MINUTES
FINANCE COMMITTEE MEETING
Tuesday,
July 25, 2006
City
Hall, Room 604
6:30 P.M.
MEMBERS PRESENT:
John VanderLeest, Tom Weber, Tony Theisen, and Steven Deneys
MEMBERS EXCUSED:
None
OTHERS PRESENT:
Dawn Foeller, Chad Weininger, Chief VanSchyndle, Dave Nennig, Chris
Pirlot, Linda Dupuis, Ald. Nicholson, Recording Secretary Ginny Mamrosh, and
others
1. Roll
Call.
Chairperson VanderLeest called the
meeting to order. Roll call was taken,
and all were present.
2. Approval
of the Agenda.
Chairman VanderLeest said a request
had been made to move Item #12.3 up to follow Item #3.
A motion was made by Ald. Weber and
seconded by Ald. Deneys to approve the agenda as revised. Motion carried.
3. Approval
of the minutes of the Finance Committee meeting of June 13, 2006.
A motion was made by Ald. Theisen
and seconded by Ald. Deneys to approve the minutes of the Finance Committee
meeting of June 13, 2006. Motion
carried.
Item #12 was taken next.
4. Presentation of the 2005 Manaqement Letter by
Schenck Business Solutions.
Comptroller
Dawn Foeller referred to the Management Letter included in the packets and
noted the actual Financial Report had been distributed at an earlier time. She
introduced Tom Karman of Schenck Business Solutions, who explained that the
responsibility of his firm is to express an opinion on the City’s financial
statements. Mr. Karman said the audit
was conducted with generally accepted auditing standards and that Schenck did
once again issue a clean opinion on the financial statements. For the
Management Letter document, fund balances from Dec. 31, 2005 were compared to
fund balances of Dec. 31, 2004, and Mr. Karman said the General Fund, which is
the general operating fund of the City, was $14.4 Million at the end of 2005 as
compared to $12.3 in the prior year. This increase was due primarily to
industrial park sales where revenues came in over budget.
Mr.
Karman said the City’s comprehensive annual financial report includes
supplementary statistical demographic information and explained that starting
for the year ending 2006, information will change to reflect new standards set
by the Governmental Accounting Standards Board (GASB). Another change will require
governments to have an actuarial study of retirement benefits as to their
potential liabilities and present these liabilities as expenses on financial
statements as they are incurred, rather than on a pay-as-you-go basis.
Liabilities occurring on an annual basis should be funded on an annual basis.
Mr.
Karman said their audit includes a review of practices and procedures used in
different departments and that bus advertising at Transit was examined last
year when a decrease in advertising dollars was noted. He said this revenue is
very important because it does not decrease Federal or State funding, but does
decrease the local share, directly affecting the tax levy. Schenck had
suggested improvements last year, such as ensuring that advertising rates were
established by the Commission and that there were contracts in place for all
advertisements displayed on the buses. For this year’s audit, they selected a
sample of contracts for review to see if companies were being billed for the
advertising, if it was in accordance with the contracts, and if the advertising
remained on the buses for the proper term of the contract, along with checking
to see that funds were collected for that advertising. Of the five or six
contracts selected, two were not available for review, so it was listed in the
Management Letter as an exception. The
audit could not determine if the outdated contracts resulted in revenue
remaining uncollected because the terms of the contracts were not known.
Transit
Director Dave Nennig said specific improvements have been made to improve
department procedures and that additional advertisers have been secured, some
quite major. One of the contracts in question dated back to 2000 and they were
unable to locate it immediately. He is working on updating that contract at
this time, and when finalized, it is expected to be for five years. He
acknowledged there is still work to be done, one of the issues being a major
advertiser whose advertising has been on the buses for a number of years. The
old contract was dated 2000 and continued under the same terms until cancelled
by either party. It was still a binding contract, but very outdated. He said
internal procedures have been implemented to help correct this situation and
these new procedures are being followed.
Ald.
VanderLeest asked for an update on where we are currently as to revenue, since
it was down from previous years about a year ago. He said this issue must be
resolved because of the impact on the local levy.
Mr.
Karman said a draft of the Management Letter is submitted to Finance; they then
respond to the issues. Ms. Foeller said she had requested a response from Mr.
Nennig, as well as made a follow-up call, but received no response at all, even
though the Management Report was available as early as April. Requests for
copies of the two contracts in question also were not met. Mr. Nennig said
there was a response in their own department audit, and that he would respond
to such requests in the future, but was unable to do so last week.
Ald.
Weber said a written response to the Committee would be appropriate. He made a
motion to seek 1) A review of the policy for billing and collecting advertising
fees for bus advertising; 2) Management response to Schenck’s analysis by the
Transit Director; 3) Detailed report of all revenues from advertising on buses
for 2006; and 4) Direct the Transit Director to forward the two contracts that
were not available (Oneida and Watering Hole) at the time of the audit by
Schenck to the Finance Dept. who in turn will forward them to Schenck to complete
their audit tests. Ald. VanderLeest
said the Committee will be meeting in one month and asked that Ms. Foeller
receive that information as soon as possible, but said that the request is from
the Committee. The motion was seconded by Ald. Deneys, and carried.
A
motion was made by Ald. Weber and seconded by Ald. Theisen to receive and place
on file the remainder of the 2005 Management Letter as presented by Schenck
Business Solutions. The motion carried.
5. Request by the Police Department to transfer
$27,000 from Salaries to Building Repairs to cover the cost of repairs to the
main HVAC cooling system.
Chief VanSchyndle said this
request goes along with Item 6a. A
problem has existed with the air conditioning coil for the last several years,
and must be repaired. It was not
budgeted, and he asked to transfer $27,000 to cover this expense. Bids had gone out and the lowest bid came
back at $26,946 (6a).
Purchasing Agent Linda
Dupuis said she had received a call that day from the winning vendor. This vendor said the company is shutting
down its Green Bay office and will not honor the quote. She is taking steps to force them to do so,
since only the Green Bay office is being closed, not all of their offices. She said it may be wise to approve the amount
of the higher quote, just in case it becomes necessary to go with that,
although she will go out again for bids.
The amount that would be transferred would be only the amount needed. The lead time on this part is 13 weeks.
A motion was made by Ald.
Weber and seconded by Ald. Theisen to approve the request by the Police Dept.
to transfer the amended amount of $38,200 from Salaries to Building Repairs to
cover the cost of repairs to the main HVAC cooling system. The motion carried.
6. Report of
the Purchasing Agent:
a) Repair to HVAC system at Police Dept. from Emco Services Midwest for $26,946.
A motion was made by Ald. Theisen,
seconded by Ald. Deneys to allow the Purchasing Agent to determine the best
purchase for the City for the HVAC system.
The motion carried.
b) One cargo van for Parks Dept.
from Ewald Automotive Group for $14,206.
A motion was made by Ald. Theisen, seconded by Ald.
Weber and carried to approve b) One cargo van for Parks Dept. from Ewald
Automotive Group for $14,206.
c) Computers (28) for Police Dept. from Insight Public Sector for $19,778.
Ms. Dupuis said this State contract was better than the
national WSCA contract.
A motion was made by Ald. Theisen, seconded by Ald.
Weber and carried to approve c) Computers (28) for Police Dept. from Insight
PublicSector for $19,778.
d) Consent Item: Automotive Filters, four year agreement for estimated annual cost of $15,648 to Peterbilt and $2,634 to NAPA Auto Parts.
Ms. Dupuis said this was competitively bid, and a
large number of vendors responded. The
vendor who previously had the business retained it.
A motion was made by Ald. Deneys, seconded by Ald.
Weber and carried to approve d) Consent Item:
Automotive Filters, four year agreement for estimated annual cost of
$15,648 to Peterbilt and $2,634 to NPA Auto Parts.
e) Sale of surplus property at Howard & Christiana Streets, SP01-05 to Mr. and Mrs. L. VanHorn for $1,025.
A motion was made by Ald. Weber, seconded by Ald. Deneys and carried to suspend the rules to allow interested parties to speak. Mr. Leslie VanHorn, 832 Kellogg St., said he and his wife had just purchased the home at 856 Howard Street, adjacent to abandoned railroad tracks. They improved the Howard Street property by tearing down and rebuilding the garage. The area around the tracks is in a state of disrepair, and the property itself is encumbered with easement and use restrictions, rendering it unbuildable. Mr. VanHorn said it would be a side yard to the existing property. Ms. Dupuis said the Council had previously approved selling this property to the landowner for the price of $1,025, but that sale was never executed, and the property was sold to Mr. VanHorn.
A motion was made by Ald. Theisen, seconded by Ald. Deneys and carried to return to the regular order of business.
A motion was made by Ald. Theisen, seconded by Ald. Weber and carried to approve e) Sale of surplus property at Howard & Christiana Streets, SP01-05 to Mr. and Mrs. L. Van Horn for $1,025.
f) Sale of one surplus York chiller unit from the former Younkers building to Utica Energy for $35,000.
Ms. Dupuis said DPW had researched potential buyers
and this equipment was advertised on the web and in the newspaper. In addition, a number of companies that
could deal with this equipment were approached, but there was not much interest. Funds from the sale would go into the
Younkers 478 Fund.
A motion was made by Ald. Weber, seconded by Ald.
Deneys and carried to approve f) Sale of one surplus York chiller unit from the
former Younkers building to Utica Energy for $35,000.
g) Sale of surplus Lambeau Field “Circle of Honor” panels.
Ald. VanderLeest left to attend another meeting, and Vice-Chairman Theisen took over chairing.
Ms. Dupuis said the City owns the original “Circle of Honor” from the old Lambeau Field. These large panels showing the names of Bart Starr, Vince Lombardi, etc., are made of heavy green corrugated metal with yellow numbers and letters. Damage was done to some of the panels when they were removed during the remodeling process, although some remain intact. They were offered for sale in a block ad through the local newspaper, it was put on the City web, and interviews with local media were held. These panels were offered publicly, and there was only one offer, for $5,015. The panels are for sale, as-is, where-is. She distributed photos and then recommended that the offer be accepted. Scrap value, at about $145 per gross ton, would bring in much less than this amount.
A motion was made by Ald. Weber, seconded by Ald. Deneys and carried to suspend the rules to let interested parties speak.
Lisa Conard of 3019 White Sands Terrace said she is very interested in obtaining these panels. She doesn’t need all 18, but will purchase them all since they are offered together. She said she thought her bid was fair and asked that they accept it.
A motion was made by Ald. Weber, seconded by Ald. Deneys and carried to return to the regular order of business.
A motion was made by Ald. Weber, seconded by Ald. Deneys and carried to approve g) Sale of surplus Lambeau Field “Circle of Honor” panels.
7. Request by the City Attorney to submit the Quarterly Report of the Claims Committee.
City Attorney Jerry Hanson said there was one
substantial claim for a trip and fall on a sidewalk, the City being at fault
because it had heaved, resulting in a significant gap. A full and final release was obtained. Other claims involving accidents with police
vehicles were discussed, along with the City’s policy on lights and sirens.
A motion was made by Ald. Weber, seconded by Ald.
Deneys and carried to receive and place on file the Quarterly Report of the
Claims Committee.
8. Request by
the City Attorney for a transfer of funds within the Law Dept. budget.
Mr. Hanson said contractual services have been hired
to cover grievances and collective bargaining, and this transfer is for that
purpose.
A motion was made by Ald. Weber, seconded by Ald.
Deneys and carried to approve the request by the City Attorney for a transfer
of funds within the Law Dept. budget.
9.
Request by the Public Works Director of Traffic, Operations and Parking
to transfer $450,000 from the Parking Division (202-50-505-000-59940) to
Parking Capital Projects (430-50-500-000-49220) for the repair of parking ramps
and surface parking lots.
Ms. Foeller said sale of a parcel of parking lot last
year netted about $450,000, resulting in the large balance in the Parking
Division Operating Fund. These funds
can be used to directly help capital projects for the Parking Utility if
transferred into the Parking Capital Projects account. Director of Traffic, Operations and Parking
Chris Pirlot, said about $500,000 per year is spent on concrete restoration and
electrical repairs on the two old parking ramps to keep them operable and asked
that $450,000 be transferred into the capital account to be used for those
repairs.
A motion was made by Ald. Deneys, seconded by Ald.
Weber and carried to approve the request by the Public Works Director of
Traffic, Operations and Parking to transfer $450,000 from the Parking Division
to Parking Capital Projects for the repair of parking ramps and surface parking
lots.
10. Request by the Public Works Director of Traffic, Operations and Parking to fund the replacement of windows in the skywalk over Main Street.
Mr. Pirlot said the Parking Utility agreed to maintain
this skywalk when it was built in 1982.
$17,000 was spent to replace some of those thermo pane windows in 2000,
and the rest are in need of replacement.
They are unsightly, and there are air leaks. Funds had been earmarked for pass cards but that project ended up
coming in much over projections, so he is asking to change the priorities and
use the $16,000 that had been put aside for pass cards to be used on the window
replacements. He said this skywalk is
used daily, especially by Humana, and that company is moving more people to the
Regency. Some of the costs come from
rental of a crane to do the replacements.
Ms. Foeller said this first step is to see if the priorities can be
changed. The project would be bid out
and is not an emergency, so if the bids are high, the replacement could be
delayed. The Committee would see the
request again when bids are obtained.
A motion was made by Ald. Weber, seconded by Ald.
Deneys and carried to approve the request by the Public
Works Director of Traffic, Operations and Parking to fund the replacement of
windows in the skywalk over Main Street.
11. Report of Overtime.
Ms. Foeller said the 2nd quarter of 2006 shows that year-to-date we are tracking on target, although refinements must still be made to place the right expenses under the right months. She said she strongly believes that all departments will come in under budget, and Police and Fire are doing well, although the Police contract is still outstanding.
A motion was made by Ald. Weber, seconded by Ald. Deneys and carried to receive and place on file the report of overtime.
12. Report of
the Finance Director:
1.
2006 Budget Status Report for June.
2.
Update on 2007 Budget calendar.
3.
Report on expenditures associated with the Younkers/Boston Store lawsuit
as requested by Ald. Nicholson.
1. 2006 Budget Status Report for June.
Ms. Foeller said we are doing favorable and various adjustments that must still be done have been documented. The budget, as far as salaries goes, reflects a higher amount than it should, and will be adjusted. She said we are running on track, with revenue on track as well. The overtime budget allocations will be watched, as overtime expenditures typically show up later in the year when leaves are collected, etc. She said interest income will come in over budget, with better interest rates in effect on investments, but new housing permits will probably fall short because of the slump in the housing market. Commercial permits are up, however. Various vacancies also help with the favorable variance on expenditures. She said department heads are definitely watching their budgets.
A motion was made by Ald. Deneys, seconded by Ald. Weber and carried to receive and place on file 1. 2006 Budget Status Report for June.
2. Update on 2007 Budget calendar.
Ms. Foeller distributed a copy of the 2007 Budget calendar; it had been distributed to department heads in May. She said they are working on employee budgets at this time, and with getting reports out through the new payroll system. Ald. Weber asked about an update on the payroll conversion, and she said she could bring an update.
Ald. VanderLeest returned.
Ald. VanderLeest mentioned that Nov. 21 is the week of Thanksgiving, and that is when the Public Hearing is scheduled. Assistant to the Mayor Chad Weininger said they are looking at that date and looking into other possible options, such as having the budget go directly to Council, which Ald. VanderLeest did not agree with. Ms. Foeller said an update will be forthcoming.
A motion was made by Ald. Theisen, seconded by Ald. Weber and carried to receive and place on file 2. Update on 2007 Budget calendar.
Item #12.3 was discussed following Item #3:
3. Report on expenditures associated with the Younkers/Boston Store lawsuit as requested by Ald. Nicholson.
Ms. Foeller referred to information included in the Finance packet, saying the summary showed both expenses incurred and revenues received. The net at this point is a negative fund balance of $70,000, through July 19. She said Item #6f of the Finance Agenda shows that a surplus York chiller from the Younkers building is to be sold and these funds will go toward the deficit. Other property from that building will be sold as well. The City owns the building and everything included in it, after Saks removed any property they wanted. Ms. Dupuis said the chiller is the largest item to be sold. A baler had been sold earlier, and there are sinks and cabinets, along with smaller items waiting to be sold. Some valuable items cannot be removed because of asbestos issues. Ald. Nicholson asked if the agreement in 2003 stated property would be sold to make up the deficit. Ms. Foeller said she believed the City has the authority to sell that property, and this fact was verified later in the meeting by City Attorney Jerry Hanson.
Ald. Nicholson said in 2003 then-Mayor Jadin had said that, at worst, the City would break even, and asked if that is still possible in light of the State Supreme Court sending the case back to the Circuit Courts for clarification of the ruling’s basis, especially considering attorney fees. Ald. Weber said Allison Swanson had headed that case and would be the appropriate person to address that question. Ms. Foeller said she hadn’t asked Ms. Swanson to be present because she anticipated questions only on the financial issues.
Ms. Foeller said the sale of the chiller will bring in $35,000 to recoup some of these expenses, along with funds from sale of the building. Ald. Nicholson said he did not support this issue in 2003, along with Aldermen VanderLeest and Zima, their main concern being that the City could be liable if the whole deal fell through. He said he wanted an update because he had requested one a year ago and hadn’t heard anything. This should be an informative issue at present, with the Aldermen and Mayor being informed and updated on the proceedings of this lawsuit.
Ald. Weber said this matter could be held for comment from Ms. Swanson, or a communication could be directed to the committee to have her involved, also possibly the Law Dept. Ald. Nicholson said when he had spoken to her the previous day she had asked him to table it for a month or two, when she would have a report, but he refused. He said he wants the updated information at this time, and had asked her to present it at this meeting. She replied that she would, and he assumed she would be present to explain the issue.
Chairman VanderLeest said the proper motion would be to hold this item until Ms. Swanson could appear before the Committee and explain the situation, but Ald. Nicholson asked that she appear at the Council meeting with this information. Ald. Theisen said his request was for the expenditures associated with Younkers/Boston Store lawsuit, and we do have that financial data, but may need to have an attorney present to address the legal issues.
A motion was made by Ald. Theisen that a brief history of the Younkers/Boston Store lawsuit issue, followed by an update on the current legal and financial status, be presented at the next City Council meeting by Economic Development/Law. It was seconded by Ald. Weber. Ald. Theisen asked that this be a hard copy of the summary of the important information that Council members can take with them. A vote was taken, and the motion carried.
A motion to adjourn was made by Ald. Theisen, seconded by Ald. Weber, and carried. The meeting was adjourned at 8:15 p.m.
2006 CONTINGENCY FUND
$180,778.00