Loading...
FM20061024 CITY OF MUSKEGO Approved FINANCE COMMITTEE MINUTES Audio Recording Available Tuesday, October 24, 2006 6:00 PM Muskego City Hall, Aldermen’s Room W182 S8200 Racine Ave. Mayor Damaske called the meeting to order at 6:04 PM. In attendance were Committee Members Ald. Madden and Ald. Borgman, City Administrator Sheiffer, Clerk-Treasurer Moyer, Ald. Schaefer, Ald. Melcher, Recording Secretary Warhanek, and those per attached sheet. Ald. Salentine was absent and excused from the meeting. Those present recited the Pledge of Allegiance. The meeting was posted in accordance with the Open Meeting Law on October 20, 2006. REVIEW OF MINUTES OF PREVIOUS MEETING The minutes of the October 10, 2006 Finance Committee Meeting were reviewed. Ald. Madden moved to approve the minutes. Seconded by Ald. Borgman. Motion carried 2 - 0. LICENSE APPROVALS Recommend approval of Operator’s Licenses Ald. Madden moved to recommend approval of Operator’s License for Kayhla Perez, Amy Bradley Nancy Kerns, and Lindsay Robinson subject to receipt of fees, favorable police report, and verification of schooling. Seconded by Ald. Borgman. Motion carried 2 – 0. Ald. Madden moved to recommend approval of Operator’s License for Casey Larson subject to receipt of fees, favorable police report, and verification of schooling. Seconded by Ald. Borgman. Motion carried 2 – 0. Temporary “Class B”/Class “B” for St. Leonard – November 11, 2006 - St. Leonard Congregation submitted an application for a Temporary “Class B”/Class “B” License for a Tasty Trivia event to be held on November 11, 2006 from 6:00 PM to 11:00 PM. The time allows for setup and cleanup. An Operator’s License was approved tonight for the individual working this event. Ald. Borgman moved to recommend approval of a Temporary “Class B”/Class “B” License for St. Leonard Congregation for the event to be held November 11, 2006. Seconded by Ald. Madden. Motion carried 2 – 0. PERIODIC LICENSE REVIEW Crystal Kelly – Operator’s License – six-month review – In response to the Record Check Form submitted by the Clerk-Treasurer’s Office, the Muskego Police Department reported no new violations. Joshua Pelzek – Operator’s – twelve-month review – In response to the Record Check Form submitted by the Clerk-Treasurer’s Office, the Muskego Police Department reported no new violations. UNFINISHED BUSINESS - None NEW BUSINESS Request to sell unneeded networking equipment via eBay – Information Systems Director Sommers is requesting to sell on eBay a Perle 594 Controller (networking equipment). The equipment was used to extend the City’s IBM AS/400 technology to the Library. The Library system has been upgraded to the City of Waukesha’s Siris. Similar units have eBay buy now prices of $495.00, $799.00, and $1,499.00. Ald. Madden moved to approve selling the Perle 594 Controller on eBay. Seconded by Ald. Borgman. Motion carried 2 – 0. Approve U.S. Cellular agreement for employee plan – Information Systems Director Sommers is requesting approval to renew the two year service agreement with U.S. Cellular which allows employees to have cellular phones. A copy of the agreement was included with Information Systems Director Sommers’ memorandum. U.S. Cellular will continue to offer Corporate Custom 3 at $8.00 per line and $0.09 per minute within the home area, and $0.39 per minute nationwide roaming. There are Calling Plans available for high volume users. Currently there are 137 participants. Ald. Borgman moved to approve renewing the U.S. Cellular agreement for employee plan. Seconded by Ald. Madden. Motion carried 2 – 0. Finance Committee Meeting October 24, 2006 - Page 2 Unapproved Recommend approval of designating Public Depositories and authorizing withdrawal of City of Muskego monies – Clerk-Treasurer Moyer is requesting that Foundations Bank located in Pewaukee be added as a public depository. Resolution #197-2006 was attached to the memorandum from Clerk- Treasurer Moyer. Clerk-Treasurer Moyer, in answer to the Aldermen’s question, stated the City does have investments in a number of local Banks. There are limits at the financial institutions with FDIC providing $400,000.00 worth of insurance and the State of Wisconsin adding $100,000.00 to that, for a maximum of $500,000.00. Foundations Bank, who is working with a number of Communities, approached the City of Muskego. They offer an investment interest rate slightly higher than the Local Government Investment Pool, which is run by the State. The following banking institutions qualify as public depositories under Chapter 34 of the Wisconsin Statues: U.S. Bank Waukesha State Bank Maritime Savings Bank Chase Bank St. Francis Bank Lincoln State Bank Citizens Bank of Mukwonago Guaranty Bank Local Government Investment Pool (LGIP) Associated Bank M & I Marshall & Ilsley Bank Foundations Bank Ald. Borgman moved to recommend approval of adding Foundations Bank to the list of public depositories. Seconded by Ald. Madden. Ald. Melcher noted Wauwatosa Savings is currently offering 6% on CD’s and asked that this be considered. Motion carried 2 – 0. Review and action on proposal from HRH for advising City on health insurance plan – City funded deductible change – City Administrator Sheiffer stated that on October 16, 2006 she met with WPS regarding health insurance renewal. The proposed City budget included a 15% increase for health insurance. WPS presented a 23.88% increase for the 2007 premiums. A cost saving measure would be to go with a plan that has a higher deductible, the higher the deductible the lower the premiums are. The City would maintain current benefits for City employees and would make up the difference with them. A cost analysis needs to be completed as to what the City’s potential saving would be. An example given was if the City were to go to a $2,000.00 deductible the premium increase would go from 23.88% to 9.5%. To evaluate this, the City would need to compare the cost plan renewal to premiums that reflect a higher deductible, reimbursement for the difference in deductibles to employees and the cost of a third party to administer the reimbursements. City Administrator Sheiffer is recommending for approval HRH’s (Frank Haack & Associates) Plan Advisor proposal that is $3,500.00 and offers unlimited options to be explored for the January 1, 2007 renewal. They would use their software programs and expertise to advise the City concerning potential costs. WPS has provided aggregated claim experience for a two-year period and this would be used as part of the evaluation but there are other factors to consider. HRH would also look at the premiums that WPS is suggesting for the different deductible amounts and indicate to the City if these are correct amounts. Medical expenditures over the current $500.00 deductible up to the new deductible would be reimbursed to employees. Reimbursement would be made through one of the IRS tools that are available, like the flexible Cafeteria 125 plan. The City would probably try and stay with the flexible Cafeteria 125 plan because currently the City has a premium only plan where employees can run their share of the premiums they are paying through there on a pretax bases. This tool would be expanded. The City would have a third party administrator to administer the plan. Scott Coleman from HRH arrived and stated a key piece of evaluating if the City should change deductibles and use an HRA style program to pay part of the deductible is whether the City has been given full credit on the changed plan from the current insurer. HRH has two evaluation tools they use. One uses the City’s actual claim data and the other actuary tables. Because of the timing and price HRH is recommending the actuary approach. HRH will use the City’s aggregated claim experience that was provided to the City by the insurer. HRH will not have claimant level data. A third party administrator would cost $300.00 to $1,000.00 up front for setting up the plan and then there would be an ongoing charge of $3.00 to $5.00 per employee per month to administer. There is statuary language from the Department of Labor that talks about disputed claims. The City would be the ultimate claim authority. Currently there are about 109 employees on the health plan. Ald. Borgman moved to approve HRH’s Plan Advisor Program, $3,500.00 Unlimited. Seconded by Ald. Madden. Motion carried 2 – 0. MAINTENANCE AGREEMENTS - None RELEASE OF FUNDS None Finance Committee Meeting October 24, 2006 - Page 3 Unapproved REDUCTION IN LETTER OF CREDIT Recommend approval of Reduction in Letter of Credit for Oakridge Glen, $620,615.25 Recommend approval of Reduction in Letter of Credit for MRED Commercial, $44,285.30 Recommend approval of Reduction in Letter of Credit for Woodland Creek, $1,163,735.00 Engineering/Building Inspection Director McMullen is recommending a reduction in Letter of Credit for the above that represents work completed to date in accordance with the City design and construction standards. Ald. Madden moved to recommend approval of reduction in Letter of Credits for Oakridge Glen, $620,615.25; BRED Commercial, $44,285.30; and Woodland Creek, $1,163,735.00. Seconded by Ald. Borgman. Motion carried 2 – 0. VOUCHER APPROVAL Recommend approval of voucher report – The Finance Committee reviewed General Vouchers of $507,446.01, Utility Vouchers of $548,291.10, and Big Muskego Lake Vouchers of $3,575.00. In regard to the voucher for Bonestroo Rosen Anderlik, Associates, it was noted they are civil engineers who work on road and bridge designs. Bonestroo Rosent Anderlik, Associate invoices are charged to the developers or contractors. Ruekert & Mielke are civil engineers that advise the Water & Sewer Utility and are represented at every Utility meeting. They also advise the City and represent the municipal groups for MMSD work. Ald. Borgman moved for approval of payment of vouchers. Seconded by Ald. Madden. Motion carried 2 – 0. After reviewing and discussion on Muskego Volunteer Fire Department voucher detail it was noted that the City is trying to create more accountability for the tax dollars on the City’s side, so the City knows where the money is going. In the past one total check was given to the Fire Department. The voucher approval process was arranged for under the fourth quarter agreement. Ald. Borgman moved to approve payment of total vouchers in the amount of $3,191.71 for expenses presented. City Administrator Sheiffer stated that the checks are two party checks made out to the vendor and the Muskego Volunteer Fire Department. Seconded by Ald. Madden. Motion carried 2 – 0. CITY ADMINISTRATOR’S Report – Connections Strategies Enterprises will present their technology assessment report at the November 14, 2006 Finance Meeting. They will be meeting with City Administrator Sheiffer and Information Systems Director Sommers Monday, October 30, 2006 to discuss their assessment. FINANCE SUPERVISOR’S REPORT - None COMMUNICATIONS AND ANY OTHER BUSINESS AS AUTHORIZED BY LAW - None ADJOURNMENT – Being no further business, Ald. Borgman moved to adjourn the meeting at 6:56 PM. Seconded by Ald. Madden. Motion carried 2 - 0. Respectfully Submitted, Carolyn Warhanek Recording Secretary