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Minutes of the April 23, 2013 Regular Park Board of Commissioners Meeting

 

ATTENDANCE AT MEETING

Board Members Present:    

President Mike Reid

Vice President Maureen Yanes

Commissioner Michael W. Alter

Commissioner Jerry B. Clarito

                                             

Others Present:                    

Director/Secretary John V. Ohrlund

Treasurer William G. Schmidt

Superintendent of Parks Michael Rea

Superintendent of Recreation and Facilities Michelle Tuft

Assistant Superintendent of Recreation Jon Marquardt     

 

John Miller, Ehlers and Associates

Floyd Bednarz, 8051Knox Ave, Skokie, IL

Office Manager Dima Kirland         

Executive Administrative Assistant Ann Perez

Absent:                                 

Commissioner Susan Aberman

                                             

CALL TO ORDER

President Reid called the regular meeting of the Board of Park Commissioners to order at 7:00 p.m., followed by the recitation of the Pledge of Allegiance.

COMMENTS FROM CITIZENS

Floyd Bednarz said he hopes to give the Board a report at the next Board Meeting from his students on the work being performed on the parcel of land at Oakton/McCormick.

PUBLIC HEARING ON THE TENTATIVE BUDGET AND APPROPRIATION ORDINANCE FISCALYEAR 2013-2014 ORDINANCE #13-007

President Reid called to order the Public Hearing on the 2013-2014 Budget and Appropriation Ordinance #13-007.  He asked for any comments or questions regarding the proposed budget. Mr. Floyd Bednarz inquired if the budget was posted on the website. Treasurer Schmidt stated the Tentative Budget and Appropriation Ordinance was posted on the website. The budget was not posted on the website. With no other comments, President Reid closed the Public Hearing at 7:02 p.m.

CONSENT AGENDA

With no items removed from the Consent Agenda, Vice President Yanes moved to approve the Consent Agenda. Commissioner Clarito seconded the motion.  On a roll call vote, all Commissioners voted aye. Commissioner Aberman was absent. Motion carried. The Consent Agenda consisted of: Minutes of the Regular Board Meeting of March 19, 2013; Minutes of the Marketing Committee Meeting of April 18, 2013; Bills Payable for the months of March 2013 /April 2013; Treasurer’s Report; and Staff Reports.

APPROVAL OF FINAL BUDGET AND APPROPRIATION ORDINANCE FOR FISCAL YEAR 2013-2014 ORDINANCE #13-008

Treasurer Schmidt said the final Budget and Appropriation Ordinance #13-008 mirrors the Tentative Budget and Appropriation Ordinance #13-007 with no changes.  Board approval is requested for the final Budget and Appropriation Ordinance #13-008 so it can be filed with Cook County.

Commissioner Alter moved to approve the Final Budget and Appropriation Ordinance #13-008 for fiscal year 2013-2014 in the amount of $27,750,693.00.  Commissioner Clarito seconded the motion. All Commissioners voted aye. Commissioner Aberman was absent.  Motion carried.

ADOPTION OF SUPPLEMENTAL ORDINANCE #13-009 PROVIDING FOR THE ISSUANCE OF APPROXIMATELY $2,000,000 OF GENERAL OBLIGATION BONDS (ALTERNATE REVENUE SOURCE) SERIES 2013B OF THE SKOKIE PARK DISTRICT

Treasurer Schmidt reminded the Board that a few months ago the Board adopted Ordinance

#13-002 to authorize the issuance of $2,000,000 of General Obligation Alternate Park Bonds for capital improvements.  In the past the District has issued Capital Appreciation Bonds every other year.  These come due in a 20 year cycle. In 2014 there is a change in the rules on limited tax bonds.

Mr. John Miller, financial consultant for the District from Ehlers and Associates was introduced and began to explain the results of the bond sale that took place this afternoon.  He said he wanted to speak about the sale, the switch from Capital Appreciation Bonds to current interest bonds and to look ahead at future alternate bonds.

Mr. Miller reported that the bond sale was successful.   Stifel, Nicolaus & Company, Incorporated, St. Louis, Missouri was the purchaser of the $2,000,000 General Obligation Bonds (Alternate Revenue Source), Series 2013B.  This was a negotiated sale.  Mr. Miller informed the Board that the bonds were sold at yield of $3.11% with a true interest cost of 3.3038%.  Debt service on the Series 2013B bonds will be paid from the future issuance of Limited Tax Bonds, within the District’s debt service extension base. Mr. Miller explained the Bond Purchase Agreement with a negotiated sale as compared to a bid process.

Mr. Miller said the favorable result is due to current low interest rates in the market and the Park District’s Moody’s “Aa2” rating affirmation.

Mr. Miller said Capital Appreciation Bonds were the only choice in the past. These bonds are not well received by the market because they are long term maturity bonds with no interest payments until maturity. Mr. Miller suggested using current interest issue bonds.  This year the District is able to sell a current interest bond with interest payable every six months.  The advantage of these bonds is more interest in the market, not paying high interest costs on the bonds as would be done with Capital Appreciation Bonds and there is a big savings in interest expense. There will be a savings of about one million dollars in the interest cost over the life of the bonds.

Mr. Miller explained how the District would be going forward with the capital bond issues.  Up until 2013 pre-tax cap alternate bonds were on the books with debt service with a large debt amount.  The District’s bond counsel had allowed an unlimited refunding bond issue up until now.  Beginning in 2014 the rules change.  The District’s bond counsel will have constraints to limited tax bonds keeping within the debt service extension base.

President Reid commented that large debt will be paid by smaller debt starting in 2014. Mr. Miller responded yes.

Mr. Miller said the District has the ability to issue non-referendum bonds because of the debt service extension base. Beginning in 2013 the District can purchase current interest bonds instead of Capital Appreciation Bonds.

Mr. Miller concluded with offering an informal workshop if the Board wanted to meet to discuss bonds in greater detail.

With no further questions, Vice President Yanes moved to approve Supplemental Ordinance #13-009 authorizing the issuance of approximately $2,000,000.00 of General Obligation Bonds (Alternate Revenue Source), Series 2013B of the Skokie Park District.  Commissioner Alter seconded the motion.  All Commissioners voted aye. Commissioner Aberman was absent.  Motion carried.

AUTHORIZATION TO PURCHASE VEHICLES

Superintendent Rea distributed a revised board summary to the Board members. Superintendent Rea requested authorization to purchase 2 vehicles which are scheduled to be replaced in the Vehicle and Equipment Replacement Fund in 2013-2014 fiscal year.  The vehicles to be replaced are two pickup trucks.  The first vehicle is pickup #5 which is utilized by the Parks Supervisor. The replacement is budgeted at $23,000.00.    A 2013 Ford C-Max hybrid will be the replacement vehicle.   The second vehicle is vehicle #80 a GMC pickup utilized by the Park Monitor.  The replacement is budgeted at $18,500.00. A 2013 Ford C-Max hybrid will be purchased as a replacement for this vehicle.  The vehicles are available through the Illinois State Purchase Program from Landmark Ford.

The 2013 Ford C-Max gets 47 miles per gallon in town.  The total budget for these two vehicles is $41,500.00.  The total cost for the two new vehicles is $44,537.00.  President Reid said that the cost is over budget. Superintendent Rea responded yes, but we will recoup when vehicle #5 goes to auction along with the cost in gas for the vehicles.

Commissioner Clarito moved to purchase two 2013 Ford C-Max hybrid vehicles from Landmark Ford for $44,537.00.  Vice President Yanes seconded the motion.  All Commissioners voted aye. Commissioner Aberman was absent.  Motion carried.

AUTHORIZATION TO BID REPLACEMENT CARPET AT FITNESS FIRST INCLUDING MEMBER LOCKER ROOMS

Superintendent Tuft requested authorization to bid carpet replacement at Fitness First. The rooms scheduled for new carpet include the fitness area including the spin room, offices, customer service desk and the men’s and women’s member locker rooms.

Superintendent Tuft stated next month authorization will be requested for electrical work for the floor outlets at Fitness First. The Fitness Center would need to be closed and this work would be done in the least busy time of the year, possibly September or October.

Vice President Yanes asked if tile or rubber flooring could be used instead of carpeting.  Some fitness centers that she has visited do not have carpet for health reasons and durability.  Superintendent Tuft said the cost of the rubber flooring is much more expensive than the carpeting.  President Reid inquired if a cost comparison could be made for the rubber flooring, tile and carpeting. Superintendent Tuft responded yes and Executive Director Ohrlund said staff would look into alternatives.   It was suggested to change the motion to state flooring replacement instead of carpet replacement.

Vice President Yanes moved to authorize staff to prepare specifications and bid out flooring replacement at Fitness First.  Commissioner Clarito seconded the motion. All Commissioners voted aye. Commissioner Aberman was absent.  Motion carried.

APPROVAL OF SKATIUM STUDIO RINK BID

Superintendent Rea requested approval of the Skatium Studio Rink bid.  Superintendent Rea stated that three bids were received.  Stantec Consulting Services, Inc. reviewed the three bids.  Stantec Consulting Services Inc. has worked with the low bidder, Total Mechanical Services Inc. with satisfactory results.  The low bid submitted by Total Mechanical Services Inc. was $701,505.00.

President Reid inquired about the difference in the three bids. Superintendent Rea replied that the other two bidders are general contractors with more overhead as compared to the group at Total Mechanical Services Inc.  Executive Director Ohrlund stated Total Mechanical Services, Inc. is experienced in this type of specialized work in ice rinks.

Commissioner Alter inquired about the timeline for the project. Superintendent Rea responded that the day after the Ice Show in May the work will begin on the Studio rink. The Studio rink floor, piping and mechanical systems will be replaced.

Commissioner Clarito inquired about the project budget of $850,000.00 for this project. Superintendent Rea responded $850,000.00 is budgeted in the project, which includes construction and engineering fees. Commissioner Alter stated there may be contingencies for the project.

Commissioner Alter moved to approve the bid of Total Mechanical Services for the removal and replacement of the Skatium Studio rink floor and mechanical system for $701,505.00.  Vice President Yanes seconded the motion.  All Commissioners voted aye. Commissioner Aberman was absent.  Motion carried.

APPROVE REVISED PAY GRADES & COMPETITIVE PAY STRUCTURE

Executive Director Ohrlund requested approval of revised pay grades and competitive pay structure.

The pay structure has not been adjusted since 2010 and the new pay structure will bring it up to 2013 standards.  The pay grades have been revised.  The new pay grades and pay structure is effective May 1, 2013.

Commissioner Clarito inquired if the new pay grades and pay structure affects the 2013-2014 budget. Executive Director Ohrlund responded no, the budget is not affected.  The 1.5% COLA and 1.5% merit increases are all included in the 2013-2014 budget.

Commissioner Clarito moved to approve the Revised Pay Grades and Competitive Pay Structure to be effective May 1, 2013.  Commissioner Alter seconded the motion.  All Commissioners voted aye. Commissioner Aberman was absent.  Motion carried.

PRESIDENT’S REPORT

President Reid confirmed the date of the May Board Meetings with the other Commissioners. The next Regular and Annual Meetings of the Board of Park Commissioners will be held on Tuesday, May 21, 2013 at 7:00 p.m.

COMMISSIONER COMMENTS

Vice President Yanes inquired about the Marketing Committee Meeting Minutes. Executive Director Ohrlund responded that the minutes were approved under the Consent Agenda.  Vice President Yanes said one item discussed at the Marketing Committee Meeting was to place a video monitor in Fitness First. Executive Director responded staff will look into placement of the video monitor.

Vice President Yanes asked about a previous discussion about Board access to the District’s intranet.  Executive Director Ohrlund responded that no determination has been made. Executive Director Ohrlund said he has some information on email accounts for commissioners.

President Reid reported on the public meeting on the George Street Parkway that took place earlier this afternoon a Village Hall.  A group of residents of the George Street Parkway neighborhood presented their views on allowing dogs in the parkway and dogs being off leash. A complaint was made to the Village about dogs on the George Street Parkway. The Village is enforcing the Village Ordinance that dogs must be leashed. The Village of Skokie has been issuing citations and assessing fines.

Commissioner Alter responded we have Pooch Park as a dog park.  Vice President Yanes commented that some people do not want to drive their dog to a park. They would prefer to walk their dog in a local park.

Executive Director Ohrlund said we received a lot of good input at the public hearing and the residents were given the opportunity to express their views.  There is a lot of neighborhood angst and staff will analyze and further discuss this issue with the Village of Skokie.

ADJOURNMENT

Commissioner Clarito moved adjourn the regular meeting, Commissioner Alter seconded the motion.  On a roll call vote, all Commissioners voted aye. Commissioner Aberman was absent. Motion carried.  The regular meeting ended at 7:54 p.m.                      .

 

________________________________                 _______________________________

Michael Reid                                                                 John V. Ohrlund

President                                                                       Secretary