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Minutes - 09/09/1997 - Board of TrusteesI - ,7PIA� 1-7 1] BP)- 130r- rite- q- q -14?q7 VILLAGE OF OAK BROOK Minutes BEET, U227 UNOFFICIAL UNTIL APPROVED AS )XTd ;"TEN x OR AS AMENDED _ BY VILLAGE BOARD ON September 23, 1997 1. MEETING CALL: MEETING CALL The Regular Meeting of the Board of Trustees -.,.as called to order by President Bushy in the Samuel E. Dean Board Room of the Village Commons at 7:35 p.m. Pledge of Allegiance was given. 2. ROLL CAU: ROLL CALL The Clerk called the roll with the following persons PRESENT: President Bushy. Trustees Bartecki. McInerney, Savino and Shumate. ABSENT: Trustee Caleel. Trustee Kenny arrived at 7:40 p.m. IN ATTENDANCE: Stephen B. Veitch. Village Manager; Michael A. Crotty, Assistant to the Village Manager; Dale L. Durfey. Jr., Village Engineer; Debra J. Jarvis, Fire Chief/Building Coriurnissioner. Bruce F. Kapff. Director of Information Services & Purchasbig; Richard D. Klatzco, Chief of Police; Darrell J. Langlois, Finance Officeri'Treasurer; Richard A. Martens, Village Attorney; Ruth A. Martin. Library Director; Michael J. Meranda. Superintendent of Public Works-, Bonnie Sartore. Bath and Tennis Club Manager; Daryl Sittig, Fire Chief: Trey VanDyke. Golf Club Manager; and Torn Burton. Pool Manager. 3. ANNOUNCEMENTS & OPEN FOR UM: ANNOUNCEMENTS AND Trustee Shumate discussed his ontacting the Illinois Department of OPEN FORUM Transportation (IDOT) to offer a suggestion in lessening the congestion that occurs at the merging ramps of I- 88/Roosevelr Road/the 1 -90 extension to the Eisenhower Expressway. He recommended a communication device be installed on Roosevelt Road that would let drivers kno« if the lanes were open to proceed or if closed. they may choose an alternate route. He thought it would be beneficial to our residents and would hope IDOT could budget for some type of advance .varning system. President Bushy indicated that Mayor Daley. with the DuPage Mayors and Managers. have discussed this area of concern. The discussion would need to include the Cook County Board Chairman. John Stroger; and the Hillside and Bellwood Mayors. Mayor Daley and his staff are willing to work. in a joint effort, with Cook County, City of Chicago, Hillside, Bellwood and DuPage County in an effort to resolve this major traffic problem. VILLAGE OF OAK BROOK Minutes 1 of 19 September 9, 1 997 President Bushy explained that the Village has been working to reduce the premiums of flood insurance for our resident homes in a flood way in Oak- Brook. President Bushy acknowledged the work of Assistant to Village Manager Crotty and Civil Engineer Heather Koy for working n this project. The result has been a Class 7 rating for the Village which is a 15% discount on flood insurance rates. Interested persons may contact the Village Hall at 990- 3000 for further information. President Bushy congratulated Trustee Kenny and his family on the birth of his daughter. Trustee Kenny thanked the Village for the congratulatory flowers sent to his wife. UNNEU., .. X f Motion by Trustee McInerney, seconded by Ti stee Bartecki, to approve the minutes of the Regular Meeting of August 26, 1997 as presented and waive the full reading thereof. VOICE VOTE: Motion carried. V 1Z 07.1 Motion by Trustee Savino. seconded by Trustee Bartecki, to approve the j Omnibus Agenda. ROLL CALL VOTE: Ayes: 5 - Trustees - artecki, Kenny, McInerney, Savino and Shumate. Nays: 0 - None. Absent: I - Trustee Caleel. Motion carried. APPROVAL OF: BILLS A. AP PROVAI�OF BILLS: A `ed Omnibus Vote. $914,713.35 PAYROLL - B. APPRO_ VAOF PAYROLL: Approved Omnibus Vote. $350,724.39(gross) D. PAYOUTS: PAYOUTS: 1. CALLAGHAN PAV -INI G INC - PAYOUT #4 - 1997 PAVING 1997 PAVING PROJECT - S523,99: Approved Omnibus Vote. PROJECT 2. JAMES J. BENES &: ASSOCIATES - PAYOUT #11 - 1997 1997 PAVING PAVING PROJECT - CONSTRUCTION - S 15.822.60: Approved PROJECT Omnibus Vote. 3. JAMES 1. BENES & ASSOCIATES - PAY -QUT #3 - 22!!ffORK 22ND /YORK CONSTRUCTION SERVICES - S6.724.19-: Approved Omn;bu-, Vote. VILLAGE OF OAK BROOK Minutes 2 of 19 September 9, 1997 • YF 1. MEL QRINDER - GOLF COURSE MAINTENANCE: REEL GRINDER - Approved Omnibus Vote. GOLF COURSE MAINT. CONVEN-DON AND VISITORS COMMITTEE - 205/6 OF SECOND QUARTER SECOND QUARTER HOTEL IAX RECEIPTS TO THE 1211 I!AQE HOTEL TAX C:QNYENTIQN AND VISITORS BLREAU: Approved Ornnibus RECEIPTS Vote. OW A. aPOINTMENTS: No Business. Nei "IRMS) IL L ORDINANCE LC-AL-G-598 AN ORDINANCE AMENDING ORD.97-LC-AL- SECTIM 3-22 QE 1HECODE OE QRDINANCES OF THE G-598 UTIAGE OF • :. B&QQL ILLINOIS AND AMENDINQ IHE is NUMBER OF Tl•i. IZED LJQJJQR LICENSES: OF LIQUOR LICENSES Discussed and direction given at the Regular Meeting of August 26, 1997. The ordinance increases the number of A -1 liquor licenses from sixteen (16) to seventeen (17) and B licenses from five ( 5) to six (6) within the Village. Provided that all ordinance requirements are met, the Local Liquor Commissioner would issue this license to Clubhouse International - Oakbrook L.L.C. d/b /a The Clubhouse International. 298 Oakbrook Center. Motion by Trustee Savino, seconded by Trustee Bartecki, to pass Ordinance 97- LC -AL -G -598. "An Ordinance Amending Section 3 -22 Of The Code Of Ordinances Of The Village Of Oak Brook, Illinois And Amending The Numt>er Of Authorized Liquor Licenses as presented and waive the full reading thereof. ROLL CALL VOTE: Ayes: 5 - Trustees Bartecki. Kenny, McInerney. Savino and Shumate. Nays: 0 - None. Absent: 1 - Trustee Caleel. Motion carried. VILLAGE OF OAK BROOK Minutes 3 of 19 September 9, 1997 3 fit, � , .c.� � � � 2` ti+ vQ 2„.` •a .r N a.�., Y z4'te�m.n -ct r. ,�w r�xm+ ST �i Sv" , On June 10, 1997. he Board authorized staff to issue a request for proposal for residential municipal waste collection services beginning January 1, 1998. The RFP, distributed in June, was developed based on several discussions with the Board earlier in the year. Three proposals were recei-t ed• and a summary of the results is attached to Assistant to Village Manager Crotty's memo dated September 5, 1997, noting that Workman Services, Inc. withdrew its proposal on August 13, 1997. Because the Beard consensus was to keep the program simple (i.e. few changes from the existing program), staff negodated with the hauler who originally submitted the lowest cost flat rate proposal. The resulting proposed contract between the Village and BFI Waste Systems of North Atnerica, Inc. was submitted for Village Board consideration. The Village asked for proposals on both a Flat Rate and a Modified Volume -Based program. The Flat Rate option was selected because it is more convenient for residents, is likely to be less costly based on the proposals received. and is consistent with the Board's wish to keep the program simple. In addition. 1995 and 1996 recycling statistics for Oak Brook's flat rate system compare favorably with statistics for communities with modified volume based programs. The negotiated contract rates are less than or equal to the current rates in all cases: Curbside collection of unlimited refuse and recycling - $10.00 per household per month ($0.11 lower than their original quote and $2.40 lower than the current rate). Subscription rate for rear door collection of refuse and curbside collection of recycling - $13.90 ($0.21 lower than the original quote. and $4.50 lower than the current rate). Subscripti�)n rate for twice per week curbside collection - $15.66 ($4.39 lower than &,e current rate). VILLAGE OF OAK BROOD Minutes 4 of 19 September 9, 1997 C�llll RESIDENTIAL MUNICIPAL WASTE COLLECTION CONTRACT Mr ;Ca��L +y. kh R. n $o-�Y, 7 s Cox. 4" n `X\ i, t f x� 111^ Y �4 `IVrr �wiC +c t��'na� c� Mt1n4 + '7, r'77 .. r v y 9 0 Subscription rate for twice per week rear door collection - $22.83 (54.02 lower than the current rate). Subscription rate for monthly rental of 90 -gallon waste eontaiAer - $2.50 in addition to the monthly charges listed above (the same as the current rate). Also included among the subscription services is an optional recycling system whereby the subscribing resident receives a 32 gallon wheeled recycling container. Non paper recyclables are placed inside the container, paper products are placed on top of the cart in a brown paper bag or bundled. and the cart is then rolled to the curb. The subscription rate for this service is $1.75 additional per month. There w ere no structural changes in the volume based landscape waste program. The negotiated rates for landscape waste services are as follows: Landscape waste sticker to be placed on each bag, container or bundle - $1.50 per sticker (SO.06 lower than their original proposal, and the same as the current price). Subscription rate for annual rental of 90- gallon landscape waste container - $136.00 (S20 lower than the current rate). The contract requires that BFI arrange for sticker sales at four or more vendor locations in addition to the Village Hall. In the past, nearby 24 -hour grocery stores were unwilling to sell Oak Brook yard waste stickers because the Village had multiple haulers serving the residential community_ Because the new contract provides for residential collection by a single hauler, staff anticipates that these outlets will be more willing to sell stickers. Under the new contract. residents will also be able to purchase stickers from BFI by mail. The method for purchase by mail will be included in a brochure that will be sent to all residents explaining the entire refuse, recycling and landscape waste collection program. VILLAGE OF OAK BROOK Minutes 5 of 19 September 9, 1997 ? `- � The term of the contract is for three years beginning January 1, 1998 and ending on December 31.2000. Upon mutual agreement, the contract may be extended beyond the term. Each year. either the Village or BFI may request a rate review that considers an analysis of costs, revenues, factors affecting the cost of service or revenue, and volume of materials collected. If the Board determines that there is justification for a change in the rate. the contract caps any annual increase at 5 %. This provision is essentially the same as in the Village' current contract except that currently it does not provide for a cap. The contract establishes Monday as the collection day for all materials (refuse, recycling and landscape waste). Currently, refuse and recycling is collected on Friday and landscape waste on Monday. The consolidation to one day is intended to eliminate having waste material at the curb on multiple days. Staff is recommending that a contract be awarded to BFI Waste Systems of North America, Inc. BFI has demonstrated the ability to serve the community (currently serving over 90% of Oak Brook households), and the negotiated rates are in all cases lower than or equal to those currently in place. Motion by Trustee Savino. seconded by Trustee Kenny, to waive competitive bidding and award a contract to BFI Waste Systems of North America, Inc. for Residential Municipal Waste Collection Services beginning January 1. 1998. ROLL CALL VOTE: Ayes: 5 - Trustees Bartecki, Kenny. McInerney. Savino and Shumate. Nays: 0 - None. Absent: 1 - Trustee Caleel. Motion carried. Trustee Savino asked if the current recycling bins may be returned to BFI for a rebate if residents wish to use the new 32- gallon containers. Village Manager Veitch indicated the present recycling bins are the property of each resident and not refi�ndable. Village President Bushy commended Staff for a job well done noting the residents will benefit greatly from the new residential municipal waste collection services. VILLAGE OF OAK BROOK Minutes 6 of 19 September 9, 1997 PRIM - Ae'er' Aly �trr �a+wr'- RyevN �jn,' aalkf �s, •� °'d�%�",?S��:n p Enainenng: Trustee Bartecki - Construction is delayed on the 22`d Street/York Road project due to various utilities that have to relocate facilities. Common':vealth Edison has yet to apply for a permit to relocate. Fi a Hotel Committee: Trustee McInerney - Most of the Finance Department's time during August was spent on completing the 1998 -2002 edition of the Five -Year Financial Plan. Pentamation was on site to conduct training. The Village is currently "live" on its first application, the budget module. Two pieces of legislation have recently been passed relating to the Illinois Municipal Retirement Fund. Staff will be analyzing options and th- --ir impact to the Village of Oak Brook regarding this legislation. Elm: Trustee Kenny - The Fire Department responded to 100 engine calls and 100 ambulance calls during the Month of August. The Department was called only four (4) time for Mutual Aid but called for Mutual Aid ten (10) times during the month. The Fire Department Dive Team responded to a Divers Box call for a car in the pond at the Oak Brook Hyatt. The driver of the car was in the water and safely rescued. The Dive Team also assisted with the removal of the car. Una: Trustee Caleel - Library Director Martin's report stated the following: A presentation by Lee Gibbs is offered in conjunction with the Renoir exhibit at the Art Institute of Chicago. The Library's Evergreen Concert, sponsored by the Friends of the Oak Brook Public Library, is scheduled for October 19" at 4:00 p.m. at the Rath and Tennis Clubhouse. The Fall concert features 15 year -old pianist, Kristin Figard, who will soon return from the International TchaikowTsky Competition in Moscow. The Oak Brook Women's Club recently donated a collection of CDs including classic and new children's music and action games. The collection is being used in Youth programs and is available to borrowers. The Fall Youth program flyer was distributed to the Brook Forest and Butler School PTAs. Police: Trustee Shumate - On Friday, August 22. 1997, the Fire and Police Commission offered Mike Hall and George Peterson a position as Probationary Officers. Both Mike and George accepted the position and were sworn in on Monday, September 8. 1997. Mike Hall has been with the Village of Oak Brook for 9 years as a Communications Operator and for the past 3 years has been the Supervisor of the Communications Center. George Peterson has been with the Village of Oak Brook for a year and %2 as a Communications Operator. VILLAGE OF OAK BROOK Minutes 7 of 19 September 9, 1997 DEPARTMENTAL REPORTS w:•�'�r, -rrr, •n4�%'i °�" "r;'c��,.�q, �5��4��n ^ ^.' _� - „e a. �., ss'uvy'k:. c� °" . ;'�^�- ,�� -r_�� �, u,.w,u -x � -ter, 4- *a.r.,, x -rra�{ i,`�i� `•.+�YiF+°d'";t1'�'"v""�tr��,�. .. 3 Driving under the influence (D.U.I.) arrests have increased 20% in relation to this time in 1996. Total traffic contacts have also increased by 10% compared to 1996. This increase is due to more aggressive patrol by the Officers of the Oak Brook Police Department. Publip. _WQ : Trustee Savino - In -house work continues on small scale drainage projects throughout the Village. Fire hydrant painting in the far southwest quadrant of the Village also continues. Later this month, the Public Works Department will be assisting the Oakbrook Terrace Fire Department, Yorkfield Fire Protection District and the York Center Fire Protection District in the flushing of Village -owned fire hydrants within their jurisdiction. These entities perform the actual flushing and conduct fire flow tests for insurance rating purposes during the process. Village personnel merely monitor their work and ensure the Village's system (water pressure) is not adversely affected. This activity is performed at night to mitigate customer complaints (rusty water) and over the past several years, not a single complaint has been registered. Staff has received the second. and final, reimbursement from the State of Illinois for all work associated with the Village's leaking underground storage tanks at Public Works and Fire Station #1. The total cost of the project for I- )th engineering and construction was $240,973, with the Village's two ieimbursements totaling $55.438. Approximately 66% of the total project cost was for replacement of ;he fuel tanks and installation of mandated safety/monitoring equipment. and not subject to reimbursement. Village Clerk: Clerk Gonnella - Two (2) liquor license renewals A ere issued today bringing a total of three (3) renewed to date. A comprehensive revision of our vending machine and tobacco product licensing ordinance is being prepared for Village Board approval in October. Village President: President Bushy - Explained that the turn- around time for background information from the appropriate agencies has been longer than anticipated for renewal of liquor licenses. Staff will review the procedure to determine if an amendment to the ordinance relating to "Alcoholic Beverages" is required. Information Seriices: On -site staff training for Windows 95 and MS -Office V applications will resume in September. Staff training for 1998 Budget input has taken place. The provision for tech support on a timely basis continues to outstrip internal resources during this very busy period. Staff is addressing this need in a munber of ways, including sharing existing personnel provided by other departments, using temporary part-time help when available, and contracting with consultants for emergency back -up services. Purchasing Department: Current projects include Village Hall carpeting and seating upholstery, residential municipal waste collection services contract, VILLAGE OF OAK BROOK Minutes 8 of 19 September 9, 1997 • „t err^ "sX 1wwst;4 x��i position classification and compensation study RFP, Finance Department auditing services RFP, Village Hall mechanical engineering services, Fire Station # 1 RFQ, and Engineering Department furniture. Bath and Tennis: :::e final stages of planning for Ethnic Fest are underway. Staff has received a steady stream of reservations for the Oktoberfest Preview Party on Saturday, September Wh, and will continue to accept reservation through Monday, September I 5th. The West Suburban Concert Band, The Elmhurst Jazz Band and The Bavarian Band will be providing continuous entertainment for this evening event. which will go on rain or shine. Golf: President Bushy commended Staff for an excellent year in Golf noting the following increases from last year: Rounds of Golf were up 3,963; increases in Greens Fees, $82.024; Cart Fees, $43,693; Driving Range Fees, $29,093; Lounge Sales, $20,100; and Pro Shop Sales, $8,345. President Bushy discussed the work of former Village Trustee, William Watson, and his coordinating the early history of the Village of Oak Brook for preservation. He is working with Oak Brook Historical Society President, Dr. Howard Trier, in developing an audio history of former officials in Oak Brook. Any interested residents, who have knowledge of the beginning of Oak Brook, may contact Mr. VN atson or the Village at 990 -3000 for further details. There is some expense to his research. President Bushy asked the Board of Trus,.ees if these expenses could be paid from the General Fund for preservation of the development of the Village. Trustee Shumate asked what budget line item could accommodate this expense and if funds are used, the project be the property of the Village. He suggested the Purchasing Department may assist Mr. Watson in film development services. Staff will present further details for Village Board consideration of this project. FIVE-YEAR MEMP)MMMY M1. Fm Me, A. REVIEW AND DISCUSSION OF DRAFT 1998-2002 N : PLAN: President Bushy explained that since the Committee -of- the -Whole meetings are not taped for cablevision. the meeting was canceled so that the draft 1998- 2002 Five -Year Financial Plan could be discussed at this evening's meeting. Village Manager Veitch indicated the Five -Year Financial Plan combines projections of anticipated revenues with estimates of the resources necessary to meet anticipated needs, in terms of both operating and capital expenditures, to produce a long -range picture of the financial condition of the Village. It is a very useful tool for the Village Board and Staff in the budget;ng process and in assessing the future impact of current decisions. VILLAGE OF OAK BROOK Minutes 9 of 19 September 9, 1997 DRAFT 1998 -2002 FIVE -YEAR FINANCIAL PLAN '[r �u�� '�t'�`fiv��° _ °A�Fhe ➢ i9lLk� k'�J'^ iV 'hia vlv yx tk W _ =v ,« � ,A �i Consistent with recent editions of the Five -Year Financial Plan, and with the charge given staff by the Village Board at its annual objectives meeting on July 7, 1997, this Financial Plan reflects a program of meeting the Village's operational needs and carrying out major capital improvements for the community, including significant improvements at the Oak Brook Sports Core, without incurring general obligation debt and while reducing substantially the Village's reliance on the utility- tax. He acknowledged the outstanding contributions of Finance Officer Langlois, who coordinates the process and creates the financial presentation. He further acknowledged the department heads and other staff members whose efforts and dedication are responsible for the contents of this document. The Village's financial condition remains strong. With ongoing care and effort, it should continue to be so. However, economic factors, State and Federal legislation, and polio} decisions of the Village Board can all have profound effects on the financial condition of the Village. With continued attention to sound financial planning, and management, the Village can look forward to continued financial health. Trustee McInerney stated the purpose of the Five -Year Financial Plan is to provide the Village Board, the Village staff and the community with a long - range projection of financial condition for each of the twelve funds that currently comprise the financial structure of the Village of Oak Brook. The Five -Year Financial Plan, like the annual Municipal Budget, is prepared and presented on a cash basis. The 1998 -2002 Five -Year Financial Plan is based on the following assumptions: General inflation at the following rates: 2.5% in 1998; 2.7% in 1999 and 20+00; 3 % in 2001 and 2002. Personnel inflation (including benefits. training and merit adjustments applicable to personnel not at top-of-grade) at 3% above the general inflation rate through 2000 and 2 % thereafter. Personnel inflation in the Sports Core Fund is equal to the general inflation rate, in . iew of the heavily seasonal work force and high turnover year -to -year. Interest earnings on invested funds at rates ranging from 5.5% to 6.75 %, depending upon the fund and the assumed length of investment. VILLAGE OF OAK BROOK Minutes 10 of 19 September 9, 1997 �I n -rliq ,+a Sales tax receipts based on annual growth of 2% over the 1997 estimate from existing retail shopping centers. plus projected receipts from new developments. Receipts from other retail activity are estimated to be flat. The operating budget is structured according to cost centers (called "programs ") and is prepared at a level of detail far beyond that reflected in the Five --Year Plan. At the fund level in the Budget, revenue budgets are brought together with operating and capital improvement expenditure budgets to present a cash -basis income statement for each fund (called a "Fund Summary"). which can be compared to the first year of the relevant Five -Year Financial Plan Summary to ensure that the Budget is at least consistent with. if not more favorable than, the first year of the Five -Year Plan for that fund. The General Corporate Fund supports the majority of Village operations and is of central importance to the financial condition of the Village. The principal source of revenue to the General Corporate Fund, and to the Village, is the sales tax. The growth assumption relative to the General Sales Tax is a conservative 2% per year from existing retail shopping centers, plus receipts (projected conservatively) from new retail developments. Other sales tax revenue is projected to be flat over the period. For 1997, sales tax revenue is conservatively projected to finish approximately 2% below the 1997 budget. Revenue from the State Income Tax is projected to grow at a rate of 3% per year. Other intergovernmental revenue is projected to grow at rates ranging from 0% to 3 %. Most other revenues in the General Corporate Fund are projected to be stable. Legislative and General Manage, went_ The Plan reflects stable staffing levels in all areas. Additional resources have been added in 1998 and 1999 to support the Oak Brook Code review project, and a substantial increase in salary has been included for the Village Clerk (pursuant to the request of the incumbent Clerk and subject to the ultimate approval of the Village Board). Provision has also been made for continued implementation of the Village's Technology Plan and ongoing expenses of labor relations. Financial Services. Public Wgrks and Ezig- n - There are no significant changes projected in the operating budgets of these departments. jai. The operating budget projections for the Library continue to reflect significant increases in staffing. service hours, collections and programs of the VILLAGE OF OAK BROOD Minutes 11 of 19 September 9, 1997 a_ w vv t•a 1 ,a.`,�" � U IR '> { .K Library prior to and after occupancy of the new Library building,. Full -time equivalent staffing increases from 10 to 15.5 over the period (a reduction from the levels projected in the 1997 -2001 Plan). This increase is related to meeting the service levels suggested by Serving Our Public, the standards promulgated by the Ulinois State Library and utilized by Oak Brook Public Library as its benchmarking tool, at the "established" level for a library serving a population of 12,000 (Serving Our Public provides standards for "minimum,', "growing ", "established" and "advanced" libraries). The Plan reflects growth in the Library's total budget from its 1997 level of 5531,000 to 5986,000 in 2002. p, c ice. Previous editions of the Five -Year Financial Plan have addressed a variety of staffing needs in the Police Department. This edition projects no additional personnel other than one police officer position in 1998 for further enhancement of community relations and crime prevention programs. Elm & Co m 'Wily Develo t;, There are no significant changes projected in the Fire & Community Development operating budget, beyond application of the inflation assumptions.. Other Activiti s The Plan reflects elimination of the Village subsidy for residential recycling based on the proceeds from sale of recycled materials in the prior year in view of the restructuring of the residential solid waste contract beginning in 1998. The Plan continues to provide for an annual program of community events paid for by the General Corporate Fund, consisting of Oak Brook Day, Independence Day, Family Day and an annual Oak Brook International Ethnic Fest. The Plan also reflects continuation of the policy inaugurated in 1996 to assist local groups ,%ith the costs of holding meetings and events at the Oak Brook Sports Core. Exceptional Charges in the General Corporate Fund include: Contributions to the Police and Fire Pension Funds (in lieu of property taxes). Vehicle replacement charges (based on fleet depreciation schedules). An annual transfer to the Sports Core Fund to cover the costs of general maintenance and administration of the property. and to cover debt service on the tennis dome. The most significant capital projects reflected in this Five -Year Financial Plan are the construction of a new Library, now projected to be completed in 1999, and construction of a new or renovated Fire Station #I including space for certain other functions and related Village Commons improvements, to be VILLAGE OF OAK BROOK Minutes 12 of 19 September 9, 1997 ro� .���, 3.�'��, � " xet;,. � - , u, t �e�� 2 r� x_ .a " �.. - - , "-'f ^� n ". r r-n -�,E >�,m ��� c� f �. �s'_•��' ;* i^..*�,>y`4� _ 2�^"":'�'z.�'..r•„'�yr,�.c'a�"Y q°,r"sPB�"�.�*y.�„.,�� s� s�y,�� .".wf�x.� � �.to, � .'c �e�:� } d5 RR .•'�c.i � • x i ; completed in 2000. These projects, with costs totaling $7.5 Million, are projected to be completed w-ithottj i ebt. Other significant capital expenditures reflected in the Plan include implementation of the Technology Plan, renovation and expansion of the Police Department_ and substantial expenditures for maintenance and updating of Village Hall, which is now over 20 years old. Conservative revenue projections and substantial capital investment without taking on new debt combine to reduce the projected cash balance through the period. However. a cash reserve of at least 5.5 months operating expenses is maintained throughout the period, consistent with Village Board financial policy. Trustee Bartecki commented tharthe Village's discretionary spending may cause depletion of funding the Village's services. The Village assumes that sales tax revenue will continue. He requested the Board members to consider extending dates of some projects and determine if services with our Fire and Police departments could be shared with other communities. There could be potential loss of sales due to the Internet in the future which could diminish our sales tax revenue. The Village needs to attract businesses to our community. Trustee McInerney suggested the Village has delayed several of these projects such as the Fire Station and Library. If the Village needs to delay any capital improvement projects, the Village will do so. President Bushy recessed the Board of Trustees meeting at 9:24 p.m. The Village Board of Trustees meeting resumed at 9:42 p.m. : Coll V31 1W143[11131 Trustee McInerney stated this fund is the repository for funds collected from imposition of the Village's 1% Hotel/Motel Tax. Pursuant to State Statute, this revenue is devoted solely to programs intended to increase overnight stays in hotels located within the Village. Expenditures of funds from the tax are recommended by the Hotel. Convention and Visitors Committee and are subject to the specific approval of the Village Board. Revenue from the tax is projected for planning purposes to increase at 3% per year. The projection reflects annual expenditures on approved activities of $350,000 per year, which maintains a healthy cash balance for unanticipated needs or other uses as may be authorized by State law. VILLAGE OF OAK BROOK Minutes 13 of 19 September 9, 1997 z5i( 77" , r"'` ,� ? `771 n �� c The Motor Fuel Tax (MFT) Fund is the repository for funds distributed to the Village by the State of -Illinois pursuant to the MFT distribution formula. Use of these funds is limited by State law, and administrative procedures involved in expenditure of MFT funds are onerous. Therefore, it is the Village's policy to devote MFT funds ex-O ssively to eligible street resurfacing and reconstruction projects. Revenue is projected to not increase from the 1997 estimate over the five years. The tax is levied on a cents - per - gallon basis, and it is not projected that fuel sales state -wide will increase significantly over the period. The distribution of MFT funds to local governments is on a per- capita basis, based on the last certified census. The Village's current policy is to use NIFT funds only for eligible capital Improvements, specifically street resurfacing and reconstruction. This fund is the repository for funds collected from imposition of the 2 ®Jo tax on fire insurance policies written in the Village by insurance companies not incorporated in the State of Illinois. By law, expenditures from the fund must be for the maintenance. use and benefit of the Fire Department, Expenditures are directed by a Foreign Fire Insurance Tax Board elected by the members of the Fire Department, and are subject to the approval of the Village Board. Revenue is project to be flat at the current level of $27,800 per year. Operating expenditures are programmed for enhancing Fire Department training programs, personal protective equipment station furnishings and appliances, low impact physical fitness equipment and furniture and equipment for the new Fire Station #1. The General Assembly may act to meal 1895 statute that authorizes the Foreign Fire Insurance Tax_ Should that happen. the planned expenditures will have to compete with other priorities for funding within the General Corporate Fund. Trustee McInerney stated the Infrastructure Fund was established in 1993 as a means of funding certain capital improvement projects including street resurfacing/ reconstruction, safety pathways and drainage projects. All receipts from the Utility Tax are deposited directly to this Fund. This Fund also VILLAGE OF OAK BROOK Minutes 14 of 19 September 9, 1997 z 7 I M9 MR + � i receives periodic transfers from the Motor Fuel Tax Fund in order to supplement the paving program. The revenue base is projected to grow at 3% per year over the planning period. The existing rates on natural gas and electric service, currently 4% are reduced to 3% in 1998, resulting in a consistent 3% rate on gas, electric and local/intrastate telephone service. That rate is further reduced to 2.5% in 2000, to 2% in 2001 and to 1.5% in 2002. Transfers from the Motor Fuel Tax Fund are reflected in 1998 and 2000. Revenue from grants that have been secured for bikeway projects is also reflected. Capital projects are scheduled in the areas intended by the Village Board when the Fund was created. Expenditures for streets are scheduled consistent with the 1998 -2007 Roadway Maintenance Plan. Expenditures for safety pathways are based on the most recent project schedules for the various grant projects and the Safety Pathway Committee Priority List (updated July, 1997). Expenditures for drainage improvements are scheduled at S 100,000 per year as in the past, covering loth storm sewer and open drainage system improvements and reconstruction. The General Assembly may pass electric utility deregulation legislation, making it likely that the utility tax on electric service will be restructured to apply- per kilowatt-hour rather than to the cost of service. No significant impact on yield is anticipated, however. Trustee Bartecki questioned the proposed reduction in the utility tax. This decision will be presented to the Village Board next month. Village officials have determined less revenue is needed to fund mad repairs and construction. Trustee Bartecki suggested expanding the use of the tax revenue for capital items. Since 80% of the utility tax is generated by non - residential utility users, the impact on our residents would be minimal. President Bushy suggested discussing the utility tax next year before the Five -Year Financial Plan is prepared by staff. 1 The largest enterprise operated by the Village is the water utility. The Water Fund supports both operations and capital improvements to the water system. Since the Water Fund is considered an enterprise fund, it is operated on a self - supporting basis. VILLAGE OF OAK BROOK Minutes 15 of 19 September 9, 1997 ��c The volume of metered water is projected to remain at current levels over the planning period. The retail water rate is projected to remain at the current level of $2.35 per 1,004 gallons through 1999 (two years longer than anticipated originally) and increase to $2.75 in 2000 and $3.15 in 2002. DuPage Water Commission charter customer rebates are projected to decline in 1998 and cease in 1 999. As an offset, it is anticipated that Fixed cost payments to DuPage Water Commission will be reduced 25 percent. The primary objectives of the distribution system improvements continue to be (1) improving water pressure in the Saddle Brook area. (2) improving east to west circulation of water generally in order to derive greater benefit from the York Road storage facility, (3) looping of dead -end mains. and (4) replacement of deteriorating mains. In addition, the Plan projects a significant capital expenditure in 1398 for alterations to the 31 0 Street Booster Station in order to deliver water to the southwest boosted pressure zone at a pressure not less that 45 PSI at all titres. The current plans of the DuPage Water Commission with respect to phasing out its rebate program for charter customers and reducing the fixed cost component of its rate structure indicate that the Village should be able to delay the rate increases anticipated in the 1997 -2001 Five -Year Financial Plan. Trustee Bartecki inquired if the meter replacement program was accelerated, would revenue increase? Village Manager Veitch stated the Village has not received the report to determine this. SPORTS CORE FU I� The Sports Core Fund supports the operation of the Oak Brook Sports Core, including the Bath and Tennis Club, the Golf Club, the Bath and Tennis Club clubhouse. contractual use of the Sports Core's open fields and general use and enjoyment of the property by the public. It is considered an enterprise fund sir. ,- e the majority of its revenues are derived from user fees. The consolidated presentation shows a brightening financial picture for the Sports Core Fund. attributable to several factors: Substantial new revenue from sale of land for right -of -way and sale of surplus property- in the Wes'chester Park area. This revenue is designated as the funding source for the Capital Improvement Account. Continuation annual transfer from the General Corporate Fund in support of general maintenance and administration of the property and debt service on the tennis dome facility. VILLAGE OF OAK BROOK Minutes 16 of 19 -- September 9,1997 �w�K��i +r x s r "L_ x �., Pay i�jN^ �` .�, rA^'�Mg�`Ory'iM�°x �'^+t`�fG .'�"'cKSry"Li�vu r v^YK"9, wnflk' rs°: �4. fi3..` ��' ����?{"' 1 "�,''±��t`�j"�'a,' \+�,v±^nrY j.���J -�nTl �y�e�'±u i'��+��iS ^+~ � *.�i� i v x �'' Deferring repayment of a 1996 interfund loan until revenue - enhancing capital improvements are completed. Continued increases in operating revenues in all enterprise operations. Village Manager Veitch explained the sale of the tennis dome has diminished. Staff recommends to continue operating the facility, as last year. Trustee Bartecki concurred with this recommendation, as user fees support operating costs. The Village needs to decide to commit to its use so that members will join and advertise its availability. Trustee Shumate concurred that tennis dome activities serve our residents. and the Bath and Tennis Club met its budget. He commented the tennis dome is another aspect of the Sports Core, as is the use of the fields for polo and soccer. Trustee Savino also agreed that it remain open, since it is used during the winter months. Fire Chiefs Jarvis and Sittig commented on the requirement of it being sprinklered. Village Manager Veitch explained, as a temporary structure, it does not require sprinklers, since it is unoccupied May through October. Trustee Bartecki recommended the Golf Clubhouse and Bath and Tennis Clubhouse capital improvements be delayed. He requested the Village contract for independent services to operate the Bath and Tennis Club. and they incur any cos? for improvements. President Bushy explained this process had been discussed extensively at the Board of Trustees meeting in developing the Village's objectives. If the Village is to improve services. then expansion of the Golf Clubhouse is needed. Food sales and services will increase with a Saddle Club -type atmosphere and amenities. ..t U The Self - Insurance Fund is the financial vehicle for funding the Village's employee welfare benefit programs, including the self - insured medical and dental plans. the third -party insured optical plan and group life and accidental death insurance coverage. These programs also are made available to employees of the Oak Brook Park District. retired Village employees and separated employees pursuant to COBRA regulations (the last two groups on a fully participant -paid basis). Ongoing revenue to the fund comes principally from charges to other funds, through the budgets of depar'ments where plan participants are employed, charges to the Park District and charges to retirees and COBRA participants. VILLAGE OF OAK BROOK Minutes 17 of 19 September 9, 1997 i4�`�V�7- 'r The Plan also reflects the institution of a 5% participant contribution to the cast of dependent coverage beginning in September, 1997. Health claims, dental claims. and reinsurance costs are projected to increase at an annual rate of 5% from current levels, beginning in July, 1998. Claims expenses in 1996 and 1997 were significantly higher than these experienced in 1994 and 1995, which were considered to be aberrantly low-. This fund was established as of January 1, 1995, as an internal service fund financed by charges to Village departments for maintenance of vehicle fleet equipment. Expenditures support the operation and maintenance of vehicular equipment of all kinds, except for equipment utilized at the Sports Core. Original acquisition of equipment is funded by the using department and replacement of equipment is funded by the Equipment Replacement Fund through separate charges to the using departments. The Equipment Replacement Fund was created by the Village in 1993 as a means of funding replacement of major capital equipment, primarily vehicles. This fund is supported by other funds, principally the General Corporate Fund, through vehicle user charges. This fund is utilized solely for replacement of fleet equipment. Acquisition of new equipment (i.e., not as replacements) is reflected in the fund where the using department resides. 0' 13 11.,1114 . a. OWN 1 The Police and Firefighters' Pension Funds are separate financial entities and are mandated by Illinois law. Traditionally, local pension systems are property tax supported. Having never levied a property tax, Oak Brook has met its funding requirements via contributions from the General Corporate Fund. Thus, the Police and Fire Pension Funds have been supported primarily by the sales tax. The amounts contributed are based on payroll_ and are made via percentage factors that are determined by actuarial studies and updated annually. Interest earnings are projected at 6.75% over the planning period. State tax cap legislation prohibits the Village from levying a property tax for pension purposes without voter approval via referendum. Therefore, the General Corporate Fund must continue to plan for contributions to the pension funds in amounts sufficient to fund future benefits in accordance with actuarial requirements and applicable law. VILLAGE OF OAK BROOK Minutes 18 of 19 September 9, 1997 "ZOMIAZ T11 7 I -P 10. MER HUSINESS 11 VMLAGE OPERA-TIQN.S.: None. AID LMUSIENT: Motion by Trustee Bartecki, seconded by Trustee Shumate, to adjourn the meeting at 10: 18 p.m. VOICE VOTE: Motion carried. ATTEST:' VILLAGE OF OAK BROOK Minutes 19 Of 19 September 9, 1997 ADJOURNMM