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HomeMy WebLinkAboutFinance 09-11-06 t NOTICE OF COMMITTEE MEETING AND AGENDA ST. CROIX COUNTY FINANCE COMMITTEE DATE AND TIME: Monday September 11, 2006 — 8:30 A.M. LOCATION: County Board Room, St. Croix County Government Center, 1101 Carmichael Road Hudson, Wisconsin CALL TO ORDER ROLL CALL ADOPTION OF AGENDA DATE OF NEXT MEETING: APPROVAL OF MINUTES OF PREVIOUS MEETING: August 7, 2006 OLD AND NEW BUSINESS: 1. Review of Vouchers 2. Treasurer Report a. July Bank Reconciliation b. Proposed 2007 Department Budget c. Ag Use Penalty Update d. Delinquent Tax Update 3. County Farm Hunting Management Agreement ** 4. Building Maintenance Report a. Proposed 2007 Department Budget 5. County Clerk Report a. Proposed 2007 Department Budget 6. Clerk of Court Report a. Proposed 2007 Department Budget 7. Circuit Court Report a. Proposed 2007 Department Budget 8. Corporation Counsel a. Proposed 2007 Department Budget 9. Information Technology Report a. Proposed 2007 Department Budget b. Remote Computer Access 10. Transportation Department 2007 Budget Presentation — 10:00 a.m. 11. Finance Director Report a. Finance Reports b. Investment Management Report — Bob Moore c. Proposed 2007 Department Budget d. Moody's Rating Upgrade e. Cell Phones Guidelines 12. Administrative Coordinator Report a. Government Center Property — Status b. Review of County Appraisal of County Property in Baldwin Subject to WisDoT Taking c. Review of Mediation Settlement with DoT regarding County Farm Property Taking d. Proposed 2007 Risk Management Department Budget e. Proposed 2007 Administrative Coordinator Department Budget f. Personnel Matter: Employee request for Leave of Absence ** 13. 2007 Budget Items a. New and Modified Position Requests b. Assessed Valuation and Levy Limit c. Health Insurance Renewal — Status d. Capital Outlay Items 14. Request to Purchase County Owned Property 15. * *Bearcom Performance Bond — 11:00 a.m. ADJOURN (Items may be taken in different order) * *Additions /Change s /Corrections Items for County Board approval must be submitted to the County Clerk's office by Wednesday morning preceding a County Board meeting. 8:34 AM 9/11/2006 OFFICIAL — approved 1010512006 MINUTES OF THE ST. CROIX COUNTY FINANCE COMMITTEE Regular Meeting September 11, 2006 Meeting called to order by Chair Krueger at 8:30 a.m. Present: Clarence Malick, Daryl Standafer, Tom Caflisch and Stan Krueger. Absent and excused: Esther Wentz. Staff present: Administrative Coordinator Chuck Whiting, Finance Director Michelle Pietrick, Corporation Counsel Greg Timmerman and County Clerk Cindy Campbell. Media: Judy Wif£ Motion by Malick, 2„d by Caflisch to adopt the agenda with the removal of 121 and adding item 15 regarding Bearcom Performance Bond. Carried unanimously. Next meeting is September 25, 2006 at 8:00 a.m. which begins the budget review process. Motion by Malick, 2 by Caflisch to approve the August 7, 2006 minutes. Carried unanimously. 1. Review of Vouchers. Malick reported he did not find anything to bring to the committee's attention regarding voucher review. 2. Treasurer's Report. a. July Bank Reconciliation. July reconciliation reports were reviewed. b. Proposed 2007 Department Budget. Slind reported on increases in staff development, service charges and an operating supply increase of $4,000 as the Treasurer's office will be preparing real estate tax statements, and an increase in new equipment of $3,000 for new computers and $20,000 for document imaging software and equipment. Questions regarding optical imaging in other departments. Motion by Malick, 2 nd by Standafer to accept the proposed budget and advance it into the budgeting process. Carried unanimously. C. Ag Use Penalty Update. Slind reported in 2005 total billed out in Ag -use was $226,482.46 and as of September 1, 2006 total billed out is $163,995.43. Balance due from 2005 is $35,749.52 and 2006 balance due is $149,987.43. The revenue is shared 50/50 with half going to the county and half to the municipality. d. Delinquent Tax Update. Slind distributed a Five Year History of Delinquent Taxes report as requested by the Finance Committee. Slind reported delinquencies are up. Standafer requested percentages. 3. County Farm Hunting Management Agreement. Present: Mike Ryder, Dave Larson and Kyle Kulow. A Goose Hunting Agreement was distributed regarding using the excess County Farm land in New Richmond. Kulow explained concerns expressed regarding the excess geese in the New Richmond area. The agreement is for the county -owned land in New Richmond only. St. Croix County Sportsman's Alliance agrees to take applications for all hunting on the New Richmond county -owned land. The agreement spells out the Alliance's responsibility including information to be maintained on the Willow River Rod and Gun Club website. Kulow confirmed hunting is subject to the lessee of the county -owned land if they allow it. Motion by Malick, 2 nd by Caflisch to approve. Timmerman stated he has not reviewed the Hunting Agreement, but rather the first draft titled Goose Hunting Agreement. Carried unanimously. Finance Committee September 11, 2006 Page 2 of 7 4. Building Maintenance Report. a. Proposed 2007 Department Budget. Ralph Robole and David Best were present. Best reported the Jail Water Control Project was recently completed and the upgrade went well. $65,264 was budgeted for the project with $52,486 being spent for a savings of $12,778 on labor and parts. Best reported they are requesting the Chiller replacement project be pushed out to 2008 as they are monitoring other installations throughout the country. Discussion regarding dual fuel capabilities — natural gas and fuel oil. Robole requested more time to evaluate the boilers. They will have a better idea by the first quarter in 2007 on what direction to go. Government Center heating bill is approximately $180,000 a year. The Building Services Department budget is proposed to be $1,900,556 including the reduction $450,000 for the Chillers /Boilers and Health Center position with fringes in the amount of $56,190. The Health Center position is eliminated per the WIPFLI report to match staffing to beds. Robole expressed concerns regarding cutting this Health Center position. Robole highlighted increases in the 2007 proposed budget including increases in electrical. Malick expressed concern in waiting to replace the chillers. Motion by Standafer, 2 by Malick to advance the recommended budget but holding out the possibility of back filling the capital items. Discussion regarding the time frame if replacement of the chiller is necessary and the possibility of borrowing. Carried unanimously. 5. County Clerk Report. a. Proposed 2007 Department Budget. Campbell reported she has completed three of the four budgets she prepares. County Board, Committees and Commissions and County Clerk budget are completed. She is working on the Election budget and will submit a report to the Finance Committee at a later time. Campbell highlighted increases for the audio /video upgrade in the County Board Room of $11,100 and a new workstation for the Chief Deputy position in her office. Campbell stated her time has been spent in election preparation and the new ADA voting equipment which is in place for the September Primary. 6. Clerk of Court Report. a. Proposed 2007 Department Budget. Lori Meyer highlighted revenues for the Clerk of Court are staying about the same. Expenditures highlighted included a new position for collection clerk and benefits totaling $57,759; increase in interpreters; other professional services include $700 for file storage and retrieval; transcription decreased because of digital recording. Meyer stated operations decreased $12,000. Motion by Caflisch, 2nd by Malick to advance the proposed budget forward. Carried unanimously. 7. Circuit Court Report. a. Proposed 2007 Department Budget. Judge Lundell and Judge Vlack were present. Judge Lundell highlighted increases which include the Drug Court Coordinator position and additional time for the Family Court Commissioner to do more hearings. New chairs are included Finance Committee September 11, 2006 Page 2 of 7 4. Building Maintenance Report. a. Proposed 2007 Department Budget. Ralph Robole and David Best were present. Best reported the Jail Water Control Project was recently completed and the upgrade went well. $65,264 was budgeted for the project with $52,486 being spent for a savings of $12,778 on labor and parts. Best reported they are requesting the Chiller replacement project be pushed out to 2008 as they are monitoring other installations throughout the country. Discussion regarding dual fuel capabilities — natural gas and fuel oil. Robole requested more time to evaluate the boilers. They will have a better idea by the first quarter in 2007 on what direction to go. Government Center heating bill is approximately $180,000 a year. The Building Services Department budget is proposed to be $1,900,556 including the reduction $450,000 for the Chillers /Boilers and Health Center position with fringes in the amount of $56,190. The Health Center position is eliminated per the WIPFLI report to match staffing to beds. Robole expressed concerns regarding cutting this Health Center position. Robole highlighted increases in the 2007 proposed budget including increases in electrical. Malick expressed concern in waiting to replace the chillers. Motion by Standafer, 2 by Malick to advance the recommended budget but holding out the possibility of back filling the capital items. Discussion regarding the time frame if replacement of the chiller is necessary and the possibility of borrowing. Carried unanimously. 5. County Clerk Report. a. Proposed 2007 Department Budget. Campbell reported she has completed three of the four budgets she prepares. County Board, Committees and Commissions and County Clerk budget are completed. She is working on the Election budget and will submit a report to the Finance Committee at a later time. Campbell highlighted increases for the audio /video upgrade in the County Board Room of $11,100 and a new workstation for the Chief Deputy position in her office. Campbell stated her time has been spent in election preparation and the new ADA voting equipment which is in place for the September Primary. 6. Clerk of Court Report. a. Proposed 2007 Department Budget. Lori Meyer highlighted revenues for the Clerk of Court are staying about the same. Expenditures highlighted included a new position for collection clerk and benefits totaling $57,759; increase in interpreters; other professional services include $700 for file storage and retrieval; transcription decreased because of digital recording. Meyer stated operations decreased $12,000. Motion by Caflisch, 2nd by Malick to advance the proposed budget forward. Carried unanimously. 7. Circuit Court Report. a. Proposed 2007 Department Budget. Judge Lundell and Judge Vlack were present. Judge Lundell highlighted increases which include the Drug Court Coordinator position and additional time for the Family Court Commissioner to do more hearings. New chairs are included Finance Committee September 11, 2006 Page 3 of 7 for the courtrooms. Judge Lundell highlighted the fourth judge request and possibly an additional request for a fifth judge. Discussion regarding office space for the Drug Court Coordinator. Discussion regarding collections on delinquent fines and forfeitures. Judge Lundell suggested following up with policies on cash bonds. Motion by Malick, 2nd by Caflisch to move this budget forward into the budget process. Carried unanimously. 8. *Corporation Counsel Report. a. Proposed 2007 Department Budget. Greg Timmerman distributed the Corporation Counsel 2007 proposed budget. Timmerman stated Staff Development has a slight increase due to CLE. Legal Services increase to $1,000 which includes outside help in the event of an absence of a Corporation Counsel attorney. Discussion regarding legal services for negotiations. Timmerman stated contract negotiations are not necessarily legal work but rather professional services. Discussion regarding managing this line item and what can be done in -house rather then submitting requests to Attorney Weld. Corporation Counsel's budget request also includes a new position with a start date of mid -July. Timmerman stated if the new position is not approved, he will request another professional services line to incorporate $30,000 for legal and negotiations costs. Motion by Malick, 2 by Caflisch to advance this proposed budget into the budget process. Carried unanimously. 9. Information Technology Report. a. Proposed 2007 Department Budget. Tom Boron highlighted operations increased $10,000 for software maintenance because of the addition of mobile and CAD workstations. Boron highlighted other software and hardware increases Capital projects include optical imaging, mass storage device for the New Richmond facility, upgrade of the LAN switches to provide for power over Ethernet, upgrade to the existing Mitel phone system at the Government Center to allow for interoperability of features with the new phone system at New Richmond, UPS and air handling equipment replacement or upgrade, and secure wireless capabilities throughout the New Richmond and Baldwin facilities. Total of capital projects is $201,942. Motion by Malick, 2nd by Standafer to advance this budget forward into the process. Carried unanimously. b. Remote Computer Access. Malick stated he participated in the influenza pandemic exercise and asked Boron if employees had the capabilities to work from home in the event of a pandemic. Boron stated this capability is in place and one employee currently uses it. 10. Transportation Department 2007 Budget Presentation. Present: Tim Ramberg, Richard King and Roger Rebholz. Ramberg stated the proposed increase is approximately $700,000 and added the majority of the increase is in General Maintenance. Discussion regarding Highway Department's plans and goals, and the budget. Malick asked if an additional $600,000 were budgeted could Highway achieve their goals. Discussion regarding levy limit. Krueger mentioned bonding and borrowing funds for improvements to the infrastructure. Motion by Caflisch, 2 by Malick to move this budget forward. Finance Committee September 11, 2006 Page 4 of 7 Ramberg stated the Transportation Committee is looking at alternative revenue sources including Wheel Tax and other opportunities. Discussion regarding General Property and Liability Insurance. This Transportation Department budget includes insurance for all employees. Malick inquired about Highway's spending for office supplies and the use of Corporate Express vs. Office Depot. Ramberg stated Highway determines price and value. Caflisch requested a copy of the comparisons done by the Highway Department when ordering office supplies. Motion is carried unanimously. 11. Finance Director Report. a. Financial Reports. General Fund Cash and investments balance as of July 31, 2006 was $48,476,750.90. 2006 Contingency Fund balance is $250,000. 2006 Sales Tax received in August 2006 for June 2006 sales are $507,052.75. Pietrick projects coming out ahead in sales tax at the end of the year. Review of Expenditure and Revenue Summary Reports. Pietrick will be reviewing the expenditures and revenues closer this time of year. Malick questioned revenues for the Zoning and Septic and Register of Deeds. Pietrick explained these are seasonal and the revenues are down in Register of Deeds because of the market. b. Investment Management Report — Bob Moore. Moore provided an economic overview, market outlook and portfolio review. Whiting asked if the County should be doing things differently. Moore suggested extending the duration on investments. Moore stated if assistance is needed to do studies in revenue streams he would be willing to provide this information to Pietrick. C. Proposed 2007 Department Budget. Pietrick distributed the Finance Department budget. She indicated her budget includes a Human Resource person and she is requesting a part- time staff person because there is no one available to back fill in the event of an absence. Additional requests include a Sage module for fixed asset software in the amount of $6,700, four new computers, remote storage charges and staff development training in Los Angeles. Pietrick recommends if out of state conferences are cut that they be cut countywide. Pietrick added the Indirect Cost Study increased $7,000 for the study of employees relating to retirements, leaves, etc. She stated the actuary study must be done in 2007. Sundry Unclassified increased by $9,120 for Section 125 administrative costs. Library Funding increased by $34,857. Discussion regarding libraries request for additional funding. Motion by Malick, 2 nd by Standafer to advance the Finance Department's budget into the process. Carried unanimously. d. Moody's Rating Upgrade. Pietrick distributed an email regarding Moody's upgrades rating to Aa3 from Al on St. Croix County's $16.6 million of total debt. The rating upgrade reflects the county's rapidly growing tax base located near St. Paul; strong finances characterized by areas of flexibility and health margins; and, moderate debt with rapidly retired direct obligations. e. Cell Phones Guidelines. Dana Baker stated the proposed cell phone guidelines outlines proper procedures for procurement, possession and appropriate use of St. Croix County owned cellular phones. Baker stated there are 136 county -owned cell phones. This does not Finance Committee September 11, 2006 Page 5 of 7 include Highway Department cell phones. Baker described the RFP procedure done and the scoring based on needs assessment. Baker stated approved cellular service providers for the county are through Comprehensive Communication offering T- Mobile and Nextel. T- Mobile's coverage does not include a walkie- talkie phone feature and the Sheriff's Department has a need for this. Savings are estimated at $20,000 per year. Rates were determined for those who currently have a cell phone. Motion by Malick, 2 nd by Caflisch to approve the Cellular Phone Procurement and Usage Guidelines and disseminate to County departments. Carried unanimously. Discussion regarding phones issued and usage. Whiting stated departments are responsible for the cell phones and minutes requested. 12. Administrative Coordinator Report. a. Government Center Property — Status. Whiting reported Dave Fodroczi, Malick, Krueger and Whiting met with the City of Hudson personnel regarding the Government Center property. The meeting suggested the county have an idea what development may be on the property. Whiting distributed a copy of a brochure for Barsness Consulting Services, Inc. Public Protection asked for a status on the property and Whiting intends to report on it at the September County Board meeting. Discussion regarding having a presentation from Barsness in November and discussion regarding the property and interests including fire station, library, school and Economic Development Corporation. b. Review of County Appraisal of County Property in Baldwin Subject to WisDoT Taking. Whiting reported the State's initial amount for the parcel in Baldwin was $7,950. Ted Morgan did an appraisal and, with damages, his appraisal was set at $12,300. WisDoT agreed with the damage numbers by Morgan and increased the value to approximately $9,900. Whiting recommend acceptance of the State's proposal. Motion by Caflisch, 2 nd by Standafer to accept. Carried unanimously. C. Review of Mediation Settlement with DoT regarding County Farm Property Taking. Whiting reported the mediation settlement with the Wisconsin DoT on the County Farm property was $445,000 for a total received by the State in the amount of $617,000. d. Proposed 2007 Risk Management Department Budget. Kristen Ziliak distributed the Risk Management Department proposed 2007 budget and highlighted a reduction in expenses for Liability and Work Comp Funds. Ziliak highlighted the Liability Fund and allocations to the departments. Discussion regarding building the liability fund. Work comp in 2007 is allocated 39% less than 2006. Program Development under the Liability Fund increased for AED maintenance. Discussion regarding AED maintenance and responsibility. Ziliak highlighted a $500 increase requested in Loss Control to fund ongoing costs to dispose of full SHARPS containers. Ziliak also requested funds for office furniture. Motion by Malick, 2 nd by Standafer to move this budget forward in the process. Carried unanimously. e. Proposed 2007 Administrative Coordinator Department Budget. Whiting reported budget increases includes Compensation Classification Specialist and Human Resource Specialist positions. In addition, legal fees are included for the Weld firm. Whiting requested rather then attend WCA conferences in February and September he would prefer attending Finance Committee September 11, 2006 Page 6 of 7 conferences for Administrative Coordinators. Discussion regarding employee picnics and employee appreciation dinner. Malick suggested eliminating out -of -state travel conferences. Whiting highlighted his budget includes $92,000 for the City of Hudson water tower which is a second half payment from the mid -90's and the request from the Disabled American Veterans Tri- County Chapter 26. Motion by Malick, 2nd by Standafer to remove the ICMA conference in the amount of $1,200. Carried unanimously. Discussion regarding the Economic Development Corporation budget which appears in the Administrative Coordinator budget. Motion by Standafer, 2 by Malick to approve with the increase of $6,500 and to move it forward into the budget process. Carried unanimously. f. Personnel Matter: Employee request for Leave of Absence. Removed from agenda. 13. 2007 Budget Items. a. New and Modified Position Requests. Whiting reported there are three new position requests which have not been in existence before including: Drug Court Coordinator, Collections Clerk in the Clerk of Court office and Office Manager in the Planning and Zoning Department. There has been position modifications requested for the Office Manager positions in the District Attorney's office and the Clerk of Court office. Land & Water Conservation Specialist requested a four -year degree because of a certification. Other modification requests were for Judicial Assistants and Register in Probate. Discussion regarding the part-time assistant position for the Finance Department and moving the Human Resource Assistant position from Corporation Counsel to Administrative Coordinator. The committee discussed Administration suite personnel status and reporting the status to the County Board. b. Assessed Valuation and Levy Limit. Whiting reported the target is 4.97% or $1,107,329 over the 2006 levy C. Health Insurance Renewal — Status. Whiting stated he did not have anything to report at this time. d. Capital Outlay Items. Whiting distributed the Capital Items report for 2007 containing a total of $3,376,488 in capital item requests. Whiting highlighted various capital requests. 14. Request to Purchase County Owned Property. Fred Katter of Pineapple Management Company was present on behalf of Keystone Commercial Investments, LLC. Katter expressed interest in purchasing the southeast corner of approximately 16 acres of the County Farm property and stated he has been working with the City of New Richmond on a concept for usage of the land. Katter proposed to purchase 16 acres and do an ALTA survey at an anticipated price range of $40,000 to $45,000 per acre. Conditions were highlighted precedent to closing including rezoning, approval of ALTA survey, completion of soils bearing strength test program, completion of a Phase 1 report and recommended follow -up, receipt and approval of assessment searches and acceptance of a commitment for an Owner's Title Insurance Policy. Katter stated this work would be done at his company's cost. He added the schedule is approximately 120 days from entering into a t Finance Committee September 11, 2006 Page 7 of 7 purchase agreement to completion of the conditions and stated appraisal fees would also be paid by Keystone. Standafer stated it is not appropriate for the county, as seller, to determine usage of the site. Standafer added if the county decides to sell, the public needs to know land is for sale and entertain offers. Katter reported Keystone is committed to widen County Roads K and CC and include a traffic light and any sewer and water line changes. Katter stated there would be no significant infrastructure costs to the city. Discussion regarding TIF funds. Motion by Malick, 2 nd by Caflisch to present to the County Board the Finance Committee's proposal to follow the steps which include having an appraiser determine the highest and best use of the parcel, obtain an ALTA survey consistent with it, and apply to the City of New Richmond for rezoning, obtain final approval from the County Board and if approved, offer to publish for bids. Katter asked if soil tests could be done on the land. Malick stated that would come in the RFP process and make it available to all people bidding. Carried unanimously. 15. Bearcom Performance Bond. Kollman explained the agreement with Bearcom stated a performance bond was due within 20 days of delivery. No performance bond has been issued and Bearcom agreed to not be paid immediately since it hadn't been issued. The project is ninety percent complete and nothing has been paid. The performance bond is $11,200. Kollman reported the CFO at Bearcom stated it will give a performance bond then added the county would not pay until it received a letter from CML, which is installing the equipment, confirming it has been paid by Bearcom. The contract is in the amount of $331,200. Standafer expressed concerns and stated the county ought to require adherence to the contract and be furnished with a performance bond. Motion by Malick, 2 nd by Standafer and Caflisch not to waive the bond and authorize no payments until the bond received. Carried unanimously. Standafer left at 3:50 p.m. Meeting adjourned at 4:03 p.m. Esther Wentz, Secretary Cindy Campbell, Recording Secretary *FROM THE MINUTES OF THE NOVEMBER 9 2006 FINANCE COMMITTEE MEETING Greg Timmerman requested that September 11 minutes be amended. The following will be added to the end of those minutes: "Timmerman's request for $30,000 should the new position not be approved was only for extra legal work. It did not include negotiation costs." Motion by Malick, 2 by Wentz to approve this amendment. Motion carried unanimously.