village of wellington, florida

NOTE 9. RETIREMENT PLAN (Continued)obtained by writing to the Division of Retirement, 2639 North Monroe Street, Building C, Tallahassee,Florida 32399-1560.Plan members are not required to contribute to the Plan. As of September 30, 2009, the required annualcontribution rate is 9.85% of the covered salary for regular members. On January 1, 2008 Wellington optedto participate solely in the FRS and opted out of the 401A pension plan. Contributions to FRS for the yearsended September 30, 2009, 2008, and 2007 were $1,389,523, $1,068,856, and $56,454, respectively, equal to100% of the required contributions for each year.NOTE 9. RISK MANAGEMENTWellington is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;errors and omissions; and natural disasters for which the Village carries commercial insurance. Specifically,the Village purchases commercial insurance for property, medical benefits, worker’s compensation, generalliability, automobile liability, errors and omissions, and directors and officers liability. Wellington is alsocovered by Florida Statutes under the Doctrine of Sovereign Immunity, which effectively limits the amountof liability of municipalities to individual claims of $100,000/$200,000 for all claims relating to the sameaccident. There were no changes in insurance coverage from the prior year and there were no settlementsthat exceeded insurance coverage in the last three years.NOTE 10. CONTINGENCIESThere are various claims and legal actions pending against the Village for which no provision has been madein the financial statements. Although the outcome of these lawsuits is not presently determinable, it is theopinion of the Village’s Attorneys that resolution of these matters will not have a material adverse effect onthe financial condition of the Village.NOTE 11. COMMITMENTSFacilities Management and Information TechnologyThe Village amended a contract with SunGuard Public Sector, Inc. to provide facilities management,information technology, and related services. The term of the agreement ended September 30, 2009, butwas amended to extend the terms of the agreement for the period starting October 1, 2009, ending May 31,2010. For the year ended September 30, 2009, amounts were remitted pursuant to the agreement.A new Application Service Provider Agreement was executed which provides for the use of SunGuardPublic Sector, Inc. software package. According to the agreement, the Village will pay SunGuard PublicSector, Inc. $240,000 for 2010 and $247,200 per year from 2011-2014. The total amount of the contractremaining is $1,228,800.Agreement for Police ServicesThe Village entered into an agreement with the Palm Beach County Sheriff’s Office for the provision ofprofessional police services through September 30, 2009. By May 1 of each year, the Palm Beach CountySheriff’s Office submits the proposed cost of services and related staffing which is incorporated into theVillage’s budget. Pursuant to the agreement, the Sheriff will assign personnel to provide law enforcementcoverage within the Village. Amounts paid pursuant to this agreement were $6,854,151 for the year endedSeptember 30, 2009. This agreement has been extended through the year ending September 30, 2010.Amounts to be paid pursuant to this agreement in fiscal year 2010 total $7,503,942.49