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FM20051213 CITY OF MUSKEGO Approved FINANCE COMMITTEE MINUTES Audio Recording Available Tuesday, December 13, 2005 6:00 PM Muskego City Hall, Aldermen’s Room W182 S8200 Racine Ave. Mayor Damaske called the meeting to order at 6:00 PM. In attendance were Committee Members Ald. Melcher, Ald Salentine, and Ald. Madden, City Administrator Sheiffer, Atty. Molter, Ald. Borgman, Ald. Schroeder, Interim Finance Director Mueller, Recording Secretary Warhanek, and those per attached sheet. Ald. Buckmaster and Ald. Patterson arrived during the meeting. Those present recited the Pledge of Allegiance. The meeting was posted in accordance with the Open Meeting Law on December 9, 2005. REVIEW OF MINUTES OF PREVIOUS MEETING The minutes of the December 7, 2005 Finance Committee Meeting were reviewed. Ald. Salentine moved to approve the minutes. Seconded by Ald. Madden. Motion carried 3 - 0. LICENSE APPROVALS Recommend approval of Operator’s Licenses Ald. Salentine moved to recommend approval of Operator’s License for Frank Leon and Gary D. Cropper subject to receipt of fees, favorable police report, and verification of schooling. Seconded by Ald. Madden. Motion carried 3 – 0. Six-month “Class A” Liquor License for Muskego Lakes Subs & Liquor – Ald. Salentine moved to defer to the January 10, 2006 Finance Meeting. Seconded by Ald. Madden. Motion carried 3 – 0. PERIODIC LICENSE REVIEW UNFINISHED BUSINESS Recommend approval of Fire Protection Agreement with Muskego Fire Department, Inc. for 2006 – At the November 22, 2005 Finance Committee meeting, City Administrator Sheiffer made recommendations in regard to possible additions to both Fire Department Service Agreements and the Ambulance Agreement for 2006, see attached. Since the last meeting, Mayor Damaske, City Administrator Sheiffer, and Attorney Molter have talked. They felt there was not enough time to work through contract changes with the two Fire Departments. City Administrator Sheiffer stated Attorney Molter is suggesting looking at her recommendations for the 2007 agreements and going forward with what they have now for the 2006 agreements. Ald. Madden asked about signing a ninety-day agreement so the City would have time to meet with both Fire Departments in regard to working on a new contract. Ald. Salentine noted that the Fire Departments are used to signing an agreement at the end of each year for the following year. If there were a ninety-day agreement, Attorney Molter questioned what would happen in regard to what payment they would get and what would happen after the end of ninety-days. He stated you are changing the rules of the game without talking to the Fire Departments. Ald. Melcher stated that Police Chief Johnson had raised some serious financial questions and, therefore, he would be hesitant to sign a year agreement and would agree with a ninety-day agreement. Mayor Damaske had requested a financial report be provided within ten days. To date, Mayor Damaske has only received notification that Muskego is working on financial data. The City received Tess Corners financial information. Ald. Salentine brought up eliminating the borderlines and hiring someone to do a service study. Discussion took place on presenting City Administrator Scheiffer’s recommendations to the Fire Departments and seeing how they feel about them. Discussion also took place on Fire Departments working without a contract and working with a ninety-day contract. Ald. Schroeder was in favor of a ninety-day agreement and paying to Muskego their first quarter payment. Attorney Molter questioned how the City would pay Tess Corners Volunteer Fire Department. In regard to the question about insurance, it was noted that the Fire Departments have their own insurance. After discussion, it was determined that the recommended changes would be for both Fire Departments. City Administrator Sheiffer stated the reason for her recommendations to the agreements was the Common Council and Mayor have a responsibility to the taxpayers for being accountable for the funds they spend and requesting the financial data from both departments gives Common Council and Mayor that accountability. Ald. Salentine suggested amending into both agreements that financial information is provided to the City before signing the next contract. Ald. Buckmaster stated that one of the reasons he wanted the financial data was because of the disparity between the two departments. Ald. Buckmaster was not in favor of a year contract. He was in Finance Committee Meeting December 13, 2005 - Page 2 favor of a three or six month agreement. Attorney Molter mentioned adding the following to the ambulance agreement: No payment shall be made to this Fire Department under this contract until the appropriate insurance certificate satisfactory to the City shall be provided to the City Clerk’s office. Discussion continued on adding this to the ambulance agreement and keeping that agreement for one-year. After discussion the following amendment was made to the Fire Protection Agreement with Muskego Fire Department, Inc. for 2006: IN CONSIDERATION of the mutual covenants herein contained, it is agreed: The party of the second part will pay to the party of the first part the sum of two hundred eighty nine thousand one hundred twenty two dollars ($289,122) one hundred twenty-one thousand forty-seven dollars ($121,047) for the year period commencing January 1, 2006 and ending December March 31, 2006, payable quarterly in advance based upon the following schedule: January $121, 047, April $56,025, July $56,025, and October $56,025. Fire runs are to be made by the party of the first part to any fire within the area hereinafter described, and in compliance with the call from any resident of said area. Ald. Melcher moved to amend agreement with Muskego Fire Department. Seconded by Ald. Madden. Motion carried 3 – 0. Ald. Salentine moved to recommend approval of Amended Fire Protection Agreement with Muskego Fire Department, Inc. for 2006. Seconded by Ald. Melcher. Motion carried 3 – 0. Recommend approval of Fire Protection Agreement with Tess Corners Volunteer Fire Department for 2006 – After discussion under New Business, Recommend approval of Fire Protection Agreement with Muskego Fire Department, Inc. for 2006 the following amendment was made to the Tess Corners Agreement: IN CONSIDERATION of the mutual covenants herein contained, it is agreed: The party of the second part will compensate the party of the first part for its fire services for one year commencing January 1, 2006 and ending December 31, 2006 March 31, 2006 by paying to the party of the first part the sum of one hundred fifty seven thousand five hundred seventy five dollars ($157,575) thirty-nine thousand three hundred ninety-three dollars and 75 cents ($39,393.75 which has been agreed upon by the parties, each of whom agrees to negotiate in good faith, during the budget proceedings for the party of the second part. The payments shall be made quarterly in advance. Party of the first part agrees to make fire runs to any fire with the area hereinafter described, and in compliance with the call from any resident of said area. Ald. Salentine moved to amend Fire Protection Agreement with Tess Corners Volunteer Fire Department for 2006 as stated above. Seconded by Ald. Madden. Motion carried 3 – 0. Ald. Salentine moved to recommend approval of Amended Agreement with Tess Corners Volunteer Fire Department for 2006. Seconded by Ald. Melcher. Motion carried 3 – 0. Recommend approval of Agreement with Tess Corners Volunteer Fire Dept. for ambulance rescue service – The Finance Committee review the 2006 Agreement for Ambulance Services with the Tess Corners Volunteer Fire Department. Tess Corners shall charge the following fees to the City: Patient transported by TC Rescue to a medical facility $348.00 Patient that refuses transport to a medical facility $174.00 After discussion under New Business, Fire Protection Agreement with Muskego Fire Department, Inc. for 2006, the Finance Committee recommended amending item 3 f to add: No payment shall be made to this Fire Department under this contract until the appropriate insurance certificate satisfactory to the City shall be provided to the City Clerk’s office. Ald. Salentine moved to approve Amended Agreement for Ambulance Services for 2006. Seconded by Ald. Madden. Motion carried 3 – 0. NEW BUSINESS Recommend approval of Waukesha County Data Processing Services Property Tax Billing Contract Extension – The Waukesha County Data Processing Services Property Tax Bill Contract Extension Agreement for 2006 was reviewed. The agreement extension states the County proposes to provide data processing service to assist the Municipality in the preparation of notices of assessment, assessment rolls and tax bills. The City will be invoiced quarterly. The following rate, which includes tax bill printing, will be charged for these services: Per Parcel 2006 Rates Taxes $1.35 Ald. Salentine moved to recommend approval of Contract Extension Agreement for 2006. Seconded by Ald. Madden. Motion carried 3 – 0. Finance Committee Meeting December 13, 2005 - Page 3 Recommend approval of Cleaning Service Agreement – City Administrator Sheiffer, Engineering/Building Director McMullen, and George Wolwark of the maintenance staff reviewed the 2006 cleaning service quotes. Coverall Cleaning Companies $ 9,860.00 per month $118,320.00 Dust Free Cleaning Service* $ 7,111.00 per month $ 95,007.00 Dan Plautz Cleaning Service $ 9,100.00 per month $109,200.00 Roever Cleaning Service $12,018.75 per month $144,225.00 Jani-King Cleaning Service** $ 7,285.00 per month $ 89,930.00 * Dust Free Cleaning Services quote includes five months of Parks Buildings at $1,175.00 per month and four months of service for Horn, Bluhm, Lions, and Kurth Park at $950.00. ** Jani-King Cleaning Service quote includes cleaning services for the parks facilities in the amount of $2,510.00. It is their recommendation that the City award the quote to Dust Free Cleaning Service. Several items affected the recommendation of staff to not renew the contract with Jani-King Cleaning Services. There were several instances of either lack of performance or lack of direction on the part of the existing service. The amount of additional staff time to “police” the contracted employees, and the additional time to either correct the deficient work or to meet with representatives of the company on the deficient work was becoming far too frequent to recommend the lower price. Ald. Salentine moved to recommend approval of Dust Free Cleaning Service quote for $95,007.00. Seconded by Ald. Madden. Ald. Melcher asked about discussion at previous meeting, doing the cleaning in-house and if it went any further. Mayor Damaske stated this is something that will be reviewed in the future. At this time there was insufficient time to pursue (information needed on necessary equipment and staff, etc.). Motion carried 3 – 0. Review request to fill vacancy – Conservation Intern – Conservation Coordinator/Urban Forester Tom Zagar notified the Mayor’s Office the Conservation Intern has terminated employment. A previous employee is willing to return. The Conservation Intern (Conservation Technician) position is funded from the Conservation Special Revenue Account that is derived from ten percent share of landfill funds plus grants. Ald Melcher moved to approve request to fill the Conservation Technician position. Seconded by Ald. Madden. Ald. Schroeder addressed the Finance Committee stating that prior to 2002 the Conservation Coordinator position and Intern position were paid from the Priority Lakes Grant. This grant ran out around 2002 and as a result part of the Conservation Coordinator’s and Intern positions are paid from landfill funds. It was his understanding that landfill funds cannot be used for personnel costs. Ald. Salentine stated there is a percent of landfill funds designated for conservation. Ald. Schroeder felt research as to whether the City is appropriately using the landfill funds per the contract for these two positions needed to be done between now and when the intern position becomes vacant again. If part of the Conservation Coordinator’s position is coming out of landfill funds, the issue needs to be addressed as soon as possible. If the intern’s position is coming out of landfill funds, maybe hiring for the position should be put off until the City has researched the issue or the City should address the issue by the next time the position is refilled. Ald. Salentine stated that having the help of the intern is important because of the many hats the Conservation Coordinator wears. The Council had previously stated that if the grant went away they would fund the Conservation Coordinator position. Motion carried 3 – 0. Approve 2006 Capital Budget Purchases – In a letter to the Finance Committee, Parks and Recreation Director Anderson stated his department would like to purchase the following 2006 Capital Budget items in January 2006 to help assure delivery before the warmer months. Actual Price Budgeted Price 2006 Ranger Truck $13,195.00 $13,495.00 Baseball Field Maintenance Tractor $ 7,548.00 $ 7,900.00 with gill pulverizer Out Front Mower $10,300.00 $ 9,948.00 Total $31,043.00 $31,343.00 Ald. Salentine moved to approve the purchase of the 2006 Capital Budget items stated above. Seconded by Ald. Melcher. Motion carried 3 – 0. Finance Committee Meeting December 13, 2005 - Page 4 Recommend approval of Audit Service quote for 2006 – The 2006 Virchow, Krause & Company, LLP Engagement Letter that included the following estimate for the audit of 2005 financial statements was review. Summary of Services and Fees Estimated Services Fees Audit of all funds in the City’s basic financial statements (except Tax Increment Funds) including the preparation of the Annual Report filed with the Dept. of Revenue $54,600.00 Audit of all Tax Increment Funds $34,200.00 Total $88,800.00 Positions and Hourly Rates Position Hourly Rates Partner $ 222.00 Tax Manager $ 182.00 Audit Manager $ 173.00 In-charge Accountant $ 117.00 Associate Accountants $ 106.00 Audit service proposals were not taken this year. There was not enough time to look into proposals. Also, because of the changeover in administration and the familiarity of the existing staff with Virchow Krause it was decided to stay with them for one more year. Plus, TIFs will be closing out and because of the history Virchow Krause has with TIFs, it would be wise to stay with them for the next audit. Ald. Salentine moved to recommend approval of audit service quote from Virchow, Krause & Company. Seconded by Ald. Madden. Ald. Melcher clarified with Interim Finance Director Mueller that the estimated fees could be gone over and that is why the hourly rates are given. Motion carried 3 – 0. Recommend approval of Carriers for City’s 2006 Insurance – Interim Finance Director Mueller requested recommendation of the following carriers for the 2006 City Insurance coverage: Property Insurance ($2,500 Deductible) State of Wisconsin $ 21,515.00 Workers’ Comp ($500,000.00 Policy Limit) League of Wisconsin $198,798.00 Municipalities Mutual Ins (LWMMI) General Liability ($6,000,000.00 Policy Limit) LWMMI $ 70,945.00 Police Professional Liability ($6,000,000.00 Policy Limit LWMMI $ 24,970.00 Automobile ($6,000,000.00 Liability) LWMMI $ 15,984.00 $500.00 Deductible – Collision State of Wisconsin $ 25,025.00 $500.00 Deductible-Comprehensive Insurance Fund (est. premium) (No Collision on Older Vehicles & Heavy Trucks) Crime LWMMI $ 2,304.00 Employee Dishonesty ($1,000,000.00 Policy Limit/$10,000.00 Deductible) Money & Security ($25,000.00 Policy Limit/$500.00 Deductible) Forgery ($25,000.00 Policy Limit/$500.00 Deductible) Public Officials Liability LWMMI $ 26,976.00 ($6,000,000.00 Policy Limit) ($2,500.00 Deductible per Occurrence) No-Fault Sewer Backup LWMMI $ 20,725.00 Ald. Melcher moved to recommend approval of the 2006 insurance carriers and coverage. Seconded by Ald. Madden. Motion carried 3 – 0. Recommend approval of new & revised positions established through 2006 – The following position was approved with the adoption of the 2006 budget: Library Rate Add Library I Position (part time 988 hours) authorized hire date 12/01/06 $11.6040 Ald. Salentine moved to recommend approval of Library I position. Seconded by Ald. Madden. Motion carried 3 – 0. Recommend approval of Non-represent Personnel Salary Increase for 2006 – Ald. Salentine moved to recommend approval of a salary schedule increase of two and one-half percent for non-represented employees of the City of Muskego, effective January 1, 2006. Seconded by Ald. Melcher. Motion carried 3 – 0. Finance Committee Meeting December 13, 2005 - Page 5 MAINTENANCE AGREEMENTS Approve maintenance agreement copier (public use machine), $53.68/mo, 2005 $48.89/mo – Library Director Holly Sanhuber sent memorandum requesting maintenance agreement for the public use copier at the Library. The agreement is a one-year, toner inclusive contract. The public copier was purchased in 1997 and has run 481,644 copies. The copy/printer revenue for 2005 was over $8,000.00. Ald. Melcher moved to approve maintenance agreement with Gordon Flesch. Seconded by Ald. Madden. Motion carried 3 – 0. RELEASE OF FUNDS - None REDUCTION IN LETTER OF CREDIT Recommend approval of Reduction in Letter of Credit balance – Martin Estates, $4,000.00 – Engineering/Director McMullen is recommending the City reduce Martin Estates’ Letter of Credit and developer’s deposit to zero. The Letter of Credit balance as of December 16, 2005 was $4,000.00. The development has been completed for over one year and has met all of the requirements of the developer’s agreement. Ald. Salentine moved to recommend approval of reduction in Letter of Credit for Martin Estates. Seconded by Ald. Melcher. Motion carried 3 – 0. VOUCHER APPROVAL Recommend approval of voucher report – City Administrator Sheiffer distributed a new voucher report with expenses group by vendor instead of account number. The Finance Committee reviewed General Vouchers of $1,175,968.51 and Utility Vouchers of $86,025.22. There were several transactions in regard to a check to Country Squire. City employees paid to attend a Christmas party and there were some employees who were issued refunds because they were unable to attend. Ald. Melcher question the clothing allowance vouchers issued to employees. The clothing allowance is part of the union contracts with the City. Mayor Damaske to speak to Parks and Recreation Director Anderson in regard to vouchers for car wash. Ald. Melcher moved for approval of payment of General Vouchers and Utility Vouchers. Seconded by Ald. Madden. Motion carried 3 – 0. CITY ADMINISTRATOR’S/FINANCE DIRECTOR’S REPORT – None COMMUNICATIONS AND ANY OTHER BUSINESS AS AUTHORIZED BY LAW – None ADJOURNMENT – Being no further business to discuss, Ald. Melcher moved to adjourn the meeting at 7:20 PM. Seconded by Ald. Salentine. Motion carried 3 - 0. Respectfully Submitted, Carolyn Warhanek, Recording Secretary