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
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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
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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,
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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
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(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-
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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
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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
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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
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Johnson County Council of Governments
410E WbshingtonSt. 10\W city b*a 5224O
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Date: June 26, 1986
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To: !Cityn ouncil�''
From:chlneiser, Director, Johnson County Council of Governments
Re: Extension of the Free Bus Ticket Program
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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
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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
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IN RECOGNITION OF
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FOR ENERGY CONSERVATION
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7:30PM-Formal P&Z
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7:30PM-Airport
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4PM-Library Board
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4PM-Design Review
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