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FM20041117 CITY OF MUSKEGO Approved FINANCE COMMITTEE MINUTES Wednesday, November 17, 2004 7:00 PM Muskego City Hall, Aldermen’s Room W182 S8200 Racine Ave. Mayor Slocomb called the meeting to order at 7:00 PM. In attendance were Committee Members Ald. Salentine, Ald. Schroeder, and Ald. Madden, Finance Director Dawn Gunderson, and those per attached sheet. Those present recited the Pledge of Allegiance. The meeting was posted in accordance with the Open Meeting Law on November 12, 2004, Amended Agenda on November 15, 2004. REVIEW OF MINUTES OF PREVIOUS MEETING The minutes of the November 9, 2004 Finance Committee Meeting were reviewed. Ald. Salentine moved to approve the minutes. Seconded by Ald. Madden. Motion carried 3 - 0. LICENSE APPROVALS Ald. Salentine moved to recommend approval of Operator’s License for Angela Brown subject to receipt of fees, favorable police reports, and verification of schooling. Seconded by Ald. Madden. Motion carried 3 - 0. PERIODIC LICENSE REVIEW - None UNFINISHED BUSINESS Review Lease Agreement with Waukesha County for Tess Corners Municipal Parking Lot – Mayor Slocomb stated that Engineering/Building Inspector Sean McMullen requested this item be deferred. Ald. Salentine moved to defer to the Tuesday, November 23, 2004 Finance Committee meeting. Seconded by Ald. Madden. Motion carried 3 – 0. Further review of Intermunicipal Agreement between the City of Muskego and the City of New Berlin for the Construction of the Tess Corners Creek North Drainage Basin – The Finance Committee received a revised agreement. Mayor Slocomb presented a history on the issue. Discussion took place on dividing all costs and expenses on a 50/50 basis with New Berlin for the acquisition of lands and construction of the Tess Corners Creek Pond project and maintenance of the pond and the related storm water appurtenances. The exceptions would be those listed in Appendix “A” of the revised agreement presented. The Finance Committee would like it stressed in the agreement that maintenance is for routine storm water maintenance only and not extraordinary maintenance like environmental clean up. The question was asked what the remedy would be if the pond were built and never overflowed but the City still experienced flooding, can the bank be lowered so more water would enter earlier? What would New Berlin do? The City can hope New Berlin would be willing to lower bank. It was pointed out that the agreement acknowledges that as development within the tributary storm water basin occurs the sale of any capacity allocations, and any proceeds thereto shall be equally divided on a 50/50 basis. The City’s financial exposure and the City’s request for an extension of the DNR Grant were discussed. The City of New Berlin is currently the owner of the proposed pond. The positives and downsides of the City owning 50 percent were discussed. Ald. Schroeder pointed out his concerns: 1. When would construction start? The Cities are meeting with the landowners and there could potentially be a closing in two to three weeks. Construction would start the same date as the closing. Ald. Schroeder’s has no issue with this if the City knows the Grant has been extended otherwise he feels the City should wait until after the first of the year. The extension of the grant was discussed with it being noted that there has been a verbal commitment by the DNR to grant extension. 2. Ownership – if the City does not have ownership and there is an environmental issue, even though the City is only required to pay 50 percent for routine maintenance, there is no guarantee that New Berlin would not take the City to court on the environmental issue. This is a legal issue that Attorney Molter should look at. 3. What happens if the pond ceases to operate? Out of the 85 acres 25 acres are developable land, what does the City receive from this? Again shared ownership of pond was discussed. What happens if part of the 85 acres is sold? There should be language in the agreement that if land were sold the City would be reimbursed their 50 percent investment plus interest. 5. What if the pond is constructed and there is rainfall that is less than the 1997 rainfall that causes flooding? This question and also if this situation could happen should be addressed by Engineering/Building Inspection Director McMullen. Item 6 of the agreement states that in the event New Berlin is required to modify the retention pond facility by any State or Federal Regulatory Agency, Muskego and New Berlin will share in the cost of those necessary improvements on a 50/50 basis was discussed. What if the City needs modification? If there were a malfunction out of design or Finance Committee Meeting November 17, 2004 - Page 2 Continue Unfinished Business Tess Corners Creek North Drainage Basin construction the language as to whether New Berlin would agree with the City to fix should be reviewed with Attorney Molter. Again ownership was brought up and that it should be stressed the agreement may not pass Common Council if their isn’t 50 percent ownership. Also, the issue of stressing that the City is 50 percent responsible for routine storm water maintenance only was brought up again. Mayor Slocomb reviewed his list of the Committee’s issues. 1. Grant risk. The Committee would like more than a verbal commitment. 2. Ownership. 3. If pond needs ceases, include language that states the City would receive 50 percent split if land is sold. 4. Ownership – 50 percent. 5. Sale restriction allowing sale only if City receives full restitution if land is sold above project cost. 6. Committee request to have Engineering/Building Director McMullen at November 23, 2004 Common Council meeting to discuss among other things how malfunctions due to design are addressed. 7. Routine maintenance. Mayor Slocomb pointed out to the Finance Committee that Appendix “A” will be the Cost Comparison of Bidders, Tess Corners Creek Retention Pond – Rebid, City of New Berlin document that was presented tonight and Appendix “B” (Appendix “A” present tonight) would be the Tess Corners Creek Retention Pond, City of New Berlin Site Improvements Cost Break Down. This issue will be brought back to the November 23, 2004 Common Council Meeting. NEW BUSINESS Approve Waukesha County 2005 contract for CAMA – Mayor Slocomb stated that Information Systems Director Sommers is requesting this item be deferred. Ald. Madden moved to defer to the Wednesday, December 8, 2004 Finance Committee meeting. Seconded by Ald. Salentine. Motion carried 3 – 0. Recommend approval of Dental Insurance for 2005 – Finance Director 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. Finance Director Gunderson has checked with other companies for quotes, but the problem is that there are not many dental programs that provide dental coverage as an elective. There is also dental options available under AFLAC. Finance Director Gunderson recommended continuing contracts with First Commonwealth and Compcare for the following proposed per month quotes: Single Family Increase First Commonwealth Plan 4000 (4W105) (FCW HMO) (Network) $25.41 $67.07 6.01% PPO UCR3 (P106WI) (FCW PPO) (Out of Network) $29.22 $80.68 9.00% Compcare Dentacare 160 $25.59 $69.08 6.81% Ald. Salentine 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 2005. Seconded by Ald. Schroeder. Motion carried 3 – 0. Recommend approval of Fire Protection Agreement with Tess Corners Volunteer Fire Department for 2005 – Finance Director Gunderson stated the language in the agreement is the same as the previous year except for the year and the dollar amount. The dollar amount, $157,575.00, which is slightly lower than 2004, was approved with the adoption of the City’s 2005 Operating Budget. The payments shall be made quarterly in four equal advanced payments. Ald. Schroeder moved to recommend approval of the 2005 Fire Protection Agreement with Tess Corners Volunteer Fire Department. Seconded by Ald. Salentine. Motion carried 3 – 0. Recommend approval of Fire Protection Agreement with Muskego Volunteer Fire Company for 2005 – Finance Director Gunderson stated the language in the agreement is the same as the previous year except for the year and the dollar amount. The dollar amount, $284,621.00 was approved with the adoption of the City’s 2005 Operating Budget. This is payable quarterly in advance based upon the following schedule: January $122,096.00, April $54,175.00, July $54,175.00, and October $54,175.00. Several reasons the dollar amount of the agreement is higher than Tess Corners’ agreement are: pay on call, higher training costs, and corporate structure. Ald. Salentine moved to recommend approval of the Fire Protection Agreement with Muskego Volunteer Fire Company for 2005. Seconded by Ald. Schroeder. Motion carried 3 – 0. Finance Committee Meeting November 17, 2004 - Page 3 Recommend approval of Refuse & Recycling rates for 2005 – Finance Director Gunderson recommends the rates for refuse and recycling remain the same as 2004, $20.60/unit for residential units containing five units or less and $20.60/unit for residential units of six or more. Ald. Salentine moved to recommend approval of proposed 2005 rates. Seconded by Ald. Madden. Motion carried 3 – 0. MAINTENANCE AGREEMENTS - None RELEASE OF FUNDS--None REDUCTION IN LETTER OF CREDIT Approve reduction in Letter of Credit for Chamberlain Hill Subdivision, $25,700.00 – Ald. Salentine moved to approve reduction in the Letter of Credit for Chamberlain Hill Subdivision in the amount of $25,700.00 as recommended by Engineering/Building Inspector Director McMullen. Seconded by Ald. Madden. Motion carried 3 – 0. VOUCHER APPROVAL – None FINANCE DIRECTOR’S REPORT - Finance Director Gunderson distributed Finance Director’s Report (see attached) for the Finance Committee to read. The 2005 Operating, Capital, and Special Revenue Budgets were approved at the November 9, 2004 Common Council Meeting. Sewer and Water Budgets will be on the November 23, 2004 Common Council Agenda for approval. Some of the year-end issues that will be on the December 8, 2004 Finance Committee Agenda are: fees for rescue service, audit services, and carriers for City’s insurance. Recommended approval of new positions will be on the November 23, 2004 Finance Committee Agenda. 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 8:42 PM. Seconded by Ald. Madden. Motion carried 3 - 0. Respectfully Submitted, Carolyn Warhanek Recording Secretary