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FM011298 FINANCE COMMITTEE - CITY OF MUSKEGO MINUTES OF MEETING HELD WEDNESDAY, January 7, 1998 The meeting was called to order at 7:04 P.M. by Mayor De Angelis. Committee members present were Ald. Salentine and Ald. Sanders. Ald. D’Acquisto was absent. Also in attendance were Ald. Slocomb (arrived at 9;00 P.M.), Finance Director Dawn Gunderson, Police Chief John Johnson and those per the attached sheet. The Mayor noted that the meeting was noticed in accordance with the Open Meeting Law. The minutes of the previous meeting dated December 3, 1997 were reviewed and accepted. REVIEW OF LICENSE APPLICATIONS Ald. Sanders moved to approve Operator’s Licenses for Dave Halula and Shannon Ehredt, subject to receipt of fees, favorable police reports and verification of schooling. Seconded by Ald. Salentine. Vote 2-0, carried by all. PERIODIC REVIEW OF LICENSE - SUEANN WITT Sueann Witt was present and complaints received for her establishment (Klub 24) were reviewed. Allegations of potential underage drinkers, overcrowding and patrons parking in adjacent businesses were either unsubstantiated or rectified. Ms. Witt will appear in February for a final review. UNFINISHED BUSINESS Further discussion of Fire Department Rescue Fees - The Mayor and Finance Director Gunderson met with the parties involved and came to an agreement on how subsequent reports and budget requests should be presented to avoid confusion. Due to the new fee schedule not being complete, Ald. Salentine moved to defer to the 1/21/98 meeting. Ald. Sanders seconded. Vote 2-0, carried by all. NEW BUSINESS Approval of Funds for Kurth Park Expansion and Development Project - Due to the Parks and Recreation Board meeting on January 12, 1998, Ald. Salentine moved to defer to the 1/21/98 meeting. Ald. Sanders seconded. Vote 2-0, carried by all. Review Reserve “Class B” Liquor Licenses - Discussion regarding the new state law establishing a minimum $10,000 fee for a reserve license. Concern surrounding the new law that this fee cannot be substantiated by the City. With new applicants it was suggested to charge $10,400 and “rebate” the applicant $10,000 for “economic development”. The City’s legal Counsel has recommended that the City do nothing at this point. The Mayor believes that there will not be any applicants within the next few months. Ald. Sanders moved to defer to the 1/21/98 meeting. Ald. Salentine seconded. Vote 2-0, carried by all. Discuss Employee Sick Leave Donation Proposed Policy - Ald. Sanders moved to defer to the 1/21/98 meeting. Ald. Salentine seconded. Vote 2-0, carried by all. Finance Committee Meeting - January 7, 1998 Page 2 Funds for Parkland Drive Off-road Trail - Parks and Recreation Board had voted to recommend the expenditure of up to $4,000 for R&M to design and provide bidding documents for a 600 foot portion of the Parkland Drive off-road path. Due to the size of the project, the cost of the plan was questioned. Ald. Sanders moved to defer until data substantiating cost could be obtained. Ald. Salentine seconded. Vote 2-0, carried by all. Maintenance Agreement for Typewriters for 1998 - Ald. Sanders moved to approve the $198.00 expenditure for maintenance agreements for 6 typewriters. Ald. Salentine seconded. Vote 2-0, carried by all. Maintenance Agreements - Hardware Maintenance and Election Support - Ald. Salentine moved to approve a two year agreement for hardware maintenance and election support at a cost of $2,970.00 with ½ being paid in each of the two years. Ald. Sanders seconded. Vote 2-0, carried by all. Disallowance of Claim - Hegler - Incident occurred February 10, 1997. Prior claim of Patricia Hegler was denied by insurance company. Wausau Insurance has recommended the City disallow the claim of Gerald Hegler regarding same incident. Ald. Salentine moved to disallow Gerald Hegler claim. Ald. Sanders seconded. Vote 2-0, carried by all. Hardware and Software Maintenance Agreements - Proposal supplied by Joe Sommers was reviewed. Committee questioned Business Records Corp., 3 year agreement. Financial Director Gunderson would be in favor of a 2 year agreement, but with the possibility of a new payroll/ financial system in the near future, 3 years could be excessive. Ald. Sanders moved to approve all hardware and software maintenance agreement expenditures totaling $31,994.45 with the exception of BRC, which is to be reduced to a 2 year time frame if rate changes to be reviewed at 1/13/98 meeting. Ald. Salentine seconded. Vote 2-0, carried by all. Request for 1997 Capital Outlay Carry-over J. Loughney/C. Dykstra) - Chuck Dykstra provided a written report explaining that additional charges from the contractor require the request to transfer $12,000 from account #100.0000.0324 into 1998. Ald. Sanders moved to approve transfer of $12,000 from account #100.0000.0324 into 1998. Ald. Salentine seconded. Vote 2-0, carried by all. John Loughney provided a memo requesting $3,000 from the 1997 Capital Outlay Funds to be carried over to 1998 for account 100.0000.0329 (cyclone fencing). Ald. Sanders moved to approve transfer of $3,000 from 1997 account #100.0000.0329 to 1998. Review Recommendation for Funds for Master Plan for Leisure Park Area - Chief Johnson representing the Festival Committee is requesting approval of $450.00 to develop the Leisure Park Area and make it more accessible and user-friendly. Terra Firma has provided a proposal to conduct a use study at a cost of $900.00. The Festival Committee is requesting to split the cost of the study. Discussion regarding parcels of land currently not owned by the City but adjacent to the park which may, in the future become available. Ald. Salentine moved to approve expenditure of $450.00 to come from Park Dedication Fund. Ald. Sanders seconded. Vote 2-0, carried by all. Finance Committee Meeting - January 7, 1998 Page 3 Review 1998 Truck/Plow Purchase - Peter Theis has requested approval of a $27,094 expenditure from account #0100.9900.1004 for the purchase of a new truck/plow. Dodgeland was the accepted bidder. The Mayor reported that this price was approximately $4,000 under the budgeted amount. Ald. Salentine moved to approve expenditure of $27,094 to Dodgeland for the purchase of a new truck/plow. Ald. Sanders seconded. Vote 2-0, carried by all. Review 1998 Budget Transfer Request - Chief Johnson/John Loughney - Ald. Salentine moved to approve transfer of $10,000 from Contingency to the Police Department Gasoline and Oil Account. Ald. Sanders seconded. Vote 2-0, carried by all. John Loughney has requested transfer of funds in the 1997 Department of Public Works Budget. Ald. Salentine moved to approve the transfer of the following funds: $10,000 from account #100.5200.3417 and $7542.00 from account #100.5400.3415 to be transferred to accounts 100.5100.3111 ($335.00), 100.5100.3613 ($7.00), 100.5200.3411 ($1,000), 100.5200.3413 ($3,000), 100.5400.3412 ($2,500), 100.5400.3413 ($5,000), 100.5700.5100 ($5,500) and 100.5800.6110 ($200.00). Ald. Sanders seconded. Vote 2-0, carried by all. Discuss Public Works Mechanic Position - Public Works Department - Ald. Sanders moved to approve mechanic’s wages to be paid to interim mechanic for 3 months. Ald. Salentine seconded. Vote 2-0, carried by all. Discuss Non-represented Pay Schedule & Adjustments - Finance Director Gunderson is requesting a change in how employees are compensated bi-weekly and how it is computed. Inconsistencies within the City’s various departments were discussed and the administrative problems it has caused. Options to make the necessary adjustments to get all individuals onto the same cycle were discussed. Ald. Salentine moved to establish “official” bi-weekly rates for all employees who are currently stated with annual salaries in the non- represented employee policy, retroactive 1/1/98. Providing a one year time-frame to correct. Moving all non-represented employees on the same delayed pay cycle, and placing elected officials on a 1/26 salary computation. Ald. Sanders seconded. Vote 2-0, carried by all. Discussion continued on ensuring a smooth transition. Dawn Gunderson will be calling BRC to obtain additional data to facilitate the process. Distribution of TIF #4 and TIF #6 Funds - Finance Director Gunderson is requesting sponsorship of resolution #1-98 to authorize distribution of TIF #4 and #6 funds. Determining that there is a surplus of $839,061 available as a partial distribution. Additional distributions may be made at a later date after the final audit is complete. Ald. Sanders moved to approve partial distribution of TIF #4 and #6 funds totaling $839,061 Ald. Salentine seconded. Vote 2-0, carried by all. Discuss Borrowing for G.O. Notes - Without the total amount of the cost of the Library unknown at this time, Ald. Salentine moved to defer to 1/13/98 meeting. Ald. Sanders seconded. Vote 2-0, carried by all. Finance Committee Meeting - January 7, 1998 Page 4 Review Architect Agreement for Police Building Expansion - The Mayor recommends that the Library agreement be completed first and then proceed with the Police agreement. Ald. Sanders moved to defer to 1/21/98 Finance Committee Meeting. Ald. Salentine seconded. Vote 2-0, carried by all. Review Architect Agreement for Library - The Mayor has recommended that the changes recommended by Attorney Molter be made and approved as amended. The Mayor is trying to lower the 11% charge for the cost of furnishings to 8.5%. Discussion continued regarding the furnishing costs and the ability to bid out this portion of the contract. Supervision of the project was discussed with the Mayor indicating that the majority of the supervision/inspection would be handled by the City. The expediting of the project will be handled by the architect. Ald. Salentine moved to accept the amended changes per Attorney Molter’s recommendations with continual attention to the furnishing costs. Issue will be revisited at 1/13/98 Finance Committee Meeting. Ald. Sanders seconded. Vote 2-0, carried by all. RELEASE OF FUNDS Champions Village Letter of Credit - Ald. Salentine moved to approve the release of funds for Champions Village in the amount of $197,119.91. Ald. Sanders seconded. Vote 2-0, carried by all. FINANCE DIRECTOR’S REPORT Dawn Gunderson reports that she has received over 20 applications for the accounting position in her department. She would like to find a replacement within the month. ADJOURNMENT Being no further business to discuss, Ald. Sanders moved to adjourn at 9:30 P.M. Seconded by Ald. Salentine. Vote 2-0, carried by all. Respectfully Submitted, Linda Gulgowski Recording Secretary