Minutes - 12/10/2019 - Board of Trustees (2) ITEM 7.13
VILLAGE Of:
OAK B R92.�K MINUTES OF THE NOVEMBER 19, 2019
�y SPECIAL BOARD OF TRUSTEES
BUDGET WORKSHOP MEETING OF
THE VILLAGE OF OAK BROOK
APPROVED AS WRITTEN
ON DECEMBER 10, 2019
1. CALL TO ORDER
The Special Budget Workshop Meeting of the Village Board of Trustees was called to order
by President Gopal Lalmalani in the Samuel E. Dean Board Room of the Butler Government
Center at 6:04 pm. The Pledge of Allegiance was given.
2. ROLL CALL
Village Clerk Charlotte Pruss called the roll with the following persons
PRESENT: Trustees John Baar, Philip Cuevas, Michael Manzo, Moin Saiyed, Edward
Tiesenga, Asif Yusuf, President Gopal Lalmalani
ABSENT:None
IN ATTENDANCE: Village Manager Rick Ginex, Finance Director Jason Paprocki, Golf
Club Manager/Superintendent Sean Creed, Head Golf Professional Jeff Kawucha,
Information Technology Assistant Director Ejaz Khan, Public Works Superintendent Rick
Valent
3. RESIDENT/VISITOR COMMENTS—None presented.
4. 2020 BUDGET WORKSHOP
President Lalmalani requested that Finance Director Paprocki begin the discussion.
A. Review of Program Goals, Objectives, and Budget Request in the Following
Departments
1) Development Services
Finance Director Paprocki filled in for Development Services Director Budzikowski,
provided a PowerPoint presentation reviewing the goals and objectives of the department
emphasizing the economic development within the Village. He reviewed the goals for
enhancing Oak Brook's image and the services to residents, businesses and visitors.
Comments were made by the Board and questions were addressed by Director Paprocki.
2) Hotel/Motel Fund
Finance Director Paprocki provided a PowerPoint presentation and discussed the goals and
objectives of the fund. He reviewed a breakdown of the budget summary and noted the
significant budget change for the Jorie, Kensington and Forest Gate streetscape project. He
also mentioned that the Polo Club contribution comes from the operation and contractual
portion of the budget and the Taste of Oak Brook. Discussion ensued regarding Point B
marketing.
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Trustee Manzo asked for clarification on the DCVB dues, addressed concerns regarding the
`pass through tax' option, and shared his beliefs regarding the matter of advertising and
sticking to the current percentage rates.
Trustee Baar spoke regarding the Hotel/Motel meeting he attended and the advertising
budget they would like to retain for year 2020. He asked for clarification on the fund and
once he received the explanation he stated that if the Hotel/Motel Committee would like to
increase the budget for year 2020 that is something to consider.
Trustee Tiesenga asked for the Hotel/Motel and Polo budget breakdown.
3) Self-Insurance Fund(Health Benefits)
Finance Director Paprocki provided a PowerPoint presentation and discussed the goals and
objectives of the Self-Insurance Fund. He explained that the purpose of the fund is to pay
for the insurance benefits for employees and retirees. He also reviewed the budget summary
for 2020 and spoke of the significant changes from the 2019 budget.
4) Sports Core Operations
Finance Director Paprocki provided a PowerPoint presentation and discussed the goals and
objectives of the Sports Core Fund. He mentioned the changes on the Bath and Tennis side
including having Sports Core pay for the Administrative side and the personnel decrease.
He also spoke about Swimming and Tennis contracts, the need to increase memberships in
order to bring in revenue, and capital improvements. He further mentioned that the Taste of
Oak Brook is always a very profitable event. Manger Ginex stated that the B&T Clubhouse
has been awarded as one of the best places to have weddings for 2020. Discussion ensued
regarding the Bath and Tennis.
Trustee Baar spoke regarding the rental income on the Clubhouse and the possibility of the
vision of the club sustaining itself with proper personnel and marketing. He shared his
concerns regarding the amenity in comparison to the library. Trustee Baar also stated that
the Sports Core Committee should be included in the debate and spoke of the lack of profit
to the Village from various B&T facilities activities.
Trustee Saiyed asked for clarification on the swimming and tennis memberships. He shared
his concerns regarding the ability of the facility to sustain itself,and some difficult decisions
that may need to be made in the near future. He shared some possible ideas for revenues and
stated that the Village should have a much better idea of where the situation stands within
the next 3 years. He disagreed with Trustee Baar on addressing the B&T as an amenity as it
is a money pit right now. He reiterated the seriousness of the situation at hand and advised
that it is a matter that needs to be taken care of sooner rather than later. Trustee Saiyed
mentioned that the B&T is willing to further evaluate a profit sharing idea if the new plan is
successful.
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Trustee Cuevas intercepted the discussion between Trustee Baar and Trustee Saiyed by
stating that the Board does not have all the facts regarding the situation currently before
them, therefore,the debate should proceed once all the figures are in.
Trustee Manzo stated that he is in agreement with both Trustees on the fact the Village has
been losing money, and agreed with Trustee Cuevas about debating the issue once all the
figures are in. He made suggestions in regards to possible outsourcing and expressed
concerns with the rental contracts, and a possibility of the Park District taking over the
operations.
Manager Ginex took the time to explain why the Tennis memberships went down in numbers
so drastically.
President Lalmalani thanked Trustee Saiyed for working so diligently with the Park District
and asked about the recommendations from the Long Term Advisory Committee. He stated
that he is in agreement with Trustee Baar regarding the involvement of the Sports Core
Committee in the debate. He also mentioned that he is glad to see the Trustees passionate
about the matter and agrees that changes need to be made however,he is opposed to the idea
of taxation.
Resident Jim DePhiliips addressed the low number of memberships and shared his concerns
with the new tennis courts in the budget.
Golf Club Manager/Superintendent Creed made a suggestion to wait and see what the Park
District decides to do.
Golf Club Manager/Superintendent Creed provided a PowerPoint presentation regarding
golf operations and the 2020 goals. He stated that the main focus for 2020 is renovation of
the Hardware Restoration Project, asked for a decision on the budget for improvements of
the Clubhouse Lounge and emphasized on the absolutely crucial cosmetic changes that need
to take place. He reiterated and spoke of the positive revenue that the food and beverage
brought from the patio. He also spoke of the issues with profit margins and the challenges
the weather poses to the business. Discussion ensued regarding the actual amount of money
that the Village is able to incur for such an endeavor.
Trustee Manzo asked about the square footage of the remodeling project and spoke of
amounts in comparison to other square footage amounts for a high end restaurant.
Trustee Baar spoke of the positive changes that took place with the renovation of the patio
and agrees with Golf Club Manager/Superintendent Creed regarding how the completion of
the restoration would bring in more revenue to the Village especially in the slow winter
months. Then he proceeded to provide the amount and suggested a possibility of borrowing
money from the reserves to fund this project.
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President Lalmalani asked the Board for an amount suggestion to provide for the restoration
project. The amount agreed upon was $400,000. He also thanked Golf Club
Manager/Superintendent Creed and Head Golf Professional Kawucha for the great work
done this year.
Trustee Cuevas stated that he is in agreement with Trustee Baar regarding the future rentals
of the facility and bringing in more business as well as the amount of money suggested.
Trustee Saiyed spoke of adding a bar to the facility and stated his agreement with the amount
provided by Trustee Baar and Trustee Cuevas. He indicated that this is a good investment
and everything should be completed by the beginning of the golf season 2020.
Trustee Yusuf also stated that he is in agreement with the amount provided by the other
Trustees and that this project will have positive effects and bring in much needed revenue to
the Village.
Trustee Tiesenga stated that he would like to see a lower amount provided for the project for
the sole purpose of the surcharge fund and shared his concerns about using the money for
other purposes.
Head Golf Professional Kawucha spoke of the gold events that took place in 2019, food &
beverage revenues for the last few years and the spending decisions that have been made in
order to get to this point.
5) Public Works Operations
Public Works Superintendent Rick Valent provided a PowerPoint presentation and discussed
the goals and objectives of the Public Works Fund. He spoke of working with the Sports
Core Committee, capital improvement projects and he specifically addressed the bike path
project and what the tax fund would be covering. He also mentioned improvements to the
water system and roadways. Comments were made by the Board and questions were
addressed by Superintendent Valent.
President Lalmalani asked for clarification on the money that was provided in the budget
last year for the gutter system that has not been used.
Trustee Manzo asked for clarification on the amounts provided for the ice maker machines
and asked about Paul Mitchell.
Trustee Tiesenga thanked Superintendent Valent for a great presentation and asked for
clarification on the bike path project crossing the tollway.
Trustee Saiyed asked for clarification on the timeframe of the project.
Trustee Baar asked for more information on grant money received for big projects such as
this one, and planting and replanting trees.
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Trustee Yusuf asked about the possibility of receiving grant money for the North Windsor
project. He also encouraged the Village to apply for grant money whenever it is possible.
He also asked about the amount of Ash trees remaining in the area.
Manager Ginex explained that the Village still has not heard from Paul Mitchell since
applying for a permit and he stated that he is having conversations about funds for Roosevelt.
Finance Director Paprocki concluded the meeting by reviewing the highlights of the 2020
budget,the proposed budget summary,and asked for further direction on the matter.He also
stated how he finds the budget to be a good and fair one.Comments were made by the Board
and questions were answered by Director Paprocki.
Trustee Manzo asked about proposals from previous years and wanted to know more about
FTE. He stated that he is not an advocate of taxes however, in this situation it may be a way
to go. He also shared his concerns for this year's budget, asked for new ideas to bring in
revenue and for Jason to see if 1-2 % cuts can be made somewhere. Trustee Manzo spoke
about Chief Kruger saving money,comparison of other municipalities and their budgets,and
made suggestions as to more creative ideas to find and save money. He also spoke of large
venues in the Village not bringing in any revenues and suggest some difficult decisions be
made in regards to the matter.
Trustee Lalmalani asked about specific numbers and how much they actually decrease. He
asked about State and ordinance restrictions. He also addressed Manager Ginex's ideas and
asked about outsourcing the open position in Development Services as well as looking into
such a possibility in greater detail.He reiterated that he is in complete opposition of making
any type of cuts to the current employees and wanted to know why the Board is so resistant
to looking at new ideas. He also stated the Board needs to look at the opportunities coming
before them to make sure they are bringing in revenue.
Trustee Tiesenga inquired about the details of the Jorie Blvd. Project in reference to the
current budget proposal. He spoke about association of the budget requirements with the
current legislative predicament and called on all department heads to unlock the cash that
the Board asked of them and to come up with a reserve program. He also spoke in regards
to the sale of the water system.
Manager Ginex asked for an opinion on a suggestion of combining the current I%&2%tax
and the possibility of amending the ordinance. He spoke of infrastructure projects, grant
money and finding new revenue sources. He also explained how further cuts would not be
beneficial to the Village and more cuts would equal layoffs. Manager Ginex elaborated on
the possible solutions and stated that what Trustee Manzo is speaking of is exactly what
Director Paprocki was presenting.He addressed President's Lalmalani outsourcing ideas for
the vacant position. He asked if the Board would like to see numbers for infrastructure,
entertainment tax and the beverage tax.
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Trustee Yusuf shared his suggestions regarding the amendment of the ordinance mentioned
by Manager Ginex. He stated that he is not in agreement of outsourcing the open position in
Development Services due to the great amount of responsibility the job comes with. Trustee
Yusuf stated that new opportunities need to be looked at without compromising level of
service and reminded everyone to stay realistic about the end result. He went on to speak
about IMRF contributions.
Trustee Baar spoke of the importance and the criticality of the vacant position in
Development Services as well as the amount of knowledge and responsibility associated
with the position. He questioned where the cuts are supposed to come from. He also spoke
of all the entertainment coming into the Village without any revenues coming back and
referred to the infrastructure as an investment.
Trustee Saiyed reminded everyone that when Chef Kruger presented creative ideas in the
past they were turned down by the Board. He spoke of being in favor of adding an
entertainment tax in order to sustain the Village.
Trustee Cuevas spoke about the current financial situation, used resources and urged the
Board to keep up with the times even if it means adding an entertainment tax.
5. ADJOURNMENT
Motion by Trustee Saiyed, seconded by Trustee Manzo, to adjourn the Special Budget
Workshop Meeting of the Board of Trustees at 8:28 p.m.
VOICE VOTE: Motion carried.
ATTEST:
Charlotte K. Pruss
Village Clerk
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