MINUTES OF THE INFORMAL MEETING OF THE JOHNSON COUNTY BOARD OF SUPERVISORS:
FEBRUARY 5, 2004
TABLE OF CONTENTS
Chairperson Neuzil called the Johnson County Board of Supervisors to order in the Johnson County Administration Building at 9:20 a.m. Members present were: Pat Harney, Mike Lehman, Terrence Neuzil, Sally Stutsman, and Carol Thompson.
County Engineer Mike Gardner asked that the Board set the seed and fertilizer bid letting date on Tuesday March 9, 2004. Gardner said that Integrated Roadside Vegetation Manager Chris Henze said that the County has been able to reduce the amount of seed and cost due to improvements in equipment and method. Gardner said that it will be on the formal agenda next week requesting the Auditor to publish the notice to bidders. Harney asked if the County can utilize local people if the bids are close. Gardner said that he hasn’t been given direction to change the bid form, which currently states the bid will be awarded to the lowest bidder. Stutsman said she would like to give preference to local bidders when bids are close. The Board discussed setting policy for bidders. Lehman suggested the Finance Committee look at a policy. The Board agreed to have the Finance Committee look at it and still try to meet the March 9, 2004 bid letting date.
Gardner said that they are preparing 1,500 notices to send out to local people who might be affected by weight embargoes on County roads. He said that permits can be issued for delivery of farm produce and feeds and home heating fuel. Gardner said that law allows a road to be embargoed for 90 days total. He said that when they are starting to see damage he will bring a formal resolution to the Board. Gardner said that the Johnson County Secondary Roads website has a map and spreadsheet listing embargoed roads with their end dates. Thompson clarified that if the weather resolves itself Secondary Roads will take the embargoes off. Gardner agreed and said that they don’t do blanket embargoing. He said that last year they only embargoed a few roads, but he doesn’t have any expectations yet as to how this year will go. Stutsman said that the Board gets criticized every time an oil road is upgraded, but one reason to upgrade is to not have to deal with embargoes.
Neuzil said that the last Secondary Roads item on the agenda is quotes received for a new Badger 1085d rubber-tired excavator to replace a 1992 Case 1085c rubber-tired excavator and a 1998 Case 9030b tracked excavator. He said that the total cost after trade-in will be $109,475. Maintenance Supervisor Kevin Hackathorn explained that a rubber-tired excavator cleans ditches along hard surface and gravel roads, causing less damage than other forms of equipment. He said that Secondary Roads is trading 2 pieces of equipment for 1 new piece in order to hold down the cost of the acquisition, but it shouldn’t cause a problem. Stutsman asked if the Board needs to take formal action. Hackathorn said no, but that he brings these items to the Board for informational purposes.
BUDGET COORDINATOR JEFF HORNE: RESERVOIR ROADS TRUST AND POSSIBLE USE ON SECONDARY ROADS PROJECTS
Budget Coordinator Jeff Horne explained that the Reservoir Roads Trust was established from 2 settlement payments from the Federal Government totaling approximately $1.8 million in 1981 and 1982. He said that the current value of the fund is approximately $2.75 million. The Finance Committee recommended to the Board that they either direct use of the funds for projects or return them to an account with a higher return. Stutsman said that there was some confusion in the past regarding taking all versus a partial amount of the trust. Horne said if the Board chooses to earmark the Fund for the Mehaffey Bridge Project, which isn’t currently on the 5-Year Road Plan, they could still move the fund to a higher interest bearing vehicle in the meantime.
Horne explained that if the Board chose to keep the Fund as is, giving the historical $100,000 to the Secondary Roads Fund, it will begin to draw down the principal. Stutsman said that the County has problems in union negotiations since the money is not earmarked and the County could manage the fund better. Country Treasurer Tom Kriz agreed and said that he pushed the matter is because he doesn’t believe interest rates will move as quickly as they had previously hoped. He said that corporate profits are up currently due to reductions in cost and staff, but until the nation sees increases in workforce and profitability, interest rates will stay low. Kriz said that in a fund this size, a 1% interest rate translates to $28,000 a year so the fund should be matched with a multi-year instrument with a higher interest rate. He said that even in a best case scenario the Fund still wouldn’t accrue enough interest to cover the $100,000 transfer to Secondary Roads. Harney said that if interest rates increase, they could lose money by investing it too early. Kriz replied that the Board would have to look at the reward in the meantime, because currently the Fund is generating only 1% interest. Horne recommended designating the principal for the project and then waiting for the year to end and designate the interest accrued in the previous year to the Secondary Roads Fund. Stutsman said that although the principal wouldn’t cover the total cost of the Mehaffey Bridge, they should try to maximize their asset. Kriz said that the Board would have the option to break out of whatever instrument they choose if interest rates rise quickly. Stutsman said that in this economy Kriz has done a great job of investing the County’s funds.
Thompson said that the Board has 2 items to decide: 1) to direct Kriz to invest the Fund in a longer term instrument and 2) whether or not to put the money into a designated fund. Thompson, Lehman, and Stutsman agreed with both options. Stutsman asked if the Board approves designating the entire principal if they designate the interest to go to Secondary Roads. Harney said that he doesn’t want to designate the full principal, because if the Board doesn’t take $100,000 from this fund for Secondary Roads, then they’ll have to tax the rural area for another $100,000 a year. Horne explained that currently the budget does not include a transfer, but there was an offset in the Secondary Roads transfer from an increase to the tax base. Thompson suggested taking decreasing amounts for Secondary Roads and by leaving the interest fluid they could make that adjustment. Stutsman suggested evaluating it yearly. The Board decided to eliminate the Trust department and designate the interest within the escrow account. Horne said that he will draw up 2 resolutions to address the matter at a future formal meeting.
INQUIRIES AND REPORTS FROM THE BOARD OF SUPERVISORS
Thompson met with Lehman and Assistant County Attorney Andy Chappell regarding the proposed lease for the County Farm.
Lehman attended the Chamber of Commerce Banquet, the City Assessor’s Conference Board meeting, the County Assessor’s Conference Board meeting, and the SEATS Advisory Board meeting.
Stutsman attended the Chamber of Commerce Ag Breakfast and the Johnson County Council of Governments Board of Directors meeting.
Harney attended the East Central Iowa Council of Governments Board of Directors meeting, the Chamber of Commerce Banquet, the Chamber of Commerce Ag Breakfast, the Jail Alternatives meeting, and a meeting with the Howard R. Green Company regarding possibilities for the North Corridor.
Neuzil attended the Jail Alternatives meeting, and the SEATS Advisory Board meeting. He said that the Board will be attending the February 12th Chamber of Commerce Business Expo being held at Coral Ridge Mall. Neuzil said he will be having a Government and You Listening Post during the Business Expo from 11:30 a.m. to 12:30 p.m. Neuzil said that there will be a budget work session on Tuesday, February 10th, 2004 at 9:00 a.m.
INQUIRIES AND REPORTS FROM THE PUBLIC
Reverend Bob Welsh informed the Board that on February 9, 2004 2:00 p.m. there will be a Social Security Forum at the Senior Center. He said that several staff members of Iowa’s legislators will be in attendance.
Adjourned at 10:10 a.m.
Attest: Tom Slockett, Auditor
By Casie Kadlec, Recording Secretary