COMMITTEE OF THE WHOLE - MINUTES- 9/23/2008
COMMITTEE OF THE WHOLE – CITY OF MUSKEGO Approved: 10/2/2008
MINUTES OF MEETING HELD SEPTEMBER 25, 2008
Mayor Johnson called the meeting to order at 6:30 p.m. and led those present in the
Pledge of Allegiance.
ROLL CALL
Present: Mayor Johnson, Ald. Snead, Pavelko, Borgman, Werner, Schneider, Schaefer
and Fiedler. Department Heads/Other Staff present: Finance Department Supervisor
Mueller, IS Director Sommers, and Computer Specialist Quijano,
Guests: Jeff Verburgt, Jeff Jones, Mary Kalk, Wanda Jackson, Leone Schnetz, Frances
Klanchar and other residents of The Muskego Regency
STATEMENT OF PUBLIC NOTICE
The meeting was noticed in accordance with the open meeting law.
APPROVAL OF MINUTES
Ald. Borgman moved for approval of the September 18, 2008 minutes. Ald. Snead
seconded; motion carried.
Mayor Johnson noted that he would accept public comment at the end of the meeting.
2009 BUDGET
Tess Corners Volunteer Fire Department
Mr. Jeff Verburgt, Chairman of the Board of the Tess Corners Volunteer Fire
Department, spoke on the operating and capital budgets for the department. Their
capital budget requests of $500,000 has been reduced by approximately $50,000.
Under their capital budget requests, they have
SCBAs
The FPA has changed regulations on what the fire department’s can use as their
air tanks, masks, etc. In the past, they were able to update in increments such as
doing 10 or 15 masks per year and go with the current updates. The FPA has
made so many changes that none of the department’s equipment as of August
was able to be updated any more. They have to purchase all the units (tanks,
face masks, harness) brand new. As this is going to be a large expenditure, they
put the amount of $400,000 to outfit approximately 65 SCBAs. They are looking
at three vendors. They have a committee set up researching the item. Once they
get the results back from the committee, they’ll have final figures. The last year
capital budget they had anticipated $380,000 for the project which was inflated to
not to exceed type figure. The vendor will supply all the necessary training.
Replace Roof Station #1
They put aside $55,000 in the past to be looked at under capital budget. He had
received one quote from a local contractor for around $10,000 less which is
$45,440 for a roof replacement on Muskego Station #1 on Janesville Road. The
roof is approximately 15-16 years old. He stated the rubber membrane on the
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September 25, 2008
roof was a 45 mm. and the replacements are now 60 mm. It has to go through
the bidding process so he’ll give the bid received to Council.
Phoenix Project Balance
He explained that this would be the completion of the Phoenix system which is
the software that the fire department uses to document how they get to each call
and reports are also generated through this system. The system was started last
year with an expenditure of about $160,000. They had $100,000 put into the
budget for this year for the completion. They found because they combined the
needs of both fire departments that will be reduced by approximately $40,000.
The request for completion of the Phoenix system is $61,550. The first
responders vehicles are on the list for the Phoenix as the support vehicles are
limited so it will not be 100% on the laptops. Fire inspectors will have it.
Mayor Johnson asked if there was any trade-in value in the old units. Mr. Verburgt said
they’d be offered to other communities usually in rural areas. The research committee
will be looking into all the options, including trade-in value.
On the operating side of the budget, Mayor Johnson asked Mr. Verburgt to explain it.
Mr. Verburgt said because Tess Corners is going to be doing the administration for the
fire departments, they have to take a look at where they are and where they are going.
They will be taking current budgeted figures from both companies and combine them to
a figure of $500,000. That is approximately $60,000 less than what the proposed 2008
budget was. It will take awhile to get the administration in place and how the MVFD
business was run to find out where they are going to be with the budget. It’s a
combination of operation of both fire departments. Ald. Schaefer requested an itemized
list of the budget items. Mr. Verburgt did not have information from MVFD so it would
not be doable as he does not have access to any of their 2008 expenditures. $500,000
is the best figure based on last year’s numbers. If there is any overages, they would
look at putting that towards 2010 capital budget for offsetting the operational budget for
2010. He mentioned that the city would be receiving quarterly operational reports.
Cable TV
For 2008, the cable club purchased a camera with a second camera to be looked at for
purchasing in 2009. Mr. Jeff Jones, President of MPAG, answered the Common Council
members inquiry on why the cable club needs the second camera. Mr. Jones stated
that when they do video shoots, the second camera would facilitate a fast turnaround.
They use a pair of cameras for coverage and an identical set makes it easier to
manage. Plan was to get two newer cameras to supplement the two older cameras
which gives them four, total. There are events where they could make use of four
cameras. They do it for musical performances, sports activities and also for programs
produced in the studio. Also, for an interviewing program or talk show, you need one
camera on one person and the other camera on the other person. The difficulty in using
an old camera with a new camera is matching up the shots with the newer ones having
features not in the old cameras. The intent was to replace the antique cameras around
18 years old and not use them any more. The goal was to have two new cameras to
replace the old and then there would also be the option of having two more cameras in
the field. There would be more flexibility in covering events. The Muskego festival
required more cameras than the club had to cover the many events. Sometimes the
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September 25, 2008
people use their own cameras. It is best to have a high quality camera that is easy to
use to get the best production. The life expectancy on a camera is hard to judge, but Mr.
Jones expected them to be five years, possibly ten or fifteen. The old cameras have
lasted ten years and they were used ones.
Information Systems
IS Director Joe Sommers presented a comparison for the IS Department verses
outsourcing for 2009. His comparison was based on the quotes from two companies
and the present IS Department.
Rate of Pay Comparison
There are two positions now and each of the quotes received also have two
positions. Comparing the rate of pay, Muskego is low and that’s where you want
to be. River Run was surprising high. Those are discounted rates as well around
35%-40%. It’s possible they would go back to the normal rate after a matter of
time.
Proposed Total Hours of Work
Muskego has two full-time positions at 40 hours per week, roughly 4,160 hours.
River Run was a quarter of that, 1,596 hours; and Premier at 3,080 hours. What
you’d want is more hours worked. Consultants are able to make it attractive,
because their rates are higher is to work less hours.
Cost if two FTE are Needed
What if they are wrong? What if the two positions are needed? Either in the City
of Muskego or contracted. City of Neenah is a similar size and they have a staff
of five and Marshfield has twice the staff of Muskego. Cost of Muskego was
$200,929 compared to River Run at $423,800 and Premier at $222,912.
In reviewing the contracts, he noted the following:
River Run “drive time” to work is billable.
Premier cost includes $12,000 annual administrative fee per position.
River Run hours are “estimated.”
Projected savings will be reduced by increased salary for in-house IS
management, increased cost of after-hours calls and other unknowns.
With the current staff, there is no additional cost if they have to come in after hours or
on weekends. If the city is wrong about the number of hours needed, it could hurt the
city. Some additional considerations:
Current cost is fixed, even when 5 or 10 additional hours of work per week are
required. Outsourcing costs grow exponentially when additional hours are
required.
River Run quote does not have staff on-site during normal business hours; they
have a total of 23 hours per week on-site by the12th month (3 hours for senior
engineer and 20 hours for service engineer).
In addition to the options to outsourcing presented at the last meeting, IS Director
Sommers added using city’s fund balance to close the gap. They can always look at
outsourcing next year if it makes sense.
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September 25, 2008
Mayor Johnson shared with the members information received from three other
companies. One company works under V.A.L.U.E. which is under the State contract
and is bid out. He stated that Racine County, Racine City and the Milwaukee County
use the Velocity and Premier companies which are sister companies. Mr. Clark, the
owner, would be willing to come before Common Council members to answer questions
of the company. Ald. Snead questioned the time frame if the city was going with
outsourcing. Mayor Johnson said they would start working on it shortly after budget is
approved.
Library’s Training and Conference Item
In an email, Acting Library Director Jane Genzel, indicated the item is for continuing
education course work for the director and assistant director for their certification
requirements. These course can range from $100-$400 each on average.
Building Inspection Clerical Position
Mayor Johnson advised that a mistake had been made in the building inspection clerical
position. He had taken out of the budget an additional half position which was a half
position too many. The intent was to leave a half position in that department. The
position would also allow a floater position in city hall to back up the clerical staff
throughout the building. Finance Department Supervisor Mueller said this would impact
the numbers previously given by approximately $2,000 in the first year and the second
year, it would be an additional $15,000 on top of the $40,000 so they’d be looking at
$55,000. To include the half position back in the budget would be $13,500. Mayor
Johnson added that the position would have to be negotiated with the Union.
Ald. Fiedler brought up the subject of outsourcing Building Inspection and the $20,000
for the truck for the Parks and Recreation Department. He noted that there could be
one of the Building Inspection’s trucks shifted to the parks thus an additional savings of
$20,000. The decision of outsourcing IS and Building Inspection needs to have a
serious discussion about it as it will not be getting any easier. If the city is going to
outsource one department, he could not see the efficiency of bringing in a new IS
department, teaching them the system, and then have another department leave the
next year with a change in system, bring the two new departments in and they can work
on the system together. Mayor Johnson stated there needs to be a lot of internal things
that need to be done such as finance and computer interface, etc. to make it work. IS
has a function with Building Inspection. The new company will be evaluating the current
system and need some time to do the evaluation. He was in favor of staggering the
changeover. Ald. Fielder inquired if the Building Inspection turnover was delayed until
March, what would be the effect on savings the first year? Finance Director Mueller
said it would be a quarter less, a loss. It would be a couple thousand. Ald Pavelko
requested new sheets and amended expenditures. Ald. Werner cautioned that the city
should do what’s right the first time and in the best interest of the city.
NEW BUSINESS
Debt Service Fund
Finance Department Supervisor Mueller summarized the total debt service obligation for
the city. The two funds to include the general debt which is supported by the tax levy
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September 25, 2008
dollars and the CDA lease revenue which is generated from tax district #9 increments.
For 2009, the combined principal/interest payments are projected to be increased by
$245,000 over 9% over the 2008 budget. This was due to the issuance of the 2008
anticipation notes for the city’s new tax district #10, located off of Moorland Road. To
help compensate for the future debt payments, funding sources from the special
revenue fund and the water utility have been budgeted and will continue to budgeted
until reimbursement for the related past debt obligations have been paid off. The net
result of the projected fund activity should allow for a fund balance of 2.2 million dollars.
This will be used as a partial offset against future debt obligations. She advised that the
city’s total outstanding debt will be 24.1 million dollars as of December 31, 2009. The
city has a debt limit of 109 million dollars as of the calendar year 2008.
Special Revenue Funds
Finance Department Supervisor Mueller explained that the special revenue funds which
are basically to account for the proceeds of specific revenue sources that are legally
restricted to expenditures for a specific purpose. All the funds combined totaled 11.5
million dollars at the end of 2009.
Park Dedication Fund is for improving the city’s parks and included with this fund
is a department request for reimbursement of the Old Town Hall in the amount of
$161,000. She noted that the Mayor has proposed to remove this $161,000
transfer. Mayor Johnson stated his position as whether you believe in that
building or not, and in his opinion is a park property, administered by the Parks
and Recreation Department and it is on park property and he believed it should
come from funding through the park funds as opposed to using money from the
general undesignated fund balance that could be used for other projects in the
city such as roads like Durham Drive. He proposed to change the decision of the
previous Council and allow that balance to be taken from park dedication money.
Ald. Snead stated that at last year’s budget they discussed paying the money
back that was borrowed from the fund and wanted to know why it wasn’t paid
back. Mayor Johnson said they talked about it but took no action. Ald. Snead
stated then park dedication is going to be out the money they loaned. Discussion
continued on the park dedication funds that were used on the Old Town Hall and
the agreement to pay the park dedication fund back. The item and documents
on the subject will be reviewed at the next meeting.
Refuse & Recycling are fees that are charged to the residents for waste removal
services. The city is proposing a rate increase quarterly of $5.90 or 28.64%. The
projected net loss for 2008 is $37,409.34 in refuse and $21,614.41 in recycling.
The two main reasons that the city is recognizing a loss is Veolia’s rates have
increased by 53 cents/month/user due to the State’s new proposed fee and the
second reason is the city is no longer receiving host fees from Waste
Management as they have filled their contract obligations. For 2009, the net loss
in refuse is projected at $133,396.92 and in recycling at $78,723.52. If the new
rate is implemented, the increase in revenue will offset the increase in
expenditure. She noted that the city is still negotiating with Veolia and if the rate
changes significantly, this will be brought forward.
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September 25, 2008
Revolving Loan is State funding that is available for loans to different city
businesses and currently there are three participants—Alpha Plastics, Stella &
Chewy’s and The Animal Doctor.
Emerald Park Fund reflects the administrative and committee related fees to
monitor the landfill operations under the terms of the contract.
Cable TV Fund covers cable operating costs. She mentioned that revenues are
no longer recognized because franchise fees are now reflected in the operating
budget.
Landfill Fund generates revenue from hosts fees that are received from the
landfill for actual tons of waste. For 2009, the city is projecting over 5 million
dollar fund balance. Some of the funds may be used for future road projects.
Future Parkland Fund includes engineering fees for the oversight of the old
Briggs and Stratton landfill.
Well Testing Reserve Fund is for covering the cost of testing private wells once
the landfill closes.
Land Conservancy Fund is funding the city conservation and city forester and
conservation intern are budgeted. In addition, purchases of land for conservation.
Storm Water funds strictly storm water related projects such as drainage ditches,
construction of ponds.
Rescue fund covers expenditures related to the Tess Corners Ambulance
Service operations.
Residual TIF/Capital Improvement is for past and present TIF district distributions
of the closed districts #2-#7 and computer replacement.
Tax Districts #8 and #9 reflects the actual tax increment which will ultimate offset
the debt obligation.
Grant is for grant funds and the expenditures which offset each other.
GIS includes computer costs to help GIS operations. She was advised by the
Plan Director that the $18,000 expenditure should be moved to 2008. The start
up funding came from operating from Council in 2005. Now the revenue is from
maps or copies for the public.
Recreation Ticket Sales to the various theme parks.
Community Development funds expenses that are incurred by the Community
Development Authority.
Compensated Absences Fund covers payments to terminated and retired
employees for vacation and sick leave balances. The city is proposing to have
future severance pay and early retirement expenses against this fund. It will
require official approval from the Council. This is a fund the city is required to
have by the Federal government.
TID Budgets
This is the capital projects fund for the tax district off of Moorland (#10). Shown on the
budget is the anticipated notes with revenue coming in and the expenditures flowing
out. It should net each other for a zero balance by the end of 2009.
COMMUNICATIONS/MISCELLANEOUS BUSINESS
Next Meeting
The next meeting will be October 2, 6:00 p.m., at the Stoney Creek Adult Community.
Mayor Johnson cancelled the October 9 meeting as it conflicts with the DOT project
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September 25, 2008
meeting. The October 2 will be finalization of the budget as the information has to be to
th
the press by the 9.
Ald. Werner would like to see what the numbers are for outsourcing as he predicted a
debate on this issue at the next meeting. Ald. Schaefer requested more of a
summarization of the departments that they are thinking of outsourcing such as hours
they will be here.
Job Descriptions
With the departure of the city administrator and some of the duties being done by the
administrative assistant in the Mayor’s office, Ald. Werner would like to revisit that job
description. Mayor Johnson added that at the next Council meeting he would have
ready for their review the pay for performance plan, to show the cities that were looked
at, and hopefully, the Council will make a decision on whether or not they will have a
program. The study to determine the salary scales was held off depending on what
direction the Council will take. If not the pay for performance, then they would have to
go with a step increase plan. When they get to the plan the city is paying $9,000 for,
they will get the job descriptions to modify and then that company will inform the city of
the classifications.
Janesville Road Project
Ald. Pavelko shared the notice he received from the county on the Janesville Road
project. They are going to extend the project to 2013; three years rather than two years.
ADJOURNMENT
Ald. Snead moved to adjourn at 8:17 p.m. Seconded by Ald. Fiedler, motion carried.
Stella Dunahee, CPS
Recording Secretary