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Minutes - 11/20/2009 - Board of TrusteesMINUTES OF THE NOVEMBER 20, 2009 SPECIAL MEETING OF THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF OAK BROOK APPROVED AS WRITTEN ON AUGUST 10, 2010. 1. CALL TO ORDER The Reconvened Special 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 7:03 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 Stelios Aktipis, James Carson, Mark Moy, Mom Saiyed, Gerald Wolin and Elaine Zannis. ABSENT: None. IN ATTENDANCE: David Niemeyer, Village Manager; Robert L. Kallien, Jr., Director of Community Development; Sharon Dangles, Acting Finance Director; Tom McEllin, Fire Chief; Sue Madorin, Acting Library Director; Doug Patchin, Public Works Foreman; Thomas Sheahan, Chief of Police and Trey VanDyke, Sports Core Manager. 3. 2010 BUDGET WORKSHOP President Craig stated that the Meeting Schedule was available on the table at the entrance to the Board Room. Manager Niemeyer stated that the meeting will now continue where the previous meeting of November 17, 2009 ended. Manager Niemeyer introduced Tracy Mulqueen of the Chamber of Commerce. Ms. Mulqueen presented the Village Board with a proposal for an expanded Oak Brook Economic Development Partnership. The partnership would be between the Village of Oak Brook and the Chamber of Commerce for the purpose of immediately and significantly decreasing Oak Brook's office vacancies and, ultimately strengthen Oak Brook's retail sales tax generating base. Last year the Chamber received $30,000 from the Village and the Chamber is requesting an additional $24,875 to support the goals of the partnership as proposed in her presentation. Motion by Trustee Aktipis, seconded by Trustee Carson to add the additional expense to the proposed budget for 2010. ROLL CALL VOTE: Ayes: 6 - Trustees Aktipis, Carson, Moy, Saiyed, Wolin, Zannis Nays: 0 - None. Abstain: 0 — None. Absent: 0 — None. Motion carried. A. General Fund Expenditures in the Following Departments: (cont'd from 11/17/09 meeting) 1) Library Acting Library Director Sue Madorin highlighted that the proposed budget is similar to past years and that the changes are in the Administration account and reduces the budget significantly due to the reorganization of staffing and the use of more part-time employees. VILLAGE OF OAK BROOK Minutes Page I of 5 RECONVENED SPECIAL MEETING OF NOVEMBER 20, 2009 The Board thanked Sue for all of her efforts and positive attitude during this difficult time. Trustee Wolin pointed out that using the "self- checkout" was very easy and encouraged anyone who has not used it to try it. 2) Police Police Chief Sheahan highlighted the significant reduction in staff of 7.75 FTE for 2010. In 2008 the Police Department had a FTE of 65.25; in 2009, 62.75 FTE; and now for 2010, a FTE of 55 all due to budget cuts. There are also currently two positions vacant and the restructuring of some full - time to part- time. The Department is working on an Intergovernmental Sharing Agreement and they are moving forward on a proposal to consolidate our Police Dispatch Services. Chief Sheahan provided the following historic information on the Dispatch Services. In 2007, the budget was $1.1 million; in 2008, $ 900,000; in 2009, $940,000 and proposed 2010 is less than $800,000. Total budget of $6,878,930; very comparable to a 2008 budget of $6,965,337. Chief Sheahan then provided a significant amount of information to the Board regarding Police Department staffing and procedures regarding manhours, overtime, IRMA claims, and revenue received by the Village from grants. Further discussion continued regarding increases in IRMA claims. Several other questions, relating to Police Department arrest procedures also continued. President Craig called a five minute recess at 8:25 P.M. The meeting reconvened at 8:30 P.M. Trustee Saiyed left the meeting after the recess. 3) Fire Department Chief McEllin reported that the Department has achieved a high level of service with the necessary reductions. Some of the changes include two full -time secretary's have been reduced to a half secretary; the other half is shared with Community Development and the Deputy Chief position will not be filled in 2010. The other significant change is the loss of one staff per person per shift which is the equivalent of a 9.6% reduction. A major item is that one of the ladder trucks has been out of service for quite some time and it was supposed to be replaced in 2008, then 2009 and now it has been moved to 2011. This ladder truck needs to be repaired and the cost is about $50,000. Revenue to the Village from the Department for ambulance fees, false alarms, etc, is approximately $450,000. Trustee Wolin commended the Department for the great job they do. Trustee Wolin questioned the possibility of a used ladder truck and asked how often the ladder truck is used and can the truck be shared with other communities. Chief McEllin responded that the ladder truck is out on almost every call and typically used more for residential than commercial. It is generally easier and safer to be on the platform of the ladder truck than hoisting a ladder. Since our ladder truck has been out of service, Oakbrook Terrace has been coming to our calls. Their truck is a 1991 model which is only two years younger than ours and their truck is also beginning to experience equipment problems also. Trustee Aktipis commended Chief McEllin for his involvement and attendance at Finance Committee Meetings and offering his ideas and suggestions. VILLAGE OF OAK BROOK Minutes Page 2 of 5 RECONVENED SPECIAL MEETING OF NOVEMBER 20, 2009 Manager Niemeyer discussed proposed revenue reductions including the business registration fee and the towing fee in half. This has now challenged the Village to try to match those revenue cuts and still have a balanced budget. Some possible changes as follows: • Electric survey can be done in -house • Delay duct cleaning for a year • Replacement of the vacant Finance Officer will be taken out of the budget and look at various options • 2010 budget includes IT Security items and the Village could possibly do that work in 2009 • Business Registration Program needs to be further reviewed 4) Other Funds — Hotel/Motel; Motor Fuel; Promenade (TIF); Garage; Equipment Replacement; Fire and Police Pension Acting Finance Director Sharon Dangles began by explaining that the Village collects 3% tax in this fund. 1% is for advertising and 2% is for beautification. Revenues for 2010 are proposed at $835,000 and expenditures at $943,730. The Motor Fuel Tax budget is proposed to have $827,209 cash reserves at the end of 2010 and $600,000 of that will be transferred in 2011 to the Infrastructure Fund to supplement the Roadway Maintenance Program. The Promenade Special Tax Allocation Fund budget proposes that the Village pay the interest and principal on the bond of $437,000. The Garage Fund typically does not carry a large reserve balance so basically the revenues are what we are charging all the other funds and the expenditures are $625,260. The Equipment Replacement Fund is created primarily for vehicles. The 2010 budget includes the replacement of four (4) police vehicles and a leaf machine for the Public Works Department. Manager Niemeyer asked Sharon Dangles to review the major funds in the 5 -Year Financial Plan. This plan assumes the continuation of current service levels and assumes being able to maintain those levels in future years. • General Fund - Capital Improvements Program was limited to $500,000 in 2011 and $600,000 in 2012 and 2014. The average request received each year is between $785,000 to $940,000. Another significant item is in the Hotel/Motel Tax Fund which is funding a Police Beat in the years 2011 and 2014. Also in the 2010 budget, the Village plans to offer and Early Retirement Program and the future years does not capture the savings from the program. • Infrastructure Fund — The estimated income line is the non -home rule sales tax and this source of revenue has been affected by the economy. Sharon pointed out that this income increases in 2011 and decreases in 2012 and increases again in 2013. This is due to the Motor Fuel Tax transferring funds to supplement the Roadway Maintenance Program. The two major expenditures are in the Roadway Improvement Program. The Street Resurfacing/Reconstruction ranging from $1M to $2M and the I- 88/2Zd Street Bridge Project with the last payment being made to the Illinois State Toll Highway Authority in 2013. • Water Fund — The cash reserves decline significantly from 2009 to 2010 and even further from 2011 to 2012. The average cash balance since 2004 was $4.8M. The main source of VILLAGE OF OAK BROOK Minutes Page 3 of 5 RECONVENED SPECIAL MEETING OF NOVEMBER 20, 2009 revenue is water sales to residents and some of the non - residents and commercial businesses. The Capital Improvement Programs account for 47% of the budget. Trustee Aktipis pointed out that this fund bears watching. Trustee Wolin pointed out that the biggest expenditures are $1,337,000 in 2012 and $1,985 in 2014 for Water Main Replacements. Trustee Wolin asked if these are expenditures are definite or might they be deferred. Public Works Foreman, Doug Patchin, pointed out that the Village has been spending a significant amount of money on repairs due to the fact that our water mains are approximately fifty (50) years old. The current replacement projects on 35`h Street, and the Timber Trails replacement was brought up years ago. The proposed amounts in the Five Year Plan are aggressive, but it is not cost effective to continue to repair the mains, rather than replace them. 5) Sports Core Operations Sports Core Director Trey VanDyke reported that despite record poor weather and a weakened economy, year after year results have not changed. The Golf Clubhouse remains the sole food and beverage operation managed in- house. Memberships sold in 2009 were down for both the Golf Clubhouse and the Bath & Tennis. The 2010 budget includes the expense of $27,650 for the design, production and distribution of Sports Core wide marketing materials. The Sports Core facility requires constant care and upkeep. The budget includes capital investment of $171,500. This includes upgrades to the swimming pool, replacement of caulking around the swimming pool edge, Phase I of new soccer field irrigation system, dredging of the irrigation system reservoir pond, a study of drainage issues, several maintenance items and the replacement of three pieces of equipment. The Golf Surcharge begins to regain some reserves for future capital expenditures and the safety net for possible flooding; a very valuable asset to the Sports Core creating a savings account for future operations. Revenue for B & T memberships are conservatively budgeted at the 2009 levels. Golf memberships are budgeted at the 2007 levels and rounds of golf projected are based on six year averages including the last two poor weather years. The budget includes outsourcing of the Outdoor Cafe, the B& T Clubhouse has a banquet venue, and the staffing of the pool lifeguards. The expenditures for this fund have been reduced by $450,000 from 2009 and projects a year -end cash balance of $170,000; which we believe is extremely conservative. Trustee Carson commented that he was happy to see that the budget included the marketing advertisement. Trustee Carson also asked if there were any adjustments in fees. Sports Core Director Trey VanDyke indicated there are minor fee adjustments proposed on the golf side and no adjustments on the B & T side. Trey also pointed out that this year the Sports Core tried something new to take the place of the discontinued Early Bird Program. They did not send out membership applications to current members. Instead they mailed a dues bill to current members. This new procedure brought money in faster than any other year. Trey VanDyke thinks sending out a dues bill is a simple concept that is very successful. Trustee Zannis expressed her interest in bringing back the $100.00 membership discount and felt it was possibly a discussion that should take place. She would like to also see a segregated budgeting system for the Clubhouse operations. Food & Beverage now includes the grill and golf course and the clubhouse. The Board needs to know how well we did on the Poolside grill by looking at a line item. Privatizing or outsourcing the Sports Core is another issue that the Board needs to continue to VILLAGE OF OAK BROOK Minutes Page 4 of 5 RECONVENED SPECIAL MEETING OF NOVEMBER 20, 2009 pursue. Fiscally there is a responsibility to put it out to bid and would like to see it as an objective in the budget. President Craig asked what the Village offers to senior residents for the $50.00 membership. Sports Core Director Trey VanDyke responded that $50.00 was not specific to seniors. Senior discounts are available and the Club offers many discounts. Trey VanDyke pointed out there is senior classification in every category. Discussion ensued regarding offering more discounts and more programs to seniors due to the aging population. Membership could be dropping due to senior membership. Trustee Carson thought possibly the Village could work together with the Park District to create more senior offerings. Trey also pointed out there is a senior men's golf league that plays at 8:30 a.m. on Wednesdays that has 60 + members and there is also a senior men and women's championship. Manager Niemeyer asked for a confirmation on Trustee Zannis' earlier comment that there was clearly a consensus to put an RFP for Privatizing or Outsourcing the Sports Core on a future agenda and the answer was yes. Manager Niemeyer reminded the Board that a formal budget approval is scheduled for December 8, 2009. Trustee Zannis and the Board applauded Sharon Dangles for all of her hard work on the budget. Trustee Wolin mentioned that their will be a Special Board meeting on December I" and that agenda will include the trash services contract. Four proposals have been received, but there will be many options to consider. During the upcoming Thanksgiving Holiday, Trustee Wolin suggested the Board members do an informal survey with their neighbors and/or friends to ask questions about their haulers and their likes and dislikes about different services provided. B. RESIDENT/VISITOR COMMENT - None 4. ADJOURNMENT Motion by Trustee Aktipis, seconded by Trustee Wolin, to adjourn the Reconvened Special Meeting of November 20, 2009 at 9:32 P.M. ROLL CALL VOTE: Ayes: 5 - Trustees Aktipis, Carson, Moy, Wolin, Zannis Nays: 0 - None. Abstain: 0 —none. Absent: 1 — Trustee Saiyed. Left at 8:30 P.M Motion carried. ATTEST: /s/ Charlotte K. Pruss Charlotte K. Pruss Village Clerk VILLAGE OF OAK BROOK Minutes Page 5 of 5 RECONVENED SPECIAL MEETING OF NOVEMBER 20, 2009