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
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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
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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:
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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