Finance, Taxes and Insurance

FINANCE COMMITTEE August 13, 2012 - Official 5:00 p.m. Members Present: Brian Lauer, Ron Kluth, Rick Albee, Gil Amborn, Cindy Gauger Also Present: Rebecca Ewald, Lori Peternell, and Kelly Krause Lauer called the meeting to order at 5:00 p.m. Motion made by Albee, seconded by Amborn to approve the July 9, 2012 Regular Meeting Minutes. Motion carried unanimously. Discussion was held regarding insurance levels for auto physical damage and liability for the 2013-2014 policy year. Ewald stated that the Village currently insures it’s vehicles through the League of Wisconsin Municipal Mutual Insurance (LWMMI) and has the choice of insuring vehicles based upon the original cost or agreed upon value. The Village also has the option of insuring the vehicles through the Local Government Property Insurance Fund (LGPIF) that provides replacement of a like vehicle. For the last decade the Village has insured its vehicle based upon an agreed value with LWMMI. Discussion was held regarding what the premium difference would be if insured at the original cost and the agreed upon value. The Committee requested the Administrator to receive premium quotes with existing rates from both insurers, with a $2,500 deductible for all vehicles for review by the Committee. Since the last meeting, LWMMI has informed the Village that they will be retaining a third party provider to establish the agreed upon value based upon value beginning with our community’s next insurance renewal in 2013. This alleviates the annual review of vehicle values which is in part why the discussion on insurance coverage was brought back to the Committee for review this year. It is not anticipated that there will be a cost increase due to the third party review. Discussion was held regarding depreciation values and how they are determined. The Committee requested Ewald to find out what the depreciation rate is for the 2002 Ford F450 truck and the 2002 Ford Ambulance to determine if the Village would want to insure the vehicles based on the depreciated value instead of an agreed upon value. Motion made by Kluth, seconded by Gauger to table a recommendation on vehicle insurance until the September meeting. Motion carried unanimously. Discussion was held regarding the communication process for the planning of the Hwy 20/83 project. Discussion was held regarding charges for fire responses. The Village has several state highways (164, 36, 83, and 20) and due to the facilities in the Village, many non-resident drivers. Due to our location and roadways, a high proportion of motor vehicles traveling through the Village in which the department may respond to are not part of the fire department’s tax base. Staff is recommending that the Village begin charging $500 for any fire response to an auto accident by fire personnel, with the exception of Village residents or town residents residing in the town contracted area. The Wisconsin Department of Transportation (WDOT) will compensate municipalities $500 for a fire response to a state highway if the municipality can document that they have tried receiving payment from the vehicle owner three times. This charge is being recommended to compensate the Village for the expense incurred and after review of other departments who are charging for the same response. This charge is the floor for most municipalities. Discussion was held regarding charging a higher amount, such as $1000 with the knowledge that the Village will receive a minimum of $500 for any response on a state highway. At this time staff recommends beginning the new charge as a flat rate. This will allow any fire response on a state highway to utilize the DOT system and potentially receive compensation if not provided by the vehicle owner. After a brief review of the WDOT database, the Village is one of a few communities in the state with state highways who are currently not charging for this service. The billing company’s rate for billing on fire calls is 5.5% (rescue is 7%). The billing company would handle the entire process, including submission of any unpaid fire call bills to the WDOT. Motion made by Kluth, seconded by Amborn to have staff look at options for billing for additional procedures (ex. extrication and clean-ups) at the scene in additional to the $500 fire response fee. Motion carried unanimously. Discussion was held regarding utilizing excess water depreciation funds for costs associated with the well pump failure, spare parts for the well and repair costs associated with repairing a leaking water main valve located on East Main Street at Louis Street. The Committee first reviewed the breakdown of costs for the well pump failure. Ewald stated that the total project cost is $79,354.81. The insurer will be paying $64,162.81 and the Village is required to pay $15,192. Dolezal then discussed purchasing spare parts for the treatment plant at a total cost of $12,636. Lastly, discussion was held regarding repair costs associated with repairing the leaking water main valve. Dolezal stated that the necessary repairs to the water main on East Main Street will cost between $11,000 and $15,000. The total cost of these items is approximately $42,828. Peternell stated that during the 2011 audit, staff worked with the auditor on the various cash accounts held by the utilities to verify that they comply with the resolutions that authorized the borrowings. From that review, it was determined that the water utility had an excess of $61,600 in the Water Depreciation account that was transferred to unrestricted cash to be utilized for repairs, replacements, new construction, extensions or additions to the System. Motion made by Amborn, seconded by Kluth to recommend utilizing the excess funds from the water depreciation account in an amount not to exceed $50,000 to pay for the costs associated with the well pump failure, spare parts for the treatment plant and repair costs associated with the leaking water main valve on East Main Street. Motion carried unanimously. Motion made by Albee, seconded by Gauger to recommend to the Village Board approval of Village prepaid invoices in the amount of $300,732.33. Motion carried unanimously. Motion made by Amborn, seconded by Kluth, to recommend to the Village Board approval of Village unpaid invoices in the amount of $482,263.84. Motion carried unanimously. The Committee reviewed the July 2012 statements. Discussion was held. Upon motion made by Kluth, seconded by Amborn, the meeting adjourned at 6:20 p.m. Submitted by, Lori Peternell Village Treasurer 2