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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 U �J 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. • 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 • • 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 0 1 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 • 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 • 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 • • U 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 1 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. • • 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 • • 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. • 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 • • 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 • 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 i • Charlotte K. Pruss Village Clerk VILLAGE OF OAK BROOK Minutes Page 16 of 16 JUNE 1252007