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FCM20090714 CITY OF MUSKEGO Approved 7/28/2009 FINANCE COMMITTEE MINUTES Audio Recording Available Tuesday, July 14, 2009 Muskego City Hall, Aldermen’s Room Mayor Johnson called the meeting to order at 5:45 p.m. Present: Committee Members Ald. Fiedler, Werner and Snead. Also in attendance: Ald. Harenda, Borgman, Schneider and Schaumberg, Police Chief Geiszler, Finance Director Mueller, and Deputy Clerk Blenski. Those present recited the Pledge of Allegiance. The Clerk stated that the meeting was noticed in accordance with the open meeting law on July 10, 2009. APPROVAL OF MINUTES Ald. Snead moved for approval of the June 23, 2009 minutes. Ald. Fiedler seconded; motion carried. LICENSE APPROVALS Ald. Werner moved to recommend approval of a regular Operator’s License for Cheri Andrews, Richard Andrews, Margo Bennett, Loretta Cuellar-Brandenburg, Dolores Dombrowski, Cynthia Ermis, Sharon Faherty, Clark Fischer, Matthew Fischer, Lisa Fox, Moe Frioui, Beth Heinrich, Michael Hilt, David Jarozewski, Mattew Jensen, Terri Kadow, Kathleen Karcher, Rachael Keller, Nancy Konkel, John Kling, Kortni Librizzi, Joshua Mayer, Saranne Meldonian, Jodi Miller, Stephany Oakley, Andrea Olson, Jared Schilling, Stephanie Schuler, Nicole Stritesky, Brittany Sutton, Krysta Van Scoy, Ramakrishna Vootkur and Ann Zimmer subject to the licensing requirements being completed prior to issuance. Ald. Snead seconded; motion carried. The Committee reviewed an application submitted by Steve Kendziora for an Operator’s License. The Mayor noted that Mr. Kendziora applied for a license in November of 2008. He withdrew that application following discussion with the Committee. Chief Geiszler was present and stated that based on the applicant’s extensive record, he does not believe granting him an Operator’s License is in the best interest of the City. Ald. Fiedler moved to recommend approval of an Operator’s License. Ald. Werner seconded. Ald. Werner stated he still has concerns regarding this applicant and questions why he did not appear before the Committee as requested. He does not believe eight months since the initial application was withdrawn is an adequate amount of time. Ald. Snead and Ald. Fiedler agreed. Ald. Fiedler would like to see guidelines established to address similar situations in the future. Ald. Werner stated he believes each situation needs to be reviewed on a case-by-case basis. The consensus of the Committee members was that they would consider reviewing an application for an Operator’s License submitted by this individual one year from now provided there were no new violations in that time period. Motion to approve the license failed unanimously. (For the record, Mr. Kendziora did arrive at this point in the meeting.) Temporary License to Sell Fermented Malt Beverages and Class C Dance (Muskego Community Festival) Mr. Bob Bankenbusch was present on behalf of the Muskego Community Festival Committee. The Committee has submitted an application for a Temporary License to Sell Fermented Malt Beverages and a Class C Dance License for August 28, 29 and 30, Finance Committee Meeting Page 2 July 14, 2009 2009. The Committee has also requested that any associated fees be waived. Mr. Bankenbusch stated that last year’s event ran very smoothly, with only a few issues. Additional security will be added for this year’s festival. A new security system was implemented and works well. Ald. Fiedler moved to recommend approval of a Temporary License to Sell Fermented Malt Beverages, Class C Dance License and to waive the respective fees for the Muskego Community Festival Committee for August 28 (5:00 p.m. to 11:30 p.m.), August 29 (Noon to 11:30 p.m.) and August 30 (11:00 a.m. to 9:00 p.m.). Ald. Snead seconded; motion carried. Temporary License to Sell Fermented Malt Beverages and Wine (Muskego Senior Taxi) Ald. Schneider was present on behalf of the application submitted by the Muskego Senior Taxi for a fundraiser to be held on July 31, 2009. The event will be held at Muskego Regency, W181 S8540 Lodge Blvd. Ald. Schneider said the event is a Rib Fest and would be conducted the same as last year. Ald. Fiedler moved to recommend approval. Ald. Snead seconded; motion carried. PRESENTATION OF ANNUAL AUDIT REPORT Mr. Donald Vilione and Ms. Irina Myaskovsky of Baker, Tilly, Virchow, Krause were present and distributed an Executive Summary of 2008 Audit of City’s Financial Statements (attached). Mr. Vilione stated the audit team received the full cooperation of City personnel. He briefly described the audit process; he complimented the Finance Director and her staff for the condition of the City’s records and their preparation for the audit. The City’s Finance Director did prepare the 2008 financial statements for the Water and Sewer Utilities. The goal is that she will prepare the City’s financial statements in the future. Mr. Vilione stated that the City’s financial condition improved in 2008 by approximately $3 million. Approximately $4 million was added to Capital Assets and $6 million was added to Debt due primarily to the TIF project on Moorland Road. Mr. Vilione stated that regulations require that the firm solicit the Council’s involvement in the 2009 audit planning process. A letter dated July 13, 2009 has been addressed to the Common Council; he encouraged the Council members contact him with input. Mayor Johnson thanked Mr. Vilione and Ms. Myaskovsky for attending. NEW BUSINESS Review and Recommendation Regarding UBS Financial Services, Inc. Corporate Resolution Mayor Johnson stated the City and Tess Corners Volunteer Fire Dept. intend to set up an account with UBS Financial Services to administer the funds in the Wisconsin Length of Service Award Program. UBS requires that the City adopt a Corporate Resolution to authorize the representatives that may transact business regarding the service award program. The Mayor stated the resolution authorizes the City’s Finance Director and Fire Dept. President. The Mayor stated the program would begin in January of 2010. Ald. Fiedler moved to recommend approval. Ald. Snead seconded; motion carried. Review and Recommendation Regarding Claim - Lisowski Mayor Johnson stated the claim is related to a sewer backup. The City does not carry no-fault sewer backup insurance. The Public Utilities Superintendent has confirmed Finance Committee Meeting Page 3 July 14, 2009 that a regular maintenance program is in effect. Ald. Fiedler moved to recommend that the claim be denied. Ald. Werner seconded; motion carried. Review and Recommendation Regarding the Janesville Road Grant & Loan Programs for the City of Muskego The Mayor stated that the Community Development Authority (CDA) has been working to create loan/grant programs. Staff would administer the grant program. SEWRPC would administer the loan program similar to the existing Revolving Loan Fund. Ald. Werner moved to recommend approval. Ald. Snead seconded; motion carried. Review and Recommendation Regarding the Release and Settlement Agreement - Time Warner Entertainment Company, L.P. Mayor Johnson stated Muskego is a participating member of the Regional Telecommunications Commission (RTC). There was a dispute between Time Warner and municipalities who are RTC members regarding franchise fees. A settlement agreement has now been reached. The Mayor is requesting that the Finance Committee recommend approval. The majority of affected communities have already approved the agreement. Ald. Fiedler moved to recommend approval of the Release and Settlement Agreement. Ald. Werner seconded; motion carried. Review and Recommendation Regarding Reduction in Letter of Credit - Big Muskego Estates The Mayor stated that $10,000 remains in the Letter of Credit. The City Engineer has recommended full release of the Letter of Credit. Ald. Snead moved to recommend approval of a reduction in the Letter of Credit for Big Muskego Estates in the amount of $10,000. Ald. Fiedler seconded; motion carried. Review and Recommendation Regarding Future Parkland Landfill Mayor Johnson stated that the owners of the landfill, Briggs & Stratton, are interested in selling the property to Veolia ES Emerald Park Landfill, LLC. The City Attorney drafted the Council resolution that states the City does not object to the proposed transfer. Ald. Werner moved to recommend approval. Ald. Snead seconded; motion carried. Review and Recommendation Regarding Amendment to Chapter 3 of the Municipal Code (Room Tax) The Mayor stated the Chamber of Commerce has recommended the proposed ordinance, which would establish a room tax. He stated an ordinance should be in place in the event a hotel or motel intends to locate in Muskego. Ald. Fiedler moved to recommend approval. Ald. Snead seconded. Ald. Werner would like to see language that allows law enforcement to review the registered guests. Ald. Fiedler does not like the idea of creating this tax. Mayor Johnson responded that state law governs how the money is spent; 30% is apportioned to the City’s General Fund and 70% has to be spent on tourism promotion and development. The motion to recommend approval was withdrawn with the second agreeing. Finance Committee Meeting Page 4 July 14, 2009 Review and Recommendation Regarding Revolving Loan Fund Application - DK Motor Parts, Inc. The Mayor stated that the CDA recommended approval of a Revolving Loan Fund for DK Motor Parts, Inc. to open a new NAPA Store in the Piggly Wiggly area. The business proposes to bring four new fulltime jobs to the community. The RLF amount will be $80,000. Ald. Werner moved to recommend approval. Ald. Fiedler seconded; motion carried. Ald. Werner, as a member of the CDA, stated his support for this loan because it will bring a new business to the City. VOUCHER APPROVAL Ald. Fiedler moved to recommend approval of Utility Vouchers in the amount of $304,504.78. Ald. Snead seconded; motion carried. Ald. Fiedler moved to recommend approval of Tax Checks in the amount of $58.73. Ald. Snead seconded; motion carried. Ald. Fiedler moved to recommend approval of General Vouchers in the amount of $3,075,712.04. Ald. Snead seconded; motion carried. ADJOURNMENT Ald. Snead moved to adjourn the meeting at 6:40 p.m. Seconded by Ald. Fiedler; motion carried. Jill Blenski, CMC Deputy Clerk