Minutes - 10/09/2007 - Board of TrusteesMINUTES OF THE OCTOBER 9, 2007 REGULAR MEETING OF
THE PRESIDENT AND BOARD OF TRUSTEES OF THE
VILLAGE OF OAK BROOK APPROVED AS WRITTEN ON
JANUARY 22, 2008.
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 7:30 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, Mom Saiyed, Robert G. Sanford and Gerald Wolin.
ABSENT: None.
IN ATTENDANCE: David Niemeyer, Village Manager; Mark Sterk, Village Attorney;
James Bodony, Fire Chief, Dale L. Durfey, Jr., Village Engineer; Robert L.
Kallien, Jr., Director of Community Development; Bruce F. Kapff, Director
of Information Services & Purchasing; Darrell J. Langlois, Finance
Director; Michael J. Meranda, Public Works Director; Nelson Patras, Bath
& Tennis Club Operations Manager; Thomas Sheahan, Chief of Police and
Trey VanDyke, Golf Club Manager.
3. PRESIDENT'S OPENING COMMENTS
President Craig announced that Trustee Carson was working with the Village Manager,
staff and trustee liaisons to fill vacancies on the Village commissions and committees.
He also addressed the issue of legal bills incurred as the result of his initial appointment of
an Acting Village Manager when he took office. He felt the manner in which the Board
addressed the issue was inappropriate and if he were asked to vote on the issue he would
vote against the payment of the fees.
4. RESIDENT /VISITOR COMMENT
Resident Richard Black addressed the Board inviting them and all residents to attend the
anniversary celebration commemorating the fifth year of operation of the Library in the
new building. The event was presented by Library staff, supported by the Library
Commission and the Friends of the Library.
5. APPROVAL OF MINUTES - None presented.
VILLAGE OF OAK BROOK Minutes Page 1 of 13 OCTOBER 9, 2007
6. CONSENT AGENDA
All items on the Consent Agenda are considered to be routine in nature and will be enacted
in one motion.
A. ACCOUNTS PAYABLE FOR PERIOD ENDING OCTOBER 5, 2007 - $903,154.16
Significant Items included in Above:
2) Holland & Knight LLP - Legal Services - August, 2007 - $13,589.00
3) Klein, Thorpe and Jenkins, Ltd. - Legal Services - Police Department - August,
2007 - $1,475.00
4) R. W. Dunteman Company - Payout 92 - 2007 Paving Project - $445,547.66
5) Civiltech Engineering — Payout 413 & Final — 31" Street Bicycle Path —
$12,556.89
6) Kubiesa, Spiroff, Gosselar, Acker & Kern - Legal Services - July, 2007 -
$23,947.00
B. APPROVAL OF PAYROLL FOR PAY PERIOD ENDING SEPTEMBER 22,
2007 - $711,694.24
C. COMMUNITY DLVELOPMENT REFERRALS
1) VILLAGE OF OAK BROOK - TEXT AMENDMENT - PORTABLE STORAGE
UNITS
At the present time, the Village has no specific regulations that address the issue of
portable storage units on private property. Since the use of these units are growing
in popularity, several homeowners associations have commented on the need to set
parameters on where these units can be placed and for how long.
To that point, Staff is recommending that the Zoning Ordinance be amended to
include language which addresses portable storage units.
The requested action was to refer the request for a text amendment to the Zoning
Ordinance relative to establishing requirements for the placement of portable
storage units on private property to the Plan Commission for review and
recommendation at its November 19, 2007 meeting and to the Zoning Board of
Appeals for public hearing at its December 4, 2007 meeting.
D. AUTHORIZATION TO SEEK BIDS OR PROPOSALS OR NEGOTIATE
CONTRACTS - None presented
E. BUDGET ADJUSTMENTS - None presented
VILLAGE OF OAK BROOK Minutes Page 2 of 13 OCTOBER 9, 2007
6. F. HAWKS SOCCER CLUB — ORDINANCE S -1211, AN ORDINANCE
GRANTING A SPECIAL USE FOR THE DEVELOPMENT OF ADDITIONAL
SOCCER FIELDS AND RELATED IMPROVEMENTS AT 1315 AND 1425
KENSINGTON ROAD IN THE VILLAGE OF OAK BROOK
The Board of Trustees directed the Village Attorney to prepare an ordinance which
grants a special use for improvements to the Hawks Soccer Fields at the McDonald's
property located at 1315 and 1425 Kensington Road.
The requested action was for Passage of Ordinance S -1211, An Ordinance Granting
a Special Use for the Development of Additional Soccer Fields and Related
Improvements at 1315 and 1425 Kensington Road in the Village of Oak Brook.
G. EVERGREEN BANK - ORDINANCE G -842, AN ORDINANCE AMENDING
ARTICLE A OF CHAPTER 7 (BUSINESS DISTRICTS) OF TITLE 13 (ZONING
REGULATIONS) OF THE VILLAGE CODE OF THE VILLAGE OF OAK
BROOK TO ADD A PERMITTED USE FOR BANKS AND FINANCIAL
INSTITUTIONS IN SECTION 13 -IOD TO REQUIREMENTS FOR OFF - STREET
PARKING SPACES
The Board of Trustees directed the Village Attorney to prepare an ordinance which
grants a text amendment to Article A of Chapter 7 of Title 13 of the Village Code of
the Village of Oak Brook to add a permitted use for banks and financial institutions
in Section 13 -I0D.
The requested action was for Passage of Ordinance G -842, an Ordinance Amending
Article A of Chapter 7 (Business Districts) of Title 13 (Zoning Regulations) of the
Village Code of the Village of Oak Brook to Add A Permitted Use For Banks and
Financial Institutions in Section in Section 13 -10D.
H. GUINTA'S FIRST ASSESSMENT PLAT - RESOLUTION R -998, A
RESOLUTION APPROVING GUINTA'S FIRST ASSESSMENT PLAT - 3108
WHITE OAK LANE, OAK BROOK, ILLINOIS 60523
Michael Guinta, the owner of the parcel located at 3108 White Oak Lane has
submitted an application for the Guinta's First Assessment Plat and requests
approval. It is the applicant's intent to construct a single - family home on the parcel.
Due to the fact that the existing parcel was never formally subdivided, the
assessment plat is required as a prerequisite to obtaining a building permit from the
Village of Oak Brook. Village Engineer Durfey concurs with the recommendation to
approve this assessment plat.
VILLAGE OF OAK BROOK Minutes Page 3 of 13 OCTOBER 9, 2007
6. I. The requested action was to approve the Guinta's First Assessment Plat for the
property located at 3108 White Oak Lane and for passage of Resolution R -998, A
Resolution Approving Guinta's First Assessment Plat -3108 White Oak Lane, Oak
Brook, Illinois 60523.
J. RESOLUTION R - 997, A RESOLUTION REGARDING AUTHORIZATION
FOR CHECK SIGNERS
Three individuals were authorized to sign checks for the Village. They were the
Village Treasurer, Assistant Finance Director and the Village President. Due to the
appointment of David Niemeyer as Village Manager action is required in order to
add him as an authorized check signer for the Village. Resolution 997 removes
Assistant Finance Director Sharon Dangles, who has been signing checks on a
temporary basis until a permanent Village Manager was named, as an authorized
signer and replaces her with David Niemeyer as Village Manager.
The requested action was for passage of Resolution R -997 regarding authorized
check signers for the Village of Oak Brook.
K. RATIFICATION OF WEST ELEVATED TANK PAINTING CONTRACT
CHANGE ORDER #3
Change Order No. 3 is an aggregate a five (5) separate work items resulting in a
contract increase of $36,420.00, bringing the total contract amount to $435,286.00.
All of the following work and associated costs have been reviewed by our consulting
engineer, Dixon Engineering Inc. and have been found to be appropriate and fair.
Please note that two of the items, though not foreseeable when the contract was
signed, became apparent while the contractor performed the specified work on the
east tank.
Item 1. 12" fill pipe. Upon removal of the fill -pipe insulation and partial
removal of the fill -pipe itself, excessive pitting (small surface holes) was
discovered that in the opinion of the welder and Dixon Engineering, was too
severe to "patch weld" and in fact, should be replaced. As this could not have
been discovered during Dixon's initial inspection on the tank, which was the
basis for our specifications, replacement could not have been foreseen. That
being said, it is important to note that the tank is 46 years old and replacement of
various components becomes more common with age. Cost-$23,710.00
Item 2. Pipe and valve removal and retrofit. This item underscores that an
overall savings was realized for this particular work by having the present welder
perform the work rather than another contractor not associated with the painting
contract. Cost - $55500.00
VILLAGE OF OAK BROOK Minutes Page 4 of 13 OCTOBER 9, 2007
6. K. Item 3. Overflow pipe and vortex plate repairs. Cost - $5,900.00
Item 4. Tank light fixture & aviation roof light moved. With installation of
the new safety railing atop the tank, mandated 360 degree visibility of the
aviation obstruction light could not be maintained. This was not something that
could be determined prior to the railing being installed, but was visually
identified afterwards; hence the cost to relocate the light and associated
appurtenances. Cost - $995.00
Item 5. Antenna cable penetration. This was a minor detail that needed to be
field determined once the safety railing was installed. Note; this penetration is
for our radio repeater antenna and our automatic water meter reading antenna that
are situated on top of the tank. Cost - $315.00
Time Extension. Due to the above work, the contractor is requesting a time
extension of 30 days. Both Dixon and the
Village agree this is appropriate and should not affect the tank being completed
yet this fall. Cost -0-
Though this change increases the total contract amount to $435,286, or $35,286 over
budget, a truer accounting would reflect a budget overage of $17,286 if the $18,000
budgeted in Program 351 -7170 for pipe and valve removal and retrofit (Item No. 2)
is included. Nevertheless, the over budgeted amount can and will be accounted for
by savings in other Water Fund budget line items.
The requested action was to approve Change Order No. 3 which increases the
contract amount by $36,420.00 and extend the contract substantial completion date
by thirty (30) days and determine that the circumstances necessitating the change
were not reasonably foreseeable at the time the contract was signed, that this change
order is in the best interests of the Village, and is authorized by law.
Motion by Trustee Kennedy, seconded by Trustee Wolin, to approve the Consent Agenda
and authorize expenditures as 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. 1) Kubiesa, Spiroff, Gosselar, Acker & Kern - Legal Services - Gaik/Horne
Litigation - $10,132.50
Trustee Manofsky asked to have this item removed from the Consent Agenda
because she wished to vote against it. She indicated that it was Attorney
VILLAGE OF OAK BROOK Minutes Page 5 of 13 OCTOBER 9, 2007
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6. A. 1) Kubiesa himself who suggested the litigation and she felt that there could have
been other recourse to settle the issue.
Trustee Saiyed felt that the fees were high and Trustee Carson asked Attorney
Sterk if he had reviewed the bills to determine if some negotiation of the amount
could be made. Attorney Sterk replied that he had reviewed the bill and did not
believe that the charges were out of line.
Motion by Trustee Kennedy, seconded by Trustee Wolin, to authorize payment of the
Kubiesa, Spiroff, Gosselar, Acker & Kern Legal Services bill for the Horne Litigation in
the amount of $10,132.50. ROLL CALL VOTE:
Ayes: 4 - Trustees Carson, Kennedy, Sanford and Wolin.
Nays: 2 - Trustees Manofsky and Saiyed.
Absent: 0 - None. Motion carried.
6. I. CANTERBERRY LANE RESTRICTED ACCESS
Based upon discussion at the Village's September 11"' meeting wherein it appeared
to be the consensus to restrict the use of Canterberry Lane by large buses, and that in
order to post appropriate signage and provide the necessary enforcement of said
restriction, an ordinance excluding certain designated types of traffic (vehicles) from
using Canterberry Lane must be passed by the Village Board.
The requested action was to direct the Village Attorney to prepare the necessary
ordinance(s) to prohibit the use of Canterberry Lane by any long, wheel -base school or
commercial bus.
Trustee Kennedy suggested that while the issue was being addressed for Canterberry
Lane the rest of the Village should be reviewed to see if this should be extended to
any other streets. The Village Engineer, Dale Durfey and the Police Chief, Thomas
Sheahan indicated that to their knowledge no other streets needed to be addressed.
Motion by Trustee Kennedy, seconded by Trustee Manofsky to direct the Village
Attorney to prepare the necessary ordinance(s) to prohibit the use of Canterberry
Lane by any long, wheel -base school or commercial bus. ROLL CALL VOTE:
Ayes: 6 - Trustees Carson, Kennedy, Manofsky, Saiyed, Sanford and Wolin.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
BOARD & COMMISSION RECOMMENDATIONS - None presented.
UNFINISHED BUSINESS
A. CONFIRMATION OF APPOINTMENTS - None presented
VILLAGE OF OAK BROOK Minutes Page 6 of 13 OCTOBER 9, 2007
9. B. ORDINANCES & RESOLUTIONS - None presented
C. AWARD OF CONTRACTS
1. STATE BID OF DEICER SALT
The Village Board, at the February 27, 2007 meeting approved the Village's
participation in the State's Joint Purchasing Program for deicer salt. The Village
has been notified that the low bid received was from North American Salt
Company in the amount of $38.62 per ton delivered; 7.3% higher than last
season's price of $35.99 /ton.
As part of the contract with the State, we are obligated to purchase at least 70%
of the requisitioned amount (1,050 tons), and the vendor is obligated to sell us
130% of the requisitioned amount (1,950 tons) at the stated unit price. The
vendor is not obligated to honor the contract price for purchases in excess of
130 %. However, as we use approximately 1,500 tons during a typical winter
season, the requisitioned amount plus an additional 300 tons which are presently
on hand should be sufficient to carry us through the season.
Additionally, as we are on a calendar year budget, funding for our deicer salt
needs must be split between two fiscal years, 2007 and 2008. To date, $39,862
has been expended out of $56,790 budgeted in FY -07. Therefore, any deicer salt
purchased during the balance of this year will be charged against FY -07 and any
purchases after December 31, 2007 will be included and charged against FY -08.
Motion by Trustee Wolin, seconded by Trustee Kennedy, that a purchase order
be issued to North American Salt Company in the amount of $57,930 for 1,500
tons of highway deicer salt based on the contract unit price of $38.62 per ton
delivered. ROLL CALL VOTE:
Ayes: 6 - Trustees Carson, Kennedy, Manofsky, Saiyed, Sanford and Wolin.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
D. RATIFICATION OF TRAFFIC SIGNAL POLE & MAST ARM ASSEMBLY
REPLACEMENT
As previously reported in the Manager's Memo of February 2, 2007 and
accompanying memoranda, Meade Electric erected temporary traffic signal poles,
mast arm assemblies and signal heads on the NE, NW, and SE corners of Spring and
Harger and on the NE corner of Spring and Commerce due to unsafe pole conditions
that were discovered. Just recently, Meade received and installed new poles and
mast arm assemblies for the same stated corners at the total cost of $35,030.00,
which was their estimate back in late January when this situation surfaced.
VILLAGE OF OAK BROOK Minutes Page 7 of 13 OCTOBER 9, 2007
9. D. Despite the emergency nature of the matter and consequent exclusion in the FY -07
budget, expenses can and will be accounted for by cumulative savings in various
other line items within Program 362.
Motion by Trustee Wolin, seconded by Trustee Kennedy, to ratify the emergency
expense of replacing the traffic signal pole and mast arm assemblies at the NE, NW, and SE
corners at Spring and Harger and the NE corner at Spring and Commerce by Meade Electric
Co., in the amount of $35,030.00. ROLL CALL VOTE:
Ayes: 6 - Trustees Carson, Kennedy, Manofsky, Saiyed, Sanford and Wolin.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
F. EVERGREEN BANK - 1515 22ND STREET - VARIATION — SECTION 13 -11-
11 A.2 OF THE SIGN REGULATIONS - CONTINUED FROM SEPTEMBER 25
At the September 25, 2007 meeting, the Village Board continued the variation
request from Evergreen Private Bank to the next meeting so that the applicant could
meet with Village Staff to discuss and analyze additional alternatives which may be
available. Since that meeting, staff had one conversation with Mr. Paul Leak who is
with the Bank. Because of his work schedule, Mr. Leak has not had a chance to
analyze what other options are available to him.
I have also forwarded the Bank's request to John Houseal of Houseal Lavigne for his
input and comments.
Motion by Trustee Sanford, seconded by Trustee Kennedy, to continue the request
for a sign variation from Evergreen Private Bank to a future meeting so that the
applicant can meet with Village staff to discuss and analyze additional alternatives.
VOICE VOTE: Motion carried.
10. NEW BUSINESS
A. CONFIRMATION OF APPOINTMENTS - None presented
B. ORDINANCES & RESOLUTIONS
1) ORDINANCE G -841, AN ORDINANCE FURTHER AMENDING
ORDINANCE G -470 ESTABLISHING A UTILITY TAX IN THE VILLAGE
OF OAK BROOK, ILLINOIS
The Village first imposed utility taxes on various utilities in 1991. When the tax
was originally imposed, the tax was assessed on electric, natural gas, and
telephone services within the Village. The enabling utility tax ordinance
included a one year "sunset" provision so that the Village Board could review
VILLAGE OF OAK BROOK Minutes Page 8 of 13 OCTOBER 9, 2007
10. B. 1) both the necessity and the rates of tax annually. The tax has been re- imposed
each year thereafter (at varying rates), and the current ordinance imposing this
tax expires on December 31, 2007.
In the mid- 1990's, the Village stopped assessing utility taxes on telephone
service and instead implemented a telecommunication tax, which effectively
resulted in the Village receiving taxes on long distance service instead of just
local telephone service. Furthermore, due to deregulation of the electric
industry, beginning in 1998 the Village began implementation of an "electricity
tax ", which is a ten - tiered tax rate structure that resulted in the phasing out of the
gross receipts utility tax (at the present time the rates are designed to
approximate a 5% gross receipts tax).
The Finance Director recommended that the current utility tax be extended at the
5% rate through December 31, 2008.
Motion by Trustee Manofsky, seconded by Trustee Kennedy, that the Village
Board adopt Ordinance G -841, "An Ordinance Further Amending Ordinance G-
470 Establishing a Utility Tax Within the Village of Oak Brook, Illinois" which
extends the imposition of the utility tax on natural gas and electricity at the rate
of 5% through December 31, 2008. ROLL CALL VOTE:
Ayes: 6 - Trustees Carson, Kennedy, Manofsky, Saiyed, Sanford and Wolin.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
C. Award of Contracts
1) PROFESSIONAL SERVICES - 22ND STREET IMPROVEMENT PROJECT -
LOBBYIST
Since 2006, the Village of Oak Brook and the City of Oakbrook Terrace
employed the services of William Filan as a consultant to assist with issues at the
State level. Mr. Filan had been asked to assist in seeking funds for the 22nd
Street improvement. As the two municipalities have been working on this
roadway improvement together we were asked once again to participate
financially with their consultant.
The 22nd Street add lanes project (IL 83 to just west of IL 56) received Design
Approval in 2002; currently there are no monies in the State's Road Program to
perform Phase II (design plans) or Phase III (construction). The scope of the
project is to widen the road to six lanes generally within the existing Rights -of-
Way. In 2002 the estimated cost of the project was just under $14 M for
construction; Phase II Engineering is generally 8 -10% of the construction costs.
VILLAGE OF OAK BROOK Minutes Page 9 of 13 OCTOBER 9, 2007
10. C. 1) By hiring a lobbyist with ties to the current State administration we would hope
to find some funding source, to finance the Phase II Engineering and
construction. The legislative session has been significantly extended this year. I
have spoken with Mr. Filan and he has been actively working for the two
communities throughout the summer and is seeking additional compensation for
his work on this issue.
Our share of the contract would increase from $7,000 to $11,200 and would
cover services to the end of the calendar year.
As the 22nd Street (11 83 to I1 56) widening project is vital to relieving a major area of
traffic congestion and a priority project of the Village of Oak Brook and the City of
Oakbrook Terrace we need to explore all options to fiend this long overdue
improvement; by continuing to use a lobbyist we may be able to tap into certain funding
sources to keep this project moving forward. As such it is recommended that the Board
approve working with Oakbrook Terrace in increasing our share of the Lobbyist
contract with William Filan from $7,000 to $11,200 for his services.
Motion by Trustee Kennedy, seconded by Trustee Sanford, to approve an
increase in Oak Brooks portion of our joint agreement with the City of Oak
Brook Terrace to hire a professional lobbyist relative to the 22nd Street (I1 83 to
11 56) Improvement Project. ROLL CALL VOTE:
Ayes: 6 - Trustees Carson, Kennedy, Manofsky, Saiyed, Sanford and Wolin.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
D. WATER RATE REVIEW
In 2005 the Village hired the firm of Alvord, Burdick & Howson, LLC to conduct a
comprehensive water rate study for the Village's water system. The purpose of the
study was to come up with a rate program that would provide for system
improvements over the next five years, provide for storage enhancements (some of
this would be bonded for), and to begin setting aside funds for the eventual
replacement of older water main segments. As a result of this study, effective
January 1, 2006 the Village's water rate was increased from $2.85 to $3.25 per 1,000
gallons. Future increases of 3% annually were required in order to finance the
operating and capital improvement program through 2020.
Subsequent to approving this study several material events have taken place that
warrant taking another look at water rates. These items include:
• A reduction from $1.45 to $1.25 in the target wholesale rate for water purchased
from the DuPage Water Commission (DWC).
• Receipt of a rebate payment of $1,927,342 from DWC due to a revision in their
reserve policies.
VILLAGE OF OAK BROOK Minutes Page 10 of 13 OCTOBER 9, 2007
10. D.
• An increase in revenue of $350,000 due to an agreement in principal to sell the
portion of the water system located in unincorporated Elmhurst to the City of
Elmhurst.
• A reduction in revenue net of water supply costs of approximately $90,000 per
year due to the sales transaction to Elmhurst. This loss of revenue is more than
offset by elimination of $6.1 million in water main replacement costs scheduled
for 2017 -2019. The Elmhurst mains being sold were the first ones scheduled for
replacement.
• The Village Board elected to hold water rates at the rate of $3.25 per 1,000 for
2007 when an increase to $3.36 was included in the 2005 study.
• A review of the road program indicates major road work in Timber Trails in
2016. Thus, especially with the elimination of the Elmhurst mains, it makes
sense to move the Timber Trails water main replacement from 2018 -2019 up to
2016 when the road work takes place. This moves $5.3 million of costs up
several years.
• The Village is moving forward with improvements to three separate water main
segments totaling approximately $1.3 million as part of the I- 88/22" d Street
bridge project. None of these improvement were included in the 2005 rate study.
Taking into account all of these factors, staff has forecasted water rates under four
options in order to meet revenue requirements of the system as well as providing for
the capital improvements contemplated in the 2005 study. While it is impossible to
exactly duplicate the 2005 study, our projections were done with a goal of achieving
an ending cash position in 2020 that was materially close to that projected in the
2005 study.
• Under Option 1 the water rate is reduced to $3.05 in 2008 in order to fully pass
along the $0.20 reduction in the wholesale rate by DWC and rates increase by
3% each year in accordance with the 2005 study. The downside with this option
is that it actually deviates by $0.42 from the rate study as the 2008 rate projected
was $3.47. This difference reduces the ending cash position by approximately
$300,000 below the six month reserve requirement for the 2020 projection
period. Furthermore, there would be a negative cash balance in 2016 due to
advancing the Timber Trails water main replacements. Proper perspective
should be given to these issues since the planning period is so long (15 years)
and there will be so many other variances that these problems may never in ,fact
materialize. Nevertheless, a 2008 rate that is $0.42 below what was originally
called for in the 2005 study does not provide the Village with much "cushion"
should new costs develop or should the current or future Board deviate from the
increases called for.
VILLAGE OF OAK BROOK Minutes Page 11 of 13 OCTOBER 9, 2007
10. D.
• Under Option 2 the water rate is reduced to $3.15, which is a reduction of $0.10
from the current rate and $0.32 below the rate called for in the 2005 study; each
year thereafter rates would increase by 3 %. The advantage of this option is that
it fixes the cash flow problem in 2016 encountered under Option 1, and in 2020
the ending cash position is $2.5 million greater than Option 1. This is significant
since at that time capital funding will be an issue since water main work
averaging $4.6 million per year is expected in 2021 -2025.
• Under Option 3 the water rate is reduced to $2.95, which is $0.30 below the
current rate and $0.52 below the 2008 rate called for in the prior study; the rate
increases 4% per year thereafter. The theory here is that if the Board is willing
to live with higher increases later the rate can be reduced further today. In this
option there is a minor cash flow problem in 2016 once again due to the Timber
Trails mains but in 2020 the ending cash position is very similar to Option 2.
The danger in this scenario is that once the rate is lowered the Board may be
reluctant to adopt the increases scheduled later, which could put the entire capital
program in jeopardy or require significant borrowing.
• Under Option 4, the Village would hold the existing water rate at $3.25 for an
additional two years, which would be a reduction of $0.22 for 2008 and $0.32
for 2009 from the rates called for in the 2005 study; thereafter rates would
increase by 5% every other year. The advantage of this option is the elimination
of the need to increase rates each year, which is obviously unpopular. There are
no cash flow issues in 2016 as in some of the other options, and the ending cash
position in 2020 is similar to that in Options 2 and 3.
Based on all factors, staff would recommend that the Board direct implementation of
the water rate program indicated under Option 2, which would lower the Village's
water rate from $3.25 per 1,000 gallons to $3.15 per 1,000 gallons effective for all
consumption after October 31, 2007 and provide for annual increases of 3%
thereafter.
Trustee Wolin recommended Option 2 because the residents will see a reduction of
$.10 per thousand gallons, yet allowing for funds for the required capital
improvements. He added that this was actually $.32 per thousand gallons lower than
had been recommended by the water rate study.
Trustee Sanford expressed his thoughts on the different options indicating that if
rates were left at the current level it would decrease the need for bond issues for the
capital improvements needed in the future. It could also leave the opportunity to
accelerate the water main replacement. Another possible use of the refund could be
to start the beautification program. He added that he was willing to support Option
2, but wished to suggest other options for discussion.
VILLAGE OF OAK BROOK Minutes Page 12 of 13 OCTOBER 9, 2007
10. D. Motion by Trustee Wolin, seconded by Trustee Manofsky, to direct the Village
Attorney to prepare the necessary ordinance to reduce the Village's water rate from
$3.25 per 1,000 gallons to $3.15 per 1,000 gallons for all consumption after October
31, 2007 based on Option 2 as presented. 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 - None presented
B. VILLAGE MANAGER - None presented.
C. VILLAGE CLERK - Clerk Pruss announced that the Wednesday Buffets at the Bath
& Tennis Club had been extended through November 28, 2007
12. ADJOURN TO CLOSED MEETING 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) and 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).
President Craig commented that Ms. Mullins had asked to meet with the Board, which is
lawful, in Closed Meeting. President Craig believed this discussion should be held in the
open.
Motion by Trustee Kennedy, seconded by Trustee Manofsky, to adjourn to Closed
Meeting at 8:09 p.m. ROLL CALL VOTE:
Ayes: 6 - Trustees Carson, Kennedy, Manofsky, Saiyed, Sanford and Wolin.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
13. ADJOURNMENT
Motion by Trustee Manofsky, seconded by Trustee Kennedy, to adjourn the Regular
Meeting of the Board of Trustees at 9:41 p.m. VOICE VOTE: Motion carried.
ATTEST:
/s/ Charlotte K. Pruss
Charlotte K. Pruss
Village Clerk
VILLAGE OF OAK BROOK Minutes Page 13 of 13 OCTOBER 9, 2007