COMMITTEE OF THE WHOLE Packet - 11/10/2020CITY OF MUSKEGO
COMMITTEE OF THE WHOLE AGENDA
11/10/2020
5:15 PM
Muskego City Hall, W182 S8200 Racine Avenue
CALL TO ORDER
PLEDGE OF ALLEGIANCE
ROLL CALL
STATEMENT OF PUBLIC NOTICE
APPROVAL OF AGENDA
APPROVAL OF MINUTES
October 13, 2020
NEW BUSINESS
Discussion regarding Idle Isle Lease with the Water Bugs
Update on Sandy Beach Recreational Trail Bridge
Baseball Field Discussion
COMMUNICATIONS AND MISCELLANEOUS BUSINESS AS AUTHORIZED BY LAW
ADJOURNMENT
The Committee of the Whole may possibly reconvene immediately following the Common
Council meeting of the same date to continue work on agenda items.
NOTICE
IT IS POSSIBLE THAT MEMBERS OF AND POSSIBLY A QUORUM OF MEMBERS OF OTHER GOVERNMENTAL BODIES OF
THE MUNICIPALITY MAY BE IN ATTENDANCE AT THE ABOVE-STATED MEETING TO GATHER INFORMATION; NO ACTION
WILL BE TAKEN BY ANY GOVERNMENTAL BODY AT THE ABOVE-STATED MEETING OTHER THAN THE GOVERNMENTAL
BODY SPECIFICALLY REFERRED TO ABOVE IN THIS NOTICE.
ALSO, UPON REASONABLE NOTICE, EFFORTS WILL BE MADE TO ACCOMMODATE THE NEEDS OF DISABLED
INDIVIDUALS THROUGH APPROPRIATE AIDS AND SERVICES. FOR ADDITIONAL INFORMATION OR TO REQUEST THIS
SERVICE, CONTACT MUSKEGO CITY HALL, (262) 679-4100.
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Unapproved
CITY OF MUSKEGO
COMMITTEE OF THE WHOLE MINUTES
October 13, 2020
5:00 PM
City Hall, W182 S8200 Racine Avenue
CALL TO ORDER
Mayor Petfalski called the meeting to order at 5:10 p.m.
ROLL CALL
Present: Alderpersons Wolfe, Terrence, Kapusta, Engelhardt, Kubacki, Hammel, and Madden.
Also present: Finance and Administration Director Mueller, Finance and Administration
Assistant Director Mustapich, Library Director, Public Works & Development Director Kroeger,
Lead Planner Trzebiatowski, City Attorney Warchol, and Administrative Assistant Crisp.
STATEMENT OF PUBLIC NOTICE
Ms. Crisp stated that the meeting was noticed in accordance with the open meeting law.
APPROVAL OF AGENDA
Alderperson Kubacki moved to approve. Alderperson Hammel seconded; motion
carried.
APPROVAL OF MINUTES
September 22, 2020: Alderperson Madden moved to approve. Alderperson Hammel
seconded; motion carried.
NEW BUSINESS
Finalize 2021 Capital and Operating Budgets
Mayor Petfalski noted that the tax rate would go up about 1.8% which would affect the average
home ($300,000) in Muskego at about a $24 increase on their taxes. CPI last year was 2.3%
according to the Dept. of Labor.
Alderperson Terrence raised a question regarding a proposal that does not involve a tax
increase. Concerning the IT Department would there be a savings if we raised the consulting
fees rather than hiring a full time employee at this point.
Mayor Petfalski and IT Director don’t believe there would be a savings based on the needs of
the department. We are looking for someone to really know our network system, especially the
Police Department network including 911. We need to have consistency; consultants cannot
provide a consistent presence.
Mayor Petfalski pointed out that the Council created three new full-time positions mid-year
without a funding mechanism. This, along with a significant drop in interest revenue, has
created a difficult budget process for 2021. If the Council wishes to reduce the proposed
budget, it will take a reduction in staff in an already lean staff.
Alderperson Kubacki mentioned that he went through the budget line by line. Our biggest
expense is personnel; our biggest asset is personnel and we need to take care of this asset in
order to serve the public properly. We need to make this adjustment to maintain what we have
now and take care of the most important asset we have.
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October 13, 2020
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October 13, 2020 2
Alderperson Wolfe asked about the CDA Fund and using it in the Budget to reduce the
increase in taxes. Mayor Petfalski stated that you wouldn’t want to use it on Operating since it
would be a one-time funding source leaving a greater hole in next year’s budget; it should be
used on Capital.
Alderperson Kapusta stated that looking at the entire budget and considering all of the
services we provide for Muskego community, it is incredible to be able to keep it under 2%.
Ms. Mueller stated that the tax rate in 2016 was $4.89 and the proposed rate for 2021 is $4.55
which is less than five years ago.
Ms. Mueller reviewed the following Budget Updates and Proposed Appropriations for the 2021
General Operating Budget:
Description Account #
Impact to Current Budget
Increase/(Decrease)
Revenues:
Transportation Aids 100.04.51.01.4132 $ 101,908.00
State Shared Revenue 100.09.80.00.4121 $ (186.00)
State Video Service Provider Aid 100.09.80.00.4124 $ 29,731.00
Transfer from CDA Fund (reverse 87.1% was
$190,355)100.20.00.00.8265 $ (165,805.00)
Interest on Investments (offset per 9/22 CC
adj)
100.01.06.00.4531
$ 63,045.00
Net Budget Revenue Increase/(Decrease)$ 28,693.00
Expenditures:
Little Lake District (per Resolution #080-2019)100.05.06.00.6052 $ (1,402.00)
2.5% Health Insurance Premium Increase
(remove)100.xx.xx.xx.5203 $ 30,095.00
Net Budget Expenditure Increase/(Decrease)$ 28,693.00
Balanced Budget Adjustments $$0.00
Ms. Mueller stated that this is our last year to use the unused Levy Capacity. If we don’t use it,
it will be gone by next year. The Public Hearing for operating budget is October 27th and will
require 2/3 vote because of the unused Levy Capacity.
Review 2021 Water and Sewer Utility Budgets
Ms. Mueller stated that there are no significant changes on the Sewer Budget so there is no
reason to raise rates at this time.
On the Water Budget, we are eligible for a simplified rate increase, which would be 3%.
Auditors recommended the increase. An average residential quarterly increase would be $2.
We need Council’s approval to move forward with the process.
Alderperson Kubacki made a motion to approve the simplified rate increase.
Alderperson Madden seconded; motion carried.
COMMUNICATIONS AND MISCELLANEOUS BUSINESS
None
ADJOURNMENT
Alderperson Wolfe made a motion to adjourn at 5:52 p.m. Alderperson Kubacki
seconded; motion carried.
Minutes recorded and transcribed by Christine Crisp.
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October 13, 2020
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To: Jeff Warchol—City Attorney
From: Robert Maniak—Legal Intern
RE: Water Bug’s pavilion lease
Date: 10/29/2020
The Mayor inquired to the history of the leasing arrangement between the City and the Water
Bugs. Currently the Water Bugs rent part of the pavilion at Idle Isle and have done so since 2005. The
following memorandum articulates the developments of that leasing agreement over the past 25 years.
This memorandum is based on the hundreds of pages found by Jill. The relevant documents have been
copied and attached to this memorandum as an appendix. Each event has been given a number which
corresponds to the number located on the sheet protectors in the binder.
1. The earliest lease agreement that was found dates to 1998. In this agreement the lease
payment was $1 for usage of the older (since removed) building at Idle Isle, and ran from
May to September. This lease doesn’t appear to allow for storage, but rather was to allow
the Water Bugs to sell concessions during their show season.
2. In 1999 Muskego and the Water Bugs entered into another lease which mirrored the
language of the 1998 lease. This lease ran from June to September, was for the Water Bugs
to sell concessions, and the rental payment was $1 dollar for the season.
3. In 2000, the lease followed the same arraignment as previous years. For $1 the Water Bugs
rented the existing building for concession usage from May to August.
4. In 2001, once again the Water Bugs rented the building from May to August for $1 for
concession usage.
5. In 2002, the lease’s terms were the same as the previous year, with a lease running from
May to August and a lease amount of $1.
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Discussion regarding Idle Isle Lease with the Water Bugs
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6. In 2003, the lease agreement included similar terms. For $1 the Water Bugs were able to sell
concessions from May to August.
7. In 2003 a lease was created for November 26th 2003 to December 31st 2004 to allow the
Water Bugs to work on their ski equipment. The lease payment was again $1 for the entire
term. This lease appears to be the first were year-round access is allowed.
8. The pavilion, and the Water Bugs usage of it was first raised at a March 10th, 2003, Parks and
Recreation Board Meeting. In that meeting the Parks and Recreation director notified the
Board and members of the Water Bugs, that the then-existing pavilion was set to be
destroyed in the fall of 2004. Additionally, the Parks and Recreation director informed the
Water Bugs that if they wished to continue to use the new pavilion that they would need to
support the cost of the storage area. If they did not then they would not be allowed to use
the storage facility.
9. On April 26 2005, a lease was signed for the use of old building that ran from May to
September. The lease payment was $1. The usage was described as for the sale of
concessions.
10. On September 15 2005, The Parks and Recreation Director emailed a cost break down to the
alderman. This broke down the costs for the pavilion and who was to pay for them.
11. In an undated, though presumably prior to the signing of the 2005 lease, letter the Water
Bugs President wrote to the Parks and Recreation director and paraphrased the agreement
with regard to the pavilion lease. Notably, the President wanted to “make it perfectly clear
that the repayment of $94,390 will end after 10 years” and that once the ten years had
lapsed that the rent would be reduced to $1.00 per year. The later provision does not
appear in the actual signed and agreed upon lease.
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Discussion regarding Idle Isle Lease with the Water Bugs
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12. On November 16, 2005 the Director of the Parks and Recreation department drafted a
memorandum discussing the Parks and Recreation Board decision to require the Water Bugs
to pay for some soil mitigation issue that had occurred with the pavilion. Ultimately the
finance committee did not accept this increase and the enacted lease listed the amount as
$94,390 as described below.
13. On November 22, 2005 the Common Council approved a lease agreement1 to be effective
May 1, 2006 and running until April 30, 2016. This lease provided that the Water Bugs would
pay a total of $94,390 over the course of the lease, paid in 120 equal payments of $786.58.
Due to insurance issues, the 2005 lease was amended in July 0f 2006 to remove an
insurance requirement. The relevant portion relating to the lease amount was unchanged.
14. On June 12, 2006, the Parks and Recreation Board, had a meeting where they discussed the
pavilion. At this point, the pavilion was “99.9% completed” with a few minor issues left to be
resolved. Pursuant to their rental agreement the Water Bugs had previously signed they had
already begun to use the pavilion.
15. On April 27, 2010, the 2005 lease was amended. As part of this amendment, the lease was
extended until 2018. Additionally, the rental payments were reduced to $589.92. Up to this
point it appears that the Water Bugs had kept up with their payments and that the new
amount of rent was calculated to be the remainder of the outstanding principle paid over 8
years. This lease was further amended on April 12, 2011, though no changes were made to
the lease amount.
16. On May 15, 2018, the Common Council approved a new lease running for 2 years, beginning
May 1, 2018. The rent payments were increased from 2010 lease to a monthly payment of
1 It should be noted that the lease agreement covers not only the leasing the pavilion but also the general usage of
the Idle Isle area by the Water Bugs. The portion of the lease governing the renting of the pavilion is approximately
3 short paragraphs in an almost 20 page document.
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Discussion regarding Idle Isle Lease with the Water Bugs
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$692.00 per month. Based on a March 12, 2018 email from Scott Kroeger to Tammy Dunn, it
appears that this rental price was based on taking the square footage the Water Bugs rented
and applying a $.55 per square foot equation. No mention of the cost of the pavilion is
mentioned in this lease as it had been in previous leases.
17. On March 30, 2020, another 2-year lease was created. In this lease the rental payments are
reduced to $542.00 for months between May and August, and $271.00 for months between
September and April.
I assume, though there is no documentation that states this that, the $94,390 was re-paid to the
city in full and that the pavilion is now fully paid off.
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Discussion regarding Idle Isle Lease with the Water Bugs
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W182 S8200 Racine Avenue ~ Muskego, WI 53150 ~ www.cityofmuskego.org
MEMO
To: Committee of the Whole
Date: November 6, 2020
Re: Baseball Organizations Field Use
I have been meeting the Jr Warriors, Muskego Storm and MAA, who are the
main baseball/softball organizations in the City of Muskego for a number of months
attempting to work out an agreement to take pressure off of our Parks Department
regarding scheduling of field use going forward. The Goal is to have these organizations
form an overall “Shell organization” that is comprised of each of these stake holders.
This will allow this “shell organization” to get insurance and allow the City of Muskego to
only have to deal with one group for the majority of scheduling of field use for these
three clubs moving forward, saving a considerable amount of staff time.
Part of these discussions dealt with the lighting project at MHS vs the
reconstruction of Park Arthur #4 saving about $100K. This project will be moving
forward 1st Q of 2021. Another discussion we have had is in regard to the rebuilding of
the 3 smaller diamonds at Park Arthur (Fields 1, 2, & 3). Ryan & Scott had mentioned at
the capital budget discussions that they would like to get an alternate bid for converting
fields 1, 2, & 3 to turf infields. This would eliminate the need for field prep for games
which was a huge point of contention last winter. This would also increase the
availability of these fields as weather would not delay games due to the fields being wet
after a rain event. The thought is the city would front the money to turf the fields (current
estimates are about $100,000 over the base bid total to turf all 3) and the baseball
organization would pay back the city for that expense of the turf over 10 years. Teams
or members of the public that are not part of this “Shell organization” that would like to
use these fields would be charged a turf fee. This fee would be segregated and used in
the future for the costs to replace the turf when needed.
Questions to consider are: Are you OK with the 10 year payback (if not, what
term are you OK with?) What are your thoughts on the overall concept? Obviously, the
details will need to be worked out, but I wanted to gage the council’s interest before
moving forward.
OFFICE OF THE MAYOR
Rick Petfalski, Mayor
(262) 679-5675
rpetfalski@cityofmuskego.org
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Baseball Field Discussion
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