Minutes - 08/18/2011 - Board of TrusteesMINUTES OF THE AUGUST 18, 2011 SPECIAL MEETING OF THE
PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF
OAK BROOK APPROVED AS WRITTEN ON SEPTEMBER 27,
2011.
1. CALL TO ORDER
The Special Meeting of the Village Board of Trustees was called to order by President
Gopal Lalmalani in the Samuel E. Dean Board Room of the Butler Government Center at
7:01 pm. The Pledge of Allegiance was given.
2. ROLL CALL
Village Clerk Charlotte Pruss called the roll with the following persons:
PRESENT: President Gopal Lalmalani, Trustees Stelios Aktipis, Mark Moy, Gerald
Wolin, Asif Yusuf, and Elaine Zannis.
ABSENT: Trustee Michael Manzo (arrived at 7:46 pm).
IN ATTENDANCE: David Niemeyer, Village Manager; Blaine Wing, Assistant Village
Manager; Thomas McEllin, Fire Chief; Steve Larson, Police Department
Consultant.
3. PUBLIC HEARING — ELECTRIC AGGREGATION
The Village President and Board of Trustees will conduct a public hearing for the purpose
of considering, pursuant to Section 1 -92 of the Illinois Power Agency Act, 20 ILCS
3855/1 -92 a plan of operation and governance for an Electricity Aggregation Program
through which the Village may arrange for the supply of electricity for its residential and
small commercial retail customers who have not opted out of such a program.
Manager Niemeyer led the hearing with a PowerPoint presentation regarding the Village's
proposed Electric Aggregation Plan of Operation and Governance. The presentation
discussed the following:
1) How Does Electric Aggregation Work
2) Steps Taken To Date
3) Next Steps
4) Plan of Governance & Operation Highlights
a) Participation is voluntary
b) Commercial customers must have a peak demand of less than 100kw
c) Outlines rules for early termination fees, billing procedures, procedures for
handling customer complaints and how new residents and businesses get in the
program
d) Selected supplier will sent out "opt out" notices and pay for. all costs
e) Residents will have 21 days to opt out
f) Residents who have not opted out will also get a notice from ComEd
g) All members can opt out without penalty every 3 years
h) Supplier must be certified by the Illinois Commerce Commission and registered to
do business with ComEd
VILLAGE OF OAK BROOK MINUTES Page 1 of 8 SPECIAL MEETING OF AUGUST 18, 2011
i) Will ensure they have managerial, technical and financial competency to perform
services
j) By law, ComEd is required to be provider of "last resort ". If supplier fails to
deliver all needed electricity, ComEd must provide at no additional cost to
members
5) Next Steps After Hearing
6) Tentative Schedule
a)
First Public Hearing ..... .........................August
18°
b)
Second Public Hearing ..... ......................September
13`,
c)
Approval of Plan of Governance ................September
13tt'
d)
Approval of Intergovernmental Agreement...
September 13th
e)
Authorization to Seek Bids .....................
September 13th
f)
Bid Package Issued ......... ......................September
15th
g)
Bid Due Date ................ ......................September
29th
h)
Award of Contract to Supplier ..................October
11 th
i)
Notices Mailed Out ........ ........................October
24th
j)
Opt -Out Period ........ ............................Oct
24th —Nov 14th
k)
ComEd Notification Period .......................Nov
28th — Dec 14th
1) Power Flow from New Supplier .................January 1, 2012
m) lst Bill from New Supplier ........................February 1, 2012
7) Direct Offers From Electric Suppliers
a) Residents can choose to accept offers from private suppliers but are encouraged to
review details
b) Towns that have already gone through the bidding process have received bids 23%
- 30% less than ComEd Rates
c) Citizens Utility Board has done analysis of offers as of August 100h
Trustee Aktipis asked if ComEd will continue to provide the services that it has been.
Manager Niemeyer stated yes. They own the infrastructure.
Trustee Aktipis asked if ComEd will have any means of recouping the money they will
lose when residents switch to another supplier. Manager Niemeyer stated any ComEd rate
adjustments will have to be approved by the Commerce Commission.
Trustee Wolin stated that ComEd does not own generation plants, Exelon does. ComEd is
a pass through. He also stated this is a very fluid situation, we are in the early stages and
it's going to be very interesting to see how it all develops.
Trustee Yusuf stated he is looking forward to saving money on his electricity bill and is
sure other residents are as well. There is no downside because you can opt out. He asked
what happens when the resident sells their house. Is the agreement binding on the new
owner? Manager Niemeyer stated it is addressed in the Plan of Governance and new
owners are not bound to the terms of the agreement of the previous owners of the property.
Jim Belden from Energy Choices handed Board members questions and comments on the
proposed Plan of Operation & Governance for the Electric Aggregation Program. He
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stated he is speaking on behalf of the Briarwood and Fullersburg Subdivision residents.
He read his comments and questions.
Resident Mario Vescovi stated that ComEd has been lobbying in Springfield for support of
pending legislation for yearly rate increases.
Trustee Wolin thanked Jim Belden for his questions and comments and stated that all the
points he raised will be addressed. He also stated the pending legislation resident Vescovi
mentioned only affects the ComEd rates. Legislation was approved by the house and
senate and Governor Quinn stated he will veto it. Currently negotiations are taking place
on the proposed legislation.
Resident Chuck Shemley asked if the PowerPoint presentation will be available on the
website. Manager Niemeyer stated yes. He also asked if ComEd cuts its rates to be
competitive, will the Commerce Commission have to approve the rate cut. He also asked
if the Commerce Commission will regulate the third party supplier's rates as well.
Manager Niemeyer stated the energy portion does not have to be approved by the ICC.
Trustee Aktipis stated ComEd can reduce its energy rates.
Manager Niemeyer stated that there will be penalty fees from third party suppliers to
terminate a contract with them and go back to ComEd.
Resident Al Knuth stated deregulation has occurred on all levels. In the case of energy,
deregulation of the commodity tells him that we are all overpaying for electricity. He
stated for right now, there is no down side to joining the Village's Electric Aggregation
Program. He also stated it will be interesting to see what will happen to the third party
suppliers a few years from now.
Resident Baker Ninny asked if Exelon can bid on our load. Manager Niemeyer stated yes.
He also stated that the Smart Grid Legislation is through ComEd, not its parent company
Exelon.
Trustee Yusuf stated competition is a good thing and works well. He also stated he thinks
that Exelon will not cut its rates because it will then be under pressure to cut rates across
the board.
Manager Niemeyer stated that there are articles showing that Exelon may reduce its rates.
Jim Belden stated that ComEd does not make any money selling electricity. ComEd
makes its money delivering electricity. ComEd does not buy its power from Exelon but
from Illinois Power Agency. He also stated that Exelon sells electricity to a wide range of
companies.
4. RESIDENTNISITOR COMMENT
The residents who signed up to speak will do so during the agenda item.
VILLAGE OF OAK BROOK MINUTES Page 3 of 8 SPECIAL MEETING OF AUGUST 18, 2011
5. APPROVAL TO JOIN DU -COMM
Trustee Wolin gave a brief overview of Emergency Dispatching Consolidation and the
different options discussed. He stated it no longer makes sense for a community to have
its own Dispatch Center. Based on the computer, radio, and telephone technologies, it is
easy to consolidate and it makes sense because it's not possible for a Village like Oak
Brook to keep up with the technological changes.
Assistant Village Manager Wing did a short presentation on Emergency Dispatching
Comparison. He also stated the many non financial benefits of joining Du -Comm. The
Agenda was as follows:
1) Overview of Options
a) Option #1 Current Staffing (2/2/1) & Training Configuration
b) Option #2 Improve Staffing (3/2/2) & Training Configuration
c) Option #3 Join Du -Comm & Close Village Hall at 5 pm
d) Option #4 Join Du -Comm & add 24/7 Records
e) 2012 Operating Costs
i) Option #1 - $858,522
ii) Option #2 - $1,114,772
iii) Option #3 - $500,308
iv) Option #4 - $580,308
2) One -Time and Transition Costs
a) Option #1 - $191,000
b) Option # 2 - $191, 000
c) Option #3 - $293,000
d) Option #4 - $293,000
Assistant Manager Wing is also recommending creating and contributing $100,000 for
four years to a Building Reserve Fund to be prepared when Du -Comm starts building a
back -up center.
3) Estimated Option Costs
a) Option #1 (2012 — 2017) - $5,371,527
b) Option #2 (2012 — 2017) - $6,980,578
c) Option #3 (2012 — 2017) - $4,095,046
d) Option #4 (2012 —2017) - $4,615,385
Trustee Wolin stated that none of the comments that will be made tonight reflect
negatively on our current Communication Center employees. They are dedicated and hard
working. It does not make sense anymore for a small Village to have its own Dispatch
Center. He also stated the correct thing to do is to move to Du -Comm.
Fire Chief McEllin stated the Fire Department feels Du -Comm is a proper decision for the
future emergency dispatching needs of our community.
Police Department Consultant Larson agreed with Chief McEllin and stated this is a very
difficult decision but it makes complete sense to go with Du -Comm when the total
package is reviewed.
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Resident William Lindeman stated he agrees with Trustee Wolin and Fire Chief McEllin.
He also stated that there were concerns in the McGrath study that have been overlooked
each time this subject was discussed. He also stated he feels badly for the Village
Dispatchers who will be displaced. He would like a decision to be made tonight so the
Village can move on to the Police Chief selection.
Resident Harry Peters stated he is not confident that DU -Comm employees will know
where his house is. He also stated that our current dispatchers should have priority in the
five vacant positions currently at Du -Comm and the Board members should make sure of
this and not abandon them.
Manager Niemeyer stated extensive training of Oak Brook will be given to Du -Comm
dispatchers and if the Village goes with Option #4, we will be looking at hiring some of
the current qualified dispatchers.
Resident Mario Vescovi asked if the contract with Du -Comm includes yearly increases.
Assistant Manager Wing stated we do not currently have a contract but it will include a 5%
yearly increase. He also stated the yearly increases are on average 2% - 7 %.
Resident Tony DiCanio stated he opposes this move for various reasons. He also stated if
we make this move we can never go back to having our own Communication Center.
Trustee Aktipis stated he is concerned with the Villages inability to control costs if we join
Du -Comm. He stated he has real concerns with joining Du -Comm and with the figures
provided by staff. He is skeptical about the numbers, about the Village no longer having
real control, and moving in a direction that he feels is irreversible. He further stated he has
reservations is very leery with not having an in house Communication Center and losing
many dedicated and hard working employees.
Trustee Zannis stated she has opposed this over the last several years. The Board is here to
set strategies for the Village. She is not convinced that moving the Communication Center
to Du -Comm is a good strategy for the Village. She cannot support the move for
philosophical and financial reasons. Keeping the Communication Center in -house is the
best move for the Village. She stated the Village has the option of making small
incremental changes to make the Communication Center great but we chose not to and that
is not great for our community. She also stated in order to go from good to great, you need
investments, dedication and commitment and joining Du -Comm is not going to give us
any of those. She would like to delay this decision for six months. She also would like to
see the ETSB numbers, and move the Communication Center back to Administration.
Trustee Manzo asked are the five positions available at Du -Comm set aside for our
employees. Assistant Manager Wing stated the positions will first be opened to our
employees.
Trustee Manzo asked if we are signing a long term contract with Du -Comm. Assistant
VILLAGE OF OAK BROOK MINUTES Page 5 of 8 SPECIAL MEETING OF AUGUST I8, 2011
Manager Wing stated we will be joining a membership with an opt out clause after one
year.
Trustee Manzo stated he is in favor of joining Du -Comm and does not agree with delaying
this decision.
Trustee Manzo stated the only way a community can detach from ETSB is a county wide
referendum or if the ETSB Board allows the detachment.
Manager Niemeyer discussed the projected costs as presented. He stated staff is projecting
a 5% yearly increase if we join Du -Comm and a 3% yearly increase if we choose to keep
the Communication Center in- house. He stated this is a difficult position for staff and all
arrived at the same conclusion that joining Du -Comm is the best choice for the Village.
He stated we get back about $100,000 from ETSB on a yearly basis. He stated that ETSB
and Du -Comm are two separate issues and should not be intertwined.
Trustee Wolin stated the ETSB funds should not play into this decision. He also stated the
proposals from private companies were received and reviewed and Du -Comm is more
competitive in price. Du -Comm employees are familiar with this area. He also stated
joining Du -Comm will make Oak Brook great in a very short time rather than doing it in-
house and taking a long time to become great. He further stated the economy is still
fragile and we need to be proactive rather than reactive.
Trustee Aktipis asked Brian from Du -Comm if its Board positions are paid positions.
Brian stated no.
President Lalmalani stated he and some of the Trustees took a tour of Du -Comm and
agrees with Trustee Wolin in that the services at Du -Comm are superior and the
technology is cutting edge. He stated he was very impressed with the services and quality.
Trustee Moy stated the two biggest issues are safety to our residents and the financial
duties that we have. Current staffing is very tight and continuing status quo is not viable.
He also stated Du- Comm's technology shows dispatchers exactly where a call is coming
from. He further stated the pros of joining Du -Comm and supports joining.
Trustee Yusuf commended our current Communication Center staff. He stated he would
never consider this if it is a compromise in safety. This is not an easy decision but the
economics is second to being able to handle things. He weighed the pros and cons and has
gotten very good answers.
Trustee Aktipis stated that if there is a county wide emergency, Du -Comm will be
overwhelmed while an in -house Communication Center will be able to deal with it much
better. The loyalty of our own employees will be to our residents.
Trustee Zannis clarified her thought relative to the ETSB funds. She stated once we know
the amount we are contributing to ETSB, we will know the amount we should be asking
VILLAGE OF OAK BROOK MIN UTES Page 6 of 8 SPECIAL MEETING OF AUGUST 18, 2011
for and that amount can offset the cost of options keeping the Communication Center in
house.
President Lalmalani asked Brian from Du -Comm to address the question Trustee Aktipis
had regarding how Du -Comm can handle a county wide emergency. Brian stated it is a
very difficult question to answer because all resources in the county will be taxed. He also
stated during a storm Du -Comm has the ability to take 2,000 calls per hour and they have
the ability to ramp its staff up. He also stated by the end of the year there will be 24 new
dispatch positions available.
President Lalmalani is sensitive to the plight of our current employees and is requesting
from Brian to give them the preference of openings if we decide to join Du -Comm. Brian
stated they have hired employees from previous communities that have joined Du -Comm
but they will have to go through the same hiring process as everyone else.
Trustee Yusuf stated Du -Comm already dispatches for the SWAT team that our officers
are a part of and asked Chief McEllin to explain what MABAS is.
Chief McEllin stated MABAS stands for Mutual Aid Box Alarm System. When there is
an emergency beyond our first responder's ability, mutual aid from other towns is
requested and in -house dispatching is transferred to Du -Comm.
Trustee Aktipis asked Brian if he can address the situation of the community that left Du-
Comm. Brian stated to the best of his knowledge, one of the founding members of Du-
Comm, the Village of Glendale Heights, left in the late 1970's — early 1980's. He does not
know the situation as to why they left.
Manager Niemeyer asked Brian to discuss the next steps that need to be taken if the
Village Board votes to join Du -Comm. Brian discussed the process of joining Du -Comm.
Resident William Lindeman stated that from now until May of 2012, the Village needs to
address the low level of staff at the Communication Center.
President Lalmalani asked Manager Niemeyer to address the issue of transition. Manager
Niemeyer stated he will have something to the Board before the September 13`" Board
meeting.
Motion by Trustee Wolin, seconded by Trustee Yusuf for the Board to proceed with the
Du -Comm implementation at the earliest possible date.
ROLL CALL VOTE:
Ayes: 4 — Trustees Manzo, Moy, Wolin and Yusuf
Nays: 2 — Trustees Aktipis and Zannis
Abstain: 0 — None
Absent: 0 —None
Motion carried.
VILLAGE OF OAK BROOK MINUTES Page 7 of 8 SPECIAL MEETING OF AUGUST 18, 2011
6. ADJOURN TO CLOSED SESSION For the purpose of discussing personnel and litigation
matters pursuant to Section 2c(1) and Section 2c(11) of the Illinois Open Meetings Act.
Motion by Trustee Zannis, seconded by Trustee Manzo to adjourn to closed session for the
purpose of discussing personnel and litigation matters pursuant to Section 2c(1) and
Section 2c(I 1) of the Illinois Open Meetings Act.
ROLL CALL VOTE:
Ayes: 6 — Trustees Aktipis, Manzo, Moy, Wolin, Yusuf and Zannis
Nays: 0 — None
Abstain: 0 — None
Absent: 0 —None
Motion carried.
This meeting was adjourned to closed session at 9:05 pm.
7. ADJOURNMENT
Motion by Trustee Wolin, seconded by Trustee Manzo to adjourn the Special Meeting of
the Board of Trustees at 10:00 pm.
ROLL CALL VOTE: ,
Ayes: 6 — Trustees Aktipis, Manzo, Moy, Wolin, Yusuf and Zannis
Nays: 0 —None
Abstain: 0 — None
Absent: 0 —None
Motion carried.
ATTEST:
/s /Charlotte K. Pruss
Charlotte K. Pruss
Village Clerk
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