
Pension Fund statutory duty to request a contribution -the ultimate funding decision is
the Village's. The only legal funding requirement is it must be based on an actuarial
study, so even if they request a change in the mortality table the Village Board could
decide to leave it unchanged.
Trend Information
To facilitate additional analysis, attached to this memorandum is trend data on both
pension funds for the last ten years. As you can see, 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 the Police Pension
Fund had better performance.
The Village's Funded Percentage
In prior years the Village Board has expressed concern about the Village's funded
percentage being below 100 %, especially considering that as late as 2000 both
pension fiends were in fact over 100% funded. As previously mentioned, the two
principal causes for the decline (benefit enhancements and volatile investment
markets) are beyond the control of the Village. What can't be ignored, though, is that
these two situations have impacted not just Oak Brook but every other pension fund
in the State. The current funded percentages are considered very good from an
actuarial standpoint and compare quite favorably with other Illinois police and fire
pension funds.
In order to demonstrate this fact, a chart was prepared by our actuary based on data
from neighboring pension funds he also works for. The chart shows that the Police
Pension Fund funded percentage ranks #1 out of the 12 funds selected and is 15.4%
above the average. The Firefighters' Pension Fund ranks 6th out of 10 funds selected,
but is still 2.0% above the average. The reason for the Firefighters' Pension Fund
funded percentage being below that of the Police is due to a higher rate of disability
pensions in our Fire Department. In summary, the Village is doing a very good job
managing it pension obligations.
VILLAGE OF OAK BROOK Minutes Page 14 of 17 REGULAR MEETING OF
MAY 27, 2008
10. E. Motion by Trustee Manofsky, seconded by Trustee Kennedy, that 1) The Village
Board accept the actuarial reports of the Police Pension Fund and Firefighters'
Pension Fund and 2) The Village Board approve a Village contribution of 18.60% of
payroll for police officers and 25.10% for firefighters retroactive to January 1, 2008.
ROLL CALL VOTE:
Ayes: 6 - Trustees Carson, Kennedy, Manofsky, Saiyed, Sanford and Wolin.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
10. F. COMMERCIAL REVITALIZATION PROJECT— TASK FORCE
RECOMMENDATION ON CONSULTANT PROPOSALS — PLANNED UNIT
DEVELOPMENTS AND SIGNAGE
The Oak Brook Commercial Areas Revitalization Plan was adopted by the Village
Board as an addendum to the Comprehensive Plan earlier this year. One of the many
recommendations coming out of this planning effort is the need to update many of the
Village's regulatory tools. Much of the current Zoning Ordinance dates back to
1966. Because of that, the Plan identifies several priority amendments that need to be
made to facilitate implementation and include 1) the creation of Planned Unit
Development regulations and, 2) a comprehensive rewrite of the Village's out -dated
signage regulations.
To begin the implementation process, a request for Statement of Qualifications
(RFQ) was prepared by the Village of Oak Brook in order to retain the services of a
qualified and experienced consulting firm for the preparation of key amendments to
the Village's Zoning Ordinance. Approximately two dozen firms were sent the
request and seven responded with formal proposals including Houseal Lavigne
Associates, Duncan Associates, LandVision, Camiros, Ancel Glink, Holland &
Knight, and Nicolosi & Associates.
To determine the top consultant proposals, a meeting was held with Trustee Bob
Sanford (liaison to Zoning Board), Trustee Jerry Wolin (liaison to Plan Commission),
Village Manager Niemeyer and Community Development Director Kallien in
attendance. From this meeting, it was recommended that the consultant proposals
from Houseal Lavigne Associates and Duncan Associates best addressed the RFQ
and warranted a one -on -one interview with the Commercial Revitalization Task
Force.
The Task Force met on May 15th and interviewed both consultant groups. A list of
questions was asked that dealt with both the PUD and signage issue. Upon
completion of the interview process, the Task Force voted 7 -0 to recommend that
Houseal Lavigne Associates be retained for the preparation of PUD and signage
amendments. To ensure that the proposed PUD and signage amendments meet the
VILLAGE OF OAK BROOK Minutes Page 15 of 17 REGULAR MEETING OF
MAY 27, 2008
10. F. legal standard, Houseal Lavigne was asked to consider the retention of a law firm to
partner in this process. Houseal Lavigne had indicated that they would retain the firm
of Holland & Knight as a subcontractor to assist them in this project at no additional
By a unanimous vote, the Commercial Revitalization Task Force recommended
approval of the proposal from the consultant team of Houseal Lavigne Associates to
prepare PUD and signage amendments to the Village's Zoning Ordinance and
authorize the Village Manager to negotiate a final contract for an amount not to
exceed $50,000 cost to the Village.
Motion by Trustee Kennedy, seconded by Trustee Manofsky, to concur with the
recommendation from the Commercial Corridor Revitalization Task Force to retain
the services of the consultant team of Houseal Lavigne Associates for the purposes of
preparing Zoning Ordinance amendments for Planned Unit Developments (PUD) and
Signage and authorize the Village Manager to negotiate a final contract for an amount
not to exceed $50,000. ROLL CALL VOTE:
Ayes: 6 - Trustees Carson, Kennedy, Manofsky, Saiyed, Sanford and Wolin.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
10. G. HEALTH INSURANCE UPDATE
Over the past decade the general health insurance market has seen increasing costs.
Village staff reacted to the changing market to minimize the impact on employees,
while attempting to maintain the Village's costs.
Over the past several months staff had been working with the Village's insurance
broker, Mesirow Financial, on various options. With the Village's renewal date of
July 1St quickly approaching, staff, with assistance from Mesirow, provided the
Village Board with an update. Mr. Brian K. Diedrich of Mesirow Financial was in
attendance.
Assistant Manager Wing indicated that he was seeking approval from the Board to
move forward with a slightly revised PPO plan and an HMO alternative. He has been
working to shift more responsibility to the employee, maintain the Village's cost and
offer a lower cost option for employees.
Mr. Diedrich indicated that Assistant Manager Wing covered most of the major
revisions, but went on to explain the HMO alternative. He explained that since the
Village is self - insured for their PPO plan, they are not bound by state statute and
therefore can be custom designed. The HMO alternative offers options that the PPO
plan does not offer. Assistant Manager Wing indicated that during negotiations with
both Fire and Police that these options would be part of those negotiations.
VILLAGE OF OAK BROOK Minutes Page 16 of 17 REGULAR MEETING OF
MAY 27, 2008
10. G. Trustee Manofsky asked the cost of the PPO plan for each employee. Mr. Diedrich
responded that it is $11,200 per employee vs the HMO which is about $9,100.
Trustee Manofsky suggested that this was a very generous plan even with the
employee contribution being increased to 10% and increases in out -of- pocket
expenses.
Trustees Kennedy, Sanford and Carson felt they needed more information and time to
ask questions and digest the information.
Motion by Trustee Manofsky, seconded by Trustee Kennedy, to continue this issue to
a Special Meeting of June 3, 2008 at 7:30 p.m. VOICE VOTE: Motion carried.
11. INFORMATION & UPDATES
A. VILLAGE PRESIDENT - Presented
B. VILLAGE MANAGER - Presented
C VILLAGE CLERK — None presented
12 ADJOURNMENT
Motion by Trustee Kennedy, seconded by Trustee Sanford, to adjourn the Regular
Meeting of the Board of Trustees at 9:21 p.m. VOICE VOTE: Motion carried.
ATTEST:
/s/ Charlotte K. Pruss
Charlotte K. Pruss
Village Clerk
VILLAGE OF OAK BROOK Minutes Page 17 of 17 REGULAR MEETING OF
MAY 27, 2008