FM20060523
CITY OF MUSKEGO Approved
FINANCE COMMITTEE MINUTES Audio Recording Available
Tuesday, May 23, 2006
6:00 PM Muskego City Hall, Aldermen’s Room
W182 S8200 Racine Ave.
Mayor Damaske called the meeting to order at 6:01 PM. In attendance were Committee Members Ald.
Salentine, Ald. Madden, and Ald. Schroeder (arrived at 6:03 PM), City Administrator Sheiffer, Ald. Melcher,
Ald. Borgman, Recording Secretary Warhanek, Finance Supervisor Mueller, and those per attached sheet.
Ald. Buckmaster and Ald. Snead arrived during the meeting.
Those present recited the Pledge of Allegiance.
The meeting was posted in accordance with the Open Meeting Law on May 19, 2006.
REVIEW OF MINUTES OF PREVIOUS MEETING
The minutes of the May 9, 2006 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 - None
Recommend approval of Temporary “Class B”/Class “B” License – Muskego Vol. Fire Co. Ladies
Auxiliary – July 28, 2006 – The Muskego Volunteer Fire Company Ladies Auxiliary applied for a Temporary
“Class B”/Class “B” Liquor License for a fundraiser to take place on July 28, 2006 with sale of fermented malt
beverages and wine taking place from 5:00 PM to 9:00 PM. The event will be held at the Regency, W181
S8540 Lodge Blvd and the outside grounds. Ald. Salentine moved to recommend approval of a
Temporary “Class B”/Class “B” Liquor License to the Muskego Volunteer Fire Company Ladies
Auxiliary for their fundraiser being held on July 28, 2006. Seconded by Ald. Madden. Motion carried
3 – 0.
Recommend approval of Temporary Class “B” License – Muskego Lions Club – September 16, 2006 -
An application was received from the Muskego Lions Club for a Temporary Class “B” Retailers License for
an event to be held at Veterans Memorial Park, W182 S8200 Racine Ave. Fermented malt beverages will be
sold from small bar area with a controlled entrance. Ald. Salentine moved to recommend approval of
Temporary Class “B” License for event being held by Muskego Lions Club on September 16, 2006
from 3:00 PM to 11:00 P.M. Seconded by Ald. Madden. Motion carried 3-0.
Recommend approval of new agent for Pizza Hut – The new agent for Pizza Hut, Russell Thomas, was
interviewed by the Finance Committee. Ald. Salentine moved to recommend approval of Pizza Hut’s
new agent, Russell Thomas, subject to receipt of fees, favorable police report, and verification of
schooling. Seconded by Ald. Madden. Motion carried 3 – 0.
REVIEW 2006 – 2007 LICENSE APPLICATIONS
The Committee reviewed spreadsheets provided by Deputy Clerk Jill Blenski. Also reviewed were the police
incident reports (if any) for each establishment.
“Class B” Retailers’ License for the Sale of Fermented Malt Beverages and Intoxicating Liquors –
Ald. Salentine moved to recommend approval of “Class B” Retailers’ License for the following
twenty-eight establishments for 2006 - 2007. Seconded by Ald Madden. Motion carried 3 - 0.
“Class B” Retailers’ Licenses – Trade Names
R & B’s Stage Coach Inn Bushy’s Pub & Grill
Alpine Lanes Mather Lanes
Aud-Mar Supper Club Muskego Lakes Country Club
Amann’s Beach Club P & D De Marinis Denoon Saloon
Boxhorn’s Gun Club Marx Pioneer Inn
The Breakers Spitfires Food & Spirits
Club Durham Kara-Oke Inn
Williams Supper Club Mug-Z’s Pub & Grill
Delta Family Restaurant Schmidt’s Refuge
D J’s Pub & Grill Sobek’s Resort
Hunter’s Nest Ted’s Country Squire
Leah’s Italian Restaurante The Brick House
Villa Italian Restaurant Tres Locos
The Lakeview Tavern Valley Green Golf Course & Lounge
Finance Committee Meeting
May 23, 2006 - Page 2
Approved
Class “B” Retailers’ License for the Sale of Fermented Malt Beverages – Ald Salentine moved to
recommend approval of Class “B” Retailers’ License for the following three establishments for 2006 -
2007. Seconded by Ald. Madden. Motion carried 3 - 0.
Class “B” Retailers’ License – Trade Names
Beef’ O’Brady’s Schultz Resort Rod & Gun Club
Pizza Hut
“Class C” Retailers’ License for the Sale of Wine – Ald. Madden moved to recommend approval of
“Class C: Retailers’ License for the following establishment for 2006 – 2007. Seconded by Ald.
Salentine. Motion carried 3 – 0.
“Class C” Retailers’ License – Trade Name
Beef’ O’Brady’s
“Class A” Retailers’ Licenses for the Sale of Fermented Malt Beverages and Intoxicating Liquors –
Ald. Madden moved to recommend approval of “Class A” Retailers’ Licenses for the following nine
establishments for 2006 - 2007. Seconded by Ald. Salentine. Motion carried 3 - 0.
“Class A” Retailers’ Licenses - Trade Names
ALDI #36 Sentry Foods - Muskego
Osco Drug #1410 Muskego Warehouse Beer & Liquor
Muskego Shell Jetz Convenience Center
Loomis Petro Mart. Pick ‘n Save #6381
Muskego Lakes Subs & Liquor
Class “A” Retailers’ License for the Sale of Fermented Malt Beverages – Ald. Salentine moved to
recommend approval of Class “A” Retailers’ License for the following four establishments for 2006 -
2007. Seconded by Ald. Madden. Motion carried 3 - 0.
Class “A” Retailers’ Licenses – Trade Names
Dhillon’s Petro Mart (Mobil) Kwik Trip #664
Johnny’s Open Pantry Food Marts #491
Archery/Trap/Rifle License – Ald. Salentine moved to recommend approval of Archery/Trap/Rifle
License for the following four establishments for 2006 - 2007. Seconded by Ald. Madden. Motion
carried 3 - 0.
Archery/Trap/Rifle License – Trade Names
Boxhorn’s Gun Club Schultz Resort Rod & Gun Club
Hunter’s Nest Wings & Whitetails Taxidermy Archery
Swimming Beach/Waterway Marker License – Ald. Salentine moved to recommend approval of
Swimming Beach/Waterway Marker License for the following three establishments for 2006 – 2007.
Seconded by Ald. Madden. Motion carried 3 – 0.
Swimming Beach/Waterway Marker License – Trade Names
Aud-Mar Supper Club Licensee City of Muskego, Agent Parks Department
Amann’s Beach Club
PERIODIC LICENSE REVIEW - None
UNFINISHED BUSINESS
Review notification results for permanent speed tables on Lion’s Park Drive – Engineering/Building
Inspection Director McMullen sent a letter along with a copy of the proposed tables to residents on Lion’s
Park Drive (between Janesville Road and Pioneer Drive) advising them that the Public Works Department
will be placing permanent asphalt speed tables on their street. They were asked to contact the Engineering
Department if they had objections. The Engineering Department did not receive any responses. Ald.
Schroeder hoped that the Public Works Committee would take a look at the letter when developing a
procedure for installing temporary and/or permanent speed bumps/tables. He would like to see included in
their procedure/guidelines a confidential survey. Ald. Melcher asked if speed bumps/tables that had prior
Public Works approval would have to go back for a private survey. Ald. Schroeder stated it would be up to
Public Works.
Finance Committee Meeting
May 23, 2006 - Page 3
Approved
Continue discussion on feedback and recommendations in regard to Performance Evaluation Form
and Performance Incentive Program for Non-rep Group – At the request of City Administrator Sheiffer,
Finance Department Supervisor Mueller prepared comparison numbers on the new proposed incentive
program. If you choose to assign a cost to a day off granted as a merit incentive and then add that amount
to the pay increase allotted under the proposed program, you will arrive at one total. If you do not add the
“cost” of a day off to the pay increase allotted under the new program, you arrive at a different total. Ald.
Schroeder clarified that when putting the merit days off into a dollar amount; the proposed program is more
liberal. City Administrator Sheiffer stated it is more liberal on an annual basis. Under the old program the
increases compounded, under the proposed program that does not happen with merit days off. A member of
the Employee Committee asked City Administrator Sheiffer to mention that the cost of the days off doesn’t
impact the dollars in the budget. Ald. Schroeder stated merit days may not have a direct effect but would
have an indirect impact, lost productivity. City Administrator Sheiffer stated the merit days off would have to
be used in the same year. In regard to pay increases, Ald. Schroeder expressed concerns that when they
had the five percent pay for performance it was not the norm and that is why he brought up changing to four
percent. He felt four percent on an average was generous. When the four percent was talked about last
year there was some consensus that the four percent was difficult to continue, as elected officials, especially
with changing economic times. Ald. Schroeder reviewed the proposed merit pay increases presented by the
Employee Committee and had a concern with the four percent at the highest-level increase, plus days off. In
regard to merit days off Ald. Schroeder stated he was not sure how he felt, it is a nice incentive. Ald Madden
and Ald. Salentine liked the merit day off incentive. Ald. Schroeder presented the following changes to the
merit pay guidelines:
Overall Rating Below Midpoint At/Above Midpoint
Employee Committee Ald. Schroeder’s Employee Committee Ald. Schroeder’s
Recommendation Recommendation Recommendation Recommendation
Unacceptable 0% 0% 0% 0%
Provisional 0% - +1% 0% - +0.5% 0% - +1% 0% - +0.5%
Effective +1% - +2% +0.5% - +1.5% +1% - +2% +0.5% - +1%
Outstanding +2% - +3% +1.5% - +2.5% +2% - +2.5% +1% - +1.5%
Superior +3% - +4% +2.5% - +3% +2.5% - +3% +1.5% - +2%
Ald. Schroeder moved to recommend approval, of the above merit pay increase guideline changes as
presented by him. Seconded by Ald. Madden. Motion carried 3 – 0.
NEW BUSINESS
Recommend approval of Sale of Refunding Series 2006 Bonds – Paul Thompson and Dustin Avey from
Hutchinson, Shockey, Erley & Co. (HSE) were present. Moody’s rating reconfirmed the City’s Aa3 rating.
Representatives of HSE distributed a debt service comparison. Aaa3 and Aa3 ratings were discussed.
Finance Supervisor Mueller and representatives of HSE had a conversation with Moody’s and the next time
the City has a project they will go a little more in-depth with Moody’s for the potential of getting an upgrade.
Getting Moody’s to come to the City was mentioned. In regard to Mayor Damaske’s question as to what
Moody’s looks at in terms of rating he was told some of the factors are local economy, Waukesha County
unemployment rate, dispersion of employment opportunities, and dispersion of large taxpayers. NSE has
information that they developed that will show what Moody’s goes through in looking at ratings and what the
criteria are. Finance Supervisor Mueller noted that Moody’s did visit the City last year. One of Moody’s
comments was compared to New Berlin they would like to see a business park expansion.
The savings report showed a savings, as a result of the refunded principal, of 3.1%. The total savings on the
present value basis was $160,163.04. The Sales Comparison chart comparing the City’s rate to other
issuers in Wisconsin on about the same time showed that in terms of market presence the City of Muskego
was very competitive in the market place. Ald. Salentine moved to recommend approval of borrowing
$5,160,000.00 by issuing General Obligation Refunding Bonds. Seconded by Ald. Madden. Motion
carried 3 – 0.
Recommend approval of 2005 Budget Amendments – Finance Supervisor Mueller presented the 2005
budget amendments, see attached. Ald. Schroeder questioned the special revenue fund budget
amendments that included $175,105.00 of Park Dedication expenditures to cover costs associated with the
Old Town Hall and skate board park. Approximately $40,000.00 was for the skateboard park with the
balance of $135,000.00 for Old Town Hall. Finance Supervisor Mueller stated approximately $90,000.00
was brought before the Parks and Recreation Board for approval. Ald. Schroeder asked how the balance
was approved. Finance Supervisor Mueller stated funding had been received to offset the skateboard park.
This is strictly looking at expenditures that exceeded the budget. Finance Supervisor Mueller was asked to
Finance Committee Meeting
May 23, 2006 - Page 4
Approved
Recommend approval of 2005 Budget Amendments continued
verify what Committee/Committees or budget process approved a $20,000.00 transaction that was put
towards Old Town Hall. Ald. Schroeder asked if expenditure comes before Parks and Recreation Board for
approval does it always come before Finance Committee or only if it is a non-budgeted item. Discussion
ensued on requests of other departments being brought before Finance. City Administrator Sheiffer
indicated to Parks and Recreation Director Anderson that the Parks and Recreation Boards recommended
expenditures have to go before Finance Committee and Common Council for approval. The new purchasing
policy covers this. The new purchasing policy applies to every department’s expenditures, even if it is gifted
money. Ald. Salentine moved to recommend approval of 2005 Budget Amendments. Seconded by
Ald. Madden. Motion carried 3 – 0.
Recommend approval of 2006 Budget Amendments – The following are the recommended 2006 budget
amendments presented by Finance Supervisor Mueller:
General Fund Transfers to: Assessor’s Office attorney fees $2,500.00
Total $2,500.00
Transfers from: Building Department engineering wages $1,652.00
Use of Fund Balance $ 848.00
Total $2,500.00
Ald. Salentine moved to recommend approval of 2006 Budget Amendments. Seconded by Ald.
Madden. Discussion took place on provision in AFCME contract that states part-time employees should
receive all fringe benefits specified on a prorated basis just like full time employees, based on budgeted
hours. The contract then states that employees working one to nineteen hours shall not be eligible for health
insurance. The particular employee involved was not working twenty hours a week but because the position
was budgeted as twenty hours per week the City was incurring health insurance costs. Motion carried 3 –
0.
Recommend approval of Revised Schaefer Farming Lease – Ald. Salentine moved to recommend
approval of revised Park Arthur Lease agreement with Mr. Schaefer. Seconded by Ald. Schroeder.
The Parks and Recreation Board is recommending approval of a revised, new lease with Mr. Eddie Schaefer
for Park Arthur south section. The current lease will be voided. Severe erosion problems were noticed at
the beginning of April 2006. City Engineer McMullen, along with staff, exercised the plantings change to
alfalfa and timothy grass. It states under Special Conditions (2) of the lease that: All Erosion control and/or
farming methods recommended by the City’s Building/Engineering staff be put in place and practiced. Alfalfa
and timothy grass has been planted to remedy the erosion problem. The rental of the property shall be for
the term of four cropping years, commencing on January 1, 2006 and ending December 31, 2009, with
payment of $1.00 per year due by December 31, 2006, 2007, 2008, and 2009. The main reason for the new
lease agreement is due to the vast expense and planting terms of oats and alfalfa. The new lease treats Mr.
Schaefer in the same manner as the Kelsey Drive property. Ald. Schroeder asked about the decision,
several years ago, of setting all the rentals at the same dollar amount per acre, at Attorney Molter’s advice.
Some leases were being done at $55.00 per acre and some at $1.00 per acre. Discussion ensued on lease
fees being consistent and why the difference with this agreement. Discussion continued on reason for a
four-year lease. Ald. Madden didn’t understand the comment that it took four years to turn a profit; she
started earning a profit the first year planted. Ald. Schroeder felt that all rentals should be set at the same
dollar amount, whether it is $1.00 or $55.00. Ald. Schroeder recommended that someone check with City
Attorney Molter to see why the $55.00 per acre was set. City Administrator Sheiffer was asked to review
Ewald Engel lease agreement. The City needs to be consistent. Ald. Salentine withdrew her motion and
Ald. Schroeder his second. Ald. Schroeder moved to recommend approval of the Park Arthur Lease
Agreement at the current lease rate of other properties. Seconded by Ald. Madden. Ald. Melcher
pointed out the property’s severe erosion problem. As he remembered, the planting of the property was
going to be a major problem. No matter what the amount of the lease agreement, the erosion problem
remains. If this is the property Ald. Melcher recalls, Mr. Schaefer is going to have to do a lot of work before
planting can take place. Motion carried 3 – 0.
Finance Committee Meeting
May 23, 2006 - Page 5
Approved
Recommend approval of School District/City General Facility Agreement – Ald. Schroeder moved to
recommend approval of the City of Muskego/Muskego-Norway School District General Facility
Agreement. Seconded by Ald. Salentine. The Parks and Recreation Board is recommending for
approval, the City of Muskego/Muskego-Norway School District General Facility Agreement. The terms of
the agreement are for July 1, 2005 through June 30, 2007. New sections to the agreement are:
Section Two: Bay Lane, Mill Valley and Muskego High School Softball Diamonds and Tennis Courts.
III. Improvements
A. provided, however, that the District reserves the right to require the City, at the City’s expense, to
remove such improvements and restore the Facilities.
D. Tennis Court Improvements: During the term of this agreement, the City will pay a 50% portion
of the costs of any improvements made by the District to the tennis court that are included in the
Facilities (e.g., tennis court nets, wind screens, etc.). The City shall budget for such costs during
the term of this agreement.
VII. Pets
Absolutely no pets are allowed on or about the Facilities at any time.
Section Three: Non-Specific Facilities
I. Additional District Facilities
A. Muskego High School athletic track (fee basis and prior District approval)
Muskego High School Varsity Football Field (fee basis and prior District approval)
Section Four: Conclusion
E. Right to review: During the term of this agreement, the District shall have the right upon
reasonable notice to the City to review the financial records of the Parks and Recreation
Department.
Ald. Salentine questioned the statement “Any and all improvements which are placed upon the Facilities by
the City during the term of this agreement or any renewal thereof shall upon termination of the agreement
become the property of the District (with the exception of any athletic field lighting systems); provided,
however, that the District reserves the right to require the City, at the City’s expense, to remove such
improvements and restore the Facilities.” Ald. Schroeder explained that the District wanted the field but not
the lights. The City wanted the lights. The City paid the portion for installation of lights. If this agreement
ever terminates the District could ask the City to remove what the City solely owns, which is the lighting. Ald.
Salentine asked if the City reviews District financial records in regard to the added statement that the District
shall have the right upon reasonable notice to review the Parks and Recreation Department financial
records. Accessibility to financial records of the District and City was discussed. Motion carried 3 – 0.
Recommend approval to hire special counsel in matter of Charles Damaske vs. the City of Muskego –
In a memorandum to the Finance Committee Police Chief Johnson stated the Police Department received a
complaint from a citizen regarding an incident that took place on April 27, 2006 at the Muskego Historical
Society Settlement Center. The City Attorney has recused himself from the case and is recommending
Attorney Roger C. Pyzyk, the prosecuting attorney for the City of Greenfield. Police Chief Johnson is
requesting the hiring of Attorney Roger C. Pyzyk as a special prosecutor to review the case and determine
what, if any, charges need to be filed and if charges are forthcoming then to prosecute. Ald. Salentine
moved to recommend approval of the hiring of Attorney Roger C. Pyzyk. Seconded by Ald. Madden.
Motion carried 3 – 0.
MAINTENANCE AGREEMENTS - None
RELEASE OF FUNDS - None
REDUCTION IN LETTER OF CREDIT - None
VOUCHER APPROVAL
Recommend approval of voucher report – The Finance Committee reviewed General Vouchers of
$486,898.17, Utility Vouchers of $184,494.01, Tax Vouchers of $2,039,281.00, and Big Muskego Lake
Vouchers of $30.00. In regard to voucher questions it was noted that Arenz, Molter, Macy and Riffle,
miscellaneous work, the majority of the expense was for response to audit. The Auditors send letters to
Attorney Molter requesting information. Bruce Municipal Equip., Inc., hose, was for rodder hose, one inch by
six hundred feet, 250 PSI. CNI Newspapers, April publishing/City Hall, was for publishing all city notices for
April. An itemized invoice was attached to the voucher. J. Kasian & Sons, Inc., 05 street scaping/payment #
2, is for Janesville Road, Tess Corners area. Ald. Salentine moved for approval of payment of
vouchers. Seconded by Ald. Schroeder. Motion carried 3 – 0.
Finance Committee Meeting
May 23, 2006 - Page 6
Approved
CITY ADMINISTRATOR’S - None
FINANCE SUPERVISOR’S REPORT - None
COMMUNICATIONS AND ANY OTHER BUSINESS AS AUTHORIZED BY LAW - None
ADJOURNMENT – Being no further business, Ald. Salentine moved to adjourn the meeting at 7:18
PM. Seconded by Ald. Madden. Motion carried 3 - 0.
Respectfully Submitted,
Carolyn Warhanek
Recording Secretary