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FM20030903 CITY OF MUSKEGO Approved – September 9, 2003 Finance Meeting FINANCE COMMITTEE MINUTES Corrected – September 9, 2003 Common Council Meeting Wednesday, September 3, 2003 7:00 PM Muskego City Hall, Aldermen’s Room W182 S8200 Racine Ave. Mayor Slocomb called the meeting to order at 7:12 PM. In attendance were Committee Members Ald. Petfalski, Ald. Salentine and Ald. Schroeder, Finance Director Dawn Gunderson, Chief John Johnson, and those per attached sheet. Those present recited the Pledge of Allegiance. The meeting was posted in accordance with the Open Meeting Law on August 29, 2003. REVIEW OF MINUTES OF PREVIOUS MEETING The minutes of the August 26, 2003 Finance Committee Meeting were reviewed. Ald. Salentine moved to approve the minutes. Seconded by Ald. Schroeder. Motion carried by all. LICENSE APPROVALS Ald. Schroeder moved to recommend approval of Operator’s License for Erika Munson subject to receipt of fees, favorable police reports, and verification of schooling and a “Class A” Liquor License for licensee - Kletter Petroleum LLC, agent - Prakash Patel, trade name - Janesville Marathon. Seconded by Ald. Salentine. Motion carried by all. PERIODIC LICENSE REVIEW Convene into Closed Session – Notice of Closed Session was not read. Mr. John Dillon requested a deferral. Closed session not held. UNFINISHED BUSINESS Consider Police Association Overtime Grievance – Ald. Petfalski moved to defer to the Wednesday, October 8, 2003, Finance Meeting. Seconded by Ald. Salentine. Motion carried by all. Review proposal for non-represented retiree insurance – Mayor Slocomb presented a letter from Executive Assistant/HR Coordinator Cathie Anderson providing individual union contract information in regard to retiree health insurance and the proposed Amended City of Muskego Retiree Health /Dental Insurance Plan. The proposal is to provide to non-represented employees the benefit of paying for health and dental insurance upon retirement with qualified accumulated sick time. This was a benefit that non- represented and represented employees had but the City could no longer provide for because the plan as provided was against IRS regulation. The City would like to get this benefit in place for non-represented employees. It is expected that this will be addressed during negotiations with the bargaining units this fall. The City would benefit from the proposal because it would not have to pay social security. Discussion took place on how retirees currently pay for health and dental insurance when they retire. Discussion continued on the Police contract for 2001 thru 2003 that has not been settled and having this settled before approval of this proposal. The City and Union signed a letter of understanding. (Correction per the request of Ald. Schroeder at the September 9, 2003 Common Council Meeting. The Union had one issue that pertained to language of prescription drugs. The disputed issue on the table has now been settled. Ald. Petfalski moved to recommend approval of the City of Muskego Retiree Health/Dental Insurance Plan for non- represented employees. Seconded by Ald. Salentine. Motion carried by all. Finance Committee Meeting September 3, 2003 - Page 2 NEW BUSINESS Salary Study – Finance Director Gunderson introduced Ms. Jude Williams, consultant for Oceans of Opportunity. Oceans of Opportunity was hired to do a market salary survey for non-represented employees. The last market survey was conducted in 1998/1999. The structural change in the Police Department and a need to create a range for the sergeants’ positions that came out of the union to become non-represented positions was one of the reasons for a market salary study and structure. Also, people in the Public Works Department were not taking promotions because their union wage was butting up to the maximum of the supervisor position. Ms. Williams reviewed and presented her recommendations for Position Classification Plan Table 1, Schematic of Occupational Job Classes; Position Classification Plan Table 2, Index of Current to Recommended Job Classes; Position Classification Plan Table 3, Recommended Classification of Individual Positions; FY 2003 Salary Plan Table 4, External Prevailing Rates Comparison; Salary Survey; FY 2003 Salary Plan Table 5, Salary Ranges per Job Class – (Job Class Order); FY 2003 Salary Plan Table 6, Salary Ranges per Job Class (Range Order); FY 2003 Salary Plan Table 7, Recommended Salary Range per Position; Table 8, Estimated Fiscal Impact of FY 2003 Salary Plan; Table 9, Estimated Fiscal Impact of FY 2003 Salary Plan by Department; Points per Salary Range (Non Represented Positions); and Points per Salary Range (Sworn Police Positions). Ms. Williams met with Mayor Slocomb, HR Coordinator Anderson, and many of the Department Heads to determine the comparables that were to be used for the Salary Survey. There are 40 positions listed and only 35 were used as benchmarks. Some of the City’s positions are unique and therefore there wasn’t a good group to use as a comparable. The points for these five positions can be used because they have a point value in the hierarchy of the organization. When reviewing Table 7, Ms. Williams mentioned there were three employees that fell below the minimum salary range. It is Ms. Williams recommendation is that if the City were to accept the salary ranges based on the market study these three positions be brought up to minimum. Also discussed was the City’s established philosophy that the Muskego salary structure for non-represented employees be five percent above the market average. The Committee requested the market survey information be provided to all Aldermen for their review before the proposal is presented to the Common Council. Ald. Schroeder moved to defer to the Wednesday, September 17, 2003 Finance Committee Meeting to give committee members the opportunity to review information presented. Seconded by Ald. Petfalski. Motion carried by all. Consider financial impact to implement salary study – Finance Director Gunderson presented the non- represented wage adjustment effective January 1, 2003. This would bring the three positions that are below market value up to minimum. The other positions illustrated are those that reached their maximum pay scale in 2003 or prior and therefore received no merit or only a portion of their merit increase. It is Mayor Slocomb’s, Chief Johnson’s, and Finance Director Gunderson’s position to recommend that these people also have their pay scale corrected for the current year. The total financial impact to do this is $9,467.87. Not mentioned in the financial impact is defining the salary range for the sergeants who are now in the non- representative vs. Police Union Agreement. Proposed is changing the scale of Staff Sergeants. To add these positions the financial impact would be increased by $8,397.80. Another issue that will come up is the salary difference between the Staff Sergeants and the Lieutenants. Question was asked about total package and not just looking at salary. Ms. Williams said benefits were not looked at. Discussion continued on this subject. Ald. Schroeder requested for his review the job descriptions for Staff Sergeants and Patrol Sergeants. Discussion continued on merit increases and cost of living raises. Ald. Salentine moved to defer to the Wednesday, September 17, 2003 Finance Committee Meeting. Seconded by Ald. Petfalski. Motion carried by all. Review revised rate schedule for Agreement with Ruekert & Mielke – Engineer/Building Department Director Sean McMullen sent memorandum recommending the proposed rates for professional engineering services from Ruekert & Mielke. The proposed rates show some minor increases, mostly due to cost of living and overhead expenses. Due to a new category of Registered Land Surveyor at $75.00 per hour the rate for CSM and Plat reviews will be lower. In the past an Engineer 6, $106.00 per hour, or Engineer 7, $111.00 per hour would review CSM and Plat reviews. Ald. Salentine moved to recommend approval of 2003 hourly rate schedule for engineering services from Ruekert & Mielke. Seconded by Ald. Schroeder. Motion carried by all. Finance Committee Meeting September 3, 2003 - Page 3 Review Annual Fees for HAWS – Memorandum was received from Clerk-Treasurer Jean Marenda recommending approval of the 2004 fees outline in Addendum A that was enclosed. Also enclosed with memorandum was letter from Jay Blankenship, Executive Director of Humane Animal Welfare Society of Waukesha County, Inc. Addendum A states the annual fee for 2004 will be $3,255.00 and the additional boarding fee for an animal under Section 1.4 will be $11.55 per day. The 2003 fee was $3,100.00. The additional boarding fee is the same as the 2003 fee. Ald. Salentine moved to recommend approval of HAWS Addendum A, 2004 fees. Seconded by Ald. Petfalski. Motion carried by all. Consider settlement for rescue claim – Finance Director Dawn Gunderson presented letter received from Glojek Limited on behalf of the Personal Representative of an estate in regard to the settlement of a rescue claim. The original claim filed on behalf of the City was for $339.50 and $75.00. The requested settlement is $278.00. Mayor Slocomb requested this item be deferred so he may speak to the attorney. Ald. Petfalski moved to defer to the Wednesday, September 17, 2003 Finance Meeting. Seconded by Ald. Schroeder. Motion carried by all. MAINTENANCE AGREEMENTS - None RELEASE OF FUNDS - None REDUCTION IN LETTER OF CREDIT – None VOUCHER APPROVAL – None FINANCE DIRECTOR’S REPORT – Finance Director Gunderson stated she and Mayor Slocomb are currently reviewing 2004 Operating Budget requests. The second Committee of the Whole meeting to discuss 2004 Capital Budget requests will be held Thursday, September 4, 2003. Requests from Planning Department, Police Department, Finance Department, Information Systems and Fire Departments will be reviewed. COMMUNICATIONS AND ANY OTHER BUSINESS AS AUTHORIZED BY LAW – None ADJOURNMENT – Being no further business to discuss, Ald. Salentine moved to adjourn the meeting at 9:14 PM. Seconded by Ald. Petfalski. Carried by all. Respectfully Submitted Carolyn Warhanek Recording Secretary