Finance Caucus - October 3rd 2016

MINUTES OF THE FINANCE CAUCUS COMMITTEE
Main Conference Room – Mayfield Village Civic Center
Monday, October 3, 2016 - 7:15 p.m.

The Finance Committee met on Monday, October 3, 2016 in the Main Conference Room at the Mayfield Village Civic Center.  Chairman Saponaro called the meeting to order at 7:18 p.m.

ROLL CALL: 

Present: Mr. Saponaro, Mr. Marquardt, and Mr. Williams

Also Present: Mrs. Mills, Mr. Marrie, Mr. Jerome, Mayor Bodnar, Mr. Wynne, Mr. Metzung, Mr. Cappello, Chief Carcioppolo, Chief Edelman, Mr. Thomas,Ms. Wolgamuth, and Mrs. Betsa

ADMINISTRATION:

  • Flooring replacement – Civic Hall

Ms. Wolgamuth stated, I don’t have much to tell you yet.  John Marrelli is starting to request samples.  He recommends that we do carpet tile so they are removable.  We don’t have any pricing yet. We only put it on the agenda so if we have pricing by the October meeting we will put it on for consideration.  Finding a window to do work in there is always very difficult.  We would like to do it in November if possible.

Mr. Jerome stated, is that all we are going to get done?  We have done the rest recently.

Ms. Wolgamuth replied, yes.  We are also looking at the ramp that comes up. We would do the ramp the same as Civic Hall.

Mr. Jerome stated, carpet tile is amazing.  I would definitely go that route.  Very durable.  If a piece goes bad for some reason, you can change it.

FINANCE DEPARTMENT:

  • 2017 Health Plan Renewal

Mr. Wynne reported, I gave everyone a copy of the article that appeared in cleveland.com last week on the status of the County Health Plan and some of the audit findings.  I think whenever the new County Executive took over in 2015, he became aware of things that were not to his liking and initiated an independent audit of all of the transactions going on with the County Plan.  What they released last week was the result of that audit finding which uncovered about a $10 million shortfall in their funding for the claims they are paying versus what they have taken in.

We have gotten our renewal for 2017 which is 24% which equates to about $230,000.  What we are doing currently is we have our insurance consultant going to Medical Mutual directly versus going to the County to see what kind of pricing we get through Medical Mutual separate from the County.  We are still going back and forth with the County on our contract with them. We renewed in 2015 and they said in 2016 and 2017 we would get the same increase as the County employees got.  We are trying to find out what the increase is for the County employees to make sure it is 24%.

We made the Health Care Task Force aware of everything.  I am supposed to get additional information in the next couple days.  Once we have that I will convene the Health Care Task Force to evaluate everything and take a look at our options which also includes going back out to the market and getting quotes.  But if you take a look at the County Plan since we started, the 24% seems kind of like a shocker, but if you take a look at our involvement with the County Plan since its inception, we had a 0% increase in 2013, 0% increase in 2014, 1.5% in 2015, 13% last year and now 24% this year.  So if you take a look at it since its inception, it averages out to about 7.25% a year which if you take a look at that compared to historically, with insurance costs raising about 10-12% a year, it still was a good decision to go with the County Plan.  The 24% is a shocker, but if you take a look at everything total, it’s really not a bad plan to be involved in.  We are going to just try to make it as cost-effective as possible.

Chairman Saponaro stated, they almost treated it like it was cumulative in one respect because they did not figure out what they needed.

Mr. Wynne replied, correct.

  • Gas Endorsement Program - NOPEC

Mrs. Betsa reported, this has to do with the gas accounts of Village properties.  It was regulated a few years ago that if any accounts were over annual usage of 500 mcf, that account would be knocked out of NOPEC’s gas aggregation rate.  Our accounts were recently audited and 5 of the accounts were taken of the program.  NOPEC, through agreement with NextEra Energy, will place all affected accounts into a gas endorsement program which would enroll those Village accounts - the police station, Civic Center, 734 SOM, fire station and the pool, knocking the rate back down to $2.61 per mcf as opposed to the rate we will be charged which is anywhere between $3.35 to $4.79 per mcf.

An agreement was drafted to enter into a Natural Gas Sales Agreement.  There are no termination fees.  It works under NOPEC through NextEra.  The Law Department has reviewed the Agreement and legislation was prepared.  They have requested if possible consideration by Council at their October Council meeting so that we can start in November.  Otherwise, we would have to wait a couple months and pay the higher rate until we are enrolled.

Mr. Jerome asked, this was a total of all our meters combined?

Mrs. Betsa replied, all individual accounts that the Village has were reviewed.  The accounts that went over 500 mcf annually in usage went off the grid.  They also did the same with the electric accounts, but we were safe with all of our accounts and got to stay in the NOPEC program on those.

Mr. Jerome asked, we were currently at $3.35?

Mrs. Betsa replied, we were at the $2.61 rate until we were audited by the utilities.  After that, the accounts that went over the 500 mcf annually got assigned different suppliers.  Depending upon who the supplier was, the cost went up to anywhere between $3.35 to $4.79 per mcf.

Mr. Jerome asked, so what you are saying is that we can get back to the other rate?

Mrs. Betsa replied, yes.

Mr. Jerome asked, just by entering into this agreement?

Mrs. Betsa replied, right.  At a rate of $2.61 per mcf for three months with a fixed variable rate in three month intervals.  NOPEC does not see the rate going up much in January.  They said if anything they believe it might go down depending upon any shift in economy.  I had the representative assure me and put in the agreement that if the rate skyrocketed to $14 per mcf like it did way back in 2008 that we could get out of without a termination fee.

Mr. Jerome stated, let’s do it.

ANY OTHER MATTERS

Chairman Saponaro asked, any other matters?

There were no further matters.

There being no further business, the meeting adjourned at 7:25 p.m.  The next Finance Committee meeting is scheduled for Monday, October 17, 2016 at 7:30 p.m. in the Main Conference Room at the Mayfield Village Civic Center.