HomeMy WebLinkAbout07/27/1994 FINANCE COMMITTEE
June 27, 1994
3 :30 p.m.
Large Conference Room
Members present : Chairperson Krizek, Mollenhoff, Anders.
Moved by Mollenhoff, seconded by Krizek that the Agenda, as amended
to defer to July 5, 1994 the request of the Insurance Coordinator
for authorization to reimburse cleanup of sewer backup at 1208
Deloris Drive and 2215 Sager Avenue, be approved. Ayes : Three.
Motion carried.
Discussion was heard on the Emergency Medical Services (EMS)
billing for ambulance services provided by Waterloo Fire Rescue.
When the ambulance billing first started, charges were based on an
emergency response base rate and additional charges for skills
performed. The more complex the skill the more expensive the
charge . That philosophy was standard in the ambulance service
industry until the government got more involved. With Medicare
accounting for more than 40 percent of the income produced by the
ambulance service, Fire Rescue met with Medicare representatives .
During the meeting, it was discovered that Fire Rescue had
misinterpreted Medicare billing practices . Medicare requires that
ambulance services compute their costs per run and charge them
accordingly. The costs per run are to be all inclusive charges and
no longer can be billed for each skill performed. All training
requirement costs, vehicle costs, and vehicle maintenance costs
must be included in the all inclusive charge . Medicare can be
charged separately for only disposable items .
Medicare averages the charges of all ambulance services in a zone
and the average is their reimbursement payment . Cities the size of
Waterloo are usually penalized because so many of the rural
ambulance services have no idea what to charge. Their low rates
lower our payments from Medicare. Additional meetings are
scheduled with Medicare to provide feedback and assistance in
establishing new guidelines. Medicare sets the standard for
billing because they require that we bill them no differently than
the private insurance companies are billed.
It costs $185 per ambulance call for basic life support . Costs not
included are the costs of sending additional fire rescue apparatus
and personnel on certain calls . The proposed rate increases are
real costs and are competitive with state averages. Disposable
items that can be reimbursed by Medicare and other insurance
companies were reviewed. The prices of disposable items are cost
prices and fluctuate depending on the suppliers charge .
The billing system has been examined with the software company and
the collection agency. Better demographics are being provided to
all and Fire Rescue expects collection percentages to increase over
the next year which will provide a stronger cash flow for the EMS
Division.
Moved by Mollenhoff, seconded by Anders that the recommendation of
the Waterloo Fire Rescue for EMS rate consolidations and rate
increase be approved. Ayes: Three . Motion carried.
The following quotes for replacement
acement of hardware
for two service
doors in the Police Department were reviewed:
Bidder Bid Amount
Doors, Inc . $371 . 00 - each
Action Products $375 . 00 - each
It was the recommendation of the Maintenance Assistant that the low
quote of Doors, Inc. in the amount of $371 . 00 for each door be
approved. Moved by Anders, seconded by Mollenhoff that said
recommendation be approved. Ayes : Three. Motion carried.
Finance Committee
June 27, 1994
Page 2
Quotes received for General Liability, Auto Liability and Umbrella
insurance polices were reviewed. The bids received for Tort
Liability insurance were based on two different types of insuring
agreements . ST Paul Fire & Marine, our current carrier, allows the
city to self-insure up to an aggregate of $100, 000 claims cost .
There is a $15, 000 specific claims limit . The policy coverage then
purchases reinsurance coverage and acts as a standard occurrence
coverage. The total exposure is the policy premium plus $100, 00 in
claims costs . ICAP is a risk pool concept which also allow the
city to self-insure up to $100, 000 claims cost with a $15, 000
specific limit . The risk pool consists of Iowa counties,
municipalities and special governmental agencies . The concept of
the risk pool would allow for additional contributions to be paid
in assessed if the pool' s financial reserves are not at adequate
levels . Upon leaving the pool, each entity is responsible to take
any outstanding or future claims, which could result in an
additional cost to the city if claims are unresolved at a time when
we wish to become totally self-insured. Sue Fangman, Insurance
Coordinator, expressed her concern with participation in the risk
pool because Waterloo would be the largest entity in the pool and
one bad claims year could adversely impact the city to a greater
extent than other members of the pool . It was the recommendation
of the Insurance Coordinator that the city renew its premium with
St . Paul Fire & Marine.
Moved by Anders, seconded by Mollenhoff that the General Liability,
Auto Liability and Umbrella insurance policies be renewed with St .
Paul Fire & Marine. Ayes : Three. Motion carried.
Moved by Anders, seconded by Mollenhoff that bills payment, as
contained in Schedule A918, pp. 1-46 dated June 27, 1994, in the
amount of $1, 708, 207 . 86, with the deletion of PV 90514 in the
amount of $1, 043 . 00, be referred to the city council for their
approval . Ayes : Three. Motion carried.
With no further business before the committee, it was moved by
Mollenhoff, seconded by Anders that the meeting be adjourned at
4 :44 p.m. Ayes : Three . Motion carried.
Tom Campbell
Acting Clerk/Auditor