Village of Lombard Legistar System

A. Monthly Report - Len Flood reviewed the June-August 1997 Report, noting that the

Village is ahead of last year in state income tax, motor fuel tax and water and sewer

receipts.

Len further stated that, because of the audit, staff did not have a chance to close

September. It is anticipated that September will be closed shortly. Additionally, staff

hopes to have 15 day turnaround for the monthly report beginning in January.

Co-Chair Schaffer questioned why some items are over budget by such large amounts,

referring to pages 4, 6, 8 and 13 of the last section of the report. Len Flood stated that,

in order to answer his questions, he would need to look at the information more closely.

However, in regards to an item on page 4 , which is the budget for Village President and

Board of Trustees, Len noted that only $100 was budgeted and $214 has been spent.

He further indicated that staff is more worried about total costs for the cost centers as

opposed to individual line items.

Len Flood reviewed his memo to the Village Manager. Len then introduced Mike Nugent

from Nugent Risk Management Services, indicating that staff has been working with

Mike to look at future insurance options. He also briefly reviewed the history of IRMA

and mentioned that the bottom line of the report is the recommendation to disband from

IRMA, effective January 1, 1999.

Mike Nugent then reviewed his report and recommendation for the committee. Charles

Price stated that he believes there are some benefits to the spread of risk, however,

there is also a potential to pay four times what is now being paid. Mike Nugent

responded by stating that, even if there were large claims, the Village would not pay two

times what is being paid now. Charles indicated that information was not enough to

convince him to go with the recommendation.

Charles Price stated that he felt there should be more concrete figures on the actual

costs before a decision can be made. Len Flood indicated this would be difficult to do

since we do not even have our 1997 experience yet.

Chairman Tross stated that Mr. Price's concerns are well taken and well understood.

Co-Chair Schaffer questioned if there was insurance available where the Village can

decide payment of claims. Mike Nugent stated that the problem with IRMA was that

they took too long to determine compensability and pay claims. Further, provided the

loss is in the retained limit, the insurance company pays it quickly and gets rid of the

liability. IRMA has no incentive to do so.

Chairman Tross clarified that what Len was asking for this evening is to either stay in

IRMA or get out and look at other insurance options. He then asked when staff would

anticipate giving the committee the options. Len's response was that the Village would

begin preparing the RFP's beginning early next year, with a recommendation to

committee by October.