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HomeMy WebLinkAbout1986-07-01 Info Packet of 6/27r -1 City of Iowa City MEMORANDUM DATE: June 27, 1986 TO: City Council FROM: Acting City Manager RE: Material in Friday's Packet Memorandum from the Acting Assistant City Manager regarding award for finance reporting. 114 A Memorandum from the Acting Finance Director regarding purchase of propertyj ��` and liability insurance for FY87. _ Memoranda from JCCOG:. a. Transfer of UMTA funds from Dubuque to Iowa City 11419 b• Extension of the free bus ticket program //Gs COPY of letter from Governor Branstad notifying Iowa City of the Iowa Award for Excellence in Energy Conservation. Calendar for July 1986. i/G I T City of Iowa City MEMORANDUM DATE: June 27, 1986 TO: City Council FROM: Rosemary Vitosh, Acting Assistant City Manager RE: Award for Finance Reporting We have just received notification that the Government Finance Officers Association has awarded the City of Iowa City its highest award, The Certificate for Excellence in Financial Reporting, for the annual financial audit report for the fiscal year ending June 30, 1985. This award is the culmination of several years of work by staff to convert our accounting system so that a proper financial report could be prepared on an accrual basis. I want to commend the staff of the Accounting Division and especially Monica 8ieri, Controller, for their - commitment to the project and for their success in achieving this recognition for the City, 0 %/A OIL I f -I A NEWS RELEASE GOVERNMENT FINANCE OFFICERS ASSOCIATION RE: CITY OF IOWA CITY Is Awarded ExKUIM1R O, Pic Es IBDNQ'11tl 1N�H GANA•r;NUE HIGHEST AWARD IN FINANCIAL REPORTING SVIfE e00 CNKA60 Y•ODINOIS OCMI]q 10 J4 W].O70p (Chicago) --The Certificate of Achievement for Excellence in Financial Reporting has been awarded to: CITY OF IOWA CITY by the Government Finance Officers Association of the United States and Canada (GFOA) for its comprehensive annual financial report (CAFR). The Certificate of Achievement is the highest form of recognition in the area of governmental accounting and financial reporting, and its attainment represents a significant accomplishment. When a Certificate of Achievement is awarded to a government, an Award of Financial Reporting Achievement also is given to the individual designated as primarily responsible for its having earned the certificate. This Award of Financial Reporting Achievement has been presented to: ROSEMARY VITOSH, DIRECTOR, DEPARTMENT OF FINANCE The CARR has been judged by an impartial panel to meet the high standards of the program including demonstrating a constructive "Spirit Of full disclosure" effort to clearly communicate its financial story and motivate potential persons and user groups to read the CAFR. 'The GFOA is a nonprofit professional association serving 9,500 government finance professionals. The association produces a variety of technical publications in various fields of governmental finance, and represents the public finance community in Washington, D.C. The association provides numerous training opportunities, and conducts an annual conference attended by 4,500 public finance professionals. For more informaticlrl, contact Fred Lantz at 312/977-9700. 109E 200-1750KSIQLYNF VAl1"AW WASHINGTSOCI D C- V:ASMNGION OfFCF SUIE 100.17;gK S1MnNW•WASHiNGiON DC •1fi006•YJ24J0-7DI4 / 'r City of Iowa City MEMORANDUM Date: June 27, 1986 To: City Council From: Kevin O'Malley, Acting Finance Directork,,.,r, , Re: Purchase of Property and Liability Insurance for FY87 Background: On April 7, 1986, staff requested that Council allow Arthur J. Gallagher E Company to obtain a quote for insurance coverage from Lloyds of London in- stead of the Independent Insurance Agents of Johnson County. After due discussion, Council granted this request. Currently: On June 24, the Risk Management Committee (Dale Melling, Terrence Timmins, Rosemary Vitosh, Sylvia Steinbach and myself) heard presentations from Carlton Johnson, representing the Independent Insurance Agents of Johnson County, and James Mochel, representing Arthur J. Gallagher 6 Company. Mr. Johnson presented quotes on the renewal of the third year of a three-year. retrospective (retro) rated insurance program. The quote was $430,955 or a 7.8% increase over last year. Staff had budgeted a 30% increase. The retro Rrogram provides the first layer of insurance coverage. The two additional ayers are excess and umbrella coverage. The excess premium was $120,000 or a 50% increase versus a budgeted 30%. The umbrella layer last year gave coverage of $10 million for a premium of $166,500. This year, the coverage dropped to $1 million and was priced at $155,000. Also quoted were Garage - keepers Liability, Property, Boiler and Machinery, Crime and Police Profes- sional Liability, premiums in the amount of $121,656. The Police Profes- sional Liability has a self-insured retention (deductible) of $25,000. Mr. Mochel began his presentation by informing staff that he decided not to go to Lloyds of London. He stated that Lloyds would not have had a competi- tive insurance product. Mr. Mochel presented a self-insured retention pack- age for a premium of $348,119, which included claims service. In addition to that premium, the City would be required to fund losses per occurrence up to $125,000 with a stop loss aggregate at $400,000. //463 I V,� For analysis analysis purposes, the quoted retro premium of $430,955 can be adjusted based on high losses to a maximum premium of $603,381. Therefore, under the Independent Insurance Agents of Johnson County proposal: Total maximum retro premiums $603,387 Excess layer 120,000 Property, crime, etc. 121 656 Total insurance premiums T9W1M" Under the Gallagher proposal: Insurance premiums $346,539 Aggregate losses 400 000 Total premiums and losses The total budget for Risk Management is $1,053,857. The Gallagher package is, at least at first glance, financially attractive, but it is difficult to compare the retro program cost versus the self-insured retention program cost. This is because the retro program is an occurrence policy and the Gallagher program is a claims made policy. An example of how an occurrence policy works is a claim against the City that is filed in 1989 due to an event that occurred in 1986 would be covered. A claims made policy will only pay claims that are filed in the policy year the event occurred. To make a claims made policy act like an occurrence policy, a "tail" must be purchased. Arthur J. Gallagher 8 Company has quoted a premium not to exceed 200% of the insurance premium for a three year extended reporting period (tail). The Committee was also uneasy in the fact that Mr. Mochel did not inform the City that he decided against obtaining a proposal from Lloyds. If he had informed the City, then the Independent Insurance Agents of Johnson County could have had an opportunity to present a self-insured retention programa The Risk Management Committee had to make a decision by June 25, due to expiration of insurance policies. The decision was to remain in the retro program and purchase the excess layer. The Committee decided the umbrella layer was not cost effective. The Independent Agents of Johnson County have a self-insured retention program other than a Lloyds program comparable to that of Arthur J. Gallagher b Company's program. When that program is quoted, the Committee will review the program and explore any cost savings that might accrue from changing coverage mid -year out of the retro program and into the self-insurance retention program. This is an overview of what occurred, if more detailed information is requested, please do not hesitate to contact any of the members of the Risk Management Committee. bj5/5 //643 Johnson County Council of Governments 410E.Vvbshiny[0n& b%oCGt};bvva0 5224 ir r0 r Date: June 23, 1986 To: Acting City Manager and City Council From: Jeff Davidson, Transportation Planner Re: Transfer of UMTA Funds from Dubuque to Iowa City As you may recall, for the past year we have been attempting to accomplish a transfer of $738,000 in Dubuque Urbanized Area UMTA Section 9 funds to the City of Iowa City. The transfer would involve Dubuque receiving a like amount of funds from a special UMTA account called Section 3, and would enable Iowa City Transit to receive six new buses to replace old vehicles. This project has required a great deal of JCCOG and City of Iowa City staff time, as well as City of Dubuque staff time in our behalf. Most recently, negotiations with UMTA were held by Iowa DOT and Senator Grassley's office in our behalf. After a great deal of negotiation with UMTA spanning several months, Iowa DOT informed me last week that UMTA is firm in their determination not to fund this project. Iowa DOT is recommending Dubuque proceed with their own pro- ject using the Dubuque funds which would have been transferred. While UMTA's refusal is most unfortunate, I agree that it is time to allow Dubuque to proceed with their project. It was gracious of them to attempt the transfer in our behalf. Thanks also go out to Senator Grassley's office and Iowa DOT for their assistance an this project. JCCOG will proceed in FY87 with developing a bus replacement program for Iowa City Transit utilizing alternative funding methods. cc: John Lundell, Iowa City Transit Don Schmeiser, JCCOG bjl/4 //4$0t I Johnson County Council of Governments 410E WbshingtonSt. 10\W city b*a 5224O rrso 0 Date: June 26, 1986 i To: !Cityn ouncil�'' From:chlneiser, Director, Johnson County Council of Governments Re: Extension of the Free Bus Ticket Program all Since September 6, 1983, the City has been providing free bus tickets to individuals seeking work through Job Service of Iowa. On April 2, 1985, the City Council added the Iowa City Crisis Center and the Johnson County Depart- ment of Human Services to the program. The Council directed there be a review of the entire program six months after its inception on June 1, 1985, to determine whether it is meeting the needs of the individuals we are seeking to help. A full evaluation of the program was an made inember, 1985 by the Governments and lit was Services determinedot Abe a the very successful program. The Council directed the program to continue, but it is not clear from the Council's direction whether the program was to cease or be reviewed at some time in the future. Since it is now at the beginning of a new fiscal year, the matter is being brought to the Council's attention. Over the past 13 months from June 1, 1985, to July 1, 1986, 962 bus tickets have been distributed to the Crisis Center, 2581 tickets to the Department of Human Services, and 2636 tickets to the Job Service of Iowa. At 40t a bus fare for the cost $3,038.40 for h6179of Jtickets une 85distrib ted overand 50e a bus farl3tmonthfperiod.terprogram A of Tickets Fare June 1985 511 x $.40 = S 204.40 July 1985 -June 1986 5668 x $.50 = $2834.00 �Jg T3;b3"0 - June 1985 -July 1986 Review of the program indicates that all of the 75 monthly tickets allocated to the Crisis Center, the 200 monthly tickets to the Department of Human Services, and the 200 monthly tickets issued to Job Service of Iowa are being distributed before the end of each month. In discussion with the agency directors, the tickets are being distributed to those persons who truly need the transportation; the program appears to be serving its purpose. Unless the Council should direct the staff otherwise, the staff will continue the program at the present level, monitoring the program on a month -by -month basis. Funding for the program would be charged to the contingency fund set asiit is thednewo Humana Services Coordinator for lthe Johnsonroosed that in two County Council of Governs //t s ;.-� -r - - � -. I -1 iffid b! TERRY E. BRAN5TAD OOV CRNOR OFFICE OF THE GOVERNOR STATC CAPITOL DES MOINES. IOWA 50319 515 281-5211 June 2U, 1986 Mr. James L. Schoenfelder -, Energy Coordinator City of Iowa City 410 East Washington Iowa City, IA 52240 Dear Mr. Schoenfelder: I am pleased to present your project, "The Iowa City Energy Conservation Program" sponsored by the City of Iowa City, with the Iowa Award for Excellence in Energy Conservation. As a 1986 Iowa Energy Award winner, your project will be nominated for the Technology Transfer Awards Program of the U.S. Uepartment of Energy. Congratulations on your innovative contributions to energy efficiency and eneryy independence in Iowa. Your project demonstrates the kind of creative thinking that helps secure our energy future, while cringing economic development to our state. Sincerely, Terry E. 8ranstad Governor of Iowa TkB/cc J �lawtt �nergq �alitq (lCmutcil 21:Ewa Get28D THII� AWARQ7.OR" XCELLENCE IN ENE +LC.�}I Icy}� 4•- TION 4' e:e ':.f• .. C I�r• +P. r!4TII. � .( q.4,x Rk �' vnerrs Mokkg the moll of IowoS emgy CMA ENERGY POLICY COUNCIL IN RECOGNITION OF OUTSTANDING ACHIEVEMENT FOR ENERGY CONSERVATION I AD.h4. 1�TERRY NSTy'�pppAD,GOVERNOR N•���'ppp;;;,VVV �,/,��V,y1'`jY��"\��'\%�;r V IGVI . I SMI �• I AD.h4. 1�TERRY NSTy'�pppAD,GOVERNOR N•���'ppp;;;,VVV �,/,��V,y1'`jY��"\��'\%�;r V IGVI r r ,S m T w ' z lOAM-HR Planning LOAM -Staff Meeting Com (Conf Room) (Conf Room) -1 IAM -HR Grant Writ ing Com (Conf Rm) 7:30PM-Council PM-Riverfront Cortu (Chambers) /so..:..- ..,._..__. P .� BAM-Magistrate :30P Court (Chambers) APpe (Pub AM -H (Pub 7:30 PM -Informal :30P P&Z (Sr. Center) Tele Corms 8AM-Magistrate Court (Chambers) 3:30P1 7PM-Inform 1 Cormm Library) Adjustment (Ch ng Comm Library) •30PM-Historic oadband preservation C unication (Rec Center, R amharnl a (Public Libra Council (Chambers 7!30PM-Council (chambers) I.70 tea/ z %C 8AM-Magistrate Court (Chambers) 7:30PM-Tnformal P&Z (Senior Ctr) )7 I 11 M;Magiatrate Couct (Chambers) 7PM-Human Rights 7:30PM-Council _Corran (Senior Ctr (Chambers) Center Center) TH F S BCourtg#Chambers) court (Chambers) 7:30PM-Formal P&Z (Chambers) 7:30PM-Airport CortmrTransit Facility) .1 BAM-Magistrate Court (Chambers) ing 8AM-Magistrate Court (Chambers) 4PM-Library Board (Public Library) 4PM-Design Review Com (Public Library, Room B) 7:30PM-Formal P&Z (Chambers) OAM-Staff Meeting (Conf Room) i -I o i i ,z 8:30AM4arks & Rec Cormnission a. (Rec Center) !