Hillsboro council to pursue performance audit; renews liability insurance
Lead Summary
By
Brandy Chandler-brandychandler@gmail.com
The finance committee of the Hillsboro City Council will investigate the steps that need to be taken for a performance audit of the city.
The proposed performance audit was discussed this week during the Hillsboro City Council's September meeting.
In a separate action, council found that there was "urgent necessity" to renew the city's existing liability insurance with the current provider for a 10-month period.
Council's finance committee chairperson Peter Pence reported to council that while at the Highland County Fair he met with Christa Criddle, the southwest Ohio liaison for Ohio Auditor David Yost's office.
"We discussed performance audits and how that might be beneficial to the city of Hillsboro," Pence said. "What I would like to do is request that you would allow the finance committee to do further investigation into the performance audits. (Hillsboro Auditor Gary Lewis) and I have discussed it previously."
Pence said that there is a deadline in January for municipalities to apply for funding deferment, so that if a performance audit is conducted in 2012, payment could be put off until 2013.
Criddle met with the the Highland County Board of Commissioners in August and discussed performance audits for the county. She said that the cost of the audit could then, potentially, be paid for with the savings created from the audit's findings.
"I think it would be beneficial if we could start to investigate," Pence said.
Council president Lee Koogler put the matter officially into the finance committee for review.
Regarding liability insurance, Pence said that he, Hillsboro Safety and Service Director Ralph Holt and city administrative assistant Kirby Ellison met with Herald Foster of Insurance Audits, an independent audit company.
"We all knew, after looking at our bid specs, they weren't what they needed to be," Pence said.
On July 29, council met in a special session to review and select one of four bids submitted on July 21. The current contract was set to be up Aug. 1. Council's finance committee analyzed and discussed the insurance bids for two hours prior to the council meeting, and the debate continued for more than an hour during the special session. A vote on the matter ended in a 3-3 tie. Koogler declined to break the tie, saying that the matter needed to be go "back to the drawing board."
The city has not put bids out for liability insurance since 1998, and the information they putting out a specific bid packet for insurance agents was outdated and the bids the city received in return were inconsistent with each other. Because of that, council said that it was difficult to compare them and determine which bids were the cheapest.
Holt said Monday that the specs the city had initially put out were "fly by night."
Following that July meeting, Holt asked the current agent, Todd Heskett, for an extension on contract, and it was extended for 60 days. That extension is up Oct. 1.
Hillsboro Law Director Fred Beery has since said that the city must re-bid for insurance.
Pence said Monday that Foster had suggested having their insurance needs audited because the specs were not "up to standard."
However, right now, "there is not enough time to do it properly," Pence said. "We need to make a decision."
Pence said that it was Foster's recommendation to renew the contract with the current carrier, "until we can get things put together the way they should be," and that the insurance should be bid out every three years.
"With the time frame we're under, I don't think that we could do a good job of bidding out," Holt said, and agreed with the renewal.
Pence said an insurance audit will take approximately two months, and that he guessed is would cost approximately $5,000-6,000 for an agent to review policies and deductible ranges.
Council member Dave Shoemaker said that it seemed like a good idea to him to stay with the current insurance agent, and to examine the city's needs closely before putting out new specs. Shoemaker said that they should also investigate other insurance auditors, and who can provide what services and for how much.
Hillsboro Law Director Fred Beery said that, "If council would make a finding that it was a matter of urgent necessity that you let the insurance contract go with the existing carrier for one year - or however many months that you want to extend it - so that you have a chance to come back with a decent bid package, then that probably wouldn't be a problem. I could prepare legislation to that effect and present it at the next council meeting so that you can contract with that person legally then, without the necessity of a bid."
Since the contract is up prior to the next council meeting, Beery suggested council make that finding immediately, by motion.
"This is going to give us a structure, a cost of liability of what we're going to pay and what they'll be responsible for," Holt said.
Shoemaker make a motion to go with the existing insurance for a 10-month time frame, in order to give the city time to move forward with finding qualified individuals to assist the city with bid specs and an insurance audit, and that it was a need of urgent necessity. Parr seconded the motion, which was passed 5-0.
Council member Brian Waller was not present during the meeting due to illness, and council member Rod Daniels was not present do to being out of state for military training. Council voted 5-0 to excuse the absences.
In other business:
• Holt reported to council that there has been no progress in the negotiations for fire contracts with the six area townships for fire and EMS coverage. In June the city had sent a letter to Highland County Prosecutor Anneka Collins, legal counsel for the townships, that they would charge $40 per person in each of the townships for a combination of fire and EMS. The townships, according to Holt, submitted a counter offer of $22. Holt told council that the city countered with an offer of $35, and that told that, "I have received no correspondence from Mrs. Collins or any of the townships."
Collins told The Highland County Press Tuesday that the townships had received the city's counter offer and that, "the townships are weighing all their options at this time."
In June, Lewis had told council's finance committee that the current cost per year is $17.81. Lewis said that $9.06 would be needed to cover the costs of the equipment, which brings the total to $26.87, which he rounded up to $27 per township resident. It would bring in an additional $113,000 per year. That would be combined with the current "soft billing" that the city does on EMS runs. Looking at the current financials of the townships, Lewis said that Hamer, Liberty, Paint, New Market and Washington townships would not have to put on a new levy for at least five years. Jackson Township might have to put on one within two years.
• During the auditor's report, Shoemaker asked Lewis about a negative amount of approximately $14,000 that showed in the a "rehab" line items in the fund report for September. Lewis said that the negative amount "has do to with encumbrances" and the city receives "drawdowns" at varying times. Lewis said that Monday the city should have received a drawdown in the amount of $30,000, and if council were to look at the report later in the week, the negative amount would be gone.
• Council voted 5-0 to approve a request to allow the Hillsboro High School Homecoming parade to be held on Sept. 30, and with an alternate parade route. The parade will start at the Elm Street entrance to Richard's Memorial Field and proceed south toward West Main Street, where it will turn east to the center of the city, turn north onto North High Street, then west on Beech Street, and back to the Elm Street entrance.
• Council voted 5-0 to have legislation prepared to assess the cost of mowing grass and cleaning up trash to five property owners who did not comply with city-issued directives to do so. According to Holt, this summer the city had received 50 complaints on property violations, and seven property owners did not comply, so the city took care of the problems. Bills were sent to the property owners, and two of those bills were paid. During the October meeting, council will consider a resolution to have those costs put on their property taxes.
• In response to a question asked by Hillsboro resident Christine Kerley, Holt said that within the next two weeks, lines on city streets for turn lanes and crosswalks will be repainted. Holt said that all streets may not be done, because it depended on how far the paint would go, because due to budget issues, only a limited amount was ordered.
• Hillsboro resident Valeta Doorneweerd addressed council, saying that Hillsboro has a problem with homelessness and that people need to be made aware of the problems. Doorneweerd operates Grace House, which provides transitional housing for area residents. She told council that, "(The city has) people sleeping in cars, sleeping in tents and in shacks." She said that her facility is full, and so is the Highland County Homeless Shelter. "This is something everybody needs to know about."
Koogler thanked her for her comments, saying that she had a kind heart and her efforts were appreciated.
Later, during the mayor's report, Zink said that Hillsboro had received notice regarding funding for the city's Community Housing Improvement Program (CHIP). For 2012-2013 the city will receive $523,000. The funds are geared toward heling low- to moderate-income residents make upgrades to housing. The city will begin accepting applications from homeowners in October. Peg Beekman administers the grants, and can be reached at 393-2499.
The finance committee of the Hillsboro City Council will investigate the steps that need to be taken for a performance audit of the city.
The proposed performance audit was discussed this week during the Hillsboro City Council's September meeting.
In a separate action, council found that there was "urgent necessity" to renew the city's existing liability insurance with the current provider for a 10-month period.
Council's finance committee chairperson Peter Pence reported to council that while at the Highland County Fair he met with Christa Criddle, the southwest Ohio liaison for Ohio Auditor David Yost's office.
"We discussed performance audits and how that might be beneficial to the city of Hillsboro," Pence said. "What I would like to do is request that you would allow the finance committee to do further investigation into the performance audits. (Hillsboro Auditor Gary Lewis) and I have discussed it previously."
Pence said that there is a deadline in January for municipalities to apply for funding deferment, so that if a performance audit is conducted in 2012, payment could be put off until 2013.
Criddle met with the the Highland County Board of Commissioners in August and discussed performance audits for the county. She said that the cost of the audit could then, potentially, be paid for with the savings created from the audit's findings.
"I think it would be beneficial if we could start to investigate," Pence said.
Council president Lee Koogler put the matter officially into the finance committee for review.
Regarding liability insurance, Pence said that he, Hillsboro Safety and Service Director Ralph Holt and city administrative assistant Kirby Ellison met with Herald Foster of Insurance Audits, an independent audit company.
"We all knew, after looking at our bid specs, they weren't what they needed to be," Pence said.
On July 29, council met in a special session to review and select one of four bids submitted on July 21. The current contract was set to be up Aug. 1. Council's finance committee analyzed and discussed the insurance bids for two hours prior to the council meeting, and the debate continued for more than an hour during the special session. A vote on the matter ended in a 3-3 tie. Koogler declined to break the tie, saying that the matter needed to be go "back to the drawing board."
The city has not put bids out for liability insurance since 1998, and the information they putting out a specific bid packet for insurance agents was outdated and the bids the city received in return were inconsistent with each other. Because of that, council said that it was difficult to compare them and determine which bids were the cheapest.
Holt said Monday that the specs the city had initially put out were "fly by night."
Following that July meeting, Holt asked the current agent, Todd Heskett, for an extension on contract, and it was extended for 60 days. That extension is up Oct. 1.
Hillsboro Law Director Fred Beery has since said that the city must re-bid for insurance.
Pence said Monday that Foster had suggested having their insurance needs audited because the specs were not "up to standard."
However, right now, "there is not enough time to do it properly," Pence said. "We need to make a decision."
Pence said that it was Foster's recommendation to renew the contract with the current carrier, "until we can get things put together the way they should be," and that the insurance should be bid out every three years.
"With the time frame we're under, I don't think that we could do a good job of bidding out," Holt said, and agreed with the renewal.
Pence said an insurance audit will take approximately two months, and that he guessed is would cost approximately $5,000-6,000 for an agent to review policies and deductible ranges.
Council member Dave Shoemaker said that it seemed like a good idea to him to stay with the current insurance agent, and to examine the city's needs closely before putting out new specs. Shoemaker said that they should also investigate other insurance auditors, and who can provide what services and for how much.
Hillsboro Law Director Fred Beery said that, "If council would make a finding that it was a matter of urgent necessity that you let the insurance contract go with the existing carrier for one year - or however many months that you want to extend it - so that you have a chance to come back with a decent bid package, then that probably wouldn't be a problem. I could prepare legislation to that effect and present it at the next council meeting so that you can contract with that person legally then, without the necessity of a bid."
Since the contract is up prior to the next council meeting, Beery suggested council make that finding immediately, by motion.
"This is going to give us a structure, a cost of liability of what we're going to pay and what they'll be responsible for," Holt said.
Shoemaker make a motion to go with the existing insurance for a 10-month time frame, in order to give the city time to move forward with finding qualified individuals to assist the city with bid specs and an insurance audit, and that it was a need of urgent necessity. Parr seconded the motion, which was passed 5-0.
Council member Brian Waller was not present during the meeting due to illness, and council member Rod Daniels was not present do to being out of state for military training. Council voted 5-0 to excuse the absences.
In other business:
• Holt reported to council that there has been no progress in the negotiations for fire contracts with the six area townships for fire and EMS coverage. In June the city had sent a letter to Highland County Prosecutor Anneka Collins, legal counsel for the townships, that they would charge $40 per person in each of the townships for a combination of fire and EMS. The townships, according to Holt, submitted a counter offer of $22. Holt told council that the city countered with an offer of $35, and that told that, "I have received no correspondence from Mrs. Collins or any of the townships."
Collins told The Highland County Press Tuesday that the townships had received the city's counter offer and that, "the townships are weighing all their options at this time."
In June, Lewis had told council's finance committee that the current cost per year is $17.81. Lewis said that $9.06 would be needed to cover the costs of the equipment, which brings the total to $26.87, which he rounded up to $27 per township resident. It would bring in an additional $113,000 per year. That would be combined with the current "soft billing" that the city does on EMS runs. Looking at the current financials of the townships, Lewis said that Hamer, Liberty, Paint, New Market and Washington townships would not have to put on a new levy for at least five years. Jackson Township might have to put on one within two years.
• During the auditor's report, Shoemaker asked Lewis about a negative amount of approximately $14,000 that showed in the a "rehab" line items in the fund report for September. Lewis said that the negative amount "has do to with encumbrances" and the city receives "drawdowns" at varying times. Lewis said that Monday the city should have received a drawdown in the amount of $30,000, and if council were to look at the report later in the week, the negative amount would be gone.
• Council voted 5-0 to approve a request to allow the Hillsboro High School Homecoming parade to be held on Sept. 30, and with an alternate parade route. The parade will start at the Elm Street entrance to Richard's Memorial Field and proceed south toward West Main Street, where it will turn east to the center of the city, turn north onto North High Street, then west on Beech Street, and back to the Elm Street entrance.
• Council voted 5-0 to have legislation prepared to assess the cost of mowing grass and cleaning up trash to five property owners who did not comply with city-issued directives to do so. According to Holt, this summer the city had received 50 complaints on property violations, and seven property owners did not comply, so the city took care of the problems. Bills were sent to the property owners, and two of those bills were paid. During the October meeting, council will consider a resolution to have those costs put on their property taxes.
• In response to a question asked by Hillsboro resident Christine Kerley, Holt said that within the next two weeks, lines on city streets for turn lanes and crosswalks will be repainted. Holt said that all streets may not be done, because it depended on how far the paint would go, because due to budget issues, only a limited amount was ordered.
• Hillsboro resident Valeta Doorneweerd addressed council, saying that Hillsboro has a problem with homelessness and that people need to be made aware of the problems. Doorneweerd operates Grace House, which provides transitional housing for area residents. She told council that, "(The city has) people sleeping in cars, sleeping in tents and in shacks." She said that her facility is full, and so is the Highland County Homeless Shelter. "This is something everybody needs to know about."
Koogler thanked her for her comments, saying that she had a kind heart and her efforts were appreciated.
Later, during the mayor's report, Zink said that Hillsboro had received notice regarding funding for the city's Community Housing Improvement Program (CHIP). For 2012-2013 the city will receive $523,000. The funds are geared toward helping low- to moderate-income residents make upgrades to housing. The city will begin accepting applications from homeowners in October. Peg Beekman administers the grants, and can be reached at 393-2499.
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