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FM20031119 CITY OF MUSKEGO Approved FINANCE COMMITTEE MINUTES Wednesday, November 19, 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 and Ald. Schroeder, Finance Director Dawn Gunderson, and those per attached sheet. Ald. Salentine was excused. Those present recited the Pledge of Allegiance. The meeting was posted in accordance with the Open Meeting Law on November 14, 2003. The amended Finance Agenda was posted on November 18, 2003. REVIEW OF MINUTES OF PREVIOUS MEETING The minutes of the November 11, 2003 Finance Committee Meeting were reviewed. Ald. Petfalski moved to approve the minutes. Seconded by Ald. Schroeder. Motion carried 2 - 0. LICENSE APPROVALS Ald. Petfalski moved to recommend approval of Operator’s License for Michael Anders, Amanda Wierman, Amanda Strini (application needs to be completed), Lynn Cira, Natalie Rawski, and Lucinda Newman subject to receipt of fees, favorable police reports, and verification of schooling. Seconded by Ald. Schroeder. Motion carried by 2 - 0. After interview with committee, Alexis Hayes was asked to return to a future Finance Meeting. Aldi’s Inc. – Patrick Rice, agent for Aldi’s Inc., appeared before the Finance Committee. The committee discussed the seriousness of liquor violations and how important it is that Aldi’s run their own legal age checks. Ald. Petfalski moved to recommend approval of a Class A Liquor License for Aldi’s Inc., trade name Aldi #36 and Patrick Rice as agent. Seconded by Ald. Schroeder. Motion carried 2 – 0. PERIODIC LICENSE REVIEW Michelle Kuehl – 6 Mo. Review for Operator’s License – A check with the Wisconsin Crime Information Bureau and the City of Muskego Police Department records revealed no new record of arrest since the last review on August 15, 2003. UNFINISHED BUSINESS - None NEW BUSINESS Review job description revisions – Plan Dept – Executive Assistant/Human Resource Coordinator Cathie Anderson supplied revised job descriptions for the Community Development Director, Associate Planner/Zoning Administrator, GIS Coordinator, Conservation Coordinator/City Forestor, Planning & GIS Intern, and Conservation Intern. Planning Director Turk and Finance Director Gunderson reviewed the following changes: Community Development Director Present Proposes Knowledge: 6Vm (327) 6Vm (327) Problem Resolution: 6Ea (187) 6Ea (197) Authority/Responsibility: FIII4c (284) FIII4c (327) one step increase due to increased knowledge & responsible in Economic Dev. field Working Conditions: A1l (0) A1l (0) Total Points 798 841 Salary plan @ range 71 72 Minimum Salary $60,329.00 Midpoint $73,933.00 Maximum $87,536.00 Discussion took place on changes to job description including economic development responsibilities and that the position would no longer enforce zoning. On page two of the job description, the Committee wants the word development added to the paragraph that starts Maintains knowledge. It would read: personnel supervision principles; development and supervision of budget principles and practices. Finance Committee Meeting November 19, 2003 - Page 2 Continue Review job description revisions GIS Coordinator Present Proposes Knowledge: 5IVm (215) 5IVm (247) budget responsibilities and hardware management Problem Resolution: 4Da (70) 5Da (81) addition of new analytical tasks Authority/Responsibility: DII3b (81) DII3b (81) Working Conditions: A1L (0) A1L (0) Total Points 366 409 Salary plan @ range 54 56 Minimum Salary $39,648.00 Midpoint $48,588.00 Maximum $57,528.00 Discussion took place on changes to job description. Plan Director Turk felt the current GIS Coordinator would be able to handle all the GIS responsibilities. The Committee wants a change made to page one, the paragraph that begins Prepares operating budgets – operating budget and capital budget preparation for the Department GIS Functions. Associate Planner Present Proposes Knowledge: 5IIIp (187) 5IIIp (215) site plan & plat review duties Problem Resolution: 4Ce (46) 4De (53) Board of Appeals duties Authority/Responsibility: DII2b (61) DII3b (70) staffing of committees Working Conditions: A2L (5) A2L (5) site inspections Total Points 299 343 Salary plan @ range 50 53 Minimum Salary $35,919.00 Midpoint $44,018.00 Maximum $52,118.00 Discussion took place on changes to job description including the change from primary basis to back up duties to GIS Coordinator. The other position changes for Conservation Coordinator/City Forester, Planning & GIS Intern, and Conservation Intern were technical in nature. It basically changed whom they are reporting to. The Conservation Coordinator/City Forester has a new requirement added: Arborist certification required within one year of hire. Money to cover salary changes for 2004 would come from the months the City would be without a Plan Director. Ald. Petfalski moved to approve job description revisions for the Plan Department. Seconded by Ald. Schroeder. The Finance Committee approves job descriptions and Common Council will approve the change in pay rates. Motion carried 2 – 0. Designation of interim Plan Director – Plan Director Brian Turk recommended Associate Planner/Zoning Administrator Jeffrey Muenkel be appointed to the position of interim Plan Director. The Committee discussed Muenkel being compensated at 80% of midpoint of the current Plan Director salary ($59,146.00). The earliest hiring of a Community Development Director is expected to be March 2004. Ald. Petfalski moved to designate Jeffrey Muenkel as the interim Plan Director at a rate of 80% of midpoint of the current Plan Director salary. Seconded by Ald. Schroeder. The appointment would be effective December 6, 2003. Motion carried 2 – 0. Consideration of funding Plan Intern for 2004 – Ald. Petfalski moved to fund the Plan Intern for 2004 as long as the present Plan Intern holds the position. Seconded by Ald. Schroeder. Ald.Petfalski stated he would like the Plan Intern to give two weeks notice. The position is now funded for thirty hours per week. The Plan Intern will be graduating from college in December and will be available to come in for forty hours per week until he can find a job. When the Plan Intern resigns there is a policy in place that when a position becomes open a notice will be sent to Aldermen for reconsidering the hiring of a replacement. Motion carried 2 – 0. Finance Committee Meeting November 19, 2003 - Page 3 Review 2004 Capital Budget request – Police Chief John Johnson requested that the Finance Committee recommend to the Common Council that the Police Department’s original request of $100,234.00 for the first step in modernizing the fifteen year old software system be included in the 2004 Capital Budget. This item had been tabled during Capital Budget process until at least 2005. The Common Council is reconsidering a Capital Budget request from Muskego Fire Company for a command vehicle. Chief Johnson is questioning the priorities in the budgetary system and the Council apparent movement from their position regarding 2004 capital spending. The software system request by the Police Department is at least of equal priority, if not a higher priority in Chief Johnson’s estimation. The upgrade not only improves the Police informational system but also provides for the first time the Fire Department’s CAD and rescue systems. The upgrade will also allow the Police Department to take advantage of upgrades to the Municipal Court software package that can’t be done with the present AS400. The hardware portion of the request would pay for itself through reduced maintenance costs once the AS400 is removed from inventory. Ald. Petfalksi stated he is in favor of approving the first step in modernizing the current system. The committee sent to Common Council without Finance Committee’s recommendation. Review Employee Assistance Program – Finance Director Gunderson stated the City has maintained an employee assistance program with National Employee Assistance Services, Inc (NEAS). The rate for this service is $1.61 per month per employee. The rate covers unlimited phone service twenty-four hours per day and up to three hours of face-to-face counseling per employee per year. Proposed is a two-year contract for the same current service and rate. The current program is based on 126 employees. Ald. Schroeder stated he felt this was an excellent program. Ald. Schroeder moved to recommend approval of two-year contract with National Employee Assistance Services, Inc. Seconded by Ald. Petfalski. Motion carried 2 – 0. Review Dental Insurance for 2004 – Finance Director Dawn Gunderson presented quotes received for employee dental insurance. The City currently has contracts with First Commonwealth and Compcare Health Services Insurance Corporation (Dentacare) to provide group dental insurance to City employees who subscribe and elect to participate totally at their expense. Dental Insurance is a pre tax plan. Gunderson recommended continuing contracts with First Commonwealth and Compcare for the following proposed quotes: Single Family Increase First Commonwealth Plan 4000 (4W105) (Network) $23.97 $63.27 8.01% PPO UCR3 (P106WI) (Out of Network) $26.81 $74.02 7.50% Compcare Dentacare 160 $23.96 $64.68 12.10% Ald. Petfalski moved to recommend approval of the contracts with First Commonwealth and Compcare Health Services Insurance Corporation (Dentacare), and their respective quotes, as the City’s dental insurance providers for 2004. Seconded by Ald. Schroeder. Motion carried 2 - 0. Review request to Write-Off Delinquent Personal Property Taxes – The Committee reviewed memorandum from Clerk-Treasurer Jean Marenda requesting that the following 2001 delinquent personal property tax bills be written off: Anser Environmental $ 466.28 Last Chance Bar $ 3.53 All My Flowers & Gifts 18.53 Muskego Pennzoil 370.67 Casa De Café 40.59 M H Z USA 9.57 Dave’s Cakes 266.92 Muskego Movie Plex 350.27 Fill-Ups 86.36 New Klub 24 42.38 Fast Quality Drywall 69.76 Olympic Health 117.50 Total $1,840.66 The amounts listed are those due to the City after the charge-back to the other taxing entities. Clerk- Treasurer Jean Marenda will continue pursuing the collection of delinquent 2001 personal property taxes from Trison Utilities. Trison Utilities is still in existence. Ald. Schroeder moved to recommend approval of the writing off of $1,840.66 in delinquent personal property tax bills. Seconded by Ald. Petfalski. Motion carried 2 – 0. Finance Committee Meeting November 19, 2003 - Page 4 Review establishing salaries for Election Workers – Finance Director Gunderson advised committee that the Committee of the Whole recommended the following rates with the adoption of the 2004 Operating Budget: Election Inspector $6.91 per hour Election Chairman 7.68 per hour Board of Canvassers and Special Voting Deputy 6.91 per hour with a 2 hour per day minimum Ald. Schroeder moved to recommend approval of the proposed salaries for Election Workers. Seconded by Ald. Petfalski. Motion carried 2 – 0. Mayor Slocomb requested a recess at 8:34 PM. Meeting convened at 8:38 PM. Preliminary review of 2004 Health Insurance – Finance Director Gunderson presented a copy of the original 2004 renewal rates with the City’s current health insurance provider WPS. The rates represent a 9.75% increase over the existing plan rates. The rates in the past have been based on two-tier premium, $250.00 deductible, $10 office co-pay, $50.00 emergency room co-pay, and three-tier drug plan. The rate is based on all employee groups being on the three-tier drug plan as of January 1, 2004. The non-represented employees will be required to contribute 5% toward the overall 2004 premium. Therefore the City asked WPS to provide a quote for a three-tier premium schedule - single, limited family (employee plus spouse or one adult plus children), and family. Comparison rates on two and three tier programs were presented. Finance Director Gunderson is recommending a three-tier premium. Ald. Schroeder asked how many employees fit into the limited family category? Finance Director Gunderson to get back to committee with information. WPS was also asked to provide the city rates for alternative benefit levels. The benefit alternatives quoted were based on a $500.00 deductible, 90/80% to $ $2,500.00, three tier prescriptions - $5/$10/$25; $1,000.00 deductible, 100/70% to $2,500.00, $5/$/10/$25; and $1,000.00 deductible, 90/80% to $2,500.00, $5/$10/$25. The deductibles are major medical. Information gathered was used to project possible savings to the City if the City were to self-insure a higher deductible. Proposals were presented from Diversified Benefits Services, Inc. and EBC, a WPS Company on Health Reimbursement Account (HRA) plans. Finance Director Gunderson just received a new quote from WPS using a HRA on the plan. The new quote is higher than the previous quote (approximately 7%) because of the exposure to the insurance company. Finance Director Gunderson will be going back to WPS for a premium adjustment. Ald. Petfalksi stated he is in favor of the three-tier plan. Mayor Slocomb stated they will have to look at the numbers of the HRA Plans to determine which percentage of utilization would be recommended if any. Once Finance Director Gunderson knows the number of employees that fit into the limited family category she will be able to tell if the premiums for a two-tier and three-tier are equivalent. 2004 Health Insurance will be put on the December 3, 2003 Finance Agenda. Review unbilled refuse/recycling accounts – Finance Director Gunderson presented list of recently discovered properties that have either never been billed for refuse & recycling charges or are no longer being billed but have been receiving the service. Finance Director Gunderson reviewed the circumstance to explain how this happened. BFI has the addresses on their pick-up list. The question was raised to whether there is a home on each lot. Ald. Petfalski stated he would like to see a visual inspection. The practice in the past has been to back-bill two years plus the current year. This is consistent with what was done for water and sewer. Discussion took place on the two-year back-bill practice, residence for part of a year, and if a home had been sold within the two years. In the past, citizens have come to Public Service Committee to dispute contract. It was determine that citizens of the unbilled accounts would not have to appear in person but could do it by letter. The billing is a Finance issue so the citizens could come to the Finance Committee. The Committee wanted to make sure that if a pick up is not taking place; the address gets taken off BFI’s list. The Building Department Inspectors could do an inspection on garbage pick-up day to check the status. This issue will be put on the December 3, 2003 Finance Agenda to discuss further after the inspections. Finance Committee Meeting November 19, 2003 - Page 5 Approve WaterBugs use of Idle Isle Building – A letter was received from Parks & Recreation Director Craig Anderson stating the Parks & Recreation Board is recommending approval for the WaterBugs Ski Team to be able to use the Idle Isle building for both summer and winter months. In addition to the concessions during summer months, they want to be able to work on ski team equipment within the building during the winter months. The WaterBugs would be responsible for any costs for heating and all other costs associated with the improvements, including operating costs. They are also responsible for the installation of carbon monoxide detectors and getting approval for all work from the Building Inspector’s Office. Ald.Petfalski moved to recommend approval of use of Idle Isle building by the WaterBugs for both summer and winter months. Seconded by Ald. Schroeder. Ald. Schroeder verified that this was only for the use of the building. Motion carried 2 – 0. MAINTENANCE AGREEMENTS Election Systems & Software – Hardware Maintenance Service Agreement – Clerk-Treasurer Jean Marenda is recommending approval of the maintenance agreement for the eight election tabulators. Ald. Schroeder moved to approve the 2004 maintenance agreement with Election Systems & Software for $1,858.00. Seconded by Ald. Petfalski. Motion carried 2 – 0. RELEASE OF FUNDS - None REDUCTION IN LETTER OF CREDIT VOUCHER APPROVAL – None FINANCE DIRECTOR’S REPORT –On Thursday, November 20, 2003 Finance Director Gunderson will be meeting with R & R Insurance to discuss proposal of carriers for the City’s 2004 insurance for Liability Workers Compensation. Year end proposals that have to come before the Finance Committee are: audit service quote, writing off rescue service charges, establishing rate for rescue service, approval of refuse and recycling rate, and review of Engineering/Building fees. At the last Common Council Meeting during a review of the 2004 Capital Budget a discussion took place on borrowing for 2005 at the same time as borrowing for 2004 for Tess Corners’ Station No. 2. This has been done in the past. Once funds are borrowed the City would pay off the loan for Tess Corners’ Station 2 and use the City’s interest rate rather that Tess Corners Fire Department rate and therefore have a savings in the Operating Budget. Finance Director Gunderson would like to include the amount in 2004 Capital Budget. It would make it easier by tying the amounts in Capital Budget to borrowing. Finance Director Gunderson spoke to Ehlers & Associates on timing of adopting Capital Budget and authorizing the solicitation of proposals for a debt issue. COMMUNICATIONS AND ANY OTHER BUSINESS AS AUTHORIZED BY LAW – None ADJOURNMENT – Being no further business to discuss, Ald. Schroeder moved to adjourn the meeting at 9:17 PM. Seconded by Ald. Petfalski. Motion carried 2 - 0. Respectfully Submitted Carolyn Warhanek, Recording Secretary