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Resolutions passed on casino financing

Monday, September 24, 2012

The Monett City Council approved several financial decisions at the regular monthly meeting on Thursday, Sept. 20.

The city's annual property and casualty insurance was due for renewal. Monte Giddings, an insurance broker with CBiz, brought quotes from the city's current carrier, One Beacon, for $197,084, and from the city's former carrier, Travelers, for $197,748.

Giddings said Travelers made a sincere effort to win the city's business back. Commissioner Mike Brownsberger commented the bottom line totals were strikingly similar.

The city's current policy has a $5,000 deductible for claims. Travelers proposed a $25,000 deductible. Giddings said most cities are choosing the higher deductible and paying off smaller claims to keep them off their insurance record. Increasing the One Beacon deductible to $25,000 would reduce the premium cost by $7,551.

Mayor Jim Orr asked about coverage in the case of one employee suing another, something Travelers had not previously covered. Both policies provided coverage in the new proposals. City Administrator Dennis Pyle said new legislation by the Missouri General Assembly might now make such coverage unnecessary. He planned to research the point with Giddings and see if additional savings could be gained.

Orr said he preferred to keep the policy with One Beacon with the higher deductible and without coverage for a terrorism attack, which cost an additional $1,647. The other commissioners agreed and approved the policy at a reduced premium of $187,886.

Budget revision

Pyle reported auditors from The CPA Group had completed their review of fiscal year 2011-12, which ended on March 31. They proposed amending the budget by including the $297,598 settlement with Jason and Jennifer Inman, which was reached in July. The addition pushed the fiscal year over budget by $215,000.

Placing the settlement in the previous year seemed odd to Pyle, but he said the accountants said the amount could be posted as far back as the 2007 fiscal year, when the court originally ruled in favor of the Inmans. The budget revision was adopted, at the accountants' recommendation.

With the change adopted, the accountants planned to present their audit at a council work session on Friday, Sept. 21.

In other financial action, council members approved bills for the month totaling $2,204,719.12. The biggest bill was $1,313,785.64 to Empire District Electric for wholesale electricity. Utilities Superintendent Pete Rauch reported sales of $2.3 million in utilities billed to customers to offset the charge.

Other major bills included: $83,000 to Allgeier, Martin and Associates for engineering on the water treatment plant; $50,000 to Water Products for water meters; and $30,000 to Land O Lakes Farmland for road salt.

Resolutions passed

A resolution was passed revising the agreement with the Monett R-1 School District over use of city facilities. Rather than designating North Park in general, the resolution was amended at the school district's request to specify both the ball fields and the tennis courts. Pyle also added the South Park to include the Greenways Trail, which is used in both the park and the Windmill Ridge golf course for cross-country meets.

A resolution authorizing the city's agreement with Monett Main Street was adopted. Pyle said if the city was going to continue to fund the Main Street program, it was necessary to specify the services. The city pledged an amount not to exceed $25,000 for the year, which in turn gave the city two seats on the Main Street board of directors. The resolution could be cancelled by the city at any time.

Two resolutions were passed about financing reconstruction of the City Park Casino. An agreement for financial advisory services was approved with the Kansas City-area investment banking firm of Piper, Jaffray and Company.

A second resolution declaring the city's official intent to rebuild the Casino was passed. Pyle said the resolution was a requirement that would allow the city to repay itself for work done in the last 60 days for dirt work. There is no time limit to repay engineering, architectural, surveying and soil testing. Pyle said the city would likely pursue a lease purchase deal to cover the costs.

A resolution of appreciation was presented to Police Officer Tom Jaglowitz, who chose to take early retirement after 10 years with the city. Jaglowitz began as a dispatcher in 2002. He transferred to animal control officer in 2006 and became an officer in 2007.

"Tom has been hard working, dependable and professional in every job he has done for the city," said the commendation from Police Chief Tim Schweder. "His steady hand will be missed."

Jaglowitz said he plans to move to Hawaii at some point and possibly start a business.

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