Admin Committee Minutes 1999 10-05-99 i
CITY OF YORKVILLE
ADMINISTRATION COMMITTEE
OCTOBER 5, 1999
MEMBERS PRESENT: Art Prochaska, Richard Sticka, Cindy Green, Larry Kot, Rose Ann
Spears, Mike Anderson, Robert Allen, Jim Nanninga.
Guests: William Block, Mike Atchison, Jack Magnuson.
Insurance - Mr, Block and Mr. Atchison, from the Illinois Municipal League delivered an
insurance presentation that is sponsored by the Illinois Municipal League. The program was
started in 1981 and currently has 591 members. The IML has helped to fight with suits and
programs. The package contains coverage for all needs the appraisal of all buildings was
reviewed and the insurance coverage Is set up at replacement costs. If a claim is made the cash
value would be paid until there is a build out and then the replacement amount would be paid in
full. Functional Replacement would build back a facility, although there may be changes to the
facility. The facility may be built as a two story vs. a one story building. There is that option with
Functional Replacement. Coverage for flood, earthquake. There Is Builders Risk coverage for
the building of a facility. When the facility is complete the charge for the new facility would be
added to the policy coverage. Coverage for Equipment floaters, portable equipment, crime
coverage. With the Comprehensive General Liability there is no annual aggregate. There is
coverage for Public Official Liability, automobile liability, Workman's Comp. and Employees
liability, Safety and Loss Control Prevention is available. Suggestions may be made with
regards to training to be done for prevention. It would allow review for areas of service that can
be approved. Inspections of parks and playgrounds would be done.
Jack Magnuson, from Zeiler Dickson Insurance presented two of three different companies that
he has available for Municipal insurance. The first from Bliss McKnight was substantially higher
with Workman's Comp, coverage costs. He felt that Bliss McKnight could not be competitive.
The other vendor, Illinois Counties Risk Management Trust, he felt was comparable with the
coverage with IML. Something that Mr. Magnuson suggested that be looked at was prior claims
exposure. Clarification with Atty. Kramer needs to be done. There is a concern with insurance
coverage on a claims basis vs. occurrence basis. The retroactive period of 1/1/87 to 511/99
needs to be addressed with Atty. Kramer. A question was raised with the amount of the total
value of property. Mr. Magnuson has added in the value of the new city hail since it's completion
will be at about the same time as the insurance will go into effect. The coverage would cover the
new city hall, contents of the library, boiler coverage, lift stations, etc. Mr. Magnuson would like
to also include a quote from Prime Co. and feels that they should be a competitive company.
Investment Policy - The investment policy has been sent to Atty. Kramer for review. Software
for investment procedures is already in place, but never has been utilized. Most communities
have many different venues for investment, but Yorkville currently doesn't. Investment
procedures, chain of command, no conflict of interest, reporting requirements, investment
worksheet, safekeeping procedures all need to be reviewed to determine that everything is being
done and documented properly. The verbiage of City Manager needs to be changed to City
Administrator. It was also suggested that the mayor would receive copies of the investment
reports. There was much discussion with regards to control and persons that would be making
the actual decisions with investments. In section 1.05 it was suggested that authority be
delegated to the city treasurer only with approval of the city council. Investments to be made to
specific accounts Other investments to be approved by the city council. Investments are to be
made through financial institutions located within the City of Yorkville.
Review (Fees for Developments - There is a need to review the fees for any development
outside of the city limits. Any development with 1 1/2 miles of the City charges must cover any
fees incurred by the City.
Additional Business:
Waste Management has just renewed a contract with Sugar Grove. The rate given to Sugar
Grove is different that what was given to the City of Yorkville. It needs to be looked into.
Levy /It was suggested that new growth be looked at. The increase can not be more than the rate
of value.
Respectfully submitted by Cindy Green