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FM082097 FINANCE COMMITTEE - CITY OF MUSKEGO MINUTES OF MEETING HELD WEDNESDAY, AUGUST 20, 1997 The meeting was called to order at 7:10 PM by Chairman De Angelis. Also present were committee members D’Acquisto, Sanders and Salentine, Finance Director Dawn Gunderson, Librarian Holly Sanhuber, Chief John Johnson, and those per the attached list. The committee noted that the meeting was posted on August 15, 1997, in accordance with the open meeting law. PERIODIC LICENSE REVIEW REVIEW OF LICENSE APPLICATIONS Ald. D’Acquisto moved to approve an Operator’s License for the following applicants subject to receipt of all fees, favorable police report and verification of schooling: Steve Grabowski Katie Brumner Melissa Zimmer Jessica Cramer Martin Klicinski Cynthia Alaniz Seconded by Ald. Salentine, motion carried 3-0. Ald. D’Acquisto moved to approve an Operator’s License for the following applicants subject to receipt of all fees, favorable police report and verification of schooling: Lucia Janke Sharon Radler Kristine Nimmer Elizabeth Gerlach Allan Kusch Nicole Dunaway Kathleen Karcher Paula Posbrig Seconded by Ald. Sanders, motion carried 3-0. Mr. James Poulos appeared before the committee as Agent for the Delta Family Restaurant, Inc. (formerly Mediterranean Garden) to request a Class B Fermented Malt Beverage and Intoxicating Liquor License for the whole premise. Ald. Salentine moved to recommend approval of license. Seconded by Ald. Sanders, motion carried 3-0. Mr. Brian Shanklin appeared before the committee to discuss status of his application for a Class B Fermented Malt Beverage and Intoxicating Liquor License for the “New Klub 24” which is currently being held by Bette Makolondra. Mayor advised that issue remains open until Court’s determination sometime in September of Mr. Shanklin’s violation of operating an establishment without a license. Mr. Shanklin’s attorney, Ron Pezze, Finance Committee - Page 2 August 20, 1997 explained that there was an eviction hearing on July 28, 1997, wherein the Court th determined that Ms. Makolondra’s tenancy was legally terminated on the 24 of May, upon vacancy of premise. The committee discussed with Mr. Shanklin and his attorney the fact that Mr. Shanklin operated without having a license understanding full well the consequences of that action. Atty. Pezze advised that the committee had been supplied with a Memorandum of Agreement which Mr. Shanklin is willing to sign which states that Mr. Shanklin is proposing that if the City would issue a license to him that it be probationary for a period of one (1) year and that he will adhere to all State, County and Local regulations pertaining to operation of a tavern and that if he ever receives a Notice of Violation, that he would surrender his liquor license within fifteen days of receipt of notification and that Mr. Shanklin would reimburse the City for all costs incurred if there was a revocation. Ald. D’Acquisto discussed with Atty. Pezze whether or not a stipulation Mr. Shanklin was willing to enter into would be legally binding in the event of a violation. After discussion, Atty. Pezze stipulated that it likely would not be binding but that Mr. Shanklin was willing to post a cash bond to cover the amount of a revocation hearing if it were required. Ald. Salentine moved to grant license with a 30, 60 and 90 day review with signed Memorandum of Understanding to be part of the license. Ald. Sanders seconded for purposes of discussion. Discussion ensued. Ald. D’Acquisto advised that the city typically does not issue a license when there is a pending liquor violation and that clear direction was given in June as to the consequence of opening of tavern and that despite that fact, Mr. Shanklin admitted to having opened and operated the establishment contrary to the admonition of the Finance Committee to which Mr. Shanklin replied that he received permission to do so from the City Clerk and/or Mayor’s Secretary. Ald. Salentine moved to defer until court case has been decided. Motion died for lack of a second. Chairman De Angelis called for a vote on the original motion and the motion failed 2-1. Ald. D’Acquisto moved to deny. Seconded by Ald. Sanders. Discussion ensued regarding reasons for denial that would include but are not limited to the following: 1) previous operation of the tavern without a liquor license, 2) previous operation of a tavern after promising city he would not operate, 3) a pending liquor license violation, and 4) the fact that a liquor license has already been issued for this site which has not been surrendered or revoked. Motion carried 3-0. The committee continued discussion with Mr. Shanklin to answer his questions about revoking license for present license holder. The committee does not want to go through the expense of a revocation hearing and suggested that the license holder’s attorney be contacted and asked to surrender license. Mr. Shanklin advised that he is interested in obtaining a Special Dance Permit with no liquor to be on premise. Mayor advised that if there were to be any violations, it would definitely be a negative factor in the final license determination. Ald. Salentine moved to issue a Special Dance permit with no consumption of alcohol for Friday, August 22, 1997, with a time limit of 2:30 AM, subject to verification by staff that there is approval of property owner across the street for use of his property for additional parking. Seconded by Ald. D’Acquisto, motion carried 3-0. Mr. Shanklin again referred to receiving permission from City Staff and Mayor De Angelis advised Mr. Shanklin and Atty. Pezze that this subject had been covered in their prior discussions and that it was not, in fact, true that any such permission was granted after the Finance Committee of June 18, 1997. He further advised Finance Committee - Page 3 August 20, 1997 that the conversation Mr. Shanklin was referring to occurred prior to the Finance Committee meeting of June 18, 1997, and that Mr. Shanklin and Atty. Pezze were well aware of this fact and that Mr. Shanklin’s prior statement was a misstatement of the facts to which Mr. Shanklin agreed. Mr. Jeff Favre appeared before the committee to request an amendment to his outside premise on his license for September 1, 1997, to extend the hours from 10:00 PM to 11:30 PM, for the Packers’ season opening televised game against Chicago, subject to the following: All outdoor beverage sales will cease by 11:30 PM or at the “Two Minute Warning” of the fourth quarter of the game, whichever comes first. All outdoor audio and visual equipment will be turned off at the conclusion of the game. All outdoor activity will cease at the conclusion of the telecast and guests will be asked to vacate the area in an orderly and controlled fashion. Mayor advised that there had been one accident and one trespassing complaint at the grand opening . A discussion was held with Mr. Favre’s representative, as Mr. Favre had to leave for another appointment, as to what would be done differently for this event for traffic control. Chief Johnson recommended that the City post temporary “No Parking” signs on the east and west on Kelsey Drive and leave up until the Public Service Committee meeting on September 3, 1997, where a determination will be made as to making the signs permanent, and to post the intersection of Racine Avenue & Kelsey Drive with “No parking” signs a minimum of 100 feet in each direction on Racine Drive, to have security enforced, and no parking on front grass area. Ald. Sanders moved to approve request to amend the license for Broke Spoke for September 1, 1997, from 10:00 PM to 11:30 PM, subject to all of above provisions. Seconded by Ald. Salentine, motion carried 3-0. Mr. Hewitt appeared before the committee to request an Outside Dance permit for DJs Pub & Grill for September 20, 1997. Ald. D’Acquisto moved to defer approval of the Application for Outside Dance Permit for DJs Pub & Grill, S76 W18040 Janesville Road, for Saturday, September 20, 1997, from 3:30 PM to 8:30 PM to allow Mr. Hewitt time to contact neighbors and secure their approval in writing for this one event. Seconded by Ald. Salentine, motion carried 3-0. Ald. Sanders moved to approve an Application for Outside Dance Permit for Hunter’s Nest, S80 W14401 Schultz Lane, for September 13, 1997. Seconded by Ald. Salentine, motion carried 3-0. UNFINISHED BUSINESS Finance Committee - Page 4 August 20, 1997 WEPCO AGREEMENT FOR LIGHTING-CHAMPIONS VILLAGE - There has been nothing new submitted by petitioner. NEW BUSINESS DISCUSS CROSSOVER BORROWING (LIBRARY) - Librarian Holly Sanhuber, Library Board Ray Christenson and Mr. Tom Strange, Director of the Waukesha Federated Library System appeared before the committee to discuss crossover borrowing program that is used by sixteen (16) communities. To date, there has been no expense incurred by the City or Library for this service. The Federated Library System is now advising that it is necessary to receive moneys from all communities and were trying to come up with an agreeable formula by which to charge. The City will receive a bill in January for crossover borrowing in the amount of $19,594 and will be given the option to use true Non-resident funds in the amount of $13,619 to offset the bill. The balance of $5,975 can be paid back over a five year phase in plan. Librarian Sanhuber recommended that the city use the TNR funds and plus funds from the Waukesha County Federated Library System (WCFLS) carryover funds and explained that the issue would need to be addressed at budget time. REVIEW PROPOSED AMENDMENT TO INVESTMENT POLICY - Mayor De Angelis advised that the Finance Director and the Clerk-Treasurer reviewed information from the League of Wisconsin Municipalities and had discussions with various Treasurers and Finance Directors around the State and would like to recommend the following amendment to the City’s Investment Policy: Section II - Investments - Subject to the provisions of this policy, the City Treasurer shall seek advice from the Finance Director on all invest- ments of City funds that are not immediately needed and are available for investments. If unable to arrive at consensus, the matter shall be referred to the Finance Committee for determination. The Common Council makes it known to all banks, investment bankers, brokers, dealers and others accepting deposits, selling securities or shares or in any manner involved in the investments and deposits of the City, that the Treasurer is an untrained public official, not a sophisticated investor and is restricted in her/his activities by state law and this resolution. Mayor De Angelis advised that both the City’s Auditor and Financial Consultant agree to the above language change. Ald. D’Acquisto moved to recommend approval of the above amendment to the City’s investment policy. Seconded by Ald. Sanders, motion carried 3-0 . DISCUSS ELIMINATION OF BUILDING DEPT. RELATED FORFEITURE/BOND AMOUNTS - A memorandum from Building Inspection Director Chuck Dykstra, dated August 12, 1997, was reviewed which advised that after legal consultation, it was determined that the Forfeiture/Bond amounts are unnecessary for Building related issues. Finance Committee - Page 5 August 20, 1997 The Schedule was created to establish an amount to write on a citation, should someone choose to pay the fine/penalty instead of contesting the issue in court. Building citations are issued with the words “Must Appear” on the citation and paying a fine/penalty to avoid an appearance in court is not an option. The penalty or forfeiture for a building citation is established by the Judge using a forfeiture/penalty range or formula as listed in the respective ordinance. Ald. Sanders moved to recommend removal of Chapter 15 (Electrical), Chapter 16 (Plumbing), Chapter 19 (Minimum Housing), Chapter 29 (Erosion Control), and Chapter 30 (Building Code) forfeiture amounts from the City’s Deposit and Forfeiture Schedule. Seconded by Ald. D’Acquisto, motion carried 3-0. CONSIDER REIMBURSEMENT OF FINANCE DIRECTOR’S CPFO EXAM FEE - Finance Director Dawn Gunderson submitted invoice in the amount of $295.00 for her exam fee which she prepaid, along with notification of her passing of the first part of the Government Finance Officers Association Certification Program. Finance Director Gunderson advised that concern had been raised about the use of the tuition reimbursement account being used for this purpose and suggested that the funds be transferred into her department for this expense. Ald. D’Acquisto stated that he felt this was unnecessary as long as the payment was clearly identified as a reimbursement for a certification exam. Ald. D’Acquisto congratulated Dawn and moved to approve reimbursement to her in the amount of $295.00 to be taken from Account 100.1200.8300 (Tuition Reimbursement). Seconded by Ald. Salentine, motion carried 3-0. REVIEW QUOTES FOR PAVING OF PARKLAND PLAZA PARK - The committee reviewed correspondence from Parks Director Peter Theis, dated August 13, 1997, advising of the following quotes received for the paving of Parkland Plaza Park: Suburban Asphalt $8,450 Merit Asphalt $9,980 Poblocki Paving $9,997 Peter states that the Parks & Recreation Board has reviewed the above quotes and is recommending acceptance of the low quote from Suburban Asphalt in the amount of $8,450. Ald. D’Acquisto moved to recommend acceptance of the low bid received from Suburban Asphalt in the amount of $8,450 and to authorize Mayor to execute documents. Seconded by Ald. Salentine, motion carried 3-0. REVIEW RIGHT OF FIRST REFUSAL-INDUSTRIAL PARK PROPERTY HOORMAN BUILDING) - The committee reviewed correspondence received from The Realty Center in regard to offering the City Right of First Refusal for the Hoorman Building (Lot #1, Saturn & Mercury). Ald. D’Acquisto moved to recommend rejecting right of first refusal. Seconded by Ald. Sanders, motion carried 3-0. Finance Committee - Page 6 August 20, 1997 REVIEW OF AGREEMENTS WITH MUSKEGO VOLUNTEER FIRE COMPANY AND TESS CORNERS VOLUNTEER FIRE DEPARTMENTS - Representatives from both of the fire departments appeared before the committee to discuss contracts for 1998. Ald. D’Acquisto requested to be excused from participation in the discussion due to his involvement with the fire departments. Request was honored by the committee. After lengthy discussion, Mayor De Angelis requested that both parties come back to the September 17, 1997 Finance Committee meeting with suggestions that provide both parties with an acceptable solution to the disposal of assets should the Department disband.. The additional time will give the parties the opportunity to review correspondence from the City’s labor attorney regarding State Statutes governing fire departments/companies such as Fire Chief to be appointed by the municipality and also employment issues. Representatives from Tess Corners Fire Department stated that it would take up to six months to update their by-laws and mayor responded that we can go on a month-to-month agreement until all agreements have been finalized. It is the committee’s wish that both agreements be the same and have the same agreement when and if the department(s) disband. Mayor advised that he will draft a proposal of what the City would like to see in this regard. Representatives of the departments recommended going to a five (5) year contract. Mayor brought up the problem of the possibility of a full-time chief and what may have to change with that implementation. REVIEW EMERALD PARK STANDING COMMITTEE EXPENSES. Ald. Sanders moved to approve payment of Emerald Park Landfill Standing Committee secretarial expenses in the amount of $97.50 and miscellaneous expenses in the amount of $46.09. Seconded by Ald. Salentine, motion carried 3-0. REVIEW LEASE FOR FIRING RANGE - EMERALD PARK LANDFILL - Chief Johnson appeared before the committee to discuss the latest revisions to the lease agreement between Superior Emerald Park Landfill and the City of Muskego for a firing range on the landfill property. Ald. D’Acquisto moved to recommend approval of agreement with revisions by the City Attorney subject to final review by Mayor and City Attorney. Seconded by Ald. Salentine, motion carried 3-0. REVIEW PROPOSAL FOR PARKS & RECREATION DEPARTMENTS Mayor De Angelis discussed with the committee research that has been completed on the structure on the Parks & Recreation Departments and the City’s proposal for the combination of the two departments. Ald. D’Acquisto moved to defer noting that it is imperative that this proposal be dealt with during budget time this year and given top priority. Seconded by Ald. Salentine, motion carried 3-0. REVIEW AGREEMENT FOR UTILITIES TBS Tariff Billing Specialists, Corp.) - Mayor De Angelis informed the committee that TBS representatives had met with he and Information Systems Director Joe Sommers to explain the service they would like to provide whereby they would review monthly charges on all utility billings of the City to determine if overcharges or recommendations exist that would reduce the City’s monthly charges. TBS will negotiate with the appropriate vendors to have the overcharges Finance Committee - Page 7 August 20, 1997 eliminated and recommendations (upon approval of the City) implemented. TBS will obtain refunds and credits for past overcharges. The City would have to agree to the following: Where there is a reduction due to the elimination of overcharges or implementation of recommendations from TBS, the fee is 50% of the monthly reduction for thirty-six months. This is payable on a monthly basis, starting the first month that reflects the reduction. For refunds and credits, the fee is 50% of the refunds or credits. This is payable within 30days of the receipt of refunds and credits. Ald. D’Acquisto moved to deny request to enter into an agreement with TBS stating that he felt it was poor from a public policy standpoint, stating that the City could realize the full savings if the comparison was done in-house. Seconded by Ald. Salentine, motion carried 2-1, with Ald. Sanders casting the dissenting vote. RELEASE OF FUNDS Ald. Salentine moved to approve release of funds for Culvers-Reish in the amount of $6,067.36 remaining in the developer’s deposit for seeding and sodding and the bike path. Both items have been completed and reviewed by the Plan Dept. Seconded by Ald. D’Acquisto, motion carried 3-0. Ald. D’Acquisto moved to release $347,231. from the Letter of Credit for Muskego Regency relating to roads, grading, erosion control, concrete work, sanitary sewer, water mains and storm sewer, as recommended by Ruekert & Mielke and City Staff which will leave a balance of $100,801.26 in the Letter of Credit. It was noted that this release includes $7,800 for erosion control leaving a balance in erosion control (including the $15,600 erosion control bond) of$23.400. Seconded by Ald. Salentine, motion carried 3-0. FINANCE DIRECTOR’S REPORT The Finance Director requested direction from the committee for the type of formal action necessary to use undesignated General Fund Balance to purchase property for the City Library since this discussion took place in closed session. The committee directed the Finance Director to instruct the clerk to prepare a resolution to be placed on Tuesday’s common council agenda to approve the use of General Fund Balance with a payback through a borrowing late this year. The Finance Director reported to the committee that the 1998 Budget process was still on schedule and stated that they should all have received their copy of the Capital Budget. Finance Committee - Page 8 August 20, 1997 Dawn also discussed if the committee still wanted all release of funds from letters of credits, developer’s deposits and refundable bonds to be brought before committee. The committee determined that all of the releases should continue to come to committee since the committee may be aware of issues not known to staff. COMMUNICATIONS AND ANY OTHER BUSINESS AS AUTHORIZED BY LAW ADJOURNMENT Ald. D’Acquisto moved to adjourn at 11:40 PM. Seconded by Ald. Sanders, motion carried 3- 0. Respectfully submitted, Dawn R. Gunderson /ca Finance Directo