FCM20091208
CITY OF MUSKEGO Approved 1/13/2010
FINANCE COMMITTEE MINUTES Audio Recording Available
Tuesday, December 8, 2009
Muskego City Hall, Aldermen’s Room
Mayor Johnson called the meeting to order at 6:45 p.m. Present: Committee Members
Ald. Fiedler, Werner and Snead, Finance Director Sharon Mueller, and Clerk-Treasurer
Janice Moyer. Ald. Harenda, Borgman, Schneider, Schaumberg were also present.
Those present recited the Pledge of Allegiance. The Clerk stated that the meeting was
noticed in accordance with the open meeting law on December 4.
LICENSE APPROVALS
Ald. Fiedler moved to recommend approval of a regular Operator’s License for
Laura Haugen and Randall McLaughlin subject to the licensing requirements
being completed prior to issuance. Ald. Snead seconded; motion carried.
Ald. Werner moved to approve the renewal of a Dog Fancier Permit for Michael
and Deborah Reher, W187 S10740 Muskego Dam Drive. Ald. Snead seconded;
motion carried.
Ald. Snead moved to approve renewal of the following Taxi Drivers’ Licenses for
the Muskego Senior Taxi Service: Daniel Barry, James Depies, Rebecca
Dublinski, Michael Gorski, Alicia Hasselberger, Nancy Hayes, Diane Johnson,
Nancy Kangas, Jean Marenda, Donna Sherman Ryan and Carol Stillwell. Ald.
Fiedler seconded; motion carried.
NEW BUSINESS
Recommendation Regarding Business Insurance Policies for 2010
Mayor Johnson stated that the City has two options for its business insurance policies:
1. Cities and Villages Insurance Company (CVMIC) or 2. the League of Wisconsin
Municipalities Mutual Insurance (LWMMI). The two companies provide insurance
coverage for most Wisconsin municipalities. The Mayor stated he compared the cost
and coverage of the two companies. He is recommending that the City choose the
LWMMI. In 2010, a cost savings of $4,400 would be realized. The premium for 2011
would not increase. The Mayor noted some of the differences between the two carriers:
LWMMI provides sewer backup coverage when the City is at fault.
LWMMI provides limited pollution coverage.
LWMMI does not have an aggregate; CVMIC has a $13 million aggregate.
LWMMI does not include attorney defense costs as part of the policy limit in the
Public Officials Liability coverage; CVMIC does include these costs.
LWMMI provides limited defense coverage for non-monetary claims while CVMIC
does not provide any.
LWMMI covers the defense cost for breach of contract claims.
LWMMI Employment Practice Liability coverage appears to be broader than the
CVMIC policy and provides coverage to the $13 million limit as compared to a $10
million limit with CVMIC.
Finance Committee Meeting Page 2
December 8, 2009
The Mayor stated that for comparison purposes, he used a $13 million limit to determine
premium costs for the LWMMI coverage. The League has stated that $10 million would
probably be sufficient. If the Council determines that the limit should be less than $13
million, then the premium would be approximately $4,000 less. Mayor Johnson stated
that the other difference between the two carriers is the philosophy regarding dividends.
CVMIC’s dividends are based on length of participation where the League’s are not.
Ald. Werner moved to recommend the League of Wisconsin Municipalities Mutual
Insurance for the City’s business insurance policies for 2010 with a $10 million
limit. Ald. Snead seconded. Ald. Fiedler believes a $6 million limit may be sufficient
based on the City’s claim history, and would result in a further premium reduction. Ald.
Werner withdrew his motion. Ald. Snead agreed to withdraw her second. Ald.
Fiedler moved to recommend the League policy with the Mayor to discuss with
the agent whether the $6M or $10M limit is better for the City. The Mayor stated he
would also consult the City Attorney. Ald. Werner seconded; motion carried.
Recommendation Regarding Dental Insurance for 2010
Finance Director Mueller stated that other options were explored for dental insurance
because First Commonwealth withdrew from the dental market and Anthem’s renewal
rates increased by 9%. The City obtained quotes from Delta Dental and Guardian.
Eligible employees were asked to provide their preference. The majority chose Delta
Dental. The employees pay 100% of the cost. Ald. Fiedler moved to recommend
approval of a contract with Delta Dental for 2010. Ald. Werner seconded; motion
carried.
Discuss Bond Requirement for Tess Corners Volunteer Fire Department Pumper
Purchase
Mayor Johnson reported that the cost of the bond is higher than originally anticipated.
The bond will cost $2,886. At the last meeting, the Committee recommended the bond
at a cost not to exceed $2,000. Ald. Fiedler moved to approve the bond at a cost
not to exceed $3,000. Ald. Snead seconded; motion carried.
Recommendation Regarding Proposed Amendments to Chapter 30-Building Code
The Mayor explained the proposed changes. The reference to “Dwelling Code” in
Section 30.03 is changed to “Building Code.” Pools and spas are added under Permits
Required (Section 30.07). Permits for these were always required, but not defined in
that section. The last proposed amendment would give the Building Inspector some
discretion when assessing permit fees in the case where a new application is submitted
for a permit that had been issued. Ald. Werner moved to recommend approval. Ald.
Snead seconded.
Ald. Fiedler stated his objection to a homeowner having to pay for a new permit
especially if it is the result of there being an issue with the contractor. The Mayor
responded that an inspection must be conducted to determine the status of the project;
the City needs to recover the costs incurred. Ald. Fiedler disagreed that a status
inspection had to be done and that additional inspections would be needed if a new
permit were issued. The Mayor suggested that the issue be deferred so additional
information could be obtained. Ald. Werner withdrew his motion. Ald. Snead
agreed to withdraw her second.
Finance Committee Meeting Page 3
December 8, 2009
Recommendation Regarding the Issuance of Bonds by the Colorado Health
Facilities Authority on Behalf of American Baptist Homes of the Midwest and
Providing an Effective Date
The Mayor stated the Tudor Oaks facility requested financing in the fall of 2008 for an
expansion project. The project was postponed because of economic conditions. The
facility is now proposing to move forward with the project and is again seeking the
financing. The dollar amount is slightly higher than it was in 2008. The City does not
have any liability regarding the issuance of the bonds. The Internal Revenue Code
requires that the City approve the project. Ald. Fiedler moved to recommend
approval. Ald. Snead seconded; motion carried.
VOUCHER APPROVAL
Ald. Fiedler moved to recommend approval of Utility Vouchers in the amount
$62,636.17. Ald. Snead seconded; motion carried.
Ald. Fiedler moved to recommend approval of General Vouchers in the amount of
$409,084.46. Ald. Snead seconded; motion carried.
ADJOURNMENT
Ald. Snead moved to adjourn the meeting at 7:25 p.m. Seconded by Ald. Fiedler;
motion carried.
Jill Blenski, CMC
Deputy Clerk