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HomeMy WebLinkAboutExecutive Committee - Minutes - 2/2/20171 Minutes of the Bayfield County Executive Committee Meeting 4:30PM, February 2, 2017 Emergency Operations Center (EOC), Bayfield County Annex Building, Washburn, WI The meeting of the Bayfield County Executive Committee was called to order at 4:32 p.m. by Chairman Brett Rondeau. Present were: Brett Rondeau, Jeff Silbert, William Bussey, Harold Maki, and Fred Strand, Shawn Miller absent. Other present: Mark Abeles-Allison, County Administrator; Dawn Bellile, Deputy County Clerk; Jon Hochkammer, via video-conference, Wisconsin Counties Outreach Manager, Bill Bailey, and Thomas Toepfer. Public Comment: None Approval of Minutes of January 12, 2017: A motion was made by Silbert/Bussey to adopt the minutes of the January 12, 2017 Executive Committee Meeting. The motion carried. Discussion and Possible Action on Budget Amendments for the Offices of: District Attorney, Clerk of Courts, Register of Deeds, Land Records and Courthouse (Maintenance). Abeles-Allison went over the 2016 budget with the Committee explaining that some departments have exceeded in revenues where other departments have gone over their budget. The Courthouse/Maintenance budget does not receive revenue therefore anything over in his budget would be an additional expense. Abeles-Allison is asking that the departments that have gone over their line items or those that have come under be amended in resolution format and brought to the full County Board for approval. A brief discussion took place and, a motion was made by Bussey/Strand to recommend approval by the Bayfield County Board of Supervisors of budget amendments in the offices of District Attorney, Clerk of Courts, Register of Deeds, Land Records and Courthouse/Maintenance. The motion carried. Discussion and Possible Action Regarding PACE Program in Bayfield County, Jon Hochkammer, Wisconsin Counties Outreach Manager. Abeles-Allison introduced Jon Hochkammer to the Committee and gave a brief background that Bayfield County had heard from Hochkammer last fall and their attorney who reported to them on the PACE (Property Assessed Clean Energy) Program. At that time, Bayfield County had a number of questions, and Hochkammer is back this afternoon to explain in further detail the workings of the PACE program. Abeles-Allison turned the meeting over to Hochkammer. Hochkammer stated that initially a minimum of 3 counties were needed to sign on to this program and since he last spoke, 12 counties have joined. He further explained that PACE is an innovative program utilized in communities across the U.S. to drive economic development by authorizing municipalities and counties to work with private sector lenders to provide upfront financing to property owners for qualifying projects. He further explained how this would work. The Commission that oversees this is made up of one representative from each county. This representative would be an elected official. Bayfield County’s Administrator would make this appointment. The Commission has hired a 3rd party to oversee the loans as they do not want any additional burden put on the County’s involved. This person would be paid based on the transaction for the loan agreement. The borrower is responsible for those fees. Discussion took place on the interest rates. It was pointed out that presently, small business loan rates are from 5 to 6½% on loans whereby through this PACE program, they anywhere from to 2 6 to 7%. Our local lending institutions are not part of the program, but if they are interested, they could become one of the lenders. Loan application and turnaround time was discussed as well as the energy audit and that the property owner was responsible for payment of the audit. If the County were interested in joining, the next step would be for the County Board to adopt the Resolution, Ordinance and Joint Powers of Agreement as presented in your packet. Hochkammer stated that if the Committee and/or Board would like to speak with someone from our area, Andy Lesik from Douglas County is someone to contact. In addition, Jason Stringer from WI Counties is the “go to person” for this program. After a lengthy discussion, a motion was made by Bussey/Strand to recommend approval of the Resolution, Ordinance and Joint Powers Agreement to the full County Board. Further Discussion took place it was suggested that both Hochkammer and Jason attend a County Board meeting, possibly in February, to explain everything to the Board. The motion carried. Presentation regarding Chequamegon Bay Renewable Organization. Abeles-Allison introduced Bill Bailey. Bailey is here to give Bayfield County options on solar energy. Bailey thanked the Committee for having him. Bailey explained that he has been in contact with a Bayfield County and the City of Washburn, who have independently expressed interest in exploring options regarding solar phovoltaic (PV) to offset electricity use and reduce their carbon footprint. The County and City both have large electric usage but both are without paying taxes and therefore are unable to utilize current federal tax incentives. Baily further explained that the Department of Energy released a “SunShot Imitative” program that is trying to address concerns that solar PV deployment has been under-utilized in municipalities and low-income areas. This initiative is called “Solar in your Community Challenge (SIYCC). Bailey summarized the process for capturing financing to use toward projects in our area. Bailey has started a business entitled Chequamegon Bay Renewables (CBR), which is a community, based organization advocating for the development of renewable energy. It is hopeful that the organization will include community leaders such as engineers, legal representatives, financial leaders, solar developers, utilities, etc. The more diverse and expertise the team has the better the chances are the funding will be awarded. Baily stated that he is hopeful that one team member would be Bayfield County. The other team players are falling into place; they are talking with a solar developer in Madison and will be speaking with Xcel Energy in the future. Finances are being developed for both investors and ultimate owners of the solar installation. Baily further explained the financing of the projects, stating that renewable energy is a necessary component to the project, which would maximize the return on the investment. This is done by solar developers bringing with them an investor group with a need that would monetize the credits available. If it were the County that invested, the County would own the land where the PV is installed. The solar developer would initially own the solar installation so they can utilize the ITC. Electricity generated from the solar installation would be metered and sold to the County through a negotiated power purchase agreement. After the tax credit is monetized, ownership of the solar installation flips or is sold to the County. Discussion took place on solar panels. Bailey went over charts with the Committee on possible returns, which were based on the investment. The County Board does not have to make a decision right now. The presentation this evening is for informational purposes. Next January is when the Board would need to decide if it would want to get involved. Bailey thanked the Committee for their time and the Committee thanked Bailey for his presentation. 3 CDBG READI Application / Letter of Intent. No action at this time. Chequamegon Humane Association Funding Request. Abeles-Allison explained that the Chequamegon Humane Association is asking for a one-time special donation from Bayfield County in the amount of $2,500.00. Being that this is a special request beyond the budget, action is required. The Committee stated that this entity provides many services to our area that are needed. The funds would be taken from the Dog License Fund. A brief discussion took place and, a motion was made by Strand/Silbert to approve a one-time request in the amount of $2,500.00 to be given to the Chequamegon Humane Association, which would come from the Dog License Fund. The motion carried. Discussion and Possible Action Regarding Capital Project Funding, 2017. Thomas Toepfer, Highway Commissioner, was present and handed documents for the Committee to review regarding the possible expansion of the County Road D project. Abeles- Allison updated the Committee on the Fund Balance and what dollars are in each of the categories and what could be spent. He further reported that we are trying to downsize the Fund Balance per the auditors, but while trying to do so, our revenues are still higher than we expected in departments such as Forestry and Highway. These funds are not going to go down. We have been designating 6 miles of highway roads to be done each year. In 2016, we reconstructed 11 miles of road. While prices are low for road construction and the fact that we have funds, the Abeles-Allison is asking the Committee to consider either adding on more road miles as suggested by Toepfer to complete the Co Rd D project to Camp 8 Road; or better yet, complete the entire project up to US Hwy 63. A lengthy discussion on the possibilities, the funding, and having the equipment right in the area, which makes sense to complete the roadwork. Toepfer explained that his main concern was to be able to complete to Camp Road 8 and anything more than that would be great – this could be completed this year. The Committee reviewed the map and road being considered. After a lengthy discussion, about other roads that may need more attention than this particular area. It was the Committee decision that further discussion on this be done through the Highway Committee, deciding on how far to go with the road construction, either to Camp 8 Road or all the way to US Hwy 63. The Highway Committee will then forward their decision on to the County Board for approval. A motion was made by Strand/Bussey to enter in and out of closed session pursuant to Wisconsin Statutes §19.85(1)(g) to confer with legal counsel for the governmental body who is rendering oral or written advice concerning strategy to be adopted by the body with respect to litigation in which it is or is likely to become involved and to allow Attorney Linda Coleman to remain in closed session. The motion carried. There being no further items to come before the Committee in closed session, a motion was made by Strand/Bussey to move out of executive/closed session. The motion carried. Reports: a. Treasurer/Financial Report for January, 2017. Abeles-Allison went over the January Treasurer’s Report, explaining that the County has invested in CD’s and there have been different transfers between Bremer checking and Bremer money market to get us the best returns. We have had more attention paid to the Northern Lights’ funds. There is more money in here because they are interest-bearing accounts. Discussed Northern Lights Promissory Note; it is hopeful that this will be paid again. Abeles-Allison reported on the year-end Financial 4 Report per department explaining in more detail the expenditures vs. revenues and why we didn’t need to transfer fund balance dollars as additional revenues off set the expenses. Discussion took place on Forestry. There are issues that may come up. This is a transition. Bayfield County has done well the past 2-3 years, but we need to have a strategy for when the market should drop. b. Northern Lights Update. Silbert and Maki updated the Committee. Maki stated that he only received the budget the day of the meeting and the financials were a week prior to that. It was their opinion that they aren’t going to make ends meet without County help. The organization “Carriage Health” that is being paid for their expertise, also lent them considerable money, interest free, to make their loan payment. It was felt that this could be an ulterior motive by Carriage Health. Further discussion by Committee members was that if they can’t make the principal payments on the bonds they hold with Bayfield County, they will be asking their accounting firms what they can do. Northern Lights is trying to come up with a realistic dollar amount to be paid. The next payment is due in June. The County’s refinancing bond issue would go from 4% to 2% on the interest and there is no timeline. Further discussion took place on how much Northern Lights pays in consulting and management fees. The residents of the facility are being taken care in a very good manner. The facility is losing money because of the system that involves Medicaid and Medicare. It was stated that it seems as though the Northern Lights’ Board is trying. It was thought that the County Board may have to talk to the Northern Lights Board at some time about refinancing. We need monthly reports and this situation needs to be watched more carefully. They borrowed the money from Carriage Health without notifying Bayfield County about it. Abeles-Allison is working on another meeting with Northern Lights’ Board before our February County Board meeting date, however, the problem is, they don’t want to discuss anything with us until their accountants come back and say where they stand and what they can afford on an annual basis. A brief discussion took place on the possibility that the County may have to levy the money to make Northern Lights work again. c. Dome Project Update – no update. d. Superior Days Update – no update. There being no further business to come before the Executive Committee, Chairman Rondeau adjourned the meeting at 7:07 p.m. Respectfully submitted, Dawn M. Bellile, Deputy County Clerk dmb