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VILLAGE OF NORTH AURORA VILLAGE BOARD MEETING

AUGUST 15, 2011

CALL TO ORDER Mayor Dale Berman called the meeting to order. SILENT PRAYER – MEDITATION - PLEDGE OF ALLEGIANCE ROLL CALL In attendance: Mayor Dale Berman, Trustee Vince Mancini, Trustee Laura Curtis, Trustee Mark Gaffino, Trustee Ryan Lambert, Trustee Chris Faber, Trustee Mark Guethle. Staff in attendance: Village Administrator Wes Kornowske, Finance Director Bill Hannah, Community Development Director Scott Buening, Village Attorney Kevin Drendel, Public Works Superintendent Mike Glock, Water Superintendent Paul Young, Police Chief Dave Summer. AUDIENCE COMMENTS - None TRUSTEE COMMENTS - None INTRODUCTION 1. Nancy McCaul, Executive Director – Fox Valley Park District Director Mayor Berman introduced Nancy McCaul, Executive Director of the Fox Valley Park District. Ms. McCaul reported that the Fox Valley Park District serves a majority of North Aurora, including 13 neighborhood parks, Red Oak Nature Center and 5 miles of riverfront trails. Some of the projects funded by the 2008 referendum were the development of Erickson mini park and replacement of the North Aurora island playground. Fox Trail West Overlook will be completed in the next few weeks. North Aurora Island Shelter will be replaced by September. Goodwin baseball fields will get a facelift before spring ball starts. Fencing will be upgraded and some of the problems with grading issues will be fixed. Wingfoot Park will also have a playground replacement which will be completed in the spring. McCaul said that her focus is to work with the governmental agencies and keep up with what is happening in the communities. McCaul invited everyone to visit the new building located at 101 W. Illinois Avenue, across from Prisco Center. CONSENT AGENDA 1. Approval of Village Board Minutes dated 08/01/2011; Approval of C.O.W. Minutes dated 08/01/2011 Motion to approve made by Trustee Guethle and seconded by Trustee Lambert. Roll Call Vote: Trustee Mancini – yes, Trustee Curtis – yes, Trustee Gaffino – yes, Trustee Guethle – yes, Trustee Lambert – yes, Trustee Faber – yes. Motion approved (6-0). NEW BUSINESS 1. Approval of a Resolution Approving the River Valley Training Consortium Formal Agreement and Approving Participation in the River Valley Training Consortium Motion for approval made by Trustee Guethle and seconded by Trustee Gaffino. Roll Call Vote: Trustee Mancini – yes, Trustee Curtis – yes, Trustee Gaffino – yes, Trustee Lambert – yes, Trustee Guethle – yes, Trustee Faber – yes. Motion approved (6-0).

Village of North Aurora Village Board Meeting

August 15, 2011

2. Approval of Pay Request No. 2 from Robert Yiu Construction in the amount of $179,114.00 for Village Hall Renovations from 7/1/2011 through 7/29/2011 Motion for approval made by Trustee Gaffino and seconded by Trustee Lambert. Roll Call Vote: Trustee Gaffino – yes, Trustee Curtis – yes, Trustee Mancini – yes, Trustee Guethle – yes, Trustee Lambert – yes, Trustee Faber – yes. Motion approved (6-0). 3. Approval of Invoice from Frost Electric in the amount of $9,257.50 for emergency equipment and labor on Well 3 Motion for approval made by Trustee Lambert and seconded by Trustee Faber. Roll Call Vote: Trustee Lambert –yes, Trustee Guethle – yes, Trustee Faber – yes, Trustee Gaffino – yes, Trustee Curtis – yes, Trustee Mancini – yes. Motion approved (6-0). 4. Approval of Bill List dated August 15, 2011 FY11 in the amount of $18,660.62; Approval of Bill List dated August 15, 2011 FY12 in the amount of $313,943.19 Motion for approval made by Trustee Gaffino and seconded by Trustee Mancini. Faber asked what the Village gets for $18,000. Hannah said that this amount is the Village’s 40% remittance of its cable franchise fees. Roll Call Vote: Trustee Gaffino – yes, Trustee Faber –yes, Trustee Curtis – yes, Trustee Mancini – yes, Trustee Guethle – yes, Trustee Lambert – yes. Motion approved (6-0). OLD BUSINESS - None VILLAGE PRESIDENT REPORT 1. Appointment to the Police Pension Board – Mary Licar Motion to approve made by Trustee Guethle and seconded by Trustee Gaffino. Voice Vote – yes – unanimous. Motion approved. COMMITTEE REPORTS – None TRUSTEES’ COMMENTS – None ADMINISTRATOR’S REPORT Wes Kornowske reported on the following: -Village Hall renovation furniture bids will be open at Village Hall on August 19th @ 2 pm. -Village Hall project is on schedule. -The Village closed on 19 N. Lincolnway on Friday, August 5th. -Rep. Kay Hatcher will be at Village Hall on August 24th from 9 – noon. ATTORNEY’S REPORT - None FIRE DISTRICT REPORT - None VILLAGE DEPARTMENT REPORTS A. Finance Finance Director Bill Hannah said there has been a lot of tension over the last couple of weeks about the downgrade of the United States credit rating by Standard & Poors. The Village has a rating with Standard and Poors which has not been affected by the downgrade. The Village is still rated at AA-. The Federal Open Market Committee met and pledged to keep interest rates low for the next two years. Hannah said he has received many inquiries about the electrical aggregation. There have been about 170 people who have opted out of the change to Integris. In the end, will expect about 5% of residents to opt out. Deadline is next Tuesday.

Village of North Aurora Village Board Meeting

August 15, 2011

Final sales tax numbers are in for May. They are $3,502,327 which is a 9.86% increase over last year. B. Community Development Scott Buening said that LaFarge has closed on the house that was boarded up on Route 25 south of Mike’s Place and have offered it up for training to the Fire District. Plan Commission meets tomorrow to review the zoning ordinance. Currently on Chapter 11 of 16. Buening said he is hoping to get this done by November so that it can go before the Village Board for consideration. The Plan Commission meets on Sept 6th to discuss several items including continuation of the LaFarge petition for the ComEd property. There is potential discussion for a special use for a spay/neuter clinic that would be located at 11 John Street. Fox Valley Animal Welfare League is proposing a spay/neutering clinic and a thrift store. A petition for a special use will be presented to the Commission for 10 South Lincolnway for used car sales. Mayor Berman said that he, Scott Buening and Wes Kornowske attended the WeeDees grand re-opening with the new ownership. Mayor Berman encouraged people to try the business. C. Police – Aug 2nd was National Night Out. Chief Summer said that the department went to as many of the block parties as possible that evening. There were ten (10) block parties which is a big increase from last year. On Aug 17th will be participating in an unveiling of a newly constructed one-of-a- kind homeland security education center at the College of DuPage. Chief Summer informed the board that Officer Voss responded to a house fire on July 11th. When he notified the resident that her house was on fire, she ran back into her house. Voss chased her and escorted her to safety. Chief Summer said that Officer Voss deserved a Medal of Distinguished Service Award. D. Public Works – Mike Glock reported that the bridge should be open on August 19th. Traffic signals will be tested for Oak & Route 31 at 10:00 am on August 24th. E. Water - None Trustee Gaffino commented that everyone did a great job for North Aurora Days. Gaffino thanked the Public Works Department and the Police Department for all of their help in making NA Days a success. ADJOURN Motion to adjourn made by Trustee Guethle and seconded by Trustee Lambert . All in favor. Motion approved.

Respectfully Submitted,

Lori J. Murray Village Clerk

VILLAGE OF NORTH AURORA COMMITTEE OF THE WHOLE MEETING

AUGUST 15, 2011 CALL TO ORDER Mayor Berman called the meeting to order. ROLL CALL In attendance: Mayor Dale Berman, Trustee Vince Mancini, Trustee Laura Curtis, Trustee Mark Gaffino, Trustee Mark Guethle, Trustee Ryan Lambert, Trustee Chris Faber. Staff in attendance: Village Administrator Wes Kornowske, Finance Director Bill Hannah, Community Development Director Scott Buening, Village Attorney Kevin Drendel, Public Works Superintendent Mike Glock, Water Superintendent Paul Young, Police Chief Dave Summer. AUDIENCE COMMENTS – None TRUSTEE COMMENTS – None DISCUSSION 1. Discussion on North Aurora Village Hall Asbestos Abatement Activity Wes Kornowske informed the Board that some tile removal at Village Hall would take place on August 22nd & 23rd. Tiles will be removed from the Boardroom and in the community development wing during the next phase. There will be a month-and-a-half of board meetings in which the floor will just be plywood. Mayor Berman said he thought the meetings would be moved to another location during that time. Kornowske said that could be done. Trustee Faber said the only problem would be the acoustics. Total projected abatement costs will be around $34,830. Kornowske noted that when there is a $50,000 general construction contingency of which the Village has only used $2,000. There is a $10,000 T1 relocation contingency and a $5,000 cable/tv relocation contingency that the Village has not used. Kornowske said that this work would not be a budgetary concern. TRUSTEE COMMENTS - None EXECUTIVE SESSION Motion made by Trustee Guethle and seconded by Trustee Lambert to adjourn to Executive Session to discuss probable litigation and personnel. (return from Executive Session) ADJOURN Motion to adjourn made by Trustee Guethle and seconded by Trustee Faber. All in favor. Motion approved. Respectfully Submitted, Lori J. Murray Village Clerk

Village of North Aurora

Memorandum

_________________________________________________________________________

To: Village President Berman; Village Board of Trustees

Cc: Chief David Summer

From: Wes Kornowske, Village Administrator

Date: 8/25/2011

Re: Public Meeting Relocation – September 9th through November 21st 2011 _________________________________________________________________________

The NAVH Renovation activity will be moving to the 2nd floor Board Room on September 9th. Originally, the Board Room renovations were scheduled to begin on October 31st, however, the contractor has identified efficiencies in moving forward with the Board Room renovations earlier than anticipated. Staff has reviewed this request and does not foresee the change in schedule causing an increased inconvenience compared to the inconvenience of renovating the Board Room per the original schedule.

The Police Department has been notified that the Community Room located at 200 S. Lincolnway will be needed by the Village Board/Plan Commission for public meetings from September 9th through November 21st and has indicated that no conflicts exist. Below is a chart of the public meetings that will be relocated to the North Aurora Police Facility during this period.

DAY DATE MEETING

Monday 12-Sep-11 Finance Committee - 5:30

Monday 12-Sep-11 Public Facilities - 7:00 p.m.

Monday 19-Sep-11 Village Board & COW 7:00 p.m.

Tuesday 20-Sep-11 Plan Commission - 7:00 p.m.

Wednesday 21-Sep-11 Development Committee 8:30 a.m.

Monday 26-Sep-11 Public Facilities - 7:00 p.m.

Wednesday 28-Sep-11 North Aurora Days Committee 7:00 p.m.

Monday 3-Oct-11 Public Safety - 6:00 p.m.

Monday 3-Oct-11 Village Board & COW 7:00 p.m.

Tuesday 4-Oct-11 Plan Commission - 7:00 p.m.

Monday 10-Oct-11 Finance Committee - 5:30

Monday 10-Oct-11 Public Facilities - 7:00 p.m.

Thursday 13-Oct-11 NOARDA 5:00 p.m.

Monday 17-Oct-11 Village Board & COW 7:00 p.m.

Tuesday 18-Oct-11 Plan Commission - 7:00 p.m.

Wednesday 19-Oct-11 Development Committee 8:30 a.m.

Monday 24-Oct-11 Public Facilities - 7:00 p.m.

Tuesday 1-Nov-11 Plan Commission - 7:00 p.m.

Monday 7-Nov-11 Public Safety - 6:00 p.m.

Monday 7-Nov-11 Village Board & COW 7:00 p.m.

Monday 14-Nov-11 Finance Committee - 5:30

Monday 14-Nov-11 Public Facilities - 7:00 p.m.

Wednesday 16-Nov-11 Development Committee 8:30 a.m.

Thursday 17-Nov-11 NOARDA 5:00 p.m.

Monday 21-Nov-11 Village Board & COW 7:00 p.m.


- 2 -

Staff Recommendation

Village staff recommends that the Village Board approve the use of the North Aurora Police Facility Community Room for public meetings from September 9, 2011 through November 21, 2011.

Village of North Aurora Memorandum

To:

President and Board of Trustees

From:

Bill Hannah, Finance Director

Date:

August 25, 2011

RE:

Approval of Resolution Regarding Funding Parameters Related to the Police

Pension Reform Legislation

The State of Illinois passed pension reform legislation on December 30, 2010 creating a second

tier of benefits for new hires, also known as PA 096-1495. The legislation also modified the

“minimum” funding requirements that municipalities are required to adhere to for future pension

valuations. The market downturn and related investment losses in 2008 reduced the funded

status of pension plans throughout the country, increasing the required contribution to those

plans as the unfunded accrued liability significantly increased.

The Village maintains a Police Pension Trust Fund plan funded by employee contributions,

investment income and Village contributions for the payment of future pension benefits. The

legislation that was passed does not impact future benefit levels for current participants in the

plan, only new hires. However, the change in funding requirements as described below goes into

effect for valuations done this year.

To summarize, the legislation made the following changes to minimum funding requirements:

• Change from a 100% funding goal to a 90% funding goal

• Change from a closed amortization period ending in 2033 to a closed amortization period

of 2040 for the purpose of funding the unfunded accrued liability

• Change from a entry age normal method to a projected unit credit method

• Smoothing of investment gains and losses over five years

In a nutshell, projected unit credit (PUC) represents the value of benefits earned to date while

entry age normal amortizes the liability as a level percentage of pay over the employee’s career.

It seems like the change to PUC was an afterthought and no real basis made for that change. It

also appears there are discussions to try and modify that in the legislature.

I’ve attached the summary of the North Aurora Police Pension valuation options completed by

the actuary. The first column shows last year’s valuation at 6/1/2010 which generated a

funding requirement of $529,375 which is what is being transferred this current fiscal year.

Columns 2 through 5 show the results of the 6/1/2011 valuation (to be transferred next FY 12-

13) under various scenarios as follows:

• Column 2 shows the valuation at 6/1/2011 as if no changes were implemented by the

State ($541,132 funding requirement)

• Column 3 shows the valuation incorporating only the change to a new 30-year

amortization period ($479,202 funding requirement)

• Column 4 shows the valuation incorporating all of the new changes made under the act

($413,505 funding requirement)

• Column 5 shows the valuation incorporating all of the new changes made under the act

except for the 90% goal and by keeping the 100% goal ($474,946 funding requirement)

• Columns 2 and 3 are done under the old Entry Age Normal method and Columns 4 and 5

are done under the Projected Unit Credit method.

After reviewing the various options and discussing it with the the Village auditors utilizing Option 3 would be consistent with current accounting standards which would allow a new 30

year amortization period but does not comply with GASB standards when it comes to the 90%

funding goal. It would also show a commitment by the Village to a higher funding standard then

allowed now by the State. Utilizing the 90% standard for funding while requiring to use the

100% standard for accounting purposes will result in significant increases in the Village’s net

pension obligation and decreases in funded status. As more and more scrutiny is being given by

debt rating agencies to pension and post-employment benefit funding, utilizing Option 3 would

also show a commitment by the Village to those rating agencies of funding the unfunded liability

over time.

The Village, during the annual budget process, can determine if additional monies can be

allocated over and above Option 3 at or somewhere close to the old amortization period, giving

the Village the flexibility if need be during that time. If the Board wishes to adopt the current

standards in Option 2, the resolution could be modified to incorporate that.

I’ve also attached a history of funding valuations over the last 10 years through last year’s

5/31/2010 valuation. In addition, I’ve attached our GASB disclosures to be presented in the

upcoming Comprehensive Annual Financial Report assuming Option 3 is selected. If Option 2 is

selected only the remaining amortization period in the disclosures will change.

RESOLUTION ADOPTING FUNDING PARAMETERS FOR THE THE ANNUAL POLICE PENSION ACTUARIAL VALUATION

WHEREAS, the Village of North Aurora maintains a Police Pension Trust Fund to collect monies for the future payment of benefits to pension retirees; and WHEREAS, an annual actuarial police pension valuation is developed in order to, among other things, determine the annual required contribution from the Village to the Police Pension Fund; and WHEREAS, the State of Illinois adopted SB 3538 on December 30, 2010 (also known as PA 096-1495) which changes police pension benefits for new hires; and WHEREAS, SB 3538 also modified the minimum funding requirements for police pension systems by changing to a 90% funding goal by 2040 (instead of the current 100% funding goal by 2033), a change in actuarial methods from entry age normal to projected unit credit, and a five (5) year smoothing of gains and losses in future years; and WHEREAS, the change to a 90% funding goal is generally inconsistent with generally accepted accounting principles (GAAP) which requires a 100% amortization of unfunded actuarial accrued liabilities; and WHEREAS, the Village has determined that a 100% funding goal is consistent with a sound funding methodology and wishes to continue to utilize that goal with future police pension actuarial valuations; and WHEREAS, the Village has determined that the new closed-amortization period of thirty (30) years by 2040 is a reasonable change to incorporate into future police pension valuations for amortizing the current unfunded accrued liability; and WHEREAS, the Village has the option if it adopts the new 30 year amortization period to annually analyze and determine if the Village can increase its contribution to the Police Pension Fund over and above the amount determined by the annual police pension valuation; and WHEREAS, the Village has determined for consistency purposes that it wishes to continue to use all other current assumptions regarding the annual police pension actuarial valuation. NOW, THEREFORE, be it resolved by the President and Board of Trustees of the Village of North Aurora, as follows: 1. That the recitals set forth above are incorporated herein and made a material part of this Resolution as the findings of the President and the Board of Trustees. 2. The Village will incorporate into the 6/1/2011 police pension actuarial valuation the use of a 100% funding goal, adopting the new 30-year amortization period by 2040 and continued use of entry age normal actuarial method instead of projected unit credit. 3. This Resolution shall be in full force and effect immediately upon its passage and approval as provided by law.

Presented to the Board of Trustees of the Village of North Aurora, Kane County, Illinois this _____ day of ___________, 2011, A.D.

Passed by the Board of Trustees of the Village of North Aurora, Kane County, Illinois this _____ day of ___________, 2011, A.D. Mark Guethle _________ Laura Curtis _________

Mark Gaffino _________ Chris Faber _________ Vince Mancini _________ Ryan Lambert _________ Approved and signed by me as President of the Board of trustees of the Village of North Aurora, Kane County, Illinois this _______ day of _________________, 2011 A.D. ___________________________________ Village President Dale Berman ATTEST: ____________________________ Village Clerk

FACSIMILE #: ( )

Number of pages (including this page):

To: Mr. Bill Hannah

Comments:

Re: Police Pension Fund

Bill:

Attached are the 06/01/11 preliminary actuarial results, the investment performance summary

and the salary history for the Police Pension Fund. In trying to address all of the changes this

year, the results highlight the impact of the new provisions of PA 096-1495 “Pension

Reform” and quantify the impact of the “90% Target.” This year, the investment return was

more than assumed and salaries increased as assumed. Police has 1 less active member and

the annual payroll decreased 1.1%. Thus, in absence of the new Act, the Tax Levy would be

about the same as last year and the Percent Funded would increase. As a result of the new

Act, the Tax Levy decreases and the Percent Funded increases.

Highlights:

1. Investment return 12.64%.

2. Annual payroll increase -1.1%, average increase 5.2%.

3. New members 0; Terminations 0; Retirements 1; Incidents of Disability 0.

4. Percent Funded has increased from 62.4% to 65.7%.

As Always,

T. Sharpe

Timothy W. Sharpe, Actuary, Geneva, IL (630) 262-0600

TWSActuary

August 22, 2011

VILLAGE OF NORTH AURORAActuarial Valuation Results

6/1/11 6/1/10 POLICE

70.9%70.9%65.7%65.7%62.4%9. Percent Funded (3/2)

2,017,6062,017,6062,017,6062,017,6062,040,1828. Payroll

474,946413,505479,202541,132529,3757. Tax Levy

Requirement (1+5+6)

33,13628,84933,43337,75336,9336. Interest for One Year

166,578109,424211,273268,883257,8295. Amortization of UL

3,856,5433,856,5434,891,3244,891,3244,860,8104. Unfunded

Liability/(Surplus)

9,375,4509,375,4509,375,4509,375,4508,056,6263. Assets

13,231,99313,231,99314,266,77414,266,77412,917,4362. Accrued Liability

275,232275,232234,496234,496234,6131. City Normal Cost

5432Sal: 5.50%

Int: 7.50%

2) Reflects pre-PA 096-1495 provisions (22-year amortization)

3) Reflects (2) plus 30-year amortization

4) Reflects PA 096-1495 (90% Target amortization)

5) Reflects (4) plus 100% Target amortization


bhannah

Text Box

Old Way

bhannah

Text Box

30 Year Period

bhannah

Text Box

New Way

bhannah

Text Box

New Way +100%

VILLAGE OF NORTH AURORA

Police Pension Fund

Investment Performance 2002-2011

5.26%10-Year Yield

(2002-11)

6.56%5-Year Yield

(2007-11)

12.64%11.04%-5.83%3.71%11.23%2.05%4.01%1.14%7.11%5.52%Annual Yield

9,375,4508,056,6267,007,7727,235,4066,844,1996,058,3045,826,7255,504,1385,344,1914,878,725EOY Assets

1,036,521787,957(427,694)256,391685,977120,826222,57861,551350,798253,881Income

42,8928,1896,42262,98528,4278,7467,84810,8065,6169,719Expenses

413,181369,572379,923346,786337,566418,226270,290260,706212,726209,679Pension

Payments

214,376198,657197,406196,586169,912282,725138,147129,908128,009112,966Officer

Contribution

524,000440,000389,000348,000296,000255,000240,000240,000205,000158,000Village

Contribution

8,056,6267,007,7737,235,4056,844,1996,058,3035,826,7255,504,1385,344,1914,878,7264,573,277BOY Assets

FYE 11FYE 10FYE 09FYE 08FYE 07FYE 06FYE 05FYE 04FYE 03FYE 02

August 22, 2011



Police Pension Fund Valuation History(1) (2) (3) (1) + (2) + (3) (4) TOTAL (5) Actuarial (4) - (5) Unfunded

Amortization Accrued Value Accrued

Total Less Village Unfunded TOTAL Tax Levy TOTAL Liability Actuarial of Assets Unfunded Liability

Valuation Normal Employee Normal Accrued Interest Tax Levy Percent Accrued Percent Value Percent Accrued Percent Percent

Date Cost Contributions Cost Liability One-Year Requirement Change Liability Change of Assets Change Liability Change Funded

5/31/2001 235,380 104,781 130,599 60,222 14,312 205,133 5,988,384 4,526,223 1,462,161 75.6%

5/31/2002 272,532 121,226 151,306 72,117 16,757 240,180 17.1% 6,589,412 10.0% 4,878,726 7.8% 1,710,686 17.0% 74.0%

5/31/2003 283,122 127,893 155,229 82,434 17,825 255,488 6.4% 7,252,683 10.1% 5,344,191 9.5% 1,908,492 11.6% 73.7%

5/31/2004 286,790 129,375 157,415 79,020 17,733 254,168 -0.5% 7,718,924 6.4% 5,504,138 3.0% 2,214,786 16.0% 71.3%

5/31/2005 307,996 138,689 169,307 105,313 20,597 295,217 16.2% 8,141,564 5.5% 5,826,725 5.9% 2,314,839 4.5% 71.6%

5/31/2006 350,267 153,919 196,348 126,798 24,236 347,382 17.7% 8,769,029 7.7% 6,058,304 4.0% 2,710,725 17.1% 69.1%

5/31/2007 404,586 177,478 227,108 134,052 27,087 388,247 11.8% 9,627,733 9.8% 6,844,199 13.0% 2,783,534 2.7% 71.1%

5/31/2008 429,022 190,123 238,899 170,256 30,687 439,842 13.3% 10,664,231 10.8% 7,235,406 5.7% 3,428,825 23.2% 67.8%

5/31/2009 436,597 197,007 239,590 247,167 36,507 523,264 19.0% 11,828,034 10.9% 7,007,772 -3.1% 4,820,262 40.6% 59.2%

5/31/2010 436,795 202,182 234,613 257,829 36,933 529,375 1.2% 12,917,436 9.2% 8,056,626 15.0% 4,860,810 0.8% 62.4%

North Aurora Police Pension

Assets vs. Accrued Liabilities

-

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Total Accrued Liability

Value of Assets

Unfunded Liability

Unfunded Accrued Liability vs. Percent Funded

75.6

%

74.0

%

73.7

%

71.3

%

71.6

%

69.1

%

71.1

%

67.8

%

59.2

%

62.4

%

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

Unfunded AccruedLiabilityPercent Funded

Investment Return vs Change in Percent Funded

-8.00%

-6.00%

-4.00%

-2.00%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10Investm

en

t R

etu

rn

-14.00%

-12.00%

-10.00%

-8.00%

-6.00%

-4.00%

-2.00%

0.00%

2.00%

4.00%

6.00%

8.00%

Ch

an

ge P

erc

en

t F

un

ded

Investment Return

Percent Change in

Percent Funded

North Aurora Police Pension

Village and Employee Contributions

-

100,000

200,000

300,000

400,000

500,000

600,000

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

Employee Contributions

Village Contributions

STATEMENTS NO. 25 & 27 DISCLOSURE INFORMATION

The Governmental Accounting Standards Board (GASB) issued Statements No. 25 & 27 that

established generally accepted accounting principles for the annual financial statements for

defined benefit pension plans. The required information is as follows:

Membership in the plan consisted of the following as of:

11Number of participating employers

4040Total

109Active nonvested plan members

1919Active vested plan members

33Terminated plan members entitled

to but not yet receiving benefits

89Retirees and beneficiaries

receiving benefits

May 31, 2010May 31, 2011

SCHEDULE OF FUNDING PROGRESS

242.4%2,017,60665.7%4,891,32414,266,7749,375,45005/31/11

238.3%2,040,18262.4%4,860,81012,917,4368,056,62605/31/10

242.5%1,987,95859.2%4,820,26111,828,0347,007,77305/31/09

UAAL as a

Percentage

of Covered

Payroll

((b-a)/c)

Covered

Payroll

(c)

Funded

Ratio

(a/b)

Unfunded

AAL

(UAAL)

(b-a)

Actuarial Accrued

Liability (AAL)

-Entry Age

(b)

Actuarial

Value of

Assets

(a)

Actuarial

Valuation

Date

VILLAGE OF NORTH AURORA POLICE PENSION FUND

GASB STATEMENTS NO. 25 & 27 DISCLOSURE INFORMATION (Continued)

ANNUAL PENSION COST AND NET PENSION OBLIGATION

1,087,7271,109,782Net pension obligation end of year

1,063,6851,087,727Net pension obligation beginning of year

24,04222,055Increase (decrease) in net pension obligation

440,000524,000Contributions made

464,042546,055Annual pension cost

(55,576)(58,789)Adjustment to annual required contribution

79,77681,580Interest on net pension obligation

439,842523,264Annual required contribution

May 31, 2010May 31, 2011

THREE-YEAR TREND INFORMATION

1,109,78296.0%546,05505/31/11

1,087,72794.8%464,04205/31/10

1,063,68594.1%413,60505/31/09

Net

Pension

Obligation

Percentage

of APC

Contributed

Annual

Pension

Cost (APC)

Fiscal

Year

Ending


GASB STATEMENTS NO. 25 & 27 DISCLOSURE INFORMATION (Continued)

FUNDING POLICY AND ANNUAL PENSION COST

Same3.00% per yearCost-of-living adjustments

Same3.00%*Includes inflation at

Same5.50% Projected salary increases*

Same7.50% Investment rate of return*

Actuarial assumptions:

SameMarketAsset valuation method

23 years30 yearsRemaining amortization period

SameLevel percentage of pay, closedAmortization period

SameEntry ageActuarial cost method

05/31/201005/31/2011Actuarial valuation date

440,000524,000Contributions made

464,042546,055Annual pension cost

Same9.91% Plan members

21.57%25.97% Village

Contribution rates:


ctorraco

Typewritten Text

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Typewritten Text

*


Memorandum

_________________________________________________________________________


Cc: Paul Young, Water Superintendent; Public Facilities Committee


Date: 8/23/2011

Re: Water Main Break at 102 Overland Drive _________________________________________________________________________

At 9:00am on Friday, August 5th the Village was contacted by an employee at 100 Overland Drive regarding water bubbling up by their dock driveway. Water staff went to Overland Drive to examine the cause of the bubbling water. Staff determined that a major leak was occurring on Overland Drive and would need immediate attention as the leak was causing an approximate loss of 850 gallons per minute. Sequence of Events

Leak noticed around 9:00am on 8/5/2011 Staff responded immediately and identified that the leak was major and would require immediate

repair/shut off. Water staff turned off the control valves which were thought to be the source of the water leading to the

broken main. A Water Department employee verified that he shut off the valves. This did not stop the leak.

Water Services was contacted to detect where the leak was on the main. Staff reviewed water maps that incorrectly pictured a 12” main running from the 10” leaking main to the

16” transmission main. The water atlas’ did not picture any serviceable valves aside from the ones shut off to slow the leak and

allow for repair. Wes Kornowske reported to the site at approximately 1:30pm at the request of Paul Young. Due to the

maps portrayal of the distribution system as having no additional control valves, aside from the ones allegedly shut off within the area, and any shut off at an additionally shown valve causing major user disruption within the industrial park and along Route 31, Wes Kornowske authorized installing a line stop on the main in order slow the water leak and to repair the broken portion of the main. This was to avoid shutting off major industrial and commercial users.

Wes Kornowske also authorized the hiring of J&S underground to assist in the emergency repairs as manpower was limited and the leak remained severe at 850 gallons per minute. The Water Operator confirmed that the towers fell four (4) feet unexpectedly as a possible result of the leak.

RSA came to North Aurora with a 2002 atlas that did not include a 12” main running from the 10” leaking main to the 16” transmission main. Staff continued to explore east of the leak in an attempt to identify any possible feeder lines missing from the atlas’.

Geneva Valve Tapping arrived on the scene in the late afternoon/early evening and inserted the line stop. This slowed the leak, however, did not completely shut it down. J&S went back to the valves that were allegedly closed and determined that one of the valves was in fact not shut down as had been previously reported. The explanation at the time of the finding of the open valve was that the individual heard it hissing when attempting to shut it off so he backed it off until the hissing went away. In effect, the valve was nearly closed which would have minimized the leak and voided the need for a line stop, but reopened the valve until the hissing was gone. The hissing is a natural occurrence when shutting off a valve due to the space which the water is passing through being narrowed.


- 2 -

After the valve was closed correctly, the leak was slowed to the point of being able to be repaired at

approximately 8:30pm. J&S was instructed to return to the site on Monday, August 8th to finish repairing the damaged 10” water main. The Village supplied all parts and material to J&S in order to reduce the cost of this subcontracting.

The total cost for the repair of the damaged main including the location by Water Services, the line stop and labor for repairing the main is $16,116.50 which includes water leak location services in the amount of $425.00 not requiring Village Board approval.

Staff/Public Facilities Committee Recommendation

Water Department staff is working with RSA to more closely review the water distribution atlas’ and correct all possible discrepancies to avoid misinterpretation in the future. The costs incurred for this repair are a result of a complete failure in an ordinary work task which caused misinformation to be passed up the chain of command. Village staff and the Public Facilities Committee recommend that the Village Board approve the payment of $15,691.50 to J&S Construction and Geneva Valve Tapping. The cost breakdown is as follows. J&S Construction Water main repair/replacement $ 5,941.50 Geneva Valve Tapping 10” Emergency Line Stop $ 9,750.00 Total $15,691.50 Attached: J&S Construction Invoice - $5,941.50 Geneva Valve Tapping Invoice - $9,750.00


Memorandum

_________________________________________________________________________


Cc: Vicki Morcos, KDI Design


Date: 8/25/2011

Re: NAVH Renovation Furniture Package _________________________________________________________________________

The Village of North Aurora accepted bids for the Village Hall furniture package on Friday, August 19th at 2:00pm. Three (3) furniture vendors submitted bids for the project. The budget for the furniture portion of this project was set at $45,000.00 within the FY2012 Annual Budget. The bid breakdown is provided below. Bid Results

Company Material Installation/Shipping Total Cost

Corporate Concepts $47,444.65 $6,952.56 $54,397.21

Interiors for Business $47,706.00 $8,279.00 $55,985.00

Desks Inc. $49,706.09 $8,041.00 $57,747.09 Corporate Concepts of Lombard provided the lowest lump sum bid. Although the lump sum bid exceeds the budget for this portion of the project, there are value engineering opportunities to bring the cost down. Those value engineering changes are estimated below. Value Engineering

Item Description QTY Unit Price Extended Price

Substitute Price

Total Savings

Via Riva Chairs 4 $ 462.60 $1,850.40 $ - $ 1,850.40 Delete Phoenix Fire File 1 $2,316.47 $2,316.47 $ 600.00 $ 1,716.47 Delete Three H Large Conference Room Credenza 1 $1,060.46 $1,060.46 $ - $ 1,060.46 Delete Three H Clerk 103 Freestanding Desk 1 $1,011.41 $1,011.41 $ - $ 1,011.41 Customer warehousing 1 $1,000.00 $1,000.00 $ - $ 1,000.00 Total Savings $ 6,638.74 Original Bid Amount $ 54,397.21 Corporate Concepts Revision $ 47,908.47 Village Revised Contract Amount $ 47,758.47

Staff Recommendation

The Village’s FFE consultant estimated the material cost of the furniture would be $43,598.60 not including the estimated installation cost of $10,000.00. Village staff had the ability to review the complete furniture schedule, and it is staff’s conclusion that the value engineered schedule achieves the minimum standard for furniture procurement. Every employee is not receiving new furniture, only those that require such for ergonomic and functional reasons. Village staff recommends that the Village Board approve the low bid amount of $54,397.21


- 2 -

from Corporate Concepts to allow staff to negotiate a contract with Corporate Concepts inclusive of the value engineered schedule shown on page one (1) of this memorandum. In effect, approval of Corporate Concepts as the low bidder authorizes staff to negotiate a contract which reflects the reduced pricing. The final contract will be presented to the Village Board for approval on September 19th. Attached: Corporate Concepts Value Engineered Furniture Schedule and Cost

445 N. Wells St., Suite 304 312-670-0230 www.corpconc.comChicago, IL 60610 Fax 670 4291

Village of North AuroraFurniture Summary 8/25/2011

Qty. Code Manufacturer Description Unit Total3 Mandy,

Marcy & Cindy

Via - Riva Mesh mid-back task chair with 38A4 arms; Infusion - Bark upholstery

$350.11 $1,050.33

2 Nancy & Karole

Via - Brisbane Mid-back task chair with Brisbane arms; Infusion - Bark upholstery

$449.52 $899.04

1 Scott Via - Riva Upholstered high-back task chair with 39A8 arms; Infusion - Bark upholstery

$439.92 $439.92

3 Brenda, Dan, & Rhonda

(Wes, Bill, Mike &

Paul Eliminated

Via - Riva Upholstered high-back task chair with 38A8 arms; Infusion - Bark upholstery

$462.60 $1,387.80

40 Council Room

Via - Cali No-arm stack chair; Black shell and Silver frame

$61.48 $2,459.20

6 Breakroom Via - Cali No-arm stack chair; Black shell and Silver frame

$61.48 $368.88

10 Admin, Mike, Paul,

Mandy, Bill, Scott

Via - Vista Guest chair with arms; Bravo - Cinder upholstery and Silver frame

$275.55 $2,755.50

22 Small & Large

Conference Rooms

Via - Vista Guest chair with arms; Bravo - Mica upholstery and Silver frame

$275.55 $6,062.10

22 Small & Large

Conference Rooms

Via - Vista (ALTERNATE)

Guest chair with arms and casters; Bravo - Mica upholstery and Silver frame

$301.71 -

0 Phoenix - Fire File

36" wide, 4-drawer file; color TBD $2,316.47 $0.00

1 Shoto 42" x 60" x 192" Boat shaped table top (2 sections) with radius edge (Style #430), laminate finish (#4795-60 Wilsonart Windswept Pewter) and wood edge (WWM Windsor Mahogany on Maple)

$1,792.78 $1,792.78

1 of 3



Qty. Code Manufacturer Description Unit Total4 Shoto - Series

400042" double column end bases; Black Wrinkle powder coat paint finish

$158.92 $635.68

1 Shoto 42" x 72" Rectangular table top with PVC edge (Style #230), laminate finish (#4795-60 Wilsonart Windswept Pewter) and Charcoal edge (PCH)

$246.72 $246.72

1 Shoto 60" x 72" Rectangular table top with PVC edge (Style #230), laminate finish (#4795-60 Wilsonart Windswept Pewter) and Charcoal edge (PCH)

$336.48 $336.48

2 Shoto - Series 4000

30" double column end bases; Black Wrinkle powder coat paint finish

$121.64 $243.28

1 Brenda three h Freestanding desk per three h specifications (see attached drawings)

$1,667.21 $1,667.21

1 Scott three h Freestanding desk per three h specifications (see attached drawings)

$1,291.49 $1,291.49

1 Sr. Accountant

three h Freestanding desk per three h specifications (see attached drawings)

$1,291.49 $1,291.49

1 Financial Departmen

t Head

three h Freestanding desk per three h specifications (see attached drawings)

$1,291.49 $1,291.49

0 Large Conference

Room

three h Credenza per three h specifications (see attached drawings)

$1,060.46 $0.00

1 Corridor 115

three h Worksurface per three h specifications (see attached drawings)

$311.96 $311.96

1 Code Enforceme

nt A

three h Workstations per three h specifications (see attached drawings)

$4,071.64 $4,071.64

1 Cindy three h Workstations per three h specifications (see attached drawings)

$4,429.22 $4,429.22

1 Marcy / Karole

three h Workstations per three h specifications (see attached drawings)

$6,882.21 $6,882.21

0 Clerk 103 three h Freestanding desk per three h specifications (see attached drawings)

$1,011.41 $0.00

1 Nancy three h Freestanding desk per three h specifications (see attached drawings)

$1,291.49 $1,291.49

2 of 3



Qty. Code Manufacturer Description Unit Total

Fee for Performance Bond $750.00

$41,205.91$602.56

Total

Sub-TotalFreightSales Tax (Exempt)Warehouse, Delivery and Installation (Labor)

$0.00$5,350.00

Our prices include ordering and expediting, receiving and inspection, warehousing up to 30 days, repair or replacement of damaged or defective items and continuing service. Our terms for payment are net 30 days. Your approval on this quotation and a 50% down payment will allow us to place this order. We will not be able place an order until the deposit has been received. Due to fluctuating costs, the prices quoted will be in effect for a period of 30 days and will be subject to renewal at that time. Cancellation or return of these goods is subject to the manufacturers' approval. If a restocking charge can be negotiated, this charge will be invoiced to the customer. If the manufacturer is unable to accommodate the request for returned goods, the sale will be final.

$47,908.47

3 of 3


Memorandum

_________________________________________________________________________


Cc: Mike Glock, Superintendent of Public Works


Date: 8/25/2011

Re: Emergency Repair on the North Aurora Activity Center Chimney _________________________________________________________________________

The North Aurora Activity Center chimney was struck by lightning on Saturday, August 20th according to informal reports. This lightening strike caused major damage to the chimney which prompted the Fire District and the Village to prohibit occupancy within the NAAC gymnasium, basement and fireplace room. Village staff solicited a quote for the complete rebuilding of the chimney since spot repair was deemed not possible due to the damage. Upon receiving the quote for $38,800.00, staff forwarded all information to IMLRMA as a claim. As of Thursday, August 25th staff has begun the structural review process to determine from an engineer whether or not shoring could hold the chimney in place until the next Board meeting. If shoring will not provide the support necessary to open up the gymnasium, basement and fireplace room and mitigate the risks associated with a day care use within the building while the chimney is unstable, staff recommends moving forward immediately with soliciting at least three (3) quotes for the chimney repairs and moving forward with repairs expeditiously. If shoring will secure the chimney to the extent that the NAAC can be completely reopened for use, staff will start the public bidding process and have a low bid recommendation on the September 19th Village Board agenda. Possible Scenarios

1. Village contracted engineer designs a shoring mechanism capable of holding the chimney in place allowing the NAAC to be fully reopened which will give staff time to go through the public bidding process for repairs.

2. Shoring will not be sufficient to hold the chimney in place and upon approval; staff will solicit three (3) quotes for the work and proceed to rebuild the chimney to avoid further risk to the building and the building’s occupants.

Both scenarios assume a cost refund from IMLRMA – CCMSI for the repairs. The items on the 8/29/2011 agenda have been drafted as a worse case scenario given the information staff has on hand as of 3:14pm on 8/25/2011 and can certainly change between now and 8/29/2011. Attached: NAAC Chimney Damage Pictures Chimney Rebuild Quote from Cyberdyne Masonry

village of north aurora - daily herald · village of north aurora village board meeting august 15,...

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