Minutes - 06/15/2010 - Board of Trustees2.
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'pE pf O,k•f MINUTES OF THE JUNE l5, 2009 SPECIAL MEETING OF THE PRESIDENT
AND BOARD OF TRUSTEES OF THE VILLAGE OF OAK BROOK
Av a APPROVED AS WRITTEN OR AS AMENDED ON APRIL 13, 2010.
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CALL TO ORDER
The Special Meeting of the Village Board of Trustees was called to order by the Village Clerk in
the Samuel E. Dean Board Room of the Butler Government Center at 7:00 p.m. The Pledge of
Allegiance was given.
ROLL CALL
Village Clerk Charlotte Pruss called the roll with the following persons:
PRESENT: Trustees Mark Moy, Moin Saiyed, Gerald Wolin, Elaine Zannis and
President Craig.
ABSENT: Trustees Stelios Aktipis and James Carson
IN ATTENDANCE: David Niemeyer, Village Manager; Mark Sterk, Village Attorney;
Robert L. Kallien, Jr., Director of Community Development; Dale L. Durfey, Jr., Village
Engineer; Sharon Dangles, Acting Finance Director; Thomas McEllin, Fire Chief; Meg
Klinkow Hartmann, Library Director; Michael Hullihan, Public Works Director; Thomas
Sheahan, Chief of Police and Trey VanDyke, Sports Core Director.
PRESIDENT'S OPENING COMMENTS - None
4. RESIDENTIVISITOR COMMENT
Resident Bobbie Petz spoke to the Village Board regarding her concerns of privatization or
outsourcing of the Library. She is also opposed to the hiring of a consultant to evaluate the
Library when the Library Director, prior to her employment with the Village, was a partner in a
Library Consulting firm.
Trustee Aktipis arrived at 7:07 PM.
Resident Lois Miller addressed the Board regarding the Board intentions of this special meeting.
She has concerns regarding the meeting not being posted on the web page or posted on late
Friday. She questioned the private conversations the Board has had with the consulting firm,
which also runs an outsourcing business.
Manager Niemeyer responded to her concerns regarding the meeting notice and explained the
process for posting the meeting notice. He explained that the Consultant issue could have been
handled by him just signing the contract under his authority, but the Village Board felt they
wanted public comments. The reasoning behind tonight's meeting is because we have a tight
time table for approving the Village's health insurance plan. The Library issue came up again
because we have had a discussion of a number of ways to reduce the budget. The Consultant's
main charge is to look at ways to reduce expenses and Village policy states that we have to
maintain a 6 -month reserve. We are trying to keep to that policy. We are looking at all
departments for cuts, not just the library.
Resident Marian Sharly thanked the Board for keeping the current hours at Library. He spoke
regarding the Library study and his main concern is allowing someone else authority to run our
own Village library. He also feels residents could pay a real estate tax for this entity.
Trustee Moy stated he is impressed with the interest the community has in the Library. He is in
VILLAGE OF OAK BROOK Minules Page 1 ors SPECIAL MEETING OF1l1NE 15.2009
support of the Library and added that 99% of communities in the state have libraries that are
governed by a Library Commission and funding for those libraries are from a tax base on your
real estate tax bill. Oak Brook did not go that route and decided to fund and pay for the library
out of the Village's general revenue budget. In reviewing all the information about services and
costs of running a library, the Board could not make an informed decision so it was decided to go
to a third party where we can get some objective information on where we can cut costs. If we
could cut costs without going to privatization, that would be great.
Trustee Wolin stated that he will have the honor of presenting the options for consulting and
outsourcing on the library. He stated upfront that they will be discussing outsourcing and he
agrees with Trustee Moy that it is highly unlikely that they will proceed with outsourcing at this
point in time. It is something that will be in the background and could conceive at a later date but
at the current time they are more interested in understanding how much can we reduce costs at
the library. The fact is, the Library is not the major expense, the police and fire account for a
high percentage of the budget and we are not going to balance things unless they look at all
departments. We have not only a short term problem because the economy is tanking but we
have a long term problem that we have to address due to sales tax revenues being down. We are
not just picking on the library. We are going to be talking about healthcare next, and making
changes there. We will also be reviewing the budget which will affect things in all departments.
Clerk Pruss addressed the concern about posting the agenda. Agendas are posted on Friday
nights on the window at Village hall, but also e- mailed to all newspapers, homeowner association
presidents and any resident who has signed up to receive one. If any resident wishes to receive
an e -mail copy of the agenda, please contact her office.
President Craig stated that we are in an unprecedented time. He remembers coming on the Board
10 years ago and remembers money was never a question. However now we are faced with a
real dilemma. We have tremendous obligations. But we are going to survive, believe me, but we
need to make changes.
5. 2009 -2010 HEALTH, DENTAL & LIFE INSURANCE PLANS
Assistant Manager Wing presented this agenda item. AVM Wing explained that with the
assistance of the Village's Health Care Benefit Consultant, Mesirow Financial, the Village was
able to secure new proposals for various carriers for the 2009/10 plan year. In May, with staffs
approval and a 1% proposed increase from Blue Cross Blue Shield, Mesirow only went out to
market on the dental and life insurance, which resulted in the recommendations of Guardian for
dental insurance and Dearborn for the life insurance. Last Tuesday, he incorrectly spoke noting
that the Village did go out to market, we did, but not on all items. Since last Tuesday nights
meeting, Mesirow has contacted various providers and hopes to obtain additional quotes.
However as Blue Cross Blue Shield is the largest provider, we obtain the biggest discounts and
with renewal numbers being favorable, our consultant recommended that the Village not go to
market. We should note, it is advisable not to annually go to market as providers are less willing
to do all the necessary work to provide a quote worth considering. Further, in both of our union
contracts with Police and Fire the Village retains the right to change insurance providers, third
party administrators or self insured as deems appropriate so long as the new coverage and
benefits are substantially similar or identical to those which were in effect when the contracts
were executed. He would like to highlight the exhibit #2 which shows both the proposed plan
and financial analysis. AVM Wing continued to explain the information that was sent with the
Board packet on the various plan options.
Motion by Trustee Wolin, seconded by Trustee Moy to approve and direct staff to execute the
respective agreements with Blue Cross Blue Shield (BCBS) of Illinois for Third Party
Administrator (TPA) Service and Stop Loss Insurance for the Plan Year starting July 1, 2009
VILLAGE OF OAK BROOK Minuta Page 2 of SPECIAL MEETING OF JUNE 15. 2001)
through June 30, 2010 as well as contract renewals with Guardian (Dental Insurance) and Fort
Dearborn (Life Insurance). Trustee Wolin amended the motion, seconded by Trustee Aktipis to
approve the program as recommended and change the employee contribution to 17.5% and
evaluate within 3 months.
ROLL CALL VOTE:
Ayes: 5 - Trustees, Moy, Saiyed, Wolin, Zannis and Aktipis.
Nays: 0 -None.
Abstain: 0 —None. Motion carried.
6. BUDGET UPDATE
Trustee Aktipis discussed the status of the budget and the $1.9 million dollar shortfall.
In view of the state that we are in, the cuts the Manager is proposing are temporary cuts, not long
tern cuts. The current proposal still comes up short. Until we are able to take advantage of an
upturn in the economy we need to figure out how much we really need to project in budget cuts
for the needs of the residents before we tap into the reserves.
The Board reviewed the Budget sheet that was included with the agenda packet. Discussion on
additional cuts ensued and Manager Niemeyer requested direction from the Village Board as to a
number on what those cuts should amount to. He will also develop a timeline for the cuts.
7. LIBRARY ASSOCIATES CONTRACT
Trustee Wolin stated that the Board will be discussing outsourcing, but it was not something he is
going to recommend for the short term.
Library Associates gave us a reasonable proposal that should be seriously. considered. He
identified two additional consultants that he thought would do a similar type job and received a
preliminary report from one firm. He also investigated outsourcing. In terms of library
outsourcing, one company that appears to be the leader is LSSI in Delaware. They have a
number of Libraries that they currently outsource. Outsourcing is controversial. We heard a lot
of comments and negatives with outsourcing and he agrees with all of the negatives that were
brought up which is one of the reasons why he is not in a rush to recommend it. The big
advantage for outsourcing is the advantage for saving money is greater. At this point in time it is
not clear to him that the advantages outweigh the negatives. He would. only consider outsourcing
the Library or any other department if all else fails. The proposals given from Library Associates
is for $4800.
Trustee Wolin motioned and Trustee Aktipis seconded to approve the proposed Library
consulting services presented by Library Associates not to exceed $4800, with the understanding
that we set up a conference call with other Trustees so they can be comfortable in making a good
decision.
ROLL CALL VOTE:
Ayes: 5 - Trustees Moy, Saiyed, Wolin, Zannis and Aktipis.
Nays: 0 - None.
Abstain: 0 — None. Motion carried.
Clerk Pruss spoke to the community regarding the Autumn Fest event and the need for
sponsorships for this event.
President Craig mentioned that we received some good news. McDonald's has increased their
donation this year from $50,000 to $70,000 for the Taste of Oak Brook. He would like to
acknowledge McDonald's for their contribution and thank them for their participation in this
event.
VILLAGE OF OAK BROOK Minutes Page 3 of SPECIAL MEETING OF JUNE 15, 2009
8. ADJOURN
Trustee Aktipis motioned, seconded by Trustee Wolin to adjourn the special meeting of June 15,
2009 at 8:37 p.m. VOICE VOTE. Motioned carried.
ATTEST:
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/s/ Charlotte K. Pruss
Charlotte K. Pruss
Village Clerk
VILLAGE OF OAK BROOK Minutes Page 4 or5 SPECIAL MEETING OF JUNE I5, 2009