Minutes - 08/26/2008 - Board of TrusteesMINUTES OF THE AUGUST 26, 2008 REGULAR MEETING OF
THE PRESIDENT AND BOARD OF TRUSTEES OF THE
VILLAGE OF OAK BROOK APPROVED AS WRITTEN OR AS
AMENDED ON APRIL 14, 2009.
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 7:31 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: David Niemeyer, Village Manager; Blaine Wing, Assistant Village
Manager; Mark Sterk, Village Attorney; Robert L. Kallien, Jr., Director of
Community Development; Dale L. Durfey, Jr., Village Engineer; Darrell J.
Langlois, Finance Director; James Bodony, Fire Chief, Bruce F. Kapff,
Director of Information Services & Purchasing; Michael Hullihan, Public
Works Director; Thomas Sheahan, Chief of Police and Trey VanDyke,
Golf Club Manager.
3. PRESIDENT'S OPENING COMMENTS
4. RESIDENT /VISITOR COMMENT
President Craig asked whether there were any persons who wished to address the Board.
Clerk Pruss stated that Mr. Curt Moodi and Mr. Joe Tedesco wished to address the Board
regarding the Macy's text amendment, but would address the Board at the time the
Agenda Item was presented. In addition Mr. Mike Van Zandt from Hiffman Associates
would like to address the Board regarding the Oak Brook Promenade, but also would
wait.
5. APPROVAL OF MINUTES — None presented
6. CONSENT AGENDA
All items on the Consent Agenda are considered to be routine in nature and will be
enacted in one motion.
VILLAGE OF OAK BROOK Minutes Page 1 of 16 REGULAR MEETING OF
AUGUST 26, 2008
6. A. ACCOUNTS PAYABLE FOR PERIOD ENDING AUGUST 22, 2008 - $885,713.47
Significant Items included in Above:
1) DuPage Water Commission - $186,305.04
2) Odelson & Sterk, Ltd. — Legal Services - July, 2008 - $21,061.86
3) Odelson & Sterk, Ltd. — Legal Services — July Mucha Matter - $46.25
4) Kubiesa, Spiroff, Gosselar, Acker & DeBlasio, P.C. — Legal Services — July, 2008
-$95376.50
5) Currie Motors — Unit 602 - $42,000
Trustee Carson asked that item 6.A.5. be removed for clarification.
B. APPROVAL OF PAYROLL FOR PAY PERIOD ENDING AUGUST 9, 2008 -
$771,199.44
C. COMMUNITY DEVELOPMENT REFERRALS
1) FULLERSBURG HISTORIC FOUNDATION — TEXT AMENDMENT
SECTION 13 -8 — HISTORIC GRAUE MILL GATEWAY AREA
The Fullersburg Historic Foundation, is requesting approval of a text amendment
to Chapter 8, Historic Graue Mill Gateway Area in order to document the
existence of specific historic structures within the purview of the regulations.
The requested action was to refer a request for a text amendment to the Historic
Graue Mill Gateway Area section of the Zoning Ordinance to the Plan
Commission for review at its September 15, 2008 meeting and to the Zoning
Board of Appeals for public hearing at its October 7, 2008 meeting.
D. AUTHORIZATION TO SEEK BIDS OR PROPOSALS OR NEGOTIATE
CONTRACTS
1) 2009 PAVING PROJECT
The 2008 Budget contains funds for the design of the 2009 Paving Project. The
budget had been structured such that the design work will be accomplished in
2008, the project bid in January of 2009, and then constructed within 2009.
Funds for this construction project will be included in the 2009 Budget.
No paving work was funded for 2008. With the advent of the Village's financial
obligations regarding the I- 88/22" d Street work, it was concluded to slide the 10-
Year Roadway Maintenance Plan one year. The 2009 Paving Project picks up
where the maintenance plan was left off.
VILLAGE OF OAK BROOK Minutes Page 2 of 16 REGULAR MEETING OF
AUGUST 26, 2008
6. D. 1) Staff is seeking approval to negotiate a Professional Services Contract with the
consulting engineering firm of James J. Benes & Associates, Inc. The Benes firm
has been utilized since 1991 for our annual paving projects as well as major road
work such as the Jorie Boulevard reconstruction and 22nd /York reconstruction
projects funded by federal grants. The firm is highly qualified to accomplish
these professional services and has become very familiar with the Village's
particular procedures and policies, which saves time and money. If another firm
were selected, both the Village staff and the firm would spend additional time to
orient them. Additionally, the Benes firm has worked within several surrounding
municipalities for the past several years and is very familiar with the area. The
Benes firm has historically experienced good efficiency with its workers and a
low overhead rate, which has been beneficial to the Village in controlling costs.
Of significance is the fact that the Benes firm originally designed and performed
construction inspection on the reconstruction of 38th Street (built in 1994) and
Regent Drive (built in 1995) and have an intimate knowledge of them.
Additionally, their engineers on our past projects have been excellent in
contacting residents and handling their concerns.
In recommending a particular firm, we follow a logical procedure as well as State
law applicable to procuring professional services. With any professional service,
whether it be engineering, architectural, or legal, we are buying creativity and
expertise, not a commodity. The selection is based on qualifications and
competence in relation to the scope and needs of a particular project. An exact
predetermined scope of work is not available for professional services and
technical expertise is needed to review and identify technical issues and
alternatives and develop functional, cost effective designs or solutions.
This procurement process must also follow State law which requires a local
government to select architects, engineers and land surveying services on the
basis of qualifications and to negotiate contracts that are fair and reasonable. The
statute lists specific procedures that must be met, including the selection of a
most - qualified firm before compensation discussions can take place. Straight
competitive bidding is not permitted under the statute, nor is it appropriate given
the nature of the work.
Both the logical and statutory issues are satisfied in a process known as
Qualifications Based Selection (QBS). QBS is a process that facilitates selection
on the basis of qualifications and competence and facilitates the development of
an appropriate scope of work at fair and reasonable prices. It evolved from the
public owners need to be an informed customer and to have a logical, fair and
objective means of selecting professional means. QBS is straightforward and
easy to implement, is objective and fair, can be well documented, and is open to
public scrutiny.
VILLAGE OF OAK BROOK Minutes Page 3 of 16 REGULAR MEETING OF
AUGUST 26, 2008
6. D. 1) The Village went through the full QBS process in 1991 doing the selection of a
consultant for the 1991 Paving Project and in 1999 for the 2000 Paving Project.
Those processes concluded that the Benes firm was the most qualified of eleven
firms considered in 1991 and the seventeen firms considered in 1999. Based on
their exemplary performance, I recommend that we use them again. Please note
that the Village uses other consultants for other project types; staff does not
recommend the same consultant for all Village projects.
From a professional viewpoint, Benes has provided excellent service at excellent
rates which is why they have been recommended for this project.
Once formal contract is negotiated, it would be brought back to the Board for
formal review and approval.
The requested action was that the Village Board authorize staff to negotiate a
contract with James J. Benes and Associates, Inc. for Professional Engineering
Services regarding the 2009 Paving Project.
E. BUDGET ADJUSTMENTS — None presented.
F. WAIVER OF FEES — FULLERSBURG HISTORIC FOUNDATION
A request was received from Ms. Audrey Muschler, President of the Fullersburg
Historic Foundation to consider waiver of fees associated with the proposed text
amendment Historic Graue Gateway section of the Zoning Ordinance.
In the past, the Village has received and approved requests for waiver of fees from
entities such as the Christ Church of Oak Brook, Oak Brook Park District and the
DuPage County Forest Preserve District.
Section 1 -14 -2 of the Village Code permits waiver of such fees for other
governmental entities and charitable organizations.
1 -14 -2: Waiver of Fees:
Any governmental unit or any charitable organization as defined in the act
to regulate solicitation and collection of funds for charitable purposes may
request waiver of any fees established to this chapter. Upon such request
the Village President and Board of Trustees may, in its discretion, waive
any such fees imposed pursuant to the terms of this chapter.
The requested action was to approve waiver of the required fees for the proposed text
amendment to the Historic Graue Gateway section of the Zoning Ordinance.
VILLAGE OF OAK BROOK Minutes Page 4 of 16 REGULAR MEETING OF
AUGUST 26, 2008
6. G. ORDINANCE G -865, AN ORDINANCE AMENDING ORDINANCE G -817 IN
RELATION TO THE HOTEL BEAUTIFICATION DISTRICT
At the Board Meeting of August 12, 2008, as a result of discussion regarding the
Beautification Plan, staff was directed to modify the Hotel Beautification District
boundaries to include a portion of York Road between the I -88 Off -Ramp onto York
Road and Dover Drive in the Hotel Beautification District.
The requested action was for Passage of Ordinance G -865, An Ordinance Amending
Ordinance G -817 in Relation to the Hotel Beautification District.
H. GHABRA'S ASSESSMENT PLAT
The Assessment Plat was reviewed by the Engineering Department with the
following comments:
1. Several minor drafting revisions needed to be made.
2. Portions of the property fell with a floodplain. The submitted topographic survey
needed several revisions.
The surveyor and engineer were advised to correct these deficiencies.
The requested action was to approve the Ghabra's Assessment Plat subject to the
Assessment Plat and topographic survey being revised as necessary and the same
approved by the Village Engineer.
Motion by Trustee Kennedy, seconded by Trustee Manofsky, to approve the Consent
Agenda and authorize expenditures as presented or 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
6. A. 5) Currie Motors — Unit 602 - $42,000
Trustee Carson asked that this item be removed for clarification. He stated that
there was a discrepancy in reporting the amount of the payment. Finance
Director Langlois stated that the correct amount was $48,359.00
Motion by Trustee Carson, seconded by Trustee Saiyed, to approve payment to
Currie Motors in the amount of $48,359.00. 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 REGULAR MEETING OF
AUGUST 26, 2008
8. BOARD & COMMISSION RECOMMENDATIONS
The Plan Commission at its meeting on July 21, 2008 and the Zoning Board of Appeals at
the required public hearing on August 5, 2008 reviewed a request from InSite Goshen,
LLC; InSite Freeport, LLC; and InSite Oak Brook, LLC, the owners of the property at
1400 16`x' Street. They were seeking approval of a text amendment to the Zoning
Ordinance to permit a ground sign with tenant names on a parcel with less than five (5)
acres.
A. INSITE — TEXT AMENDMENT — B -2 DISTRICT AND VARIATION FOR 1400
16TH STREET
Text Amendment:
Section 13 -11 -8A — Add the following language:
2. In a retail /commercial development containing less than five (5) acres, a
maximum of one (1) ground sign, which identifies the name and address of
the development and may also identify the name and services or merchandise
of each of the tenants located in the center, may be erected in addition to signs
affixed to the building walls; provided that the sign shall not exceed a total of
two hundred (200) square feet on either side and shall not exceed fifteen (15)
feet in height.
Recommendation
Text Amendment — The Plan Commission, by a vote of 4 to 0 and the Zoning Board
of Appeals, by a vote of 6 to 0 agreed that the applicant addressed the required
standards to recommend approval of a text amendment to amend Section 13 -11 -8A of
the Zoning Ordinance. Approval was subject to revising the language to reduce the
allowed total square footage from 200 feet to 126 square feet; each sign face not to
exceed 63 square feet; and reduce the requested sign height from 15 feet to 10'6".
The proposed text to be added would read as follows:
2. In a retail /commercial development containing less than five (5) acres, a
maximum of one (1) ground sign, which identifies the name and address of
the development and may also identify the name and services or
merchandise of each of the tenants located in the center, may be erected in
addition to signs affixed to the building walls; provided that the sign shall
not exceed a total of one hundred - twenty six (126') square feet; not to
exceed sixty -three (63') square feet on either side and shall not exceed ten
feet 6- inches (10'6") feet in height.
Motion by Trustee Sanford, seconded by Trustee Kennedy, to concur with the
recommendations from the Plan Commission and Zoning Board of Appeals and
approve the requested text amendment to Section 13 -11 -8A of the Zoning
VILLAGE OF OAK BROOK Minutes Page 6 of 16 REGULAR MEETING OF
AUGUST 26, 2008
8. A. Ordinance to permit a ground sign with tenant names on a parcel with less than
five (5) acres and authorize the Village Attorney to prepare the necessary
ordinance for final consideration at the September 9, 2008 Board of Trustees
meeting; VOICE VOTE: Motion carried.
In addition to the text amendment, the Zoning Board of Appeals reviewed a
request for a variation in order to locate the above referenced ground sign closer
than the required 40 feet from the street line. In this request, the applicant wants to
locate the new ground sign approximately 31 -feet from the street line of 16th
Street.
Recommendation
Variation — The Zoning Board of Appeals by a vote of 6 to 0 agreed that the
applicant addressed the required standards to recommend approval of a variation to
the required 40 -foot setback for a ground sign from a street line to be reduced to
31 feet as requested subject to the following conditions:
1. Subject to approval of the proposed text amendment.
2. The ground sign is to be constructed in substantial conformance to the
revised signage details and elevations drawings as shown on pages 12, 13
and 15 of the case file.
3. Subject to engineering approval.
4. Appropriate landscaping to be provided as required in the Zoning
Ordinance.
5. Not withstanding the attached exhibits, the applicant shall meet all Village
Ordinance requirements at the time of building permit application except as
specifically varied or waived.
Motion by Trustee Sanford, seconded by Trustee Kennedy, to concur with the
recommendation from the Zoning Board of Appeals and approve the requested
variation in order to locate a ground sign 31 -feet from the street line of 16th Street
and authorize the Village Attorney to prepare the necessary ordinance for final
consideration at the September 9, 2008 Board of Trustees meeting. VOICE
VOTE: Motion carried.
B. MACY' S — TEXT AMENDMENT — B DISTRICTS
Mr. Moodi, the Manager of the Macy's furniture store addressed the Board regarding
the special event for which they were seeking the text amendment. He indicated that
it would provide a much larger selection of carpets. He also reported that this had
been a successful event in other locations with revenues up to 2.5 million dollars. He
added that this would provide revenues not only for Macy's, but for the Village.
VILLAGE OF OAK BROOK Minutes Page 7 of 16 REGULAR MEETING OF
AUGUST 26, 2008
8. B. Mr. Mike Van Zandt addressed the Board regarding the text amendment. He
indicated that the Promenade had an interest in providing a Farmer's Market,
however the amendment as it is currently written, only allows two events and only
allows items to be sold in an outdoor temporary enclosure that are sold within the
store. He stated that these restrictions would not allow a Farmer's Market which the
Oak Brook Promenade had been considering. He was looking for a broadening of the
text amendment.
The Plan Commission at its meeting on July 21, 2008 and the Zoning Board of
Appeals at the required public hearing on August 5, 2008 reviewed a petition from
Macy's Retail Holdings, Inc. seeking approval of a text amendment to Section 13-7 -
3B of the Zoning Ordinance in order to permit outdoor sales events in the B
(Commercial) Districts. At the present time, Section 13 -7 -313 of the Zoning
Ordinance requires that all business, service, storage, merchandise, display, etc. shall
be conducted wholly within a completely enclosed building with several exceptions.
The applicant is seeking a text amendment to this section in order to permit limited
term outdoor sales events in any B District if approved by the Village Board on a
case -by case basis.
The specific text amendment that is being proposed is as follows:
B. All business, service, storage, merchandise, display, and where
permitted, repair and processing shall be conducted wholly within a
completely enclosed building except for: 1) off street automobile
parking, off street loading, and open sales lots and drive -in facilities
in districts where they are permitted; 2) outdoor dining areas
adjacent to restaurants in districts where outdoor dining areas are
permitted as a special use; 3) approved specialty retail programs in
outdoor areas of a shopping center in districts where permitted as a
special use; and 4) outdoor sales events on a property in any
business district provided that all of the following conditions are
met:
1. Such event be of a limited duration (14 days or less per event)
occurring no more than two times in any calendar year,
2. such event is held in a temporary enclosure that receives all
required permits from the Village,
3. such event offers for sale only items that are normally sold
inside the building in conformity with the principal use of the
subject property,
4. such event conforms to all signage and setback requirements
of the underlying zoning district, and
VILLAGE OF OAK BROOK Minutes Page 8 of 16 REGULAR MEETING OF
AUGUST 26, 2008
8.B. 5. the property complies with all parking requirements of the
underlying district, or, in the alternative, the petitioner
reasonably demonstrates that notwithstanding any temporary
noncompliance, the conduct of the event will not impose any
undue traffic or parking burden on surrounding properties and
streets; and
6. such event is approved by the Village Board of Trustees upon
petition or request from the property owner detailing
prospective compliance with the conditions herein.
Recommendation
The Plan Commission, by a vote of 4 to 0 and the Zoning Board of Appeals, by a
vote of 6 to 0 recommended to approve the text amendment as proposed by the
applicant that would permit outdoor sales events in the B- Districts as approved by the
Village Board.
Staff Comments
There are a number of properties in Oak Brook that may have difficulty meeting all
of the conditions for a temporary sales event because the parcel is too small or lacks
adequate parking as required in the proposed text.
Trustee Sanford commented that one of the restrictions which required "such event is
approved by the Village Board of Trustees upon petition or request from the property
owner detailing prospective compliance with the conditions herein" made the process
more complicated than it needed to be. He suggested an amendment to change that
requirement, "to such approval and permits be approved by the Community
Development Director ".
Trustee Wolin concurred with Trustee Sanford's amendment. He strongly
recommended approval.
Motion by Trustee Sanford, seconded by Trustee Kennedy, to concur with the
recommendations from the Plan Commission and Zoning Board of Appeals and
approve the requested text amendment to permit limited outdoor sales events in the B
Districts subject to an amendment to the recommendation to change the requirement
of Board approval to such approval and permits be approved by the Community
Development Director" and authorize the Village Attorney to prepare the necessary
ordinance for final consideration at the September 9, 2008 Board of Trustees
meeting. VOICE VOTE: Motion carried.
9. UNFINISHED BUSINESS
A. CONFIRMATION OF APPOINTMENTS — None presented.
VILLAGE OF OAK BROOK Minutes Page 9 of 16 REGULAR MEETING OF
AUGUST 26, 2008
9. B. ORDINANCES & RESOLUTIONS — None presented.
C. AWARD OF CONTRACTS
1) FIRE DEPARTMENT COMMAND VEHICLE (2008 GMC YUKON XL)
A Request for Proposals was published and placed on our website on August 1,
2008. Five sealed proposals were received and opened on Friday, August 15,
2008.
The proposals received from Whiteside Chevrolet, Ettleson Chevrolet and Village
Pontiac were for in -stock 2008 vehicles. Advantage Chevrolet and W. Hare &
Sons proposed a 2009 vehicle.
Village Pontiac GMC is the best overall value because the proposal submitted met
and exceeded all specifications. The proposals submitted by Whiteside and
Ettleson lacked the following items: back -up warning system, on/off road tires,
adjustable peddles, heavy duty air - conditioning and roof bars, items that are
provided in the Village Pontiac GMC proposal. In addition, the Whiteside
proposal lacked the required transmission cooler valued at $95. The value of the
added features provided in the Village Pontiac proposal total $1,020. Delivery is
expected 30 days after award of contract.
The vehicle being purchased will replace Unit 910, a 2000 Ford Expedition, used
by the Fire Department as the Shift Command Vehicle. Unit 910 will replace Unit
958, a 2001 Crown Victoria, used by the Fire Prevention Bureau for inspections,
public education and CPR Training. Unit 958 has over 105,000 miles and is in
need of many costly repairs and will be declared surplus and sold at the DuPage
Mayors and Managers Auction.
Additional costs will be approximately $10,000 for two 16 channel front radios,
warning lights, siren, computer docking station, onboard battery charger, lettering
and labor of installation of the radios and lights. The existing command desk
module, three 16 channel rear radios, MDC computer and other equipment will be
transferred from Unit 910 to the new vehicle. The total project cost will be
approximately $45,431.
Motion by Trustee Carson, seconded by Trustee Kennedy, that the Village Board
award a contract to the proposer with the best overall value, Village Pontiac GMC,
Naperville, Illinois, subject to staff review, for a 2008 GMC Yukon XL in the
amount of $35,431 as indicated on the tabulation. 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 10 of 16 REGULAR MEETING OF
AUGUST 26, 2008
10. NEW BUSINESS
A. CONFIRMATION OF APPOINTMENTS — None presented.
B. ORDINANCES & RESOLUTIONS
1) ORDINANCE G -866, AN ORDINANCE ESTABLISHING A SIMPLIFIED
MUNICIPAL TELECOMMUNICATIONS TAX AND AMENDING TITLE 5,
CHAPTER 3 OF THE VILLAGE CODE OF THE VILLAGE OF OAK BROOK,
ILLINOIS
For the last several years, the Village had been faced with significantly increasing
operating costs during a period of time in which overall revenues have been flat
to somewhat declining. The current economic recession, as well as declines in
the investment markets, is having a negative effect on operating revenues for
2008, with sales tax revenue and interest income alone being projected to be $1.1
million below budget. For 2009, with minimal increases in the day -to -day
operating expenses of the Village, expenses would once again be projected to
exceed operating revenues, possibly by as much as $1 million. In addition to this
deficit, the 2009 Village Budget will likely include as much as $500,000 in new
costs related to significantly higher gasoline prices, increased Fire and Police
Pension Fund contributions (due to low investment returns and changes in some
actuarial assumptions), and needed outlays related to technology.
For the last several months, management staff and the Village Board have been
meeting to discuss various strategies for balancing the long -term budget of the
General Fund. As staff begins preparation of the 2009 budget for the General
Fund, the following expense reductions are expected to be included:
• Elimination of $100,000 in various subsidies to the Sports Core (primarily
polo and open fields).
• Savings of $245,000 by deferring replacement of 1 Lieutenant and 1
Detective in the Police Department for at least one year.
• Reorganization of Village departments that will reduce Village staff.
• Increasing the employee share of health insurance through higher
contributions and higher deductibles. Further increases in cost sharing remain
a goal as we negotiate collective bargaining agreements for both the Police
and Fire Departments.
• Mandating a 20% reduction in travel and training is expected to save $40,000
annually.
• A large number of reductions in many different line items in all operating
departments are expected to save at least $200,000. Some of the more
material reductions include elimination of the lobbyist and public relations
consulting, lowering legal expenses, reduced part time hours and lower
outlays for books and materials in the Library, and reduced overtime costs in
many departments.
VILLAGE OF OAK BROOK Minutes Page 11 of 16 REGULAR MEETING OF
AUGUST 26, 2008
10. • Savings of $90,000 due to refinancing the installment contract issued to
finance a portion of the Village Hall addition. Savings are expected to come
by taking advantage of lower interest rates and extending the remaining seven
year term to ten years.
• While not a cost savings, the Village Board has formed a committee to revise
the Village's compensation programs with a goal towards keeping annual
increases in compensation cost more in line with operating revenues.
The Board and staff have outlined a plan for significant cost saving across all
operating areas of the Village, most of which will have little or no effect on the
residents or service levels. That being said, due to the size of the expected budget
deficit as well as the new costs expected, it is nearly impossible to balance the
long -term budget of the General Fund without additional revenue. For 2009, it is
recommended that the Simplified Telecommunications Tax be increased from 5%
to 6% (the maximum rate allowed by law) effective January 1, 2009.
The current Simplified Telecommunications Tax (STT) applies to most
telecommunications services (land telephone lines, cell phones, long distance,
pagers, etc.) that originate in the Village. Based on data from the late 1990's
when the Village collected the tax (the State now collects), commercial accounts
paid 70% to 80% of the tax. For 2007, receipts from the STT amounted to $2.3
million. The 1% increase in rate to 6% will amount to an additional $475,000
annually in revenue. Although admittedly a tax rate increase, it should be noted
that this revenue source has declined steadily over the last several years. To
illustrate this point, in 2003 the Village received $2,658,000 in collections from
the STT, which is over $300,000 more than in 2007. Based on 2007 full year
collections, the increased rate would generate total revenue of $2,816,000. Thus,
the rate increase will only result in additional taxes paid of $158,000, or 5.9%
cumulative since 2003.
When evaluating the merits of this tax rate increase, it may be helpful to review
the tax rates paid in neighboring communities. A survey of comparative tax rates
for all DuPage County municipalities as well as a selection of Cook County
communities was conducted. Of the 38 communities, only 7 have a STT rate
below the 6% proposed for Oak Brook. It is also important to note that in
assessing the "tax burden" in a community the telecommunications tax is only
one the taxes paid by residents. Included on this survey is also current sales tax
rate information. As you can see, of the seven communities having a lower
telecommunications tax rate, only Bloomingdale, Naperville, and the DuPage
portion of Hinsdale (Cook County portion is higher) have a sales tax rate equal to
or lower than Oak Brook. Another factor to consider, which is not shown on the
survey, is real estate taxes. All three of these communities levy property taxes, as
well as every other town on the list except Schaumburg. Even with the 1%
increase the tax burden in Oak Brook will still be well below other municipalities.
VILLAGE OF OAK BROOK Minutes Page 12 of 16 REGULAR MEETING OF
AUGUST 26, 2008
10. B. 1) The "mechanics" of the proposed Ordinance require some clarification. From its
inception until the end of 2002, telecommunication taxes were collected,
administered, and enforced by the Village. In 2002, the enabling statutes were
changed to the "Simplified Municipal Telecommunications Tax ", with the State
taking over collections and enforcement. At the time of the change the law did
not require the Village to adopt a new ordinance, it implemented what we had on
the books at that time. Since we are now recommending changing the rate, the
new ordinance repeals everything presently in the Village code related to this tax
and simply enacts the STT at 6 %.
There is also an issue as to timing of the increase. While it may be desirable to
defer a decision on this until the budget process is further along, now that the
State is the collection agent there is a firm deadline of September 20, 2008 to
increase the rate effective January 1, 2009 (collection would begin in April,
2009) If the filing date is missed, the earliest we could increase the tax would be
July 1, 2009, which means collection would not begin until October, 2009. This
delay would have a negative impact of approximately $240,000 on the 2009
budget. Action is requested at this meeting so that the first meeting in September
would be available if there are any revisions required by the Illinois Department
of Revenue.
Motion by Trustee Manofsky, seconded by Trustee Sanford, for passage of
Ordinance 2008 -TX- TELECOM -G -866, "An Ordinance Establishing a
Simplified Municipal Telecommuni- cations Tax and Amending Title 5, Chapter 3
of the Village Code of the Village of Oak Brook, Illinois ". ROLL CALL VOTE:
Ayes: 6 - Trustees Carson, Kennedy, Manofsky, Saiyed, Sanford and Wolin.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
2) RESOLUTION R -1021, A RESOLUTION AUTHORIZING THE EXECUTION
OF A SETTLEMENT AGREEMENT IN CONNECTION WITH THE
VILLAGE OF OAK BROOK V. LORIG CONSTRUCTION COMPANY
Construction activities by Lorig in Salt Creek ruptured a Village water main
resulting in a significant loss of potable water. The Village sued Lorig for the
cost of the lost water and the repair of the water main. Lorig's insurance carrier
has offered to settle the Village's claims for $270,000. The carrier has separately
settled with IRMA for the money advanced by IRMA to repair the water main.
The resolution approves the settlement agreement and authorizes President Craig
to sign the settlement agreement on behalf of the Village.
Trustee Kennedy commented that through the efforts of the attorney representing
the Village, Anthony DeBlasio, the actual settlement figures increased from
$100,000 to $270,000 by seeking outside engineering services that provided
information about the actual loss to the Village.
VILLAGE OF OAK BROOK Minutes Page 13 of 16 REGULAR MEETING OF
AUGUST 26, 2008
10. B. 2) Trustee Saiyed also wanted to acknowledge the participation of Michael J.
Meranda, Public Works Director in this process.
Motion by Trustee Carson, seconded by Trustee Kennedy, for Passage of
Resolution R -1021, A Resolution Authorizing the Execution of a Settlement
Agreement in Connection with the Village of Oak Brook v. Lorig Construction
Company. ROLL CALL VOTE:
Ayes: 6 - Trustees' Carson, Kennedy, Manofsky, Saiyed, Sanford and Wolin.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
Trustee Kennedy commented that when Village Attorney Mark Sterk was hired that he
provided, as legal liaison, to Attorney Sterk, a summary of the twelve significant cases of
litigation that the Board was facing. He announced that at this time eight of those cases
have been completed on favorable terms to the Village. He felt that credit had to be given
to the attorneys representing the Village, but also to Village Attorney Sterk for his advice
as to when to settle and when to fight litigation. He also added that staff and the Board
should be recognized for their participation.
C. AWARD OF CONTRACTS
1) ANNUAL FINANCIAL SOFTWARE MAINTENANCE
Tyler Technologies is the company that provides our MUNIS Financial Software
applications, so this is a sole source item. On an annual basis, consistent with the
contract between the Village and Tyler, we need to pay for various software
support and service items.
Our contract with Tyler waived software support costs for the first year (except
for a third -party software which is a pass -thru cost) and limited annual increases
to 5% for the first three renewal years.
Motion by Trustee Sanford, seconded by Trustee Kennedy, to waive bidding due
to sole source, to approve Annual Support Agreements and to authorize the
payment of support invoices for maintenance of our financial software to Tyler
Technologies, Inc., Falmouth, Maine, for the total amount of $30,156.95, subject
to staff review. 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 14 of 16 REGULAR MEETING OF
AUGUST 26, 2008
10. D. AMENDMENT TO INTERGOVERNMENTAL AGREEMENT FOR
CONSTRUCTION OF IMPROVEMENTS FOR MIDWEST ROAD
The Village has an Intergovernmental Agreement with DuPage County regarding the
installation of a replacement water main within Midwest Road in conjunction with
their paving project. That IGA stated that the Village agreed to reimburse the County
for the water main costs and 10% of the final construction cost of the water main for
construction engineering. That IGA was dated September 27, 2005 and had a cost
estimate of the water main as $238,350.00 ($23,835 would be construction
engineering that Oak Brook would pay).
Bids were opened in May and the water main portion originally calculated to
$383,994.00, 61% above the 2005 estimate. Some of the quantities in the bid
tabulation were suspect and were subsequently revised; the new amount is
$364,584.00 (construction engineering is now $36,458.40).
With such a large escalation of construction costs, staff negotiated with County staff
to keep the original cost of construction engineering to $23,835.00. Even though the
prices of materials and labor have escalated since 2005, the level of inspection had
not.
The County had prepared an Amendment to the IGA to revise the construction
engineering cost to be $23,835.00.
Trustee Kennedy acknowledged the work of Dale L. Durfey, Jr., Village Engineer
who recognized the discrepancies and resolved them to the benefit of the Village.
Motion by Trustee Wolin, seconded by Trustee Kennedy, that the Village Board
approve the "First Amendment to the Intergovernmental Agreement Between the
County of DuPage and the Village of Oak Brook for Construction of Improvements
for Midwest Road." 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 acknowledged the attorneys who have helped resolve litigation.
VILLAGE OF OAK BROOK Minutes Page 15 of 16 REGULAR MEETING OF
AUGUST 26, 2008
11. B. VILLAGE MANAGER
Manager Niemeyer reported that the Bicycle Race held in Oak Brook on the past
weekend went well. No major traffic concerns. He also welcomed Michael
Hullihan, the new Public Works Director to his first meeting.
C. VILLAGE CLERK
Clerk Pruss reminded residents of the Wednesday Buffet at the Bath & Tennis Club
12. ADJOURNMENT TO CLOSED MEETING
Motion by Trustee Sanford, seconded by Trustee Manofsky, 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 (2c 1), 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) and 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 (2c21). ROLL
CALL VOTE:
Ayes: 6 - Trustees Carson, Kennedy, Manofsky, Saiyed, Sanford and Wolin.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
President Craig announced that there was no formal action anticipated after the Closed
Meeting.
The meeting adjourned to Closed Meeting at 8:21 p.m
13. ADJOURNMENT
Motion by Trustee Sanford, seconded by Trustee Wolin, to adjourn the Regular Meeting
of the Board of Trustees at 9:45 p.m. VOICE VOTE: Motion carried.
ATTEST:
/s/ Charlotte K. Pruss
Charlotte K. Pruss
Village Clerk
VILLAGE OF OAK BROOK Minutes Page 16 of 16 REGULAR MEETING OF
AUGUST 26, 2008