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FM20080826 CITY OF MUSKEGO Approved: 9/23/2008 FINANCE COMMITTEE MINUTES Audio Recording Available Tuesday, August 26, 2008 Muskego City Hall, Aldermen’s Room Mayor Johnson called the meeting to order at 5:50 p.m. Present: Committee Members Ald. Snead, Werner and Schaefer. Also in attendance: Ald. Pavelko and Borgman, Police Chief Geiszler, Assessor Mecha, Finance Dept. Supervisor Mueller, IS Director Sommers (arrived at 6:05 p.m.), Deputy Clerk Blenski, and those per the attached list. Ald. Schneider and Fiedler arrived during the meeting. Those present recited the Pledge of Allegiance. The deputy clerk stated that the meeting was noticed in accordance with the open meeting law. APPROVAL OF MINUTES Ald. Werner moved for approval of the July 22, 2008 minutes. Ald. Snead seconded; motion carried. LICENSE APPROVALS Ald. Snead moved to recommend approval of a regular Operator’s License for Michael Anders, Joan Andresek, Theresa Cameron, Tiffany Curler, Jeanne Everhart, Megan Grenz, Tirlochan Kler, Colleen Lonergan, Debra Obermiller, and Deana Ritzman subject to the licensing requirements being completed prior to issuance. Ald. Schaefer seconded; motion carried. Alicia and William Webber were present on behalf of The Brick House as requested by the committee. At the July 22 meeting the committee reviewed several complaints regarding the establishment, including a letter submitted by Ald. Borgman. Most of the complaints related to noise. The Mayor noted that since that time, there was one after- hours violation. He reminded the Webbers that they must do whatever it takes to control the noise. Continuous complaints could affect renewal of the license. Several neighbors were present and stated that they did not have a problem with the establishment. Some individuals commented that the noise is present because there is a significant amount of motorcycle traffic in the area. It does not come strictly from The Brick House. Another resident who lives on Topaz Drive stated he has not experienced any noise issues. He submitted a letter from Brad and Lynn Craig, who live across the street on Topaz. The letter has been attached to the minutes and reflects that the Craigs do not have a problem with the establishment. An application for a “Class B” liquor license was submitted by Bush Gardens, LLC. for property located at S68 W14891 Janesville Road. Ms. Lynn Kurer was present as the agent. The license would be for the existing Atonement Lutheran Church, which Ms. Kurer is in the process of purchasing. She stated that it is her intent to convert the building to a chapel and event hall. She plans to have rehearsal dinners and showers in the hall. The closing for the purchase of the property is scheduled for mid-October. Mayor Johnson expressed concern because the Plan Commission has not approved a plan for the site. He believed that should be done first before a recommendation is made regarding the license. The Mayor indicated that not everyone is aware of the proposal to use the building as a hall. Ald. Snead agreed. Ald. Werner stated that he would abstain because of his affiliation with Atonement Lutheran. Ms. Kurer noted that Finance Committee Meeting Page 2 August 26, 2008 her issue would be on the October Plan Commission meeting. Mayor Johnson told Ms. Kurer that the Finance Committee would review the license at the October 14 meeting. Ms. Kurer was directed to come back to discuss her application on October 14. An application for an Outside Dance Permit and amendment to licensed premise was submitted by Vera Pires for Spitfires Food & Spirits, S76 W17957 Janesville Road. The application is for September 12, 13 and 14, 2008. Ms. Pires was not present. There was one incident that the Police Dept. reported from a similar event she had last year. Ms. Pires has requested music until midnight. The Mayor and committee members expressed concern about music until that time. Ald. Werner moved to recommend an amendment to the licensed premise and Outside Dance Permit as follows: Friday, September 12 - 6:00 p.m. to 11:00 p.m., Saturday, September 13 - 10:00 a.m. to 11:00 p.m., Sunday, September 14 - 10:00 a.m. to 8:00 p.m. Ald. Schaefer seconded; motion carried. NEW BUSINESS Presentation of the Annual Audit Report by Virchow, Krause & Company, LLP Mr. Donald Vilione, CPA and Ms. Irina Myaskovsky, CPA were present and distributed an Executive Summary of 2007 Audit of City’s Financial Statements. Mr. Vilione complimented Ms. Mueller on her preparation for the audit, which went very well. The auditors received full cooperation from the Finance Dept. as well as personnel from other departments. Mr. Vilione noted that the summary was divided into two parts: Communications with Council and Financial Highlights. He reviewed those in greater detail. This year, Ms. Mueller prepared the financial statements for the Sewer Utility. Virchow, Krause prepared the financial statements for the City and Water Utility. This is not uncommon. It is the goal of the Finance Dept. Supervisor to prepare the financial statements for the Water Utility next year and those for the City the following year. Mr. Vilione stated that regulations require that Virchow, Krause solicit the Council’s involvement in the 2008 audit planning process. A letter addressed to the Common Council dated August 26, 2008 was attached to the Executive Summary. He encouraged the Council members to contact him with input. Mayor Johnson thanked Mr. Vilione and Ms. Myaskovsky for attending. OLD BUSINESS Review Request from Muskego Senior Taxi Service for Financial Assistance from the City This item was deferred at the August 12 meeting. Mr. Jim Nichols and Mr. Dan Henry were present on behalf of the Senior Taxi Service. Mr. Nichols presented two-year budget projections to support the request for financial assistance. The request is for $10,000 in 2008 and then $10,000 in 2009. Mr. Henry said the rides have increased every month since they began in April. They need 250 rides per month to break even, which they anticipate reaching in 2010. Ald. Werner stated the program is worthwhile and he supports assistance in 2008. Ald. Schaefer stated she agrees and wants the service to be become self-sufficient. She would like to see the Senior Ad Hoc committee become more active to achieve that. Ald. Schneider stated that Kathy Chiaverotti is on the Muskego Senior Taxi Board, and will promote the service as the Director of the Chamber of Commerce. Ald. Snead noted that $14,000 was put in the 2008 budget for laptop computers, which were not purchased. Ms. Mueller stated there is money in Special Revenue Funds that could be used for financial assistance in 2008. Finance Committee Meeting Page 3 August 26, 2008 Ald. Snead moved to recommend giving $10,000 to the Muskego Senior Taxi Service for the remainder of 2008. If the taxi service would like financial assistance for next year, she would like to see the projections during the City’s budget review process for 2009. Ald. Werner seconded; motion carried. Ald. Schaefer requested that if the taxi service will request assistance for 2009, she would like to see other ideas for additional funding. She supports the assistance to get the program going, but wants to make sure this becomes self sufficient. Review Request to Renew AT & T Centrex Agreement This item was deferred at the August 12 meeting. Mr. Sommers was present. He stated that the contract would be through the State of Wisconsin for a five-year term. An approximate savings of $12,000 per year would be realized, which represents a 25% reduction in what the City is currently paying. Regarding an “out clause,” Mr. Sommers stated the agreement would allow the City to drop its 187 lines to two, which is a minimum line requirement. The City would not be able to transfer the lines themselves. Direct inward dialing to a specific line would require that the line be retained. Mr. Sommers also stated that 59 other local government entities throughout the State have entered into this agreement. Ald. Fiedler asked what the cost would be if the City reduced its lines from 187 to two? Mr. Sommers stated the per line fee is $10.68 per month. Ald. Werner stated he was uncomfortable with a 5-year contract for technology. There is nothing to compare this to. Mr. Sommers stated that new phone systems were looked at three years ago. He obtained 12 different quotes at that time. Purchase of a new phone system involved a capital expenditure up front with the nearest payback at a range of seven to 12 years. Mr. Sommers stated that exceeds the life cycle of the system, and involves the risk of having a new system and maintaining it. The AT & T agreement provides a 25% savings with no risk. The Mayor noted that no other provider has a centrex system. Mr. Sommers stated that the hardware resides at the AT & T facility; the City just leases the equipment that it uses. If power to the building were lost, every phone would still work. Mr. Sommers stated that no funds have been placed in the 2009 budget for the capital purchase of a new phone system. Ald. Snead questioned if other avenues have been researched. Mr. Sommers reiterated that the alternative would be to purchase a system that would reside in house. The cost of those systems since reviewed three years ago has not significantly come down. Ald. Werner would like a commitment that if the City wanted to get out of the agreement with AT & T during the five-year period, the only monthly cost would be for the two lines at $10.68 each. The committee discussed the time frame for this issue. Mr. Sommers stated that the City’s existing agreement expired in July. The current price will double if the City does not enter into a new agreement. Ald. Werner directed Mr. Sommers to come back with comparisons for the committee to review as well as confirmation regarding the cost if the City terminates the five-year agreement. Ald. Schaefer stated she abstained from discussion because AT & T is her employer. NEW BUSINESS (Continued) Review and Recommendation Regarding General Facility Use Agreement with Muskego-Norway School District Mayor Johnson stated the language was the same as in the previous agreement; the School Board has already approved it. Ald. Werner moved to recommend approval. Ald. Snead seconded; motion carried. Finance Committee Meeting Page 4 August 26, 2008 Review and Approval of New Voting System for the Muskego Room Mayor Johnson reviewed the memo provided by Clerk-Treasurer Moyer regarding the purchase of a replacement voting system for the Muskego Room. The cost to replace the existing system, which is not working is $3,500. Ald. Werner moved to approve. Ald. Schaefer seconded. Ald. Pavelko questioned spending $3,500 in light of the upcoming budget restraints. Ald. Schaefer supports because she believes it is more accurate and fair. The Mayor also supports because an electronic system negates the possibility of someone changing his/her vote after seeing how someone else voted. Ald. Pavelko suggested that paper ballots could be used. Motion carried. Review and Recommendation Regarding a Contract with Tyler Technologies, Inc. for 2009 - 2010 Maintenance Services City Assessor Mecha stated she has submitted a two-year agreement for the committee’s review. The per year cost would be $27,000, which represents a 15% reduction. The 2005 - 2008 costs ranged from $28,000 to $31,000 per year. Ms. Mecha stated that she is bringing the two-year agreement forward as that is what the Mayor supports. However, Tyler Technologies has proposed to retain the annual $27,000 cost for four years with a revaluation in 2012 at a cost of $170,000. The cost for the 2008 revaluation was $190,000. She is looking for direction regarding the next revaluation. Ms. Mecha has asked Tyler Technologies for a five-year agreement with the revaluation being done in the fifth year (2013); she has not received a response back. The Clerk prefers that a revaluation not be done in 2012, as that will be the next Presidential election. Since 1992, the practice has been to do a revaluation every three to four years; however the economy was typically active. Ms. Mecha stated that revaluations need to be done to address inequities that exist regardless of the economy. The contract does provide for termination. Mayor Johnson stated that at this point in time, he only believes the City should enter into a contract for two years. Assessor Mecha stated the City must recognize that the costs will most likely increase after the two-year contract expires. Ald. Schaefer did not believe a revaluation should have been done this year, and does not want to enter into an agreement to have one done in four years. The Mayor stated a determination should not be made as to when to do the next revaluation until two years from now. Ald. Werner was not opposed to an agreement for more than the two years because of the cost savings and the fact that the City could terminate the agreement. Mayor Johnson stated the savings are not worth it if a revaluation is done when it does not have to be. Ald. Werner moved to defer until Assessor Mecha receives a response back from Tyler Technologies regarding a five-year agreement. Ald. Snead seconded; motion carried. Review and Recommendation Regarding Eligibility for Exemption from the County Library Tax Levy for 2009 Mayor Johnson explained that the City must pledge to appropriate a certain expenditure in 2009 for the library in order to be exempt from the county library tax. Ald. Werner moved to recommend approval. Ald. Snead seconded; motion carried. Recommendation Regarding Purchase of Mini-Excavator for Public Works/Utilities Finance Committee Meeting Page 5 August 26, 2008 Three quotes were obtained as follows: Fabco (Caterpillar) $54,550.00 Brooks Tractor (John Deere) $61,850.00 Bobcat Plus (Bobcat) $51,551.51 Mayor Johnson stated $50,000 was budgeted for this item. Ald. Werner asked why the excavator was not purchased earlier in the year. Members of the Public Works Committee did not know the reason for the timing. Ald. Werner moved to recommend acceptance of quote in the amount of $51,551.51 from Bobcat Plus. Ald. Schaefer seconded; motion carried. Acceptance of Proposal Submitted by Aquifer Science and Technology for Big Muskego Lake Dam Seepage Study Mayor Johnson stated a similar study was done for Little Muskego Lake. The study is done to see if there is seepage that could cause the dam to fail. Ald. Fiedler stated that the City Engineer has indicated that the study needs to be done. The cost is $2,500. Ald. Snead moved to accept the proposal. Ald. Werner seconded; motion carried. VOUCHER APPROVAL Ald. Snead moved to recommend approval of General Vouchers in the amount of $477,918.82. Ald. Schaefer seconded; motion carried. Ald. Snead moved to recommend approval of Tax Checks in the amount of $136.06. Ald. Schaefer seconded; motion carried. Ald. Snead moved to recommend approval of Utility Vouchers in the amount of $251,935.92. Ald. Schaefer seconded; motion carried. Ald. Snead moved to recommend approval of Wire Transfers in the amount of $6,862,508.63 (Tax Settlements) and $78,060 (Debt Service). Ald. Schaefer seconded; motion carried. FINANCE SUPERVISOR’S REPORT Ms. Mueller noted that the Moody’s rating for the water utility was upgraded from A3 to A2. ADJOURNMENT Ald. Snead moved to adjourn the meeting at 7:35 p.m. Seconded by Ald. Schaefer; motion carried. Jill Blenski, CMC Deputy Clerk