FM20061114
CITY OF MUSKEGO Approved as Corrected
FINANCE COMMITTEE MINUTES Audio Recording Available
Tuesday, November 14, 2006
Muskego City Hall, Aldermen’s Room
Mayor Johnson called the meeting to order at 6:01 PM. In attendance were Committee Members
Ald. Salentine, Madden and Borgman, City Administrator Sheiffer, Ald. Schaefer, Ald. Melcher,
Finance Department Supervisor Mueller, Engineering/Building Inspection Director McMullen and
Deputy Clerk Blenski, and those per the attached sheet. Ald. Buckmaster arrived during the
meeting.
Those present recited the Pledge of Allegiance.
The Deputy Clerk noted that the meeting was posted in accordance with the Open Meeting Law on
November 10, 2006.
REVIEW OF MINUTES OF PREVIOUS MEETING
The minutes of the October 24, 2006 Finance Committee Meeting were reviewed. Ald. Borgman
moved to approve the minutes. Seconded by Ald. Madden; motion carried.
LICENSE APPROVALS
Ald. Borgman moved to recommend approval of an Operator’s License for Darlene Reinke,
Judy Covey, Joseph Vagnini, Kristy Kohler and Lynn Lessila subject to receipt of fees,
favorable police report, and verification of schooling. Ald. Madden seconded; motion
carried.
Ald. Borgman moved to recommend approval of a “Class B” Retailers’ License for the Sale
of Fermented Malt Beverages and Intoxicating Liquor for Ylli (Tony) Myrtaj subject to receipt
of fees, favorable police report, and verification of schooling. Mr. Myrtaj will operate at S78
W16355 Woods Road. Ald. Madden seconded; motion carried.
INTERVIEW AND SELECTION OF TEEN ADVISORY BOARD MEMBERS
The following applicants for Teen Advisory Board were present: Alexandra Beyer, Nicholas
Drobka, Rachel Jeske, Matt Klinka, Rebecca Kronschnabl, Samantha Pratt, Meggie Schaefer, and
Stephanie Sjoblom. Each applicant presented information regarding age, school, grade level,
experiences and qualifications. Following discussion by the Committee, the following individuals
were chosen to serve on the Board as voting members: Alexandra Beyer, Matt Klinka, Rebecca
Kronschnabl, Samantha Pratt, and Meggie Schaefer. The following were designated as alternates:
Nicholas Drobka, Rachel Jeske, Stephanie Sjoblom and Kelly Sunstrom.
NEW BUSINESS
Presentation by HRH on Results of Health Insurance Plan Work Concerning Change to
Higher Deductible with City Funding Change in Deductible Amount and Action Thereon
City Administrator Sheiffer stated that at the last Finance Committee meeting, HRH was given
authorization to prepare an analysis to determine the potential cost savings of a higher deductible
for health insurance. Mr. Scott Coleman of HRH was present to review the results of the analysis
that was done. Mr. Coleman stated that the following four components were analyzed:
1.) Evaluation of administrators to handle the plan so the costs could be added. Three
different potential administrators were researched. HRH recommends that if the program
goes forward, the City interview the three and make a final decision.
Finance Committee Meeting Approved
November 14, 2006 - Page 2
2.) The rate reductions offered by the insurance company were also reviewed and HRH
believes that the reductions offered are reasonable.
3.) The potential usage of the program was also reviewed and compared to the potential
savings that would be generated.
4.) Finally utilization data was reviewed. Utilization in the mid twenties is anticipated.
Mr. Coleman stated that three different deductible amounts were reviewed: $500, $750 and
$1,000. HRH recommends that the City use the $1,000 deductible because it generates the
highest amount of potential upside. Mr. Coleman also noted the potential downside. Financially,
there is none, as the program will generate savings. However, he noted three items that the City
should consider:
1.) The City will have two health benefit plans, one being an insured plan with WPS and the
second being a self insured plan, which will require that the City undergo a HIPPA
compliance effort.
2.) Participants will have to file a claim twice.
3.) There is a very slight potential for misuse.
The City Administrator stated that City staff would not process any of the paperwork. That is why a
third party administrator would be hired. Mr. Coleman stated it is generally more cost effective to
hire an administrator. Ms. Sheiffer noted that the program could be put in place for January 1,
2007 but the City must move through the steps timely so that can be accomplished. Finance
Department Supervisor Mueller estimated that the annual cost savings would be approximately
$10,000 based on the 2007 proposed operating budget. In preparing the information, Ms. Mueller
used a 30% utilization. Ms. Sheiffer stated that if it is determined not to move forward with the
program, the City faces a 23.88% 24.88% increase in health insurance costs. Ald. Borgman
moved to direct staff to proceed to take the necessary steps to implement a Health
Reimbursement Arrangement (HRA) with a $1,000 deductible. Ald. Salentine seconded;
motion carried.
PERIODIC LICENSE REVIEW
Archery/Trap/Shooting Range at Schultz’s Gun Club - 12-month review.
Mr. McMullen submitted a memo to the committee stating that there are no noncompliance issues
at this time. He does recommend that the committee continue to review the range on a quarterly
basis. Ald. Salentine moved to continue the review on a quarterly basis. Ald. Borgman
seconded; motion carried.
NEW BUSINESS (Continued)
Recommend Approval for Fighting Obesity Thru Play Grant
The Parks & Recreation Department staff applied for a Fighting Obesity Through Play grant for a
new Jensen Park playground. The City was selected to receive a matching grant. The amount of
the grant is $10,876.50. Ald. Salentine moved for approval. Ald. Madden seconded; motion
carried.
Recommend Approval of Establishing Salaries for Aldermen
The Committee reviewed a proposed ordinance, which would set the salaries for the Aldermen in
District 2, 4, 6 and 7 for the term of office to begin April of 2007. Ald. Salentine moved to
establish the biweekly salary at $293.79 with the Council President receiving an additional
$23.08 on a biweekly basis. These amounts are the same as the current salaries. Ald. Madden
seconded; motion carried.
Finance Committee Meeting Approved
November 14, 2006 - Page 3
Discussion and Direction of Property Purchase MSKC 2195.965
Mr. McMullen appeared before the Committee to discuss the potential acquisition of property
located on Janesville Road, which is located within the (LML) dam failure line and the floodway.
Because of that, there is risk of sewer backups, flooding and physical property damage. This
property is currently for sale and in the past, the Common Council had directed that these types of
properties be reviewed for potential acquisition. Monies are available through landfill funds. Even
though the owner is willing to sell the property to the City, the statutory process for acquisition must
be followed. Ald. Salentine moved to proceed with the process to acquire the property (Tax
Key #2195.965). Ald. Borgman seconded; motion carried.
Recommend Approval of Designating Public Depositories and Authorizing Withdrawal of
City of Muskego Monies
Ald. Salentine moved to recommend approval. Ald. Borgman seconded; motion carried.
The purpose of this is to change the name of the co-signer on the City’s checks to John R.
Johnson.
VOUCHER APPROVAL
Ald. Salentine moved to recommend approval of General Vouchers in the amount of
$504,074.89 and Utility Vouchers in the amount of $22,643.32. Ald. Madden seconded;
motion carried.
COMMUNICATIONS AND ANY OTHER BUSINESS AUTHORIZED BY LAW
The Committee determined that the December 26, 2006 meeting would be canceled.
ADJOURNMENT
Ald. Madden moved to adjourn the meeting at 7:25 PM. Seconded by Ald. Borgman; motion
carried.
Respectfully submitted,
Jill Blenski
Recording Secretary