COMMITTEE OF THE WHOLE - MINUTES - 10/2/2008
COMMITTEE OF THE WHOLE – CITY OF MUSKEGO Approved 7/14/2009
MINUTES OF MEETING HELD OCTOBER 2, 2008
The meeting was held in the main dining room at the Stoney Creek Facility located at
S69 W14142 Tess Corners Drive. Mayor Johnson called the meeting to order at 6:30
p.m. He thanked Stoney Creek staff for hosting the meeting at the facility and the
residents present for attending.
Present were Ald. Fiedler, Schaefer, Schneider, Werner, Borgman, Pavelko (arrived at
6:36 p.m.), and Snead, Finance Dept. Supervisor Mueller and Deputy Clerk Blenski and
several Stoney Creek residents. The following City personnel were also present: IS
Director Sommers, Computer Specialist Quijano, Assessor Mecha, Mike Moore, Sally
Bukowski, Jeanne Struck, and Kim Chavie. Those present recited the Pledge of
Allegiance. The deputy clerk stated that the meeting was noticed in accordance with
the open meeting law.
There were no issues with the agenda.
APPROVAL OF MINUTES
Ald. Borgman moved for approval of the September 23 and 25, 2008 minutes.
Ald. Snead seconded; motion carried.
Mayor Johnson noted that he would take any public comment or questions at the end of
the meeting.
NEW BUSINESS
Discussion of State Statute 70.85 Stipulation Agreement
City Assessor Mecha was present to discuss a stipulation agreement regarding five
properties located on or near Hillendale and Janesville. The property owners appealed
the Board of Review determinations to the Department of Revenue (DOR), which would
result in a hearing. Prior to the hearing, the affected taxpayers and City Assessor came
to a stipulated value. The assessor agreed to reduce the assessed values of the five
properties by 10%. The scheduled hearing was canceled. Assessor Mecha wanted to
know if the Committee supported the stipulation agreement. If not, a new DOR hearing
could be scheduled. The hearing could result in the assessments being reduced by
more than 10%. In addition, the City would also incur costs for legal representation for
the Assessor.
The consensus of the Committee of the Whole was to support the Assessor’s
stipulation agreement.
Mayor Johnson publicly acknowledged Jeff Jones for his volunteer efforts. Mr. Jones
has attended the Committee of the Whole meetings that have been held in locations
other than City Hall to tape them so the video could be broadcast at a later date.
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October 2, 2008
OLD BUSINESS
Continue Discussion and Review of Proposed 2009 Budget with Review and
Presentation of Capital Budget Requests 2009 - 2013
Mayor Johnson stated that the City was considering outsourcing some services, such
as building inspections, for 2009.
Mr. Tom DeLacy and Mr. Jim Hellen of Independent Inspections, Ltd. (IIL) were present.
Mr. Hellen reviewed a proposal to provide inspection services for the City of Muskego.
Independent Inspections is located in three states. Mr. DeLacy responded to several
concerns expressed by Ald. Fiedler. He stated that the department would be staffed
with one full-time permit clerk, one full-time inspector and one part-time inspector.
Commercial inspections would be handled as needed. Ald. Fiedler noted that the City’s
Building Inspection Dept. has different software from what is used by Independent
Inspections. Mr. DeLacy stated that their permit clerk would enter the data into the
City’s system. He stated that the company has a total of 87 employees for all three
states. Ald. Werner asked if staff would be added if Muskego became a client. Mr.
DeLacy responded there was a possibility that one additional inspector would be hired.
Mayor Johnson thanked Mr. DeLacy and Mr. Hellen.
Mr. Bill Clark of Premier Work Force Solutions was present regarding the potential
outsourcing of the City’s Information Systems services. He stated that the total number
of employees fluctuates depending on projects. Premier currently has about 27
employees on staff. Mr. Clark proposes that one full-time senior engineer would be
placed at the City for the first 90 days to learn the environment. In addition, there would
be one full-time employee on staff 40 hours per week. Mayor Johnson also noted that
the one current City Hall employee would work in the IS Department. Ms. Mueller
stated that there would actually be 354 additional hours for the department if the
services were outsourced. Mr. Clark stated that the City’s 100 users do not support the
qualifications for the two current employees in the department. The Mayor thanked Mr.
Clark for his attendance.
Discuss Outsourcing Building Inspection Services
Mayor Johnson requested that the Committee review outsourcing the Building
Inspection services next. Ald. Fiedler stated that while he does not like eliminating
positions, he believes the presentation by Independent Inspections addressed his
concerns. He cannot dismiss the cost savings projected to be $67,983 that would be
realized in 2010. Ald. Borgman stated he has heard from builders that Independent
Inspections does not always provide the same level of service as municipal staff. Ald.
Fiedler stated he believes services would not change. The City would have a contract
with IIL that would have to be renewed annually. If there were problems and work was
not getting done, the contract would not be renewed. This provides a higher level of
accountability. Ald. Werner stated he does not have enough information at this time to
know that IIL will be able to provide the same level of service at a reduced cost.
The Mayor stated that one of the positives to outsourcing this service is that it provides
staffing flexibility to meet the needs of the department, which fluctuate. He also noted if
the outsourcing were done in 2009, there would be a estimated cost of $49,400 to cover
approximately 1,300 open permits at $38/hour. That cost could be higher. Mayor
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October 2, 2008
Johnson requested the Committee members state their position regarding outsourcing
the building inspection services. Ald. Borgman stated that he is not ready to do so yet.
Ald. Snead stated that she needs more time to absorb the information that was
presented. She is concerned about how the citizens will be affected. Ald. Pavelko
stated he is interested in considering the outsourcing. Ald. Werner stated he is probably
on board, but has questions. Ald. Fiedler stated he supports. Ald. Schaefer stated she
does not like outsourcing. She agrees that cost savings have to be explored, but also
has concerns. Ald. Schneider stated he is not ready to support outsourcing yet; he
wants to research further by contacting other communities that have used IIL.
Mayor Johnson stated that he did not propose outsourcing the inspection services in the
2009 budget. However, government needs to function more like a business. The City
needs to look at ways to operate more efficiently. Budget decisions for the next few
years will more difficult. Ald. Fiedler stated that if the City plans to outsource this
service, it should be done in 2009 so that the cost savings can be realized in 2010. The
Mayor stated another proposal would be to leave one staff person in the department to
take care of the open permits. He acknowledged that the $49,400 is conservative and
could be as high as $70,000. The Committee did not make a final decision
regarding this issue. Building Inspector Mike Moore noted that the City would have to
pay Independent Inspections $38/hour to address complaints that involve municipal
ordinances. The Mayor stated that an existing staff person could be trained to do this.
Sally Bukowski questioned how long the 50% rate that Independent Inspections would
charge would remain in effect.
19-Hour Building Clerk Position
Ald. Fiedler stated that he had a place to go for information when the City Administrator
was here. He believes the Council members need a “go to” person to obtain unbiased
information. Ald. Fiedler suggested that the 19-hour position could be used to address
this need. Ald. Werner also sees a need for someone to take on HR responsibilities.
Ald. Pavelko disagreed that the Council should have this resource in light of positions
being eliminated. Mayor Johnson stated that HR functions are very specialized and
those duties can’t just be given to anyone. He said a solution could be to hire a
consultant for these services, and then have an existing employee perform the
maintenance. Ald. Borgman stated the need for someone with HR skills was the reason
the Council decided to hire a City Administrator. The administrator was also the person
that was supposed to provide unfiltered information to the Council. Now, the City does
not have someone in that position. The consensus of the Committee was to keep
the 19-hour position in the 2009 budget and to see if HR duties could be added to
the job description of an existing employee.
The Committee took a brief recess.
The Mayor reviewed the following adjustments:
Revenues
Licenses and Permits +$50,000 Fire Inspections
- $18,000 Eliminate Point of Sale Inspections
Financing Sources $114,115 Use of Fund Balance. Mayor would
prefer it not be used.
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October 2, 2008
Expenditures
General Government -$111,877 Not Filling the City Administrator
Position
+$48,947 Reclassify GIS Position
- $69,277 Outsource Information Systems. The
Mayor noted the amount could be
higher depending on what services
are contracted.
At this time, the IS Director Joe Sommers presented information comparing outsourcing
vs. retaining the department and staff. He stated that he recommended using Premier if
the services of the department are outsourced. Mr. Sommers noted that he has
concerns if the current level of service will be able to be maintained based on the
proposal submitted by Premier.
The Mayor continued reviewing the Expenditures.
Public Safety - $ 26,180 50% Building Clerk. Ald. Fiedler
suggested that if building inspection
services are outsourced in 2009,
one inspector position be retained.
+$ 20,000 Volunteer Fire Dept. Retention
Public Works - $ 80,166 Hwy. Maintenance Position. The
employee retired and the position
will not be refilled.
+$ 6,300 Seasonal DPW Position
Culture, Rec & Education - $112,564 Parks Outsourcing
Conservation & - $ 48,947 Reclassify GIS Position
Development
Contingency - $ 2,400 Expenditure Reduction
Other Financing Uses - $ 34,053 Transfer to Park Dedication
All Departments - $ 60,908 Merit Rate Decrease
The Committee next reviewed the Capital Budget items.
Item Cost Comments
Document Management $ 17,000 Clerk should research outsourcing.
System Software
Filing System for Vault $ 13,000
Cable Studio Cameras $ 5,000
Server Replacement $ 12,000 Ald. Werner suggested talking to
consultant that will do the outsourcing.
Office Upgrade $ 2,385
Copy Machine (PD) $ 10,000
Squad Video Cameras Removed by Chief.
Cold Storage $ 8,000 Removed by DPW Superintendent.
Library Building Lighting $ 7,000 Mayor initially estimated the cost to be
$10,000.
Pickup Truck (Parks & Rec) Removed by Parks & Rec Director.
Durham Reconstruction-Phase $200,000 Mayor noted the cost was for
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October 2, 2008
II preliminary engineering. If approved,
this will be a huge financial
commitment for the future. Total
estimated cost for project:
$4,000,000.
Janesville Road $104,000 Total estimated cost for project:
Reconstruction (Streetscaping) $6,000,000
Replace Roof Station #1 (Fire $ 45,440 Ald. Fiedler wants to make sure the
Dept.) City owns the property before this
work is compled.
SCBA’s (Fire Dept.) $400,000
Phoenix Project Balance $ 61,550 Mayor noted cost came down.
The Mayor and Committee reviewed the Special Revenue Funds Summary.
Park Dedication Fund. One of the outstanding issues is whether or not the Park
Dedication Fund should be reimbursed for the Town Hall improvements in the amount
of $161,000. Ald. Snead reviewed the history regarding this project. The total cost of
the project was $209,525.62. To date, $48,505.10 has been paid back to the Park
Dedication Fund. In August of 2004, the Finance Committee approved the project
expenditures and that the revenue generated from the recreational use of the building
would be used to pay back the Park Dedication Fund. Ald. Snead asked if this Council
wants to pay the money back and how that should be accomplished. If this is not done,
it is projected that the Park Dedication Fund will be depleted at some time in the future.
The Mayor currently does not propose that the money be paid back.
Ald. Werner noted that he is not opposed to paying the money back, but it was
supposed to come from the revenues generated from the use of the building. It has
been projected that it could potentially take five to six years to pay the money back.
Ald. Snead recommends that the money be paid back in three years.
Mayor Johnson stated that the Park Dedication Fund annually receives money from the
landfill based on the agreement with the City. His concern is that the City has other
major priorities, including $10,000,000 that will be needed over the next four years for
road projects. He believes that the building is used for Park and Recreation purposes
and the use of Park Dedication money was appropriate.
Ald. Borgman stated the original commitment should be honored. Ald. Fiedler, Werner
and Schneider agreed the money should be paid back. Ald. Schaefer stated she does
not agree with the original commitment. She objects to using any money from the
Operating Budget to repay Park Dedication. Ald. Pavelko suggested trying to
renegotiate the terms of the payback. Ald. Fiedler recommended that a lump sum
amount less than the $161,000 could be offered because the money would be received
at one time vs. over a period of years. Mayor Johnson stated he does not believe that
the commitment to pay the money back was the right decision in the first place. In
addition, budgets at that time were completely different; if additional monies were
needed, taxes could be raised.
Ald. Pavelko moved to honor the original commitment and pay the money back
over six years with funding to come from the landfill. Ald. Fiedler seconded;
motion carried.
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October 2, 2008
Refuse & Recyling. The Mayor stated that the cost per user would increase .50 per
month. The actual amount may be less.
Compensated Absences Fund. Ms. Mueller stated that money has been budgeted for
severance pay; the specifics will have to be discussed in the future.
Finally, Ms. Mueller reviewed the Debt Service Funds Summary.
Mayor Johnson stated that the budget as reviewed this evening would be what will be
published for the public hearing notice. He suggested a committee be formed to review
the consultants that would perform the IS functions. Ald. Fiedler agreed to serve on the
committee.
ADJOURNMENT
Ald. Snead moved to adjourn at 10:07 p.m. Seconded by Ald. Fiedler, motion
carried.
Jill Blenski, CMC
Deputy Clerk