FM112701
FINANCE COMMITTEE - CITY OF MUSKEGO Approved
MINUTES OF MEETING HELD TUESDAY, NOVEMBER 27, 2001
The meeting was called to order at 7:03 PM by Mayor De Angelis with Committee
Members Slocomb, Salentine, and Sanders present. Also present were Ald. Patterson,
Le Doux, and Petfalski, Finance Director Gunderson, and Deputy Clerk Blenski. Ald.
Wichgers arrived during the meeting. Dave Anderson of Ehlers and Associates was
also in attendance.
The Mayor stated the meeting was noticed in accordance with the Open Meeting Law.
APPROVAL OF MINUTES
Ald. Salentine moved to approve the November 13, 2001 minutes. Ald. Sanders
seconded; motion carried.
NEW BUSINESS
Review Cleaning Service Quotes for 2002
The Mayor stated that two quotes were received, which include a separate amount to
clean various park facilities from May to September:
Park Faciliites
Dan Plautz $8,532 per month $5,312
Jani King $6,980 per month $4,325
He further stated that a memo was received from the Municipal Garage requesting that
the City consider accepting the quote submitted by Dan Plautz Cleaning Service
because of their past performance. The Mayor said there have been some ongoing
issues at some of the City’s facilities with the current provider, Jani King. George
Wolwark, City Maintenance, appeared before the committee and stated he has
experienced numerous complaints and problems with Jani King and has documented
the situation. The issues seem to get resolved only on a short-term basis. The period
of time needed by Jani King to become familiar with our facilities never seems to have
ended. The City is not receiving the value for the money being spent. The Mayor
asked Mr. Wolwark if he found the issues to be different with Jani King than with the
previous contractor. Mr. Wolwark stated there had been problems with the previous
service but they were handled and he did not have to deal with them again. Ald.
Salentine stated this is the first time the committee is hearing of these problems. The
committee has requested that ongoing issues be brought forward for review prior to
decisions being made regarding new contracts. Ald. Salentine moved to defer to the
Wednesday (12/5) Finance Committee meeting to review all the documentation. The
Mayor stated that the department heads were requested to submit comments/input and
nothing was received other than the letter from Public Works. It could be that any
issues were not viewed as significant. Ald. Sanders requested that the department
heads be contacted again. Ald. Sanders seconded; motion carried. Ald. Le Doux
asked that any information regarding the previous contractor also be provided to the
committee for review.
Finance Committee Minutes Page 2
11/27/2001
Review Health Insurance for 2002
Finance Director Gunderson stated the City solicited proposals from health insurance
providers in light of Compcare quoting a 32% rate increase for 2002. In addition, the
Compcare would not guarantee the rate for the entire contract period. After
researching other providers, it has been determined that WPS will provide coverage
that best matches our existing plan with Compcare. The rates quoted by WPS would
reflect a 26% rate increase in 2002. It is the recommendation of the Mayor and
Finance Director that the City continue to have the contract with WPS go through the
approval process so employees can be notified as well as the City’s current provider.
Ms. Gunderson stated that the rate quoted by WPS would be guaranteed for the entire
contract period. She also noted that WPS indicated the average rate increase for 2002
for its existing clientele would be 14%. In response to an inquiry about establishing a
countywide group in an effort to obtain lower rates, Mayor De Angelis stated that had
been attempted in the past and the results were not successful. Ald. Salentine moved
to recommend approval of WPS as the City’s health care insurance provider for 2002.
Ald. Sanders seconded. Finance Director Gunderson stated that it is becoming very
difficult to find providers who offer the level of coverage that the City has and this will
continue in the future. Motion carried. It was further noted that the City’s bargaining
units had to accept the insurance provider for 2002 and action taken by the Council
would reflect that contingency.
Review Bids for GO Bond & Note Sale and Water Note Sale
Dave Anderson of Ehlers and Associates presented the results of the bid openings:
$1,900,000 General Obligation Promissory Notes, Series 2001B
The best bid was received from Suntrust Equitable Securities of Atlanta, Georgia, with
a TIC of 4.2862%.
$3,150,000 General Obligation Street Improvement Bonds, Series 2001C
The best bid was received from U.S. Bancorp Piper Jaffray of Minneapolis, Minnesota
with a TIC of 4.6753%.
$2,300,000 Water System Revenue Bonds, Series 2001D
The best bid was received from Robert W. Baird & Company, Inc. of Milwaukee,
Wisconsin with a TIC of 4.8905%.
Mr. Anderson noted that the interest rates and discounts received by the City were
lower than originally estimated and provide a substantial savings.
Ald. Sanders moved to recommend acceptance of the bids as noted above. Ald.
Salentine seconded; motion carried.
VOUCHER APPROVAL
Finance Committee Minutes Page 3
11/27/2001
Ald. Salentine moved to recommend approval of payment of General Vouchers in the
amount of $1,025,178.36 and Utility Vouchers in the amount of $175,698.79. Ald.
Sanders seconded; motion carried.
ADJOURNMENT
Ald. Sanders moved to adjourn at 7:41 PM. Ald. Slocomb seconded; motion carried.
Respectfully submitted,
Jill Blenski, CMC
Deputy Clerk