HomeMy WebLinkAbout05/13/1980 FC Committee ReportCOMMITTEE REPORT
To Mayor & Board of Trustees
From : Trustee Ed Miller, Chairman,, Finance Committee
Subject : Finance Committee Meeting S-13-80
Date May 14, 1980
The meeting was called to order at 8:07 p..m., in the Trustees'
Room of the Village Hall. Present at the meeting were Chairman
Ed Miller and Trustees Richardson and 1%attenberg. Also present
were Village Manager Burghard, Mr. Joseph Caruso and Mr. Jim
Durkin.
I. LIQUOR LICENSE APPLICATION:
Melissa Melinda Corporation/Barone's - The Village Manager
explained that during the time of the liquor license renewals,
the application from Barone's Pizza on Kensington showed that
the Melissa Melinda Corporation was attempting to purchase
the facilities at that location. Inasmuch as the Melissa
Melinda Corporation was not buying the Barone corporation,
the Village administration had determined that no transfer
could take place and that Melissa Melinda Corporation would
have to make a new application for a license at that location.
In the interim, Baronie's Pizza reapplied under their existing
corporation for a continuation of business. Mr. Joseph Caruso
explained that he is buying the facilities and equipment of
Barone's and intends to change the name of the restaurant
Mr. Caruso farther explained that he has twelve years of
experience with Barone's in the restaurant business and, in
fact, was the general manager that opened Barone's here in
Mount Prospect. The Committee reviewed the liquor license
application, discussed Mr. Caruso's background in the business,
and the need for a continuation of an existing Class A license
at that location. Dir. Caruso acknowledged that ]Ie has been
a resident of Mount Prospect for twelve years and that the
restaurant will be his sole business venture. 11141sniucli as there
is no necessity in creating a ,new ordinance for this license,
the Committee decided 3-0 to place this item on the agenda
for the Board • eeting on May 20, 1980 with a reco jilendation
that tie Melissa Mel ih(a Corp �rati n be issued their existingClass A license for their operation at 303 E.. K&nsington,
NIOUnt P 'o spe :t . .1
II. MEDICAL INSURANCE.
Mr. Jim Durkin of A.G. Gallagher & Co., insurance brokers for
the Village,reviewed a report and market survey of health
insurance coverage. The Village Manager reported that early
this year Connecticut General, our existing health and life
carrier,had proposed a group rate increase of some 80% above
our existing rates. At that time, Mr. Durkin was instructed
by the administration to evaluate the proposed rate increase,
secure price, quotes for the same coverage from other carriers
and to construct a financial analysis of a self-funded health
and benefit plan. SDecifically, Mr. Durkin's analysis
demonstrated that through negotiations. with Connecticut
General, they, bad reduced their increase proposal to 50%.
Mr. Durkin explained that based upon the market survey and
our experience ratiosthis increa . se is justifiable. His
analysis of the self-funded plan, projected for two-year premiums,
demonstrated some potential for savings but with a greater
degree of risk. Mr. Durkin also explained that ' what appears
to be a significant rate increase by Connecticut General must
be put into perspective with their 30% rate decrease last,
year since our rates are determined by experience and when
our incurred and reported claims increase, the premiums
substantially increase. Chairman Miller inquired as to why
there not been a price quote secured from Blue Cross/Blue
Shield and Mr. Durkin responded that while their firm does
business with Blue Cross/Blue Shield, they have not been
satisfied with their service and rates. Chairman Miller requestei
that price quotes be secured from Blue Cross/Blue Shield and be
available for board comparison at the Board Meeting on May 20th.
After some further general discussion.1the Committee concluded
to recommend a one-year continuation with Connecticut General
dependent upon the price quotes by Boss/Blue Shield. The
Committee' also instructed the Village. Manager to continue to
tvaluate the frequency and severity "of our health claims and
to encourage employees to use our benefits intelligently.
111. CLEARBROOK CENTER:
Chairman Miller reviewed a letter submitted to the Village by
Clearbrook Center indicating that Elk Grove Township
had decided1to ding the Center for six months. At
that time, the Township would reconsider funding the Genter.
A general discussion ensued regarding the offer of Clearbrook
Center to visit with the Committee and explain the Center's
finances and o-oerations. The Committee concluded that they
would recommena to the Board of Trustees that the Village should
welcome a visit by Clearbrook Center if Elk Grove Townshin
. .1 decides
not to fund the Center -,any longer.
The Committee discussed in general methods to improve the
budget process in the future�and conclu&ed that the administration
should initiate the process sooner in the year and that at an
early committee of the 'whole meeting, the Manager should present
an overall revenue projection and his estimation of some of
the forthcoming priorities. Subsequently, at another committee
of the whole meeting, board members could describe some of their
concerns and directions.
During the discussion of the budget process, the Committee
concluded that they would like to have formal presentations
before the Committee on a quarterly basis of the V411age's
financial situation with a comparison of actual expenditures
over budget estimations. Additionally, Mr. Wattenberg
stressed the need for the Finance Committee to periodically
review pending litigation items to that ourlegal expenses
could be monitored better. The Village Manager responded
that an analysis of our legal expenses demonstrated that
a significant portion of time and money is being spent for
special litigation items and attorneys' attendance at
committee meetings.
The meeting adjourned at 10:0'7 p.m.
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