Minutes - 06/22/2004 - Board of TrusteesMINUTES OF THE JUNE 22, 2004 REGULAR MEETING OF THE
PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF
OAK BROOK UNOFFICIAL UNTIL APPROVED AS WRITTEN
OR AS AMENDED ON JULY 135 2004.
1. CALL TO ORDER:
The Regular Meeting of the Village Board of Trustees was called to order by President
Quinlan in the Samuel E. Dean Board Room of the Butler Government Center at 7:31
p.m. The Pledge of Allegiance was given.
2. ROLL CALL:
Village Clerk Linda Gonnella called the roll with the following persons
PRESENT: President Kevin M. Quinlan, Trustees Stelios Aktipis, George T. Caleel,
John W. Craig, Susan Chase Korin and Asif Yusuf.
ABSENT: Trustee Elaine Zannis.
IN ATTENDANCE: Richard B. Boehm, Village Manager; Kenneth T. Kubiesa, Village
Attorney; Robert L. Kallien, Jr., Director of Community Development;
Darrell J. Langlois, Finance Director; Margaret Klinkow, Library Director
and Nelson Patras, Interim Bath & Tennis Club Manager.
3. RESIDENT /VISITOR COMMENT
President Quinlan announced that the closed meeting of the Board of Trustees has been
canceled. He reminded residents to attend the Village's annual Fireworks event to be held
on Friday, July 2nd with the fireworks display to be at approximately 9:00 -9:30 p.m Food
and beverages are available to the public or attendees may bring their own refreshments
He asked that the public please help clean up their area after the event.
He also noted that the first Friday Family Night at the Oak Brook Bath & Tennis Club
was a huge success and recommended that people come and join in the festivities.
Autumn Festival Committee Presentation
Harry Peters, representing the Autumn Fest Committee, addressed the Board of the
special event organized by the Committee with Trustee Craig acting as the Chairman. He
announced that the Village received donations from businesses in Oak Brook including
the McDonald's Corporation, Private Bank, Clubhouse Restaurant and the Renaissance
Hotel and committee member Carolyn Link which enables the event to be held. He
acknowledged Nelly Naguib and Carolyn Link in attendance of the meeting with Trustee
Yusuf, Trustee Craig and Linda Gonnella. He also noted Interim Bath & Tennis Club
Manager Nelson Patras for his assistance in working with the Committee.
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3. He explained that last year's event had a deficit of over $14,000 while this year all
scheduled events had to be justified. It is planned that a $600 profit may be feasible with
inexpensive entertainment being provided and food and staff costs being eliminated.
Independent food vendors are being invited to the Fest at their expense. It will be smaller
in scope but a quality Fest. He indicated if inclement weather does occur there maybe
some funding requested due to possible tents being used.
Village Manager Boehm explained that the matter on the Board's agenda is for approval
to hold the 2004 Autumn Fest and to provide up to a $5,000 subsidy if it is needed for
some unforeseen expenditure.
President Quinlan, speaking on behalf of the Village Board of Trustees, congratulated Mr.
Peters and the Committee for raising funds for this special event for our residents.
Ernie Karras, resident of Forest Gate, spoke to the Board regarding the concerns of the
Oak Brook Park District's Splash Pad lighting towards the homes in the subdivision and
the loudness of the music have been addressed by the Zoning Board of Appeals and the
residents are satisfied with this He asked that this is worded properly in the variance.
Gerald Murphy, Gingerbrook, addressed the Board for consideration of the Village
annexing four subdivisions in unincorporated DuPage County. He stated that he spoke
with Village Manager Boehm who explained the cost of public safety services of this
area. He stated that the approximately 1,000 residents of this area are willing to pay for
these services if reasonably priced. He noted that they are hiring an attorney to advise
them on annexation law and issues and would like to interact with Manager Boehm on
this issue. They will be further reviewing the cost of fire protection and zoning issues.
4. APPROVAL OF MINUTES:
REGULAR BOARD OF TRUSTEES MEETING OF JUNE 8 2004
Motion by Trustee Aktipis, seconded by Trustee Caleel, to approve the minutes of the
June 8, 2004 Regular Board of Trustees meeting. VOICE VOTE: Motion carried.
5. CONSENT AGENDA:
All items on the Consent Agenda are considered to be routine in nature and will be
enacted in one motion.
Motion by Trustee Caleel, seconded by Trustee Korin, to approve the Consent Agenda
and authorize expenditures as presented or amended. ROLL CALL VOTE:
Ayes: 5 - Trustees Aktpis, Caleel, Craig, Korin and Yusuf.
Nays: 0 - None.
Absent: 1 - Trustee Zannis. Motion carried.
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A. ACCOUNTS PAYABLE FOR PERIOD ENDING JUNE 18 2004 - $946,099.77
Significant Items included in Above:
1) DuPage Water Commission - $203,518.71
2) James J. Benes & Associates — Payout #10 -- 2004 Paving Project - $12,853.41
3) CAM, LLC — Payout #1 and Final — 2004 Pavement Rejuvenation Project -
$56,649.06
4) James D. Fiala Paving Co. — Payout #2 — 2004 Paving Project - $286,101.39
5) Civiltech Engineering — Payout #8 — York/Harger Bicycle/Pedestrian Path Phase
III - $!9,363.24
B. APPROVAL OF PAYROLL FOR PAY PERIOD ENDING JUNE 5 2004 -
$612,924.22
C. COMMUNITY DEVELOPMENT REFERRALS
1) CHOU — 301 ASHLEY COURT — VARIATION TO FRONT YARD SETBACK
D. AUTHORIZATION TO SEEK BIDS OR PROPOSALS OR NEGOTIATE
CONTRACTS
1) 2005 PAVING PROJECT
E. ANNUAL CONTRIBUTION TO DUPAGE METROPOLITAN ENFORCEMENT
GROUP
F. ANNUAL CONTRIBUTION TO DUPAGE COUNTY CHILDREN'S CENTER
G. REVISION OF DETENTION & FLOODPLAIN EASEMENT — LOT 7 —
GATEWAY SUBDIVISION — 10 GATEWAY LANE
H. RESOLUTION 2004- SD -FP -R -880, "A RESOLUTION APPROVING THE FINAL
PLAT KNOWN AS KANAN COURT SUBDIVISION AND GRANTING A
VARIATION FROM THE PROVISIONS OF SECTIONS 6 -3 (E) AND (F) OF
TITLE 14 ( "SUBDIVISION REGULATIONS ") OF THE VILLAGE CODE OF
THE VILLAGE OF OAK BROOK RELATIVE TO STORM DRAINAGE
SYSTEMS, SIDEWALKS AND STREET LIGHTS" — 3308 Midwest Road
I. ACCEPT AND PLACE ON FILE TREASURER'S REPORT — MAY 2004
J. APPROVAL OF INTERGOVERNMENTAL AGREEMENT BETWEEN THE
COLLEGE OF DUPAGE AND THE VILLAGE OF OAK BROOK TO CONDUCT
2004 FIREFIGHTER APPLICANT TESTING
K. OAK BROOK AUTUMN FEST
VILLAGE OF OAK BROOK Minutes Page 3 of 11 June 22, 2004
6. ITEMS REMOVED FROM CONSENT AGENDA: - None.
7. BOARD & COMMISSION RECOMMENDATIONS:
A. OAK BROOK PARK DISTRICT — 1450 FOREST GATE ROAD — SPECIAL USE -
SPLASH PARK /PAD
The Oak Brook Park District has submitted a petition seeking approval of an
amendment to their special use (Ordinance S -791) in order to construct a 4,800 sq ft
splash park/pad and additional playground equipment on the south side of the Family
Recreation Center. The total project area encompasses approximately 28,000 sq. ft
Recommendation:
The Plan Commission, by a vote of 7 to 0 and the Zoning Board of Appeals, by a vote
of 5 to 0 have recommended approval of a special use amendment to construct the
splash park/pad and playground equipment as requested subject to the following:
• The development shall be in substantial conformance with the plans as submitted.
• All other provisions of Ordinance S -791 are in full force and effect.
• That the source of light is to be properly shielded from the adjacent residential
property.
• That language to be considered to address potential noise issues.
In making this recommendation, the Zoning Board of Appeals concurred with the Plan
Commission finding that the petitioner has addressed the factors as required by the
Ordinance for approval of a special use In particular, it was found that the special use
would be operated so that the public health, safety and welfare will be protected and
there will be no substantial injury to other property in the neighborhood.
Motion by Trustee Aktipis, seconded by Trustee Caleel, to concur with the
recommendations of the Plan Commission and Zoning Board of Appeals and approve
the requested special use amendment and authorize the Village Attorney to draft the
necessary ordinance for final consideration at the July 13, 2004 Board of Trustees
meeting. VOICE VOTE: Motion carried.
8. UNFINISHED BUSINESS:
A. CONFIRMATION OF APPOINTMENTS - None.
B. ORDINANCES & RESOLUTIONS - None.
C. AWARD OF CONTRACTS
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8. C.
1) 2004 ANNUAL INSURANCE RENEWAL: STOP LOSS COVERAGE FOR
MEDICAL AND DENTAL; LIFE AND AD &D; AND VISION
The Village of Oak Brook operates a self - insured health insurance program for
employees, their dependents and retirees that elect to continue coverage at their
expense. This program was implemented in July of 1993. Under this program, the
Village is directly responsible for funding health claims for all the lives In the
program and purchases Stop Loss Insurance for Large Claims running over the
specific cap for individuals and claims running over the specific aggregate cap for
the entire Oak Brook pool. In addition, the Village separately purchases additional
insurance for Life Insurance and AD &D, and Group Vision Insurance.
Program Renewal Background:
The Village utilizes the services of Mack & Parker, Inc. (on a monthly retainer
basis) for plan administration and benefit consulting services. In recent years,
stop -loss and group term life insurance coverages have been placed on a net -of-
commission basis through the third party administrator, rather than an insurance
broker, with oversight by Mack & Parker, Inc. Mack and Parker sought and
received the proposals being evaluated for the 2004 renewal (all of the insurance
policies and agreements relating to the Village's employee benefit program expire
on June 30, 2004, the end of the 2003 -2004 Plan Year).
Specific and Aggregate Stop -Loss Insurance
Specific and aggregate stop -loss insurance is used to reduce the risk associated
with being self - insured by capping the amount of claims for which the Village is
responsible, both for an individual (specific), and for the entire group (aggregate).
The Village's specific stop -loss "deductible" is currently $65,000. The aggregate
"deductible" is determined by the insurance carrier based on 125% of anticipated
claims. The aggregate amount may vary depending on the actuarial assumptions
used by the insurance carrier, as each carrier has a different view as to the
anticipated total amount of our claims.
In order to secure contracts for the 2004 -2005 plan year, the Village's third party
administrator sought quotes from several reinsurance carriers on a net -of-
commission basis, and staff and the Village Health Plan Consultants, Mack and
Parker reviewed these quotes. Quotes were received from three (3) vendors
including the Village's current provider, Majestic Underwriters. The Village had
two obstacles to tackle with this renewal: 1) Rebuilding claim information with
our new TPA, Group Administrators, after terminating Incentus; and 2)
Incorporating two (2) large over specific individual claims in the current plan year
with one of the two being viewed as a high risk, late plan year claim In other
VILLAGE OF OAK BROOK Minutes Page 5 of 11 June 22, 2004
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8. C. 1)
words, at the time the Village stepped into the renewal review period for Stop Loss
Insurance, a potentially high cost claim with many unknown variables due to the
very recent diagnosis, severely elevated the perceived risk causing much more
conservative proposals.
In turn, the staff would recommend the Village adopt a structure for the 2004 -2005
Health Plan year for Stop Loss Insurance at a specific stop loss deductible of
$75,000.00, an aggregate "deductible" of 125% of anticipated claims, with a ten
(10) percent trend plus an inflated anticipated claims paid for the year to absorb a
higher specific amount (laser) for the one known high risk claim. .
However, staff is awaiting the final figures attached to the specific stop -loss laser
on the one high risk claim, and it may be in the Village's best interest to select the
lowest proposal, Gerber/ Costal Reinsurance. Therefore, to err on the side of
conservatism while faced with the need to renew insurance by July 1, 2004, staff is
recommending a not -to- exceed proposed recommendation of $23,000 per month to
account for the pending figure on the unknown laser determination being
contemplated by Majestic Underwriters. In summary, it is recommended that the
Village increase its stop -loss deductible to $75,000 and renew for the 2004 - 2005
plan year in an amount not to exceed $23,000 per month.
T .,fP TnenranrP
The Village provides $50,000 of group term life insurance and AD & D coverage
to all full -time employees. Through the proposal process, Standard has proposed
the lowest proposal based on the benefits extended at a rate of $0.13 per $1,000.00
and $0.025 for AD &D, resulting in a reduction by approximately 22% from the
current carrier CNA Group Benefits. Thus, staff recommends approval of the
proposal submitted by Standard at the monthly rate of $0.13 per $1,000 effective
July 1, 2004.
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, 2005. 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.
Motion by Trustee Caleel, seconded by Trustee Korm, to authorize the Village
Manager to enter into agreements for the following health insurance coverage. A)
Specific and Aggregate Stop -loss Insurance (Excess Coverage) in an amount not to
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8. C. 1) exceed $23,000 per month; B) Group Term Life Insurance and AD &D at a
decrease from the current costs by 22 %; and C) Group Vision Insurance at no
increase from current cost. ROLL CALL VOTE:
Ayes: 5 - Trustees Aktipis, Caleel, Craig, Korin and Yusuf.
Nays: 0 - None.
Absent: 1 Trustee Zannis. Motion carried.
9. NEW BUSINESS:
A. CONFIRMATION OF APPOINTMENTS - None.
B. ORDINANCES & RESOLUTIONS
1) ORDINANCE 2.0_ _04 -LY -EX 1 -S -1074, "AN ORDINANCE ADOPTING THE
SECOND AMENDMENT TO THE LIBRARY MEETING ROOM AND
GROUP STUDY ROOMS POLICY"
The policy was reviewed per the Library Commission's policy review schedule
and minor changes were made. The OBPL provides meeting space for library -
related, cultural, civic and informal educational purposes. Library - related and
Library- sponsored programs will take precedence over outside programs. When
presenting Library- sponsored programs, the Library will make every effort to
provide a wide variety of services and information. Questions on meeting room
policy may be directed to the Administrative Office. The Ordinance includes the
guidelines for: Permissible Meetings, Endorsement, Hours, Applications, Fees,
Facilities and Equipment, Regulations and Restrictions, Definitions, Group Study
Rooms and Review.
Motion by Trustee Caleel, seconded by Trustee Korin, for passage of Ordinance
2004 -LY -EX 1 -S -1074, "An Ordinance Adopting the Second Amendment to the
Library Meeting Room and Group Study Rooms Policy. ROLL CALL VOTE:
Ayes: 5 - Trustees Aktipis, Caleel, Craig, Korin and Yusuf.
Nays: 0 - None.
Absent: 1 - Trustee Zannis. Motion carried.
C. AWARD OF CONTRACTS - None.
D. ACCEPT AND PLACE ON PUBLIC FILE — 2003 COMPREHENSIVE ANNUAL
FINANCIAL REPORT AND MANAGEMENT LETTER
As required by State statutes, the 2003 Comprehensive Annual Financial Report
(CAFR) for the Village of Oak Brook as well as the Management Letter from the
Village's auditors, Sikich Gardner & Co., LLP, related to the recently completed
2003 audit is presented. It is appropriate that these documents be accepted by the
VILLAGE OF OAK BROOK Minutes Page 7 of 11 June 225 2004
9. D. Village Board and placed on file for public inspection. As is done each year, staff
intends to submit the annual report to GFOA for consideration for the Certificate of
Achievement for Excellence in Financial Reporting. If received it will mark the 27th
consecutive year that the Village has attained this recognition.
Several years ago the Government Accounting Standards Board issued Statement No.
34, Basic Financial Statements -and Management Discussion and Analysis for State
and Local Governments. The two most significant requirements of GASB Statement
No. 34 are that the Village will be required to present financial information on both a
full accrual and modified accrual basis (presently only modified accrual is utilized for
governmental fund types) and the Village will have to capitalize and depreciate fixed
assets, including infrastructure. The 2003 CAFR brings the Village into compliance
with all of the requirements of GASB Statement No. 34, including the retroactive
reporting of infrastructure, which is not required until 2007.
Trustee Caleel remarked that the Oak Brook Library Foundation is a separate and
independent foundation which has an objective helping with the construction debt of
the Oak Brook Public Library. He stated that their foundation does not come directly
under the Village of Oak Brook.
Brian Lefever, Sikich Gardner & Co, LLP, the auditing firm for the Village addressed
the Board of Trustees of the new auditing process with GASB34. This required the
Village to retroactively restate its infrastructure assets for the first time and place
them on the financial statements. He stated that it went very smoothly with our staff.
He explained that Trustee Caleel was remarking of the new accounting
pronouncement of the Governmental Accounting Standards Board which indicates
that the Village does need to evaluate the Foundation to determine based on the
criteria in the pronouncement if the Foundation would need to be a part of the Village
audit. He stated that the Village does need to do at least an evaluation for the
Village's financial statement for the next audit. Many local governments have related
non - profit organizations that have been established to benefit local governments. The
Governmental Accounting Standards Board has reviewed this and determined that
some of these local governments financial statements were not fairly presented
without the non - profit agency being included.
Trustee Caleel asked if the performance bonds payable could be placed in the General
Fund since they are so old. Mr. Lefever stated that the Village Attorney would have
to address this issue but it is their understanding that a investigation would have to be
done to determine if the funds were to be returned to the contractors that put up the
performance bonds. President Quinlan asked that Attorney Kubiesa review this
further.
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President Quinlan commended Finance Director Langlois for his efforts in the annual
audit. Trustee Aktipis also noted the long term performance by Finance Director
Langlois for the annual audit reports.
Performance Bonds
This comment relates to performance bonds required as a condition of a building
permit, and the bonds that the Village holds are generally waiting for completion of
some requirement of the permit. Most of these bonds are current. However, there are
several old bonds carried on the Village's books dating as far back as 1984.
This comment was also made in several past management letters. The ultimate
disposition of these bonds can be time consuming, complex, and may involve input
from the Community Development, Engineering, Public Works, Finance, and Legal
Departments. During 2003, minor progress was made on some of the older bonds.
As time permits, staff will continue to address the older performance bonds still on
the Village's books.
Operating Losses
The auditors once again noted the operating losses in the Sports Core Fund. The
Village Board is obviously well aware of the situation and has implemented
numerous changes in order to strive to increase usage of the facilities and eliminate
these losses. The hope is that these changes will have a positive impact on the 2004
operating results of the Sports Core Fund.
Garage Fund
Various options regarding the accounting for the Garage Fund, including possible
elimination of this fund will be considered during the 2005 budget process.
Foreign Fire Insurance
In May 2003 the custody of their assets as well as all accounting functions were
turned over to the Foreign Fire Insurance Tax Fund Board. This comment regarding
two unrecorded checks will be forwarded to them to address.
Water System Recovery
The auditors note an improvement from approximately 24% in 2002 to 19% in 2003.
Staff has been aware of this problem for several years since completion of the Lake
Michigan water audit during the second half of 2002. Since that time the Village has
initiated an active water leak detection program including hiring a contractor to
survey the entire system in search of leaks. Early indications in 2004 indicate further
progress, and hopefully by the end of the year the water loss ratios will be within
industry standards.
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Motion by Trustee Yusuf, seconded by Trustee Caleel, that the Village Board accept
the 2003 Comprehensive Annual Financial Report and Management Letter and place
them on public file. ROLL CALL VOTE:
Ayes: 5 - Trustees Aktipis, Caleel, Craig, Korin and Yusuf.
Nays: 0 - None.
Absent: 1 - Trustee Zanms. Motion carried.
10. INFORMATION & UPDATES:
A. VILLAGE PRESIDENT
President Quinlan reminded the public to come and use the Oak Brook Bath & Tennis
Club facility with all of their activities they offer this season. Again, he reminded the
public of the annual Fireworks display to be held July 2, 2004.
B. VILLAGE MANAGER:
Trustee Craig commented of the highly successful Highland Games at the Oak Brook
Polo Fields last Saturday. He welcomed the people attending the Highland Games and
told them how much the Village appreciates them coming to our facility. He also
congratulated Interim Bath & Tennis Club Manager Patras for his coordination of the
entire event.
C. VILLAGE CLERK:
Clerk Gonnella announced that at the June meeting of Municipal Clerks of DuPage
County, Deputy Clerk Carol Harty was elected Secretary of the organization. She and
President Quinlan commended her for her efforts.
11. ADJOURN TO CLOSED MEETING:
President Quinlan announced at the beginning of the meeting that the closed meeting was
canceled at this time
To discuss minutes of meetings lawfully closed under the Open Meetings Act, whether for
the purpose of approval by the body of the minutes, or for semi - annual review of the
minutes as required by the Open Meetings Act, and
To consider the appointment, employment, compensation, discipline, performance, or
dismissal of specific employees of the public body or legal counsel for the public body,
including hearing testimony on a complaint lodged against an employee of the public
body or against legal counsel for the public body to determine its validity.
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11. Trustee Caleel asked if the population increased with annexation of unincorporated areas
in DuPage County, would the Village receive more funding. Village Manager Boehm
explained that the offset of increased revenue would be greatly offset by the costs. There
is concern of code issues of these homes and the manner in which they were built.
Another patrol of three shifts would be needed by police personnel while it may also
necessitate the building of a new fire station, equipping and staffing of the facility. The
revenue would not offset the justification of this.
12. ADJOURNMENT:
Motion by Trustee Craig, seconded by Trustee Caleel, to adjourn the meeting at 8:07
p.m. VOICE VOTE: Motion carried.
ATTEST:
Linda K. Gonnella, CMC
Village Clerk
VILLAGE OF OAK BROOK Minutes Page 11 of 11 June 22, 2004