FINANCE COMMITTEE MEETING October 15, :00 p.m.

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1 FINANCE COMMITTEE MEETING 6:00 p.m. Present: Councilwoman Meany, Councilman Pelunis, Councilman Zelwin, Director Rubino, Mayor Kraus, Director Drsek Chairwoman Meany presided. APPROVAL OF MINUTES Motion by Councilman Pelunis, second by Councilwoman Meany to approve the minutes of September 17, 2018 as submitted. AYE: Meany, Pelunis ABSTAIN: Zelwin PRESENTATION TO THE COMMITTEE A presentation was made by Todd Associates, Inc to explain the medical, dental and vision plans for the City of Solon effective January 1, Mr. Paul Nachtwey, Vice President of Employee Benefits from Todd Associates provided the highlights for the medical coverage. He reviewed that the City of Solon maintains a self-funded plan with additional coverage from Medical Mutual that includes Stop-Loss and Maximum Claims Liability. Medical Mutual also handles the administration function for the self-funded portion. Mr. Nachtwey stated that Todd Associates contacted all full carrier providers and numerous stop-loss carriers (14 companies in total) and determined that Medical Mutual is providing the best plan available. For 2019 the plan will have a 1% increase in administration fees, a 16.5% increase in Stop Loss and a 3.5% increase in Maximum Claims Liability. The total maximum cost of the medical plan will be $6,195,820 upon renewal to start January 1, Councilman Pelunis asked if these increases seemed to be about average for the industry in general and Mr. Nachtwey said yes, especially the stop-loss fees as there are no other carriers that could beat the plan. Mr. Nachtwey stated that all of the information was previously reviewed with Finance Director Mr. Rubino and Human Resources Director Ms. Stolarsky. Mr. Nachtwey recommended that the contract be accepted as there is not a better option based on information received from all competing companies. Gina Latta reviewed the details of the Dental and Vision plans. Guardian is the current vendor for the City of Solon to provide employees with Dental insurance coverage for the DHMO plan and self-funded offering for the PPO plan. 14 companies were contacted and the recommendation is to stay with Guardian for 2019 and both of these plans will see no increase. There will be a 3% increase in the aggregate stop loss annual premium. Overall expected costs are anticipated to decrease. It was recommended that the proposed plan be approved. Gina also noted the details on the Vision insurance currently provided by MetLife. 19 companies were contacted and it is recommended that MetLife remain the provider with a 5% increase for ITEMS REQUIRING LEGISLATION 1. RECOMMENDING ACCEPTANCE OF HEALTH CARE PROPOSALS FOR EMPLOYEE MEDICAL/PRESCRIPTION, DENTAL, AND VISION BENEFITS PROGRAMS TO BE EFFECTIVE JANUARY 1, 2019 a. Medical Mutual for employee medical and prescription benefits plan

2 Page 2 Councilman Pelunis noted that the numbers are really unheard of in private business and moved to accept the proposed healthcare plan from Medical Mutual for employee medical and prescription benefit plan beginning January 1, Second by Councilman Zelwin. b. Guardian Dental for employee dental benefits plans Councilman Zelwin moved for approval of the proposed dental plan from Guardian for employee coverage beginning January 1, Second by Councilman Pelunis. c. MetLife for employee vision insurance benefits plan Councilman Pelunis moved for approval of the proposed vision plan from MetLife for employee coverage beginning January 1, Second by Councilman Zelwin. 2. ACCEPTANCE OF A PROPOSAL FROM AVI FOODSYSTEMS, INC. FOR CITY WIDE VENDING MACHINE SERVICES FOR VARIOUS CITY LOCATIONS. Director Rubino explained that an RFP was released by Finance for this and AVI was the only responder. This is a revenue sharing program and a revamp of the vending machines and selections will be done with this renewal agreement from AVI Councilman Zelwin moved for approval of the proposal from AVI Foodsystems, Inc. for city wide vending machine services for various city locations starting January 1, Second by Councilman Pelunis.

3 Page 3 3. ACCEPTING AN ADDENDUM TO A MASTER LEASE AGREEMENT WITH U.S. BANCORP GOVERNMENT LEASING AND FINANCE, INC. BY ADDING AN EQUIPMENT SCHEDULE TO THE LEASE AGREEMENT. Director Rubino explained this is a final piece of the 2018 Capital Improvement Plan. US Bancorp offered the best terms so this will be extending an agreement under the same terms as the previous agreement and this would be in addition to the equipment from last year. This would cover the addition of a rear load packer truck that was approved by Council in spring of 2018 for $180,000 by a five year lease purchase agreement and lock in the rate now. The City will own the equipment at the end of the five years. $40,528 annual payments would begin in Councilman Pelunis asked why this would be financed rather than bought outright since the City has the money to cover the cost now. Director Rubino stated that this frees up capacity of money in the general fund and introduces diversity in the funding mix. Total interest cost will be $20, There will be no administrative fee from the bank but there will be approximately $3,000 in legal fees. Councilman Zelwin asked for clarification of what type of equipment is most likely to be considered for leasing. Director Rubino responded that the more expensive, larger pieces with life expectancy that exceeds ten years. Councilman Pelunis motioned to provide legislation to approve a lease with U.S. Bancorp Government Leasing and Finance, Inc for equipment (a truck) under emergency to finalize before the timing of the proposal expires on October 19, Second by Councilman Zelwin. 4. AUTHORIZING THE DIRECTOR OF FINANCE TO DISPOSE OF VARIOUS SERVING WARES NO LONGER OF MUNICIPAL USE BY ONLINE AUCTION. Director Rubino referred to a memo from the Senior Center explaining the serving equipment that would be placed on auction. Councilman Pelunis inquired if any other city department could use these pieces (fire department, etc). According to Director Rubino no other use was identified. Councilman Zelwin moved to create legislation to dispose of various serving wares no longer of municipal use by online auction. Second by Councilman Pelunis.

4 Page 4 5. ANNUAL AUTHORIZATION FOR THE DIRECTOR OF FINANCE TO ADVERTISE FOR COMPETITIVE SOLICITATIONS FOR VARIOUS GOODS AND SERVICES FOR THE YEARS 2019 and Director Rubino stated that this is a two year approval to go out with RFPs for these goods. The acceptance and authorization still needs to come through council but this expedites the process. Councilman Zelwin moved to approve legislation to give the Finance Director the authority to advertise for competitive solicitations for various goods and services for the years 2019 and Second by Councilman Pelunis. 6. ANNUAL AUTHORIZATION FOR THE DIRECTOR OF FINANCE AND CITY ENGINEER TO REQUEST PROPOSALS FOR GENERAL ENGINEERING AND DESIGN SERVICES FOR THE YEARS 2019 and Director Rubino explained that this is a two year approval to go out with RFPs for general engineering design services. Councilman Pelunis moved to approve legislation to give the Finance Director the authority to advertise for competitive solicitations for engineering design services for the years 2019 and Second by Councilman Zelwin. 7. BUDGET AMENDMENTS TO THE GENERAL FUND AND OTHER FUND BUDGETS. Director Rubino noted this is round one of the year end budget clean up and that most of the following items are budget neutral. Some of these are corrections and the adjustments will carry into the 2019 budgets. There are a few that are not budget neutral. The larger item for the Finance department is to cover the income tax refunds. Specifically there was a large, one time net profit filer who had a multi-year refund. There are also some fees for pending worker s compensation claims. Overall the year end should finish under budget. The general operation budget should be about $1 million under budget.

5 Page 5 Councilman Zelwin moved to approve legislation to cover the budget amendments to the General Fund and other Fund Budgets under emergency. Second by Councilman Pelunis. 8. AUTHORIZING THE PAYMENT OF AMOUNTS DUE FOR WHICH THE FINANCE DIRECTOR HAS ISSUED THEN AND NOW CERTIFICATES. Director Rubino stated there are only two items. One for Recreation and one for the Northeast Ohio Advanced Energy District. Councilman Pelunis moved to approve payment to BH Skating Parks for $3,750 and for the Northeast Ohio Advanced Energy District for $5,000 as an emergency. Second by Councilman Zelwin. PRESENTATION OF MORAL CLAIM TO COMMITTEE Mr. Reginald and Mrs. Cecelia Gail Fields of Chestnut Court in Solon came to discuss the damage done to their property due to the backup of water and sewage in their finished basement. Mr. and Mrs. Field spoke of the details and highlights pertaining to the series of events and explained that they had previously submitted documents to the city regarding the details of this event. Councilman Pelunis asked if the Fields had water and backup insurance on their general liability policy. Mr. Fields said they thought they did but their insurance company, State Farm, confirmed they did not have the rider to cover this event. Councilman Pelunis asked about other coverage and whether a copy of the insurance policy was provided to the city and Mrs. Fields confirmed she had provided the documentation regarding their insurance coverage. Councilman Pelunis requested that this discussion be continued at the November meeting because there was not enough time to properly sort through the details and the delay would give council members a chance to review all submitted information. Everyone agreed to move this to the November meeting and meanwhile get additional information from Mr. Drsek and Mr. Studenic who works with the city s insurance carrier Wichert Insurance. Councilman Pelunis asked Director Rubino to forward any other details including the itemized list of damage claims from Mr. and Mrs. Fields for further review.

6 Page 6 CORRESPONDENCE TO COMMITTEE 2019 Budget Development Schedule and updates Councilman Pelunis asked that the budget process be adjusted to include department heads at the review meetings so questions could be asked directly to the departments and that Council have the opportunity to make amendments or change appropriations so the process is more of a working mode rather than simply approving what is submitted. Director Rubino explained that he meets directly with all department directors and requested the presentation format be maintained as it allows Council to address matters of concern regarding specific department budget items with the Department Directors. Councilman Zelwin summarized his understanding of the current process that department Directors propose a budget and then Director Rubino works closely with each department to review and revise for presentation to the Finance Committee. Director Rubino elaborated on the detailed actions to get a proposed budget that is agreeable and acceptable for review and approval. Councilwoman Meany stated having been through budget processes both ways with previous Finance Directors she prefers the current process and feels it is much more efficient to have Director Rubino meet with all the department heads and then bring the proposal to Council. Council agreed to meet on November 12 and 15 at 6pm to discuss and finalize the 2019 budgets. REPORTS TO COMMITTEE Monthly Income Tax Collection Summary October 2018 Monthly Financial Summary September 2018 Quarterly Investment Report Third Quarter 2018 Quarterly Healthcare Cost Summary Third Quarter 2018 ADJOURNMENT Motion by Councilman Zelwin, second by Councilwoman Meany to adjourn the meeting at 7:04 p.m. `

7 K Nelson, Secretary Finance Committee Meeting Page 7

Supervisor Jenkins welcomed everyone to the meeting and asked that all electronic devices be turned off or silenced.

Supervisor Jenkins welcomed everyone to the meeting and asked that all electronic devices be turned off or silenced. called the meeting to order at 7:00 p.m. Town Board Members Present Bob Prendergast Councilman Gina LeClair Councilwoman Todd Kusnierz Councilman Robert J. Vittengl, Jr. Councilman Preston L. Jenkins,