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FM20071127 CITY OF MUSKEGO Unapproved FINANCE COMMITTEE MINUTES Audio Recording Available Tuesday, November 27, 2007 Muskego City Hall, Aldermen’s Room Mayor Johnson called the meeting to order at 5:45 p.m. In attendance: Committee Members Aldermen Melcher, Borgman and Werner, City Administrator Sheiffer, Clerk- Treasurer Moyer, Plan Director Muenkel, and Deputy Clerk Blenski. Ald. Fiedler arrived at 6:20 p.m. Those present recited the Pledge of Allegiance. The Deputy Clerk stated that the meeting was noticed in accordance with the open meeting law on November 21, 2007. REVIEW OF MINUTES OF PREVIOUS MEETING Ald. Borgman moved for approval of minutes of 11/13/2007. Ald. Melcher seconded; motion carried. LICENSE APPROVALS Ald. Werner moved to recommend approval of an original Operator’s License for Vimal Kapila, Kyra Kachikis, Vishnu Patel, Linda Reinke, Sandy Roller and Katrina Slomski subject to the licensing requirements being completed prior to issuance. Ald. Borgman seconded; motion carried. PERIODIC REVIEW The periodic review for Sheena Rich did not reveal any new violations. NEW BUSINESS Review and Recommendation Regarding Stipulation and Order for Dismissal on Terms for Veolia ES Emerald Park Landfill, LLC (Removed from agenda.) Review and Recommendation Regarding Renewal of Service Agreement with National EMS Billing, Inc. Clerk-Treasurer Janice Moyer stated that the City has used National EMS Billing, Inc. since 2005. The company provides billing for rescue services. The existing service agreement renews automatically; however, the City Administrator requested that the Finance Committee and Common Council review the issue. The Finance Department Supervisor has provided positive feedback regarding the service that National EMS has provided. Ald. Borgman moved to recommend renewal of the service agreement with National EMS Billing, Inc. Ald. Melcher seconded; motion carried. Review Current Deductible Options for Auto Physical Damage Insurance for City- Owned Vehicles and Guideline for Vehicles to be Covered Clerk-Treasurer Moyer stated that the City currently has auto physical damage coverage with the State of Wisconsin Property Insurance Fund. The current deductible is $500. Ms. Moyer stated that she reviewed the history from 2003 to the present. It is Finance Committee Meeting November 27, 2007 Page 2 her recommendation that the City go with a $15,000 deductible to reduce the premium costs. The 2008 annual premium with a $500 deductible would be $30,361. The premium would be reduced to $11,234 with a $15,000 deductible. The annual aggregate limits the number of deductibles to three with the $15,000 deductible. The Mayor believes that over time, increasing the deductible will save the City money. The next issue Ms. Moyer reviewed with the Committee was which vehicles should be covered. It is her recommendation that all vehicles be insured because the policy provides replacement cost. Ald. Melcher moved to recommend increasing the deductible to $15,000 and to insure all of the City’s licensed vehicles for 2008. Ald. Werner seconded; motion carried. Review and Recommendation Regarding Use of ISTREAM by National EMS Billing, Inc. Clerk-Treasurer Moyer stated that National EMS Billing has requested that the City allow them to use ISTREAM for processing bank deposits for rescue services. ISTREAM allows checks to be scanned and then deposited into an account versus taking them to the bank. The City must authorize National EMS Billing to use ISTREAM. Ms. Moyer stated that the majority of the company’s customers have authorized use of ISTREAM. She did discuss the issue with the City’s auditor Don Vilione. She recommends the City allow National EMS Billing to use ISTREAM. Ald. Werner recommended approval. Ald. Borgman seconded; motion carried. Review and Recommendation Regarding Hiring Special Counsel for Liquor License Hearing Ald. Werner moved to recommend approval to hire special counsel to represent the complainant for an upcoming liquor license hearing. Ald. Melcher seconded; motion carried. Review and Recommendation Regarding Lease Agreement with Jack King for Kelsey Drive Conservation Land Ald. Borgman moved to recommend approval of the lease agreement. Ald. Melcher seconded; motion carried. Discussion and Recommendation to Council on Resolution for Reorganization of the City of Muskego Police Association Retiree Health Trust and Associated Memorandum of Agreement with the Muskego Police Association City Administrator Sheiffer stated a trust was established in 2000 as a result of contract negotiations with the Police Association. The trust allows retirees to use the funds to pay for health insurance. Longevity pay and sick pay go into the trust pursuant to terms outlined in the labor agreement. The Police Association has requested that the City allow the assets of the trust to be moved to a private company. The City determined that the current trust would be split in two, which would allow the Police Association to move assets to a private company, and also set up another plan for the remaining individuals that are part of the trust, but not represented by the union. The City has discussed setting up the other plan with North Shore Bank. Mayor Johnson noted that moving the assets to a private company takes the administrative responsibility out of the City’s hands. Other employees may be able to participate in the new trust that will be Finance Committee Meeting November 27, 2007 Page 3 established. Ald. Borgman moved to recommend to Council a reorganization of the Muskego Police Association Retiree Health Trust and Associated Memorandum of Agreement with the Muskego Police Association. Ald. Melcher seconded; motion carried. Review and Recommendation Regarding Acceptance of Proposal Submitted by Ruekert & Mielke for Design and Construction Services for Moorland Road Water Tower The Mayor stated the proposal was for design and construction services for the water tower required for the development in the Moorland Road corridor. Payment of the costs will be taken from the TID assuming it is approved. Mr. Muenkel stated construction of a water tower can take up to a year and the City wants to be ready to proceed. The Plan Commission will review the design of the tower. Ald. Borgman moved to recommend acceptance of the Ruekert & Mielke proposal for the Moorland Road Water Tower. Ald. Melcher seconded; motion carried. 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 last year the City increased the health insurance deductible from $250/$500 (to $1,000/individual with a maximum of $2,000/family) in an effort to keep the cost increase down. The employees’ portion stayed the same with the City reimbursing the difference through a health reimbursement account. The decision was financially prudent as the City lowered its cost for insurance for 2007 by over $100,000. For 2008, the City was faced with a potential increase of almost 19%. The City has consulted with HRH to review another increase in the deductible while keeping the employees’ portion at $250/$500. Scott Coleman of HRH was present. He reviewed information that he distributed to support the City move to a $2,000/$4,000 deductible for 2008. Utilization for 2007 has been 18.4% per the City Administrator. Mr. Coleman estimates that utilization for 2008 would not exceed 25%. Ms. Sheiffer noted that the City might research other carriers in the future. Ald. Melcher moved to increase the deductible for health insurance for 2008 to $2,000/$4,000. Ald. Borgman seconded; motion carried. Recommend Approval of WPS Health Insurance Plan The City Administrator stated that three changes were being brought forward for 2008 as follows: 1. Increase in deductible as was just discussed from $1,000/$2,000 maximum to $2,000/$4,000 maximum with the employee share of the deductible to remain unchanged at $250/$500. 2. Increase in lifetime maximum of the policy from $1,000,000 to $2,000,000. 3. Unlimited routine office visits as opposed to an annual CAP of $300. The 2008 renewal rates reflect a 6.5% increase with the higher deductible and are as follows: Finance Committee Meeting November 27, 2007 Page 4 Type of Contract Monthly Single Member $ 515.45 Limited Family $1,112.34 Family $1,521.68 Single Member Over Age 65 with Medicare $ 386.59 Member and Spouse Both Over Age 65 with Medicare $ 773.18 One Member Over Age 65 with Medicare and One Member Under Age 65 $ 902.04 Ald. Werner moved to recommend approval. Ald. Borgman seconded; motion carried. REDUCTION IN LETTER OF CREDIT Ald. Borgman moved to recommend a reduction in the letter of credit for Oak ridge Glen Subdivision in the amount of $120,000 pursuant to supporting correspondence received by Bonestroo, Inc. Ald. Melcher seconded; motion carried. Ald. Borgman moved to recommend a reduction in the letter of credit for Belle Chasse Development in the amount of $721,624.14 pursuant to supporting correspondence received by R. A. Smith & Associates, Inc. Ald. Melcher seconded; motion carried. VOUCHER APPROVAL Ald. Melcher moved to recommend approval of General Vouchers in the amount of $287,244.16. Ald. Borgman seconded; motion carried. Ald. Melcher moved to recommend approval of Utility Vouchers in the amount of $114,995.66. Ald. Borgman seconded; motion carried. Ald. Melcher moved to recommend approval of Wire Transfers (for Debt Service) in the amount of $855,193.75. Ald. Borgman seconded; motion carried. ADJOURNMENT Ald. Borgman moved to adjourn the meeting at 6:34 p.m. Seconded by Ald. Melcher; motion carried. Jill Blenski, CMC Deputy Clerk