Minutes - 06/12/2007 - Board of TrusteesMINUTES OF THE JUNE 12, 2007 REGULAR MEETING OF THE
• PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF
OAK BROOK APPROVED AS WRITTEN ON JULY 10, 2007.
1. 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 7:32 p.m.
The Pledge of Allegiance was given.
2. 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: Jeffrey P. Moline, Acting Village Manager; Mark Sterk, Acting
Village Attorney; Dale L. Durfey, Jr., Village Engineer; Robert L. Kallien,
Jr., Director of Community Development; Bruce F. Kapff, Director of
Information Services & Purchasing; Michael J. Meranda, Public Works
Director; Nelson Patras, Bath & Tennis Club Operations Manager and
Thomas Sheahan, Chief of Police.
• 3. PRESIDENT'S OPENING COMMENTS
A. ANNOUNCEMENT OF BOARD LIAISON APPOINTMENTS
President Craig announced liaison assignments assigned to each trustee which
incorporates the expertise of new trustees with incumbents and provides continuity in
subject matter so that each trustee is able to develop an area of responsibility for
which there is a common purpose.
B. UPDATE ON OAK BROOK ACTIVITIES IN SPRINGFIELD - SPECIAL
ADVISOR TO VILLAGE PRESIDENT
President Craig reported that Special Advisor Pat Horne had been to Springfield
seeking funds for Village projects and identifying issues of concern to the Village.
C. ANNOUNCEMENT OF RFQ FOR VILLAGE ATTORNEY
President Craig reported that a Request for Qualifications for the permanent
appointment of Village Attorney had been issued and the Village is seeking a
qualified individual or firm.
VILLAGE OF OAK BROOK Minutes Page 1 of 16 JUNE 125 2007
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4. RESIDENT /VISITOR COMMENT
Individuals requesting to address the Board indicated that they would address the Board at
the time the In Site topic was discussed.
5. APPROVAL OF MINUTES - None
6. CONSENT AGENDA
All items on the Consent Agenda are considered to be routine in nature and will be
enacted in one motion.
A. Accounts Payable for Period Ending June 8, 2007 - $746,262.18
Significant Items included in Above:
1) SKC Construction, Inc. - Payout # 1 & Final - 2007 Crack Seal Project
2) Klein, Thorpe and Jenkins, Ltd. - Legal Services
a. March, 2007 - $7,481.58
b. April, 2007 - $14,213.65
3) Rolewick & Gutzke, P.C. - Payout #1 - Legal Fees Per Resolution R -979 -
$2,745.10
B. Approval of Payroll:
1) Pay Period Ending May 19, 2007 - $717,892.95
2) Pay Period Ending June 2, 2007 - $716,309.53
C. Community Development Referrals
1) Brittwood Creek - Variation - Fence Along Route 83
2) A. W. Wendell /Sawlani - 708 Deer Trail - Variation - Side Yard Setback
3) Oak Brook Park District - Dean Property - 115 Canterberry Lane - Map
Amendment - Special Use
D. Authorization to Seek Bids or Proposals or Negotiate Contracts:
1) Village Hall Exterior Retaining Wall Repair
E. Budget Adjustments
1) Public Works - Water Operations - Maintenance Pumping System
2) Police Department - Field Services - General Equipment
3) Finance - Community Events - Independence Day
F. Annual Contribution to DuPage Metropolitan Enforcement Group
G. Oak Brook Park District - 1450 Forest Gate Road - Waiver of Fees
H. Community Church of Oak Brook - 3100 Midwest Road - Waiver of Fees
I. Financial Software Consultant - Change Order #1
J. A Resolution Authorizing Extended Work Hours on the I -88 Tollway
Trustee Kennedy requested that items 6.D.2) Authorization to Seek Bids or Proposals or
Negotiate Contracts for a Tow - Behind Asphalt Paver and K. Polo Field 2 Usage - The
Illinois Saint Andrew Society - Highland Games be removed for further discussion.
9 VILLAGE OF OAK BROOK Minutes Page 2 of 16 JUNE 125 2007
6. Motion by Trustee Kennedy, seconded by Trustee Sanford, to approve the Consent
• Agenda and authorize expenditures as amended. ROLL CALL VOTE:
Ayes: 6 - Trustees Carson, Kennedy, Manofsky, Saiyed, Sanford and Wolin.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
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7. ITEMS REMOVED FROM CONSENT AGENDA
D. 2) TOW - BEHIND ASPHALT PAVER
Trustee Kennedy asked whether it was cost effective to purchase rather than rent
this item since it was used for only 3,000 linear feet of bike paths each year.
Public Works Director Michael Meranda responded that this equipment was not
available as a rental. He added that the cost savings for Village staff to do the
work rather than contract out for the work would be approximately $12,300.00
per year.
Motion by Trustee Kennedy, seconded by Trustee Manofsky, that staff be
authorized to prepare specifications and obtain competitive bids for a tow - behind
asphalt paver. ROLL CALL VOTE:
Ayes: 6 - Trustees Carson, Kennedy, Manofsky, Saiyed, Sanford and Wolin.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
K. POLO FIELD 2 USAGE - THE ILLINOIS SAINT ANDREW SOCIETY -
HIGHLAND GAMES
Trustee Kennedy indicated that he inadvertently removed this item because he
mistook it for the topic in item 10. H.
Motion by Trustee Kennedy, seconded by Trustee Manofsky, to approve the usage
agreement between the Village of Oak Brook and the Illinois Saint Andrew Society
for Field 2 of the Sports Core for the 2007 Highland Games. VOICE VOTE: Motion
carried.
8. BOARD & COMMISSION RECOMMENDATIONS
A. ORDINANCE S -1197, AN ORDINANCE RECONFIRMING THE REFERENCE
POLICY FOR THE OAK BROOK PUBLIC LIBRARY
The Library Commission and the Director of the Library recommend passage of
Ordinance S -1197 which includes no changes and reconfirms the current Reference
Policy. The Reference Policy was last revised in August 2005, superseding all prior
editions of the Village of Oak Brook Public Library Reference Policy and Youth
Services Policy, adopted in 1995.
0' VILLAGE OF OAK BROOK Minutes Page 3 of 16 JUNE 12, 2007
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8. A. Motion by Trustee Saiyed, seconded by Trustee Wolin, for passage of Ordinance S-
1197, An Ordinance Reconfirming the Reference Policy for the Oak Brook Public
Library.
ROLL CALL VOTE:
Ayes: 6 - Trustees Carson, Kennedy, Manofsky, Saiyed, Sanford and Wolin.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
B. DEERPATH WOODS SUBDIVISION — FINAL PLAT — FIVE -LOT
SUBDIVISION
At its meeting on May 14, 2007, the Plan Commission completed its review and
deliberations on an application from Deerpath Woods LLC, the owner of the subject
property seeking approval of a five -lot final plat of subdivision. The preliminary plat
of subdivision for this property was approved as Resolution 2007- SD -PP -R -962.
Village Engineer Durfey has reviewed this submittal and has summarized his
comments in his May 8, 2007 memorandum.
Recommendation
The Plan Commission, by a vote of 5 to 0, recommended approval of the applicant's
request for a 5 -lot final plat of subdivision of the 12.02 -acre parcel of land subject to
the following:
1. Address all issues raised by Village Engineering Durfey including final
engineering approval.
In making this recommendation, the Plan Commission found that the final plat was in
substantial conformance with the approved preliminary plat and the applicant has
satisfied the requirements of the Subdivision Regulations and has met all required
conditions and standards applicable to granting approval of a final plat of subdivision.
Motion by Trustee Kennedy, seconded by Trustee Sanford, to concur with the
recommendation from the Plan Commission and approve the requested final plat for
Deerpath Woods Subdivision subject to addressing all comments raised by Village
Engineering Durfey including final engineering approval and authorize the Village
Attorney to draft the necessary resolution for final consideration at the June 26, 2007
Board of Trustees meeting. ROLL CALL VOTE:
Ayes: 6 - Trustees Carson, Kennedy, Manofsky, Saiyed, Sanford and Wolin.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
9. UNFINISHED BUSINESS
A. CONFIRMATION OF APPOINTMENTS - None presented.
VILLAGE OF OAK BROOK Minutes Page 4 of 16 JUNE 12, 2007
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9. B. ORDINANCES &RESOLUTIONS
1) ORDINANCE 2007- ZO -TA -G -835 - AN ORDINANCE AMENDING
ARTICLE A OF CHAPTER 7 (BUSINESS DISTRICTS) OF TITLE 13
(ZONING REGULATIONS) OF THE VILLAGE CODE OF THE VILLAGE OF
OAK BROOK TO ADD A PERMITTED USE FOR BANKS AND FINANCIAL
INSTITUTIONS IN SECTION 13 -7A -1 AND A SPECIAL USE FOR DRIVE-
IN BANKING FACILITIES IN SECTION 13 -7A -2
Staff is in receipt of a letter from Attorney Scott Day who represents InSite Oak
Brook Ltd. who is requesting that the Village postpone action on the ordinance
for the proposed text amendments to the B -1 District of the Zoning Ordinance for
Banks and Drive -thru facilities and place it back on the agenda when final action
is requested on a special use for a specific drive -thru bank.
In conjunction with this request, staff is requesting that the Board reconsider final
action on the InSite Variation Ordinance for a ground sign that was approved by
the Village Board on May 22, 2007, postpone final action and place it back on the
agenda when final action is requested on the text amendments and special use for
a Drive -thru bank.
The applicant has indicated that they have a bank that is interested in constructing
a facility at 1603 16th Street and would be submitting a request for a special use
Is for a drive -thru bank to the Village by June 15, 2007 with the goal of appearing
before the Plan Commission in July, Zoning Board of Appeals for public hearing
in August, and then on to the Village Board. At that time, the Board will be
asked to take final action on all three parts of this request (i.e., text amendments,
special use and variation).
Shelley Hurta from Day & Roberts representing InSite, LLC indicated that she
was available for questions. She added that their tenant would be seeking a
special use in the near future.
Motion by Trustee Kennedy, seconded by Trustee Manofsky, to concur with the
petitioner's request to postpone action on the ordinance for the text amendments
to the B -1 District for Banks and Drive -thru facilities and place back on the
agenda when final action is requested on a special use for a drive -thru bank.
ROLL CALL VOTE:
Ayes: 6 - Trustees Carson, Kennedy, Manofsky, Saiyed, Sanford and Wolin.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
VILLAGE OF OAK BROOK Minutes Page 5 of 16 JUNE 12, 2007
9 B. 2) ORDINANCE 2007- ZO -V -S -1195 - AN ORDINANCE GRANTING A
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VARIATION FROM THE PROVISIONS OF SECTION 13- 11 -7A -5 OF TITLE
13 (ZONING REGULATIONS) OF THE VILLAGE CODE OF THE VILLAGE
OF OAK BROOK RELATIVE TO GROUND SIGNS IN
RETAIL /COMMERCIAL DEVELOPMENTS CONTAINING LESS THAN
THREE (3) ACRES - (INSITE OAK BROOK LIMITED PARTNERSHIP, 1603
16TH STREET, OAK BROOK, ILLINOIS 60523,) PIN'S 06 -22- 409 -003 AND
06 -22- 409 -013 CONTINUED FROM MAY 225 2007
No action was taken on this item on the advice of the Acting Village Attorney
C. AWARD OF CONTRACTS - None presented.
10. NEW BUSINESS
A. CONFIRMATION OF APPOINTMENTS
1) 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. Julie Coker, General
Manager of the Hyatt Lodge at McDonald's Campus has been transferred and
will be replaced by Rusty Middleton as the new General Manager.
President Craig recommended the appointment of Rusty Middleton, General
Manager of the Hyatt Lodge — Oak Brook, to the Oak Brook Hotel, Convention
and Visitors Committee for a term to expire February, 2008.
Motion by Trustee Kennedy, seconded by Trustee Sanford, to confirm President
Craig's recommendation to appoint Rusty Middleton, General Manager of the
Hyatt Lodge — Oak Brook, to the Oak Brook Hotel, Convention and Visitors
Committee for a term to expire February, 2008. VOICE VOTE: Motion carried.
B. ORDINANCES & RESOLUTIONS
1) TOLLWAY AUTHORITY /TUSCAN WOODS INTERGOVERNMENTAL
AGREEMENT
With the anticipated work on I -88 proposed by the Tollway, the developer of the
Tuscan Woods Subdivision (just west of York Road) began discussions with past
Village Manager Boehm and Tollway staff regarding the construction of a noise
wall. The Tollway had accomplished a noise study and concluded that 11
properties would be impacted. The Tollway agreed to pay a portion of the cost of
a noise wall and the developer would pay the rest. Since the Tollway would not
enter into an agreement with a private party, Village Manager Boehm agreed to
be the middle -man if appropriate agreements could be consummated and if there
was no cost to the Village.
VILLAGE OF OAK BROOK Minutes Page 6 of 16 JUNE 12, 2007
10. B. 1) Staff has been negotiating with the Tollway with the result being an
• Intergovernmental Agreement (IGA) which states that the Village is responsible
for designing, constructing and maintaining the noise wall. In addition, the
Tollway will participate by the amount of $286,000 towards the construction.
Earlier this year, staff began negotiations with the developer on an agreement
which, in effect, transfers all of the Village's responsibilities onto the developer
for designing, constructing and maintaining the wall. Finalization of that
agreement has been on hold until the IGA was finalized. If the Village Board
approves the IGA, staff will finalize the developer agreement and place it on a
future agenda.
On May 31, 2007, the Tollway Board approved a resolution authorizing their
Chief Engineer and General Council to finalize the IGA.
Trustee Kennedy felt that there was significant wordage omitted that addresses
the Village's ability to assign responsibilities to the developer. He felt that the
new Acting Village Attorney should review the agreement before any action is
taken.
Motion by Trustee Manfosky, seconded by Trustee Kennedy, that the approval of
the Intergovernmental Agreement Between the Village of Oak Brook and the
Illinois State Toll Highway Authority be continued to seek attorney review.
VOICE VOTE: Motion carried.
C. AWARD OF CONTRACTS - None presented.
D. POLICE DEPARTMENT EMPLOYEE REORGANIZATION
On November 28, 2006 the Village Board approved the reorganization of non -sworn
employees in the Communications Center and Community Service Unit. That
reorganization authorized the replacement of one full -time Communications Operator
with two part-time Communications Operators and one full -time Community Service
Officer with three part-time Community Service Officers. One full -time Community
Service Officer was retained with the duties of that position being divided equally
between the Communications Center and Community Service Unit.
On January 19, 2007, the employee filling the single remaining full -time Community
Service Officer position retired. The total amount budgeted for that full -time position
was $77,155. That amount includes: salary, IMRF, FICA and health insurance. Of
that budgeted amount $41,115 remains.
The Police Department is seeking to convert that single full -time position to two part-
time positions; one part-time Communications Operator and one part-time
VILLAGE OF OAK BROOK Minutes Page 7 of 16 JUNE 125 2007
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10. D. Community Service Officer. The current pay range for both positions is $15 to $20
per hour. It is anticipated each position will work 32 hours per week. Two part-time
positions will provide an additional 24 hours of coverage per week at a combined
cost of approximately $66,560 per year. That cost is approximately $10,000 less than
the single full -time position. Implementation of the proposed restructuring effective
July 1, 2007 would cost approximately $32,870. This amount would be paid for using
the remaining money budgeted for the single full -time position ($41,115).
Motion by Trustee Kennedy, seconded by Trustee Manfosky, to authorize the
reorganization of non -sworn employees in the Communications Center and
Community Service Unit. ROLL CALL VOTE:
Ayes: 6 - Trustees Carson, Kennedy, Manofsky, Saiyed, Sanford and Wolin.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
E. AMENDMENT TO VILLAGE CODE PARKING FINE SCHEDULE
The current fine schedule for Village Ordinance parking violations fails to
consistently compel compliance with the Village's parking ordinances and does not
incorporate a means for addressing chronic parking violators.
A chronic parking violator is defined as the registered owner of any vehicle which
has been issued five (5) or more parking citations within any 12 month period. The
registered owner is considered a chronic parking violator regardless of whether the
parking tickets are outstanding, paid or a combination thereof.
Pronosed fine schedule:
# of Citations
in 12 months
Sec. 7 -1 -1301
625 ILCS
5/11 -1303
Sec. 7- 1- 1301.1
All Other
Sections
Amount of
Increase
1 -5
$20
$250
$10
6 -7
$50
$250
$40
$30
8 -9
$80
$250
$70
$60
10
$110
$100
$110
$90
11
$140
$250
$130
$120
The fine amount for each subsequent parking citation would continue to increase by
$30 increments with the fine for any single violation not to exceed $750.
Trustee Manofsky commented that she has frequently seen illegally parked vehicles
and feels that the Village should stringently enforce this law.
Motion by Trustee Manofsky, seconded by Trustee Kennedy, that the Board approve
the proposed amendment to the fine schedule for Village Ordinance parking
violations and direct the Village Attorney to draft the change in the ordinance for the
Boards approval. VOICE VOTE: Motion carried.
VILLAGE OF OAK BROOK Minutes Page 8 of 16 JUNE 125 2007
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10. F. ELEVATED TANK PAINTING CHANGE ORDER NO. 2
Change Order No. 2 is for replacement of the tanks' over -flow vortex plate, and
ad.acent steel plating that was found to be severely damaged during a more thorough
inspection by both, AM -COAT Painting, our painting contractor, and Dixon
Engineering, our consultant on the project. The complete inspection of this particular
steel component could not be viewed by Dixon prior to finalization of the repair and
painting specifications due to its inaccessible location. Only after AM -COAT
installed their internal wire /rope rigging for boatswain chairs and work platforms
could the piece be viewed close -up. Once viewed, it was obvious to all that the welds
were deficient and the plate itself was in need of replacement due to significant "rust -
through".
In addition to the costs and as a direct result of this necessary work — unforeseen as it
was — AM -COAT Painting is requesting that the substantial completion day be
extended by thirteen (13) days. However, both Dixon and we feel that the thirteen
(13) days is excessive and that seven (7) days is more than sufficient and justified,
and as such, have specified same on the change order.
In sum, the attached Change Order, as prepared by Dixon Engineering, brings the
total project cost to $398,866.00 (still a tad under budget) and changes the substantial
completion date to June 8, 2007.
Motion by Trustee Kennedy, seconded by Trustee Wolin, to approve Change Order
No. 2 which increases the contract amount by $5,900.00 and extends the contract
substantial completion date by seven (7) days and determine that the circumstances
necessitating the change were not reasonably foreseeable at the time the contract was
signed, that this change order is in the best interest of the Village, and is authorized
bylaw. ROLL CALL VOTE:
Ayes: 6 - Trustees Carson, Kennedy, Manofsky, Saiyed, Sanford and Wolin.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
G. NAI HIFFMAN - TEMPORARY SIGN - OAK BROOK PROMENADE
NAI Hiffman, the owner and developer of the Oak Brook Promenade has submitted a
request to the Department of Community Development for a temporary sign.
The Oak Brook Promenade was approved to have two ground monument signs, one
at the main signalized entrance on Butterfield Road and the other at the corner to
Butterfield and Meyers. Because of the current construction of the project along with
the need to attract additional tenants, both of these monument signs contain leasing
information.
• JUNE VILLAGE OF OAK BROOK Minutes Page 9 of 16 NE 12, 2007
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10. G. Because this request is temporary in nature, approximately five months, and unique
in nature, it was my recommendation to NAI Hiffman that their request be made
directly to the Village Board for review and recommendation.
Trustee Manofsky asked Mr. Dennis Hiffman when the grand opening was
anticipated. He responded that it was scheduled for November, so the signage would
be for a short time. Trustee Kennedy agreed that it was very difficult to determine
what stores were open and felt that it was a necessary move for a short period of time.
Motion by Trustee Manofsky, seconded by Trustee Kennedy, to approve the issuance
of a temporary sign permit to NAI Hiffman for the Oak Brook Promenade project as
requested. ROLL CALL VOTE:
Ayes: 6 - Trustees Carson, Kennedy, Manofsky, Saiyed, Sanford and Wolin.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
H. 2007 POLO LICENSE AGREEMENT: DON HEALY, POLO CLUB
In 2006, the Village Board approved a "Letter of Agreement" renewing the 2005
Polo Agreement between the Village of Oak Brook and Don Healy, Polo Club, for
the 2006 polo season. Mr. Healy manages Chicago International Polo Club, he is a
Professional USPA umpire and professional USPA player and he umpires in Palm
Beach and Point Clear, Alabama in the winter months. As a side note, Mr. Healy and
his family owned Old Healy Farm and played polo with Paul Butler.
Over the last two seasons since the "Polo Club" has been involved in the scheduling
of matches we have seen an increase in the amount of matches played on Sundays,
increased spectatorship by the general public as well as private entities seeking event
space for functions, the advancement to higher levels of tournament play and an
overall better product.
The focus for 2007 and going forward is to continue providing quality polo matches
as well as continuing to raise standards of the overall service provided on Sundays
which will continue to result in increased attendance. As evidenced by the proposed
2007 Season Schedule that Mr. Healy has provided and the Private Event Schedule,
the 2007 season is well on its way to meeting expectations.
The Agreement requires a usage charge of $700.00 per game day during the season,
indemnification and insurance coverage by the licensee for the season. In addition,
the licensee also provides for ambulance service to be present for the matches
Trustee Kennedy indicated that the letter of agreement omitted some very necessary
information and stipulations. Trustee Manofsky suggested that the contract be
renegotiated because the game day fees were less than in previous agreements. She
suggested that it be increased to $1,000.00 per day.
• VILLAGE OF OAK BROOK Minutes Page 10 of 16 JUNE 123 2007
10. H. Acting Village Manager Moline explained that the reason the fee per day and been
• reduced was to accommodate the transfer of payment for the field set up people, flag
people, etc. from the Village to Mr. Healy. It also helped to address Workmen's
Compensation issues for the Village.
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Motion by Trustee Kennedy, seconded by Trustee Sanford, to continue the agreement
and refer the agreement to the Acting Village Attorney for review. ROLL CALL
VOTE:
Ayes: 6 - Trustees Carson, Kennedy, Manofsky, Saiyed, Sanford and Wolin.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
I. HEALTH, DENTAL, VISION, LIFE AND AD &D INSURANCE, RENEWAL OF
AGREEMENT FOR THIRD PARTY ADMINISTRATOR AND STOP LOSS
INSURANCE, AND BENEFIT CONSULTING SERVICE FOR THE 2007/2008
HEALTH PLAN YEAR
In the plan years 2002 through 2005, the Village of Oak Brook experienced very high
Stop -Loss renewals with our self - funded insurance plan due to a few very large
claims in each of the plan years as well as a higher volume of overall claims. In
addition to this, the change in the insurance market with a swing toward the
institution of lasers on high risk individuals left the Village of Oak Brook extremely
vulnerable to massive increases on a year to year basis. Specifically, in 2006, the
Village renewal under our old plan of Group Administrators as the TPA and
Cairnstone as the Stop Loss provider, would have been between a 26% to 33%
increase in premiums (the range is based on the level at which the Village would fund
the large claim lasers). Therefore, in 2006, the Village directed our Health Benefits
Consultants, Mesirow to expand the overall marketing of the plan including Third
Party Administrator Services with Stop Loss in order to receive proposal from the
larger carrier networks. The result was a recommendation from staff and approval by
the Village Board to move to Blue Cross Blue Shield of Illinois as TPA and Stop
Loss providers that resulted in a 6% premium increase (in 2005 the Village
experienced a 23% increase on the Health Premiums). The major difference in
renewal cost was solely attributed to the discounts projected with the BCBS plan
along with the expansion of, and the push to use, in- network providers. Additionally,
the risk of funding significantly higher deductibles on high risk individuals is
removed as Blue Cross does not impose "lasers ".
Health Benefit Program: The Village operates a self - insured health insurance
program for all claims on a per individual basis for the first $75,000 ( "individual
specific attachment point ")of claims in a given plan year (July 1 to June 30). This
program has been in place in this format since 1993, but with different specific
attachment points and TPAs. The Village secures Stop Loss Coverage for claims that
exceed $75,000 per individual or over 125% of the annual aggregate specific
attachment point of expected claims. The Village health benefit program has
VILLAGE OF OAK BROOK Minutes Page 11 of 16 JUNE 125 2007
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10. I approximately 226 employees (which includes 30 retirees (retirees /COBRA
employees on the traditional insurance plan who pay 100% of the equivalent
premium for their coverage) lives in the program, plus eligible dependents. The Oak
Brook Park District also piggybacks on our plan paying the full premium cost for all
eligible individuals. The program itself is a three -tier premium system consisting of
single, single plus one and family coverage for health, dental and vision coverage
with network discounts through Blue Cross Blue Shield. In addition, the Village
provides group term life insurance coverage at $100,000 for all employees, and
$50,000 for union fire personnel.
Health Benefit Program: _ The Village operates a self - insured health insurance
program for all claims on a per individual basis for the first $75,000 ( "individual
specific attachment point ")of claims in a given plan year (July 1 to June 30). This
program has been in place in this format since 1993, but with different specific
attachment points and TPAs. The Village secures Stop Loss Coverage for claims that
exceed $75,000 per individual or over 125% of the annual aggregate specific
attachment point of expected claims. The Village health benefit program has
approximately 226 employees (which includes 30 retirees (retirees /COBRA
employees on the traditional insurance plan who pay 100% of the equivalent
premium for their coverage) lives in the program, plus eligible dependents. The Oak
Brook Park District also piggybacks on our plan paying the full premium cost for all
eligible individuals. The program itself is a three -tier premium system consisting of
single, single plus one and family coverage for health, dental and vision coverage
with network discounts through Blue Cross Blue Shield. In addition, the Village
provides group term life insurance coverage at $100,000 for all employees, and
$50,000 for union fire personnel.
Past Renewal Highlights
• In the 2004 plan year, one individual was lasered (A laser is an increased
individual specific funding level, set at renewal, on an eligible plan participant
based on a diagnosis /treatment that is classified as a high risk for the carrier) and
five (5) individuals over specific, whereas in past years, the Village averaged at
most one (1) individual over specific.
• In 2005, even with claims lower than the past two years, the renewal included 5
lasered individuals resulting in a renewal of 23% increase in premium costs, which
is 8% over the market trend of a 15% increase to health insurance providers.
• In 2006, the review for the renewal included the review of moving to a health pool
and various options of fully insured and self insured programs. The precluding
factors continued to be the claims experience the Village has had and the inability
to decrease benefits due to the collective bargaining agreements.
• The 2006 recommendation included a switch to a combined TPA and Stop Loss
arrangement with Blue Cross Blue Shield (BCBS) of Illinois as the Third Party
Administrator and as the Stop Loss Provider for the Plan that resulted in a 6%
increase in premiums, and a move away from budgeting for lasers.
• JUNE VILLAGE OF OAK BROOK Minutes Page 12 of 16 NE 125 2007
10. I. Renewal for 2007/2008 Health Plan Year:
• As you are aware, Village Staff has on retainer Health Benefit Consultant, Mesirow
Financial, for market data and general plan administration review. Mesirow was
instrumental in this move to Blue Cross, in facilitating the transition between TPAs,
monitoring the 2006/2007 plan year claims and discounts, and in securing new
proposals from various carriers for the 2007/2008 plan year. The following Table
illustrates the process and caries that submitted through the renewal process for the
Oak Brook 2007/2008 Health Plan Year.
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Coverage/
2006/2007
Companies Submitting
Recommended
Service
(Current)
Proposals
2007 -2008
Carrier
TPA Third Party
Medical and Dental
Blue Cross,
N/A
Blue Cross, Blue Shield of
Claims
Blue Shield of
Illinois
Administration
Illinois
See Note #1
Specific and
Blue Cross,
1 BCBS of
Blue Cross, Blue Shield of
Aggregate stop-
Blue Shield of
Illinois
Illinois
loss insurance
Illinois
2 Aetna
3. CIGNA
Dental
The Guardian
N/A
The Guardian
Group Term Life
Standard Life
1 Fort Dearborn
Fort Dearborn
Insurance and AD
2 The Hartford
& D
3 The Standard
4 MetLife
5 Principal
6 Unum
Group Vision
VSP
1 VSP
VSP
Insurance
Note #l: Mesirow did request a quote from Aetna to compare our program against a
fully funded program from a BCBS competitor. After review, the quote indicated
from both a financial standpoint and for continuity of TPA for employees as well as
maintenance of established benefits, the Village should stay with the current
arrangement and moreover, the proposal submitted by BCBS for 2007/2008. The
Village will continue to monitor options in the market to further reduce costs.
Although Village staff held out some resignation to the large discounts being quoted
with the move to Blue Cross Blue Shield in 2006, the move proved to be the correct
one for the Village. With the combination of the larger discounts from BCBS and a
relatively good claims year, claims are estimated to come in at approximately
$300,000 under the 2006/2007 claims projection.
Staff s recommendation for the 2007/2008 Health Plan is to hold premiums at
the current level as depicted in Table 2, Equivalent Premium Rates.
VILLAGE OF OAK BROOK Minutes Page 13 of 16 JUNE 12, 2007
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10
I.
Equivalent Premium Rates
2006/2007
2007/2008
% Change
Single
$560.84
$560.84
0.00%
Employee Plus One
$981.06
$981.06
0.00%
Family
$1,340.92
$1,340.92
0.00%
These Equivalent Premiums are set at a level that covers a $100,000 line item toward
increasing the Self - Insurance Fund reserve, payment of claims estimated at
$2,300,000 and administrative fees of $356,000.
Note, due to the favorable 2006/2007 Health Plan Year, staff anticipates the fund's
cash reserve will be approximately $700,000, a significant improvement over 2006.
Life Insurance
The Village provides $100,000 of group term life insurance and AD & D coverage to
all full -time employees, aside from the Firefighters under the Collective Bargaining
agreement which sets the life insurance at $50,000 (contract expires in December
2007). Staff recommends that based on lower pricing and renewal concessions by
BOBS, staff recommends changing the life insurance to Fort Dearborn, a subsidiary
of BCBS.
Vision Insurance
Vision Service Plan (VSP) is the current vision insurance provider for the Village.
• Employee coverage is paid for by the Village, with dependent coverage being
optional and fully paid for by the employee. The current rates are guaranteed through
June 30, 2006. Thus, staff recommends that the Village renew with VSP for an
additional year at the unchanged monthly rates for each employee and for
dependent coverage.
Benefit Consulting Services
The Village of Oak Brook first hired Mesirow in 2005 through a proposal process
that was solicited due to significant claim issues. Although their proposed fee was
significantly higher, we agreed on an initial price of $18,000 per year. Since that
point in time there have been no increases; however, due to ongoing claim issues,
having had to switch TPAs for both health and dental claims and numerous plan
design issues, the amount of work Mesirow has had to perform has greatly exceeded
the amount of the agreed upon fee. As an example, in 2006, Mesirow found a
mistake with our past TPAs ISL filing for prescription drugs that resulted in a
$50,000 refund to Oak Brook. This low fee is especially true considering that the
Village pays no commission on any of its insurance business. Mesirow has requested
an increase in the fee to $26,000 per year, an increase of $8,000.00 from the current
rate and staff feels this rate is justified based on the amount of work, their
performance, and the savings initiated by ideas brought forward by Mesirow
VILLAGE OF OAK BROOK Minutes Page 14 of 16 JUNE 12, 2007
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10. I. Motion by Trustee Manofsky, seconded by Trustee Carson, that the Village Board
approve the following:
1) Renewal with Blue Cross Blue Shield of Illinois for Third Party Administrator
Services and Stop Loss Coverage for the 2007/2008 Health Plan year;
2) Approve the proposal with Fort Dearborn for Life and AD &D Benefits;
3) Renew with VSP Insurance for Eye Care Coverage; and
4) Extension of the Benefits Consulting service with Mesirow Financial in the
amount of $26,000 per year. ROLL CALL VOTE:
Ayes: 6 - Trustees Carson, Kennedy, Manofsky, Saiyed, Sanford and Wolin.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
11. INFORMATION & UPDATES
A. VILLAGE PRESIDENT - President Craig reminded residents to apply for positions
on Board and Commissions.
B. VILLAGE MANAGER - Acting Village Manager Moline reminded residents that the
Illinois Tollway would be providing an Open House in the Board Room on June 14,
2007 to explain the construction.
C. VILLAGE CLERK - Clerk Pruss indicated to residents that a number of solicitors had
registered with the Village and would be going door -to -door. She explained the
regulations that they were required to adhere to and asked that if any resident felt they
were not honoring their obligations that they call 911.
12. ADJOURNMENT TO CLOSED MEETING to consider litigation, when an action
against, affecting or on behalf of the Village has been filed and is pending before a court
or administrative tribunal, or when the public body finds that an action is probable or
imminent (2c 11)
Motion by Trustee Kennedy, seconded by Trustee Sanford, to adjourn to Closed Meeting
at 8:42 p.m. 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 (2cl 1) ROLL CALL VOTE:
Ayes: 6 - Trustees Carson, Kennedy, Manofsky, Saiyed, Sanford and Wolin.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
13. ADJOURNMENT
Motion by Trustee Kennedy, seconded by Trustee Wolin, to adjourn the Regular Meeting
of the Board of Trustees at 10:23 p.m. VOICE VOTE: Motion carried.
VILLAGE OF OAK BROOK Minutes Page 15 of 16 JUNE 12, 2007
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Charlotte K. Pruss
Village Clerk
VILLAGE OF OAK BROOK Minutes Page 16 of 16 JUNE 1252007