HomeMy WebLinkAboutExecutive Committee - Minutes - 1/14/2003Executive Committee Minutes
January 14, 2003, County Board Room
Members Present: Brett Rondeau, Kenneth Jardine, John Blahnik, Dee Kittleson, Harold
Maki, Marco Bichanich
Others Present: Bill Kacvinsky, Verne Gilles, Tom Gordon, Mark Abeles-Allison, Dan
Anderson, Kris Kavajecz, Elizabeth Skulan, Jim Radke, Frank Graves, Alisa Nicholson
Meeting was called to order at 10:00am by Chairman Rondeau.
Motion by Jardine, second by Bichanich to approve the minutes of the December 20,
2002 meeting as presented. Motion Carried
Unfunded Pension Loan Bid Tabulation and Resolution: Bids were received from 3
local financial institutions. Bid details are noted on the attached Bid tabulation form.
Bids were not received from Northern State Bank or the State Bank of Drummond.
Mark Abeles-Allison reviewed the discussion that was held at the December 20, 2002
Executive Committee Meeting. At that meeting, approval was given to explore two
options for refinancing the unfunded pension liability: 1) State Trust Fund. With this
option, funds would not be available until after January 31, which would mean the county
would need to utilize county funds on a temporary basis to make the payment in time to
avoid paying $123,000 in interest from 2002. The interest rate through the State Trust
Fund is a fixed 6%, with no penalty for early pay-off. 2) Bid out to local financial
institutions.
A summary of the bids received is as follows:
Security State Bank: 6.5575% interest weighted average. Total interest payment noted
on the application is 59,018. It was the perception of the committee that this interest
figure is an error. Abeles-Allison will verify figures with the bank.
Associated Bank: Provided information for only 3 years (4.06% interest) with a
stipulation that the rate be renegotiated after 3 years. Recommendation from Mark AA
that the bid be rejected based on the fact that it did not meet the bid request
specifications.
Bremer Bank: 6.35% interest. Total interest payment $289,635.52
Committee members questioned why this was not bid as a municipal loan. Abeles-
Allison explained that the difference is that by statute, the refinance of a pension loan
must be taxable, and a municipal loan is not taxable.
Abeles-Allison explained that initially, the committee talked about financing 1 million
dollars and paying off approximately $544,000. Steve Apfelbacher of Ehlers &
Associates recommends that the County consider adding the budgeted 2003 payment to
the pay-off, reducing the amount of the loan to $900,000. By doing this, the county may
avoid additional costs for legal opinions.
Based on the bids received, Abeles-Allison recommended submitting an application to
the State Trust Fund at a 6% interest rate.
Motion by Jardine, Second by Bichanich to make an application to the State Trust Fund
for the refinance of the Unfunded Pension Liability in the amt of $900,000.
Bayfield County Economic Development Corporation Performance Standards:
Abeles-Allison provided a brief review of the documents provided with the meeting
packet. A question was posed by Maki asking what has been done to support the creation
of new locations for potential businesses in the county. A brief discussion was held
regarding designated industrial areas that have been established in the county. Comments
were received from Jim Radke re business development areas designated within several
towns in the County. Comment from Jardine that the logo "Work Where You Play"
deters larger businesses and promotes only tourism related businesses. Comment from
Blahnik that duplication of effort should not be rewarded. Credit must be given where
credit is due. Blahnik stated that he would not support any additional dollars to BCEDC.
Clarification from Abeles-Allison that we are not here to allocate more dollars to
BCEDC, but to establish criteria for the payment of monies that have already been
designated.
Blahnik left the meeting at this time to participate in a county related phone conference.
Brief comment was received from Frank Graves that the role of BCEDC is to find
businesses to fill the industrial parks in the county, but not necessarily to create the
industrial parks themselves (IE: Infrastructure, Zoning, etc.). Comment from Kittleson
that she is in favor of supporting the performance standards that were presented in the
packet. Comment from Maki that a small statement should be included in the Visitor
Guide that promotes businesses to explore Bayfield County as a location for their
operations.
Jim Radke introduced Alisa Nicholson as his part-time assistant.
Motion by Kittleson, Second by Maki to accept the performance standards as presented.
Motion Carried.
Radke, Graves, Nicholson left the meeting at this time.
Human Services Risk Reserve: Elizabeth Skulan reviewed her request to increase the
Human Services Risk Reserve Fund. She stated that the reserve fund is currently at
$200,000 and that she would like the fund to be increased by $75,000 to $275,000. The
reason for the request is that the cost of mental health placements and foster care have
increased dramatically. She further explained that in 2002, $285,000 in additional grants
were obtained through the Human Services Department. Skulan recommended that if the
committee approves increasing the fund, that the dollars come from Excess Revenues at
the end of the year. Clarification was made by Abeles-Allison that this is not a request to
expend funds, but it is a request to increase a reserve fund. The funds are located in an
interest bearing account.
Motion by Jardine, Second by Bichanch to increase the Human Service Risk Reserve
Fund by $75,000. Motion Carried.
Anderson and Skulan left the meeting at this time.
Other Actions & Reports:
Superior Days: Rooms need to be reserved. Please let Mark or Tom know if you plan to
attend. A request has been made that Bayfield County Staff the Hospitality Room. The
Committee Agreed that this would not be any problem.
Mark explained how Superior Days issues are determined and how they are prioritized. A
copy of the issues was provided with the agenda.
Jail Project: At the Sheriff's Committee meeting on January 13, 2003, the committee
approved plans for a reduced size, 72 bed facility. It is believed that this revised plan will
come in within the guidelines as established by the board for finances. Question from
Maki if there is additional cost for this redesign. At this point it is unclear if any
additional cost will be incurred. The county's position is that the design portion should
be provided at no additional cost. Some additional cost may be incurred for the printing
of the revised plans. Comment from Gordon that the basement project should be
evaluated after period 13 figures are finalized and the committee can determine how
much excess revenue will be available after all expenses are paid. Bids for revised jail
project to be opened in March.
Direct Deposit has been implemented thanks to the hard work of the County Clerk's
Office. The process worked very smoothly.
February Meeting Date for Executive Committee. Discussion of when to have the
meeting in February. Comment that the meetings should be held later in the day.
Motion by Jardine, Second by Maki to enter Executive Session for the purpose of
conducting a performance evaluation for the County Administrator. Roll Call Vote was
Taken: Blahnik-excused. Jardine-Yes, Maki-Yes, Bichanich-Yes, Kittleson-Yes, Rondeau-
yes. Motion Carried.
At this point Abeles-Allison and Kavajecz left the room so that the committee members,
along with Gilles and Kacvinsky could discuss feedback received from County Board
Members. They were invited to return to the meeting following the discussion.
Motion by Maki, Second by Jardine to return to Regular Session. Roll Call Vote:
Blahnik-Excused, Jardine-Yes, Bichanich-Yes, Maki-Yes, Kittleson-Yes, Rondeau-Yes,
Motion Carried.
Motion by Maki, Second by Jardine to extend Abeles-Allison’s contract an additional 2
years from the end date of the current contract: November 15, 2003 through November
15, 2005. Motion Carried
Comment from Kittleson that she appreciated the format of the budget and that the format
made the budget process much easier to understand.
Abeles-Allison thanked the Committee for the opportunity work with them for another
two years. He stated that he welcomes constructive input from the Supervisors as well as
the Department Heads.
Motion by Jardine, Second by Maki to adjourn. Motion Carried.
Meeting Adjourned at 12:30pm