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FM20041109 FINANCE COMMITTEE - CITY OF MUSKEGO Approved MINUTES OF MEETING HELD TUESDAY, NOVEMBER 9, 2004 The meeting was called to order at 7:09 pm by Mayor Slocomb with Committee Members Salentine, Madden, and Schroeder present along with Ald. Buckmaster, Borgman, Melcher, Finance Director Gunderson, Engineering/Building Inspection Director McMullen, and Deputy Clerk Blenski. Those present recited the Pledge of Allegiance. City Atty. Larson arrived during the meeting. Ald. Patterson arrived at 7:26 pm. Mayor Slocomb stated the meeting was noticed in accordance with the open meeting law. APPROVAL OF MINUTES The Mayor noted a correction was made to the minutes of November 3, 2004 on the first page under Approve Waukesha County 2005 Contract for Tax to delete “Notice of Assessment Services on Addendum A.” Ald. Madden moved to approve minutes as corrected. Seconded by Ald. Salentine; motion carried. UNFINISHED BUSINESS Recommendation to Council Regarding Mayor’s Salary Ald. Schroeder asked the other Committee members how the issue should proceed. An increase could be proposed for each year of the term, or one increase established for the entire term. Ald. Salentine stated she favors leaving the salary as is. The goal was to bring the salary up to be comparable with surrounding communities. That has been accomplished. Ald. Madden stated she was not opposed to an increase but did not support one for each year of the term. The salary could then be too high in comparison with other communities. Ald. Schroeder stated the position is full time and we typically give our full time employees an annual cost of living adjustment. Ald. Salentine responded that the position is elected and the individual is not an employee of the City. In addition, the person is not required to work full time. Ald. Schroeder stated the goal of bringing the salary up to comparables has occurred. He moved for a one-time increase of 2.9%, which would establish a bi-weekly salary of $2,556.67 ($66,473 annually) for the entire 2005 - 2007 term. Ald. Madden seconded; motion carried. NEW BUSINESS 1. Review St. Andrew’s Village Condominium Development Model Home Agreement Ald. Salentine moved to recommend approval of the agreement. Ald. Madden seconded; motion carried. Finance Committee Minutes Page 2 November 9, 2004 2. Review Agreement between the City of Muskego and Illingworth Corporation for the Janesville Road Sewer Extension Project Mr. McMullen distributed a revised agreement, which reflects that Illingworth will pay $95,000 (versus $108,850). The low bid submitted was $93,000 with a mandatory alternate deduction in the amount of $5,000. In addition, the Illingworth Corporation already has $10,000 in a Developer’s Deposit. Mr. McMullen stated all costs are being absorbed by the developer. Ald. Schroeder moved to recommend approval of the agreement. Ald. Salentine seconded; motion carried. 3. Review Bids for the Janesville Road Sewer Extension The following bids were received: Mainline Sewer & Water, Inc. $106,748.00 The Wanasek Corporation $108,863.50 Globe Contractors, Inc. $116,418.00 D. F. Tomasini, Inc. $125,675.00 United Sewer & Water, Inc. $126,440.00 Super Excavators, Inc. $146,410.00 Rawson Contractors, Inc. $ 93,942.50 Mr. McMullen recommends acceptance of the low bid submitted by Rawson Contractors, Inc. in the amount of $93,942.50. Ald. Schroeder moved to recommend acceptance of the bid submitted by Rawson Contractors. Ald. Salentine seconded; motion carried. 4. Review Intermunicipal Agreement between the City of Muskego and the City of New Berlin for the Construction of the Tess Corners Creek North Drainage Basin Mayor Slocomb stated the intent is to get a recommendation from the Finance Committee to the Council. However, at Council, he will ask for deferral as there are several outstanding issues that have to be addressed. The City does not agree with what it should pay for as outlined in Appendix “A” of the agreement. Ald. Salentine moved to recommend approval subject to outstanding issues being resolved. Ald. Madden seconded; motion carried. 5. Review Lease Agreement with Waukesha County for Tess Corners Municipal Parking Lot Mr. McMullen presented the agreement for the lease of property to the west of the Country Trader to be used as a parking lot. The property is just over 1/4 of an acre in size. The agreement is for a 10-year period at the cost of $1. The lease allows construction of a parking lot on the site. If the lease is not extended after the 10-year period, the City would have to remove the appurtenances placed on the site. Mr. McMullen is still working with the County regarding the indemnity language (Item 8). Ald. Schroeder expressed concern about the City spending money to improve a site that may have to be abandoned 10 years from now. The City will then have to expend more money to remove the improvements. He asked if the County wanted to sell the Finance Committee Minutes Page 3 November 9, 2004 property. Mr. McMullen stated the City would not want to purchase the property at this time until it is certain that the property is contaminant free. Ald. Schroeder requested Mr. McMullen research the possibility that language be included in the lease that would allow the City to purchase the property for a specific dollar amount, once the DNR gives closure regarding the site remediation. Mr. McMullen also noted that the property is being looked at to be used as a secondary access (from Janesville Road) for the Tess Corners Volunteer Fire Department. Atty. Larson stated the lease agreement needs to be looked at closer. The City could acquire some liability through the lease because of the property’s environmental concerns. Ald. Schroeder moved to defer. Ald. Salentine seconded; motion carried. REDUCTION IN LETTER OF CREDIT Ald. Salentine moved to approve Letter of Credit reduction for the Stonebridge Subdivision in the amount of $244,473 pursuant to a recommendation of Engineering/Building Inspection Director Sean McMullen. Ald. Schroeder seconded; motion carried. Ald. Salentine moved to approve Letter of Credit reduction for the Quietwood East II Subdivision in the amount of $95,342.53 pursuant to a recommendation of Engineering/Building Inspection Director Sean McMullen. Ald. Madden seconded; motion carried. VOUCHER APPROVAL Ald. Salentine moved for approval of payment of General Vouchers in the amount of $574,676.50 and Utility Vouchers in the amount of $207,938.64. Ald. Madden seconded; motion carried. ADJOURNMENT Ald. Salentine moved to adjourn at 7:48 pm. Ald. Madden seconded; motion carried. Respectfully submitted, Jill Blenski, CMC Deputy Clerk