MINUTES OF THE INFORMAL MEETING OF THE JOHNSON COUNTY BOARD OF SUPERVISORS:
AUGUST 28, 2008
TABLE OF CONTENTS
Page
County Engineer Greg Parker: Bids Received from the Iowa Department of Transportation Letting for the Calkins Avenue NW – RCB Culvert Replacement (Twin Box Culvert) Project # Bros-CO52(65)—8J-52, as Part of the Approved Secondary Roads Five-Year Road Construction Program.................................................... 1
Information Services Director Jean Schultz: Purchase of Phone System for the New Health and Human Services Building....................................................................................................................................... 2
Assistant County Attorney Andy Chappell: Matching Certification for the Summer 2008 Prosecutor Internship Program (Request for Reimbursement from the Attorney General's Office for Support of the Johnson County Attorney's Summer Law Clerk Program)........................................................................................... 6
Assistant County Attorney Andy Chappell: Requests to Allow Property Owners Impacted by the Recent Flood to Pay Property Taxes After September 1, 2008........................................................................... 6
Reports and Inquiries from the Board of Supervisors............................................................... 10
Chairperson Sullivan called the Johnson County Board of Supervisors to order in the Johnson County Administration Building at 10:02 a.m. Members present were: Pat Harney, Larry Meyers, Terrence Neuzil, Sally Stutsman, and Rod Sullivan.
County Engineer Greg Parker said they were happy to receive four competitive bids for the culvert replacement on Calkins Avenue. He said Secondary Roads will recommend McCauley Culvert Inc. for the project. Parker said McCauley Culvert was the lowest bidder at $173,724.70, with three more bids as referenced and the high bid for the project was $237,819.50. He said there is almost a $50,000 difference between the low and high bids. Parker said his department was a little perplexed, as normally the bids have been closer than that. He explained some contractors, if they have lots of projects in line, will bid a little higher. Parker said the Engineer's estimate was $188,100. He said they are always glad to see the low responsible bidder at a lesser cost than what the Engineer estimated. Parker said they have a 7% savings on the construction costs. He said the recommendation from Secondary Roads is to proceed with the low responsible bidder, McCauley Culvert, Inc.
Harney asked if the project will be done fall of 2008 or spring of 2009. Parker said his experience with this contractor is that they want to get in and get the project done. He said he is hoping that once they get the contracts signed and approved by the Board to proceed, they may be done within the month. Stutsman asked where McCauley is from. Parker said they are an Iowa firm but he doesn't have the exact town they are stationed out of. Stutsman asked who the project's head engineer will be. Parker replied Assistant County Engineer Al Miller. R. Sullivan asked Parker about the McCauley bid because it is so much lower and everyone else is higher. He asked if McCauley's bid has been thoroughly checked, to make sure everything is complete. Parker said yes. He added that this is an Iowa Department of Transportation letting, and when the DOT does their lettings they check the numbers and make sure everything is okay. Parker said his department also checks the numbers to make sure there aren't any math errors. Parker said McCauley Culvert seems a little more hungry for the work than the higher bidders, and he is glad to see their enthusiasm.
Meyers asked if he understood correctly that Parker has worked with McCauley Culvert before. Parker responded he personally has not worked with McCauley since he has been with Secondary Roads, but they have received contracts with Secondary Roads in the past. He said Miller said McCauley Culvert is a good company and contractor. He said the project is in the northwest part of the County. Parker said it is almost to the Linn-Johnson Road, and west of Wendling Quarries. Parker said because the road has a load limit on the existing structure, it will be removed once this structure is replaced. He said Wendling Quarries is happy to have this additional route. Parker said the road is also in their safety program. He said it will not change as part of the Wendling Quarries conditional use permit.
Harney said McCauley Culvert is $19,000 lower than the next closest bidder. Parker said he doesn't know why they vary so much. He said they typically like to see tighter bids, but with the cost of construction going up at a considerable rate, they are glad to see the bid come in where it is. He said Secondary Roads is happy to receive the bid and recommends proceeding with the contract for formal consideration at the Boards formal meeting on September 4, 2008.
Information Services Director Jean Schultz said that obviously the new Health and Human Services Building will be completed in the next couple months, so they need to purchase a new phone system for use by employees in Public Health, Mental Health/Disability Services, Department of Human Services, Veteran's Affairs, the Physical Plant, County Social Services, and Information Services. She said the phone systems currently used by those departments are several years old and cannot support the overall combined number, which is why they need to look for a new system. Schultz said voice-over IP is a technology most companies are switching to in phone systems, as it provides integration between phones and computer applications such as Outlook. She said it also allows phones to share the same wiring as computers.
Schultz said in March of 2008, they formed a phone committee made up of Health Department Business Manager Becky Mills and Clerk II Karen Bowden, Department of Human Services employee Noreen McGee, and Social Services Coordinator Amy Correia, Mental Health/Disability Services Assistant Director Jan Shaw, and Information Services Operations Supervisor/Secretary II Shannon Carter, Network Administrator Bill Horning, and herself. Schultz said they wrote an RFP, which was released in the middle of April, held a bidder's conference on May 5, 2008, and the responses were due June 3, 2008. She said they received responses from ten vendors, reviewed those carefully, and chose four vendors to present a demonstration. Schultz said after the demonstrations, they narrowed the pool to two vendors systems, and then checked references and conducted site visits. Schultz said they are trying to lay the foundation for an overall County phone system. Schultz said almost every building has its own phone system and when departmental phone systems need to be replaced, they will convert them and add them to the system. Schultz said the main cost in doing so will be the new phones and additional software licenses where appropriate. She said they will have a phone system server in the Health and Human Services building plus a server at another County building for redundancy in case of a disaster.
Schultz said some of the new features of the voice-over IP system are the ability to dial phone numbers from Outlook. Schultz said there can be voice mail storage either in Outlook or on the server within the phone system. She said there is the ability to record calls or committee meetings and various ways to route calls. She said currently, if someone calls the Public Health Department and asks to speak with an environmental health specialist, the attendant has to try to locate to see which specialists are in because they are often out in the field. Schultz said with the new proposed voiceover IP system, instead of the attendant having to check who is in and then transfer that call, they can utilize a distribution list which will automatically check the availability of each environmental specialist and transfer the call to the person who has been off the phone for the longest period of time. She said the phone system has a feature called presence. Schultz said employees can enter message information, such as meeting schedules or when they are out of the office, which attendants can see in order to know how to route incoming calls. She said these new features will allow for greater efficiency.
Schultz said Information Services recommends purchasing a SYSCO Voiceover IP system from Computer Solutions for $128,000. This is more than the initial proposal because they added the presence application, several spare phones and spare licenses for departments if they add new employees, or if they have to replace any damaged phones. Schultz said based on the features alone, there was another system that was the committee's first choice, but that system cost approximately $30,000 more than the system they are recommending. She said everyone on the committee felt the SYSCO system would be a huge improvement over the current phone system in the County. Schultz said her staff thinks users will be very happy with the system and they all agreed on recommending the SYSCO system.
Schultz explained that the system comes from a local Johnson County vendor, Computer Solutions, and they will therefore be helping the local economy. Schultz said they will also be purchasing an extra monitor for the phone attendant so they will always have the phone attendant counsel up on the monitor, and on the other monitor have their normal Word/Excel and other application work. She said the cost for 11 of these is $2,860. Schultz said they have requests for a number of headsets for personnel who are on the phone a lot. She said this will be especially useful for those who have to use a computer at the same time they are on the phone. Schultz said they have requests for 59 headsets, with an estimated cost of $18,000. She said they will look for a better cost estimate for those. Schultz said the State does not permit a connection between networks, so they will need to purchase two PC's with monitors for use by the Department of Human Services attendants. She said those will only be connected to the phone system and not to the State's network. Schultz said the cost of the two PC's with the monitors will be $2,100. She said they recommend purchase of the SYSCO phone system, monitors, headsets, and PC's.
Harney asked if there is an annual fee for maintenance. Schultz replied there is a maintenance cost of $4,000-$5,000 for the first year and $8,000 for the following years. She said the other vendor they looked at would be $13,000, so they would be saving money on the maintenance. Schultz said the servers themselves have three year warranties on the hardware. R. Sullivan asked if it has been their practice to buy service with any system they purchase. Schultz said with software, yes, except they didn't do so with Microsoft Office. She said they do purchase maintenance with Sequel Server, Gem Financial System, and Real Estate System because the companies are always adding new options. Schultz said they automatically get those and don't have to re-buy the product.
Schultz said they proposed buying spare phones because they aren't buying service maintenance for the individual phones. She explained it will be cheaper to replace a phone than to purchase a service contract. Stutsman asked if the $128,000 is for the basic system, plus the $24,000 for the other options. Schultz replied yes, and that the headsets will probably not be bought through Computer Services, which is why the headsets are priced separately. She said they normally use Dell equipment so they have priced out the Dell monitors and PCs. Schultz said they will continue to look for better pricing on the headsets.
Stutsman said she is having an issue with the cost of the headsets. She said the cost for an individual set is $320.00, in addition to the regular phone they are purchasing. Stutsman said she has no problem with individual attendants having headsets, which is appropriate, but she would like other people who will have private offices to first try speakerphones. Stutsman said the people who are requesting headsets have not had the speakerphone option before. She said she would like those in offices to begin with speakerphones and see how that goes before making a huge investment in headsets. Stutsman said she is concerned that if they do so for one department, every department will be in asking for headsets. Stutsman concluded that she would like to take a more conservative approach to the headsets, see how it goes before revisiting the option.
Schultz said Stutsman is right in that the department that has requested the most headsets hasn't had speaker phones. She said when they initially asked departments how many phones they would need, Information Services didn't know the cost. Schultz said when they received the approximate cost, she was sure the departments were very willing to reduce the headset phone requests to their attendants only. Schultz said they wanted to get started on the actual phone system itself, but also include the additional items so the Board would be aware that more items will need to be purchased. She said they'd like to purchase the headsets just for attendants, and departments could budget for additional ones if needed. Stutsman asked if Information Services could do more work on getting a better price for purchasing larger quantities. Schultz said that is certainly their intent, and that she is trying to give the Board a maximum cost. R. Sullivan said the Board expects department heads who want headsets for everyone, will work with Information Services to make sure the equipment will be compatible. Stutsman said other than the issue with the headsets, she doesn't have a problem with the purchase of phones.
Neuzil asked Budget Coordinator Rich Claiborne about the funding mechanism for paying for technology. He wanted to know if the phone service purchase is eligible for debt services. Claiborne said it will be purchased with reserved funds from 2008. Stutsman said the funds will be part of the building cost as well. Neuzil asked if it is part of the building project or not. Claiborne responded the funds are actual cash available from the FY08 budget, the funds that were not dispersed. He said he talked to Facilities Manager Dave Kempf and Schultz and they agreed to use a savings that Kempf had. Stutsman thanked Schultz and the committee for their work on the project. She said she knows it took a lot of time and she appreciates everyone's work and them bringing the recommendation to the Board. Schultz said they have a very good committee and they spent a lot of time trying to make a good decision.
Neuzil asked what will be done with the old equipment. He wanted to know if it could be resold, as he assumed a lot of it was in good shape. Schultz said she thinks Public Health’s phone system is ten years old. Schultz said the DHS phones are very old and they don't have speakerphones. Carter said the phone system at 911 North Governor is more than ten years old, and it is very out-of-date, and they would not want to reuse it. She said there are some analog phones they already own and they will be bringing those to the new building for disaster purposes in the event that they need them. Carter said the Health Department system is at least ten years old, and was bought used. She said they will salvage anything they can from the Health Department. Stutsman said the DHS system has been very inadequate for a long time. She said they held off making the decision to buy a new phone system, knowing that they were going to build a new building. Stutsman said she appreciates that the Health Department was willing to be patient rather than ask for a new phone system and then buy another one two years later in the new building. R. Sullivan said Schultz and the committee would like the Board to put the phone purchase request on next week's meeting agenda, September 4, 2008.
Assistant County Attorney Andy Chappell said his office has a form they need the Chair to sign off on. He said it is described as a matching certification, but the matching is the money already paid to interns for the work they have done. Chappell said the Attorney General's Office has a reimbursement program to help pay for a portion of the cost they pay for summer interns up to $1,600. He explained it is like a grant, and the matching comes from the rest of the salary already paid. Chappell said he thinks it is half the hourly wage or $5 per hour, whichever is lower. Chappell said they need a signature to move it forward and request the funds from the Attorney General's Office. R. Sullivan asked to put the request on the September 4, 2008 formal agenda.
Assistant County Attorney Andy Chappell said the initial request was to allow property owners impacted by the flood to pay property taxes after September 1, 2008. He said anyone can pay property taxes after September 1, but they are subject to interest and penalties. Chappell said if the question is whether property owners can be told the County will not assess interest on taxes paid after September 1 but by March 1, 2009, the answer is no. He said Iowa Code Section 445.37 is very specific stating in order to avoid interest on delinquent taxes, a payment has to be received by the Treasurer on or before the last business day of the month preceding the delinquent date, in this case September 30, 2008. Chappell said the Code goes on to say that if paid after September 30, 2008, it will be delinquent. He said if it is delinquent, penalties will be assessed. He said the County Attorney's Office has a lot of home rule authority to do different things, but when a specific state statute outlines specific requirements, especially something as heavily regulated as real estate taxes, property owners are not going to be able to get around that. Meyers asked if the Code mandates what the penalty percentage is. Chappell replied yes. Meyers asked if it is 1.5% per month. Chappell said yes. Meyers asked if 1.5% is stated in the Code and Chappell said yes.
Chappell said the Attorney's Office has talked about tax suspensions in the past, suspensions by right versus suspensions by petition. He explained tax suspension by right is guaranteed when someone is eligible, and when the Attorney's Office receives a notice from Human Services. Chappell said there is an Iowa Code provision numbered 427.8, that allows tax suspension by petition. He said the Board has discussed this before and has never shown any interest in opening up that Pandora's Box. He added if the Board wants to utilize tax suspension by petition, written petitions listing any properties, the person filing must swear under penalty of perjury that they are "unable to contribute to the public revenue,". Chappell said that before 1991, this meant people couldn't do so by reason of age or infirmity and that language has been stripped from the Code so it is a little more opened. He said if the Board decides to take a serious look at this, it must consider that it has had no prior interest in this regardless of the alleged level of indigency. Chappell said the statute specifically indicates that taxes and interest and penalty are suspended. He said there is no provision in the Code section for doing part of it. Chappell added that it is just a suspension, and the taxes are still there. He said interest and penalty will be assessed on late payments. He said taxes are still there until the property is sold, until someone dies, or until the taxes are paid off. Under Section 427.10, the Board can decide to later abate those taxes. He said the Board can do so with taxes suspended under Section 427.8 by petition, or Section 427.9 by right. Chappell added, however, in order to abate taxes, the Board must determine that it is "in the best interest of the public and the petitioner," not just the petitioner, but the public as well. He said there is no case law defining what that means, but it is something the Board should be thinking about if it plans to give consideration to these requests and invite petitions.
Chappell said petitions must be filed by March 1, 2009. If the County had tax sale certificates of the properties, it would be really easy. He said the County has quite a bit of discretion with a tax sale certificate and can compromise any portion. The Board can say just pay back the taxes and not the interest and penalty. Chappell said the County does not have tax certificates on any of these properties. If people are told to wait, and not even pay in March, 2009, so the County can obtain tax certificates at tax sales and then compromise, that won't work. Chappell said it won't work because the County is not an active bidder at tax sales. He said the County can only bid after everyone else has bid and decided they don't want the properties. He explained that after they changed the interest rate to 2% per month, very rarely do properties go unsold at tax sales with the exception of older mobile homes. Chappell said he cannot tell the Board to rely on tax sales because they probably will not be available. He said private purchases are made as investments and not likely to compromise at all. Chappell said this leaves the County with only one viable option as stated in Iowa Code Section 445.62, which is abatement or refund in the case of loss. He said this Code section allows the Board to abate taxes when someone's building or property has been destroyed due to an "unavoidable casualty." Chappell explained the difference between this section and the suspension section is that Section 445.62 allows the Board to suspend taxes in whole or in part and Chappell's interpretation is that the Board can abate just the interest if it chooses. He added that does not resolve the other issues though, such as whether the property was destroyed. He said the Board will have to decide that. Another issue Chappell explained is not resolved in the Code is that declaring a property as destroyed can only be done to the effect that there was no insurance. Thirdly, he said, the Board will need to decide if it is going to deal with interest and taxes just on the buildings, and how it will determine what buildings have been destroyed and what level of destruction will be consider destruction. He asked if 50% destruction will be enough to declare property destroyed, and he asked if the Board will consider the value of the improvements property owners want to make. Chappell said he thinks there is a fair amount of work the Board will have to do to find a fair and equitable way to deal with this. He suggested to the Board that this is part of the reason why they elected not to go down this road in the past. Chappell said from his perspective, these are the options.
R. Sullivan said he appreciates Chappell's research on this. Chappell restated that people are allowed to make partial payments, even partial delinquent payments however the interest is still assessed. He said the petitioner will have to determine it was in their financial best interest to pay 1.5% monthly interest in order to pay it piecemeal. He said the interest is due first. Neuzil asked if it is the interest on the total or the unpaid balance. Chappell said interest is paid on the unpaid balance. He added the Treasurer has the right to determine the minimum payment. Neuzil said as long as property owners pay by June 1, 2009, are they in the clear. County Treasurer Tom Kriz said they are in the clear if they pay by the third Monday in June, because that's when properties go to tax sale. Chappell said the Board has absolutely no discretion on that. Neuzil said the reason for this discussion at all is that some business owners have asked the Board to look at other options. He said the business owners just need some breathing room. Neuzil said everyone learned today that the Iowa Code does not allow the County to do this. He said the important part is that the County has explored the question and now business owners will be informed they can put a payment plan in place, though still be penalized for late payments.
Kriz said the Treasurers Department keeps track of payments and has always said the only amount that must be paid monthly is the accrued interest. Kriz said other counties require a minimum of $100 - $500. R. Sullivan said every year unpaid property is readied for property sale and on the day before, the property owner pays. Kriz agreed. He said they begin sending notices in April reminding individuals of their balance. Kriz said there are often 1,000 unpaid parcels, and by the time property sale comes around, there are only about 400 unpaid parcels. Kriz said once the property has gone to tax sale, the full amount is due. He said this year at the tax sale, there were many questions about flooded properties because the sale was postponed. Kris added this didn't stop a single investor from buying the taxes on any property the County held and 100% of the real property was sold. Kriz said some mobile homes did not sell because they are older and of questionable value.
Stutsman said considering the whole discussion on taxes and responding to the flood disaster, she realized they were ill-prepared as a government in responding to disasters. She added it must be very frustrating for victims of the flood to look to government for help and not get much help. She said maybe the legislature needs to address this issue of disaster relief and long-term recovery. Stutsman recalled the tornado two years ago, major flooding this year, the 1993 flood and she said these events are not isolated and will happen again. She said the Board needs tools in place to better respond to tax payers when a disaster like this happens, and has a major impact on their ability to produce income. Kriz said the Iowa Code is really restrictive. He said it does not give the County much leeway to do anything. R. Sullivan said it is evident why disasters are handled Federally because people would be upset if Iowa City and Johnson County taxed and kept an extra million around just in case of disaster. He said taxpayers would be upset and ask why the County is saving the money when it doesn't need it.
Stutsman said the Federal response takes so long and these stories are heart-wrenching, people are trying to get answers and trying to move on. She said there just needs to be a better disaster-response system. Neuzil agreed saying this is an opportunity to be flexible, but Iowa Code doesn't allow the County to be flexible and think outside the box. He said it is frustrating and said imagine being one of those individuals trying to find some how some way, and they just can't do it. Harney thanked Chappell for taking the time to research this. He said now the Board knows that all people can do is not pay their taxes and then pay 1.5% interest on top of their taxes until the tax sale. Harney said as far as anything else the Board can do in addition to the money it contributed to the Chamber to help businesses recover with $5,000 loans, he does know the State is looking for ways to give money to particular communities for flood disaster relief. He said one consideration is giving the money to the East Central Iowa County of Governments to let them distribute. However, he said, the legislature wants to attach strings to that. Harney said the current problem the County faces with FEMA dollars is that it is taking so long and for many people it is the difference between recovering and going bankrupt. He said there has to be a way of moving this along more quickly.
Meyers said a few people have mentioned to him that it might be a good idea for the Board to set aside some money each year for an emergency fund. He added this could be an interesting idea but if the County goes for a long period of time with no emergency, does the money become a slush fund. Meyers said a few others approached him questioning if it is possible to donate money to a tax relief fund and he said he was sure it is quite possible for them to donate money to help pay someone else's taxes. Meyers added he doesn't know if there is enough response to make a dent in it. R. Sullivan said there are options now for people to donate to help local businesses. He said donations can be made to the Chamber, the United Way, and the Community Foundation. R. Sullivan said people who want to give can actually target their money right now. Meyers said it is a very noble thought and idea but to make any dent in tax bills for the number of people, an awful lot of donations are needed.
Kriz said he has had numerous conversations with the City of Coralville and Iowa City about their budgeting process and their expectations for the money that the Treasurer's Office will distribute to them on October 10, 2008. He said the cities really need those funds to do the work they need to do. Neuzil said he hopes they are anticipating there will be folks out there not able to pay late. R. Sullivan said an email from Coralville City Manager Kelly Hayworth was circulated among council members and the Auditor's Office. Hayworth was concerned with bond rating and the concerns they have in that case and what Moody's Bond Rating Agency would think if they were not going to be guaranteed all the money they anticipated receiving. Hayworth specifically asked the Board not to consider this action. Kriz said Moody's was in Iowa City and Coralville the last three days because of all the discussion about how credit worthy are communities that have been flooded out. There is a lot of pressure on them to lower bond ratings for the person in New York that isn't sure who picks up bonds, they don't know what's there. It is a critical aspect for them, a drop from a AAA rating to a AA rating means a lot of dollars, which in turn are taxed to the taxpayers. Meyers said the bond rating to the Midwest in general has taken a big hit and even if there is a specific spot not damaged, they are affected because the overall impression is that everywhere in the Midwest is damaged. Kriz said that is why Moodies was out here, to say yes there has been a tremendous amount of damage, but their ability to take care of the outstanding debt has not changed. Neuzil said the Board can let Hayworth and Iowa City City Manager Michael Lombardo know that the Legislature and the Governor has already made that decision.
Harney attended the Communications Center Policy Board meeting, two site visits, a work session on the Land Use Plan, a tour of the Health and Human Services Building, the University Hospital Children's Miracle Network Fundraiser, and a Chamber meeting with the State Auditor.
Stutsman attended the Iowa State Association of Counties Health and Human Services Legislative Task Force meeting, the Parking Committee meeting, the Flex Plan Administrator Committee meeting, the Johnson County Council of Governments Board of Directors meeting; and participated in a Chamber discussion about Federal economic development funds.
Neuzil attended the site visit at the Health and Human Services Building and the Chamber's Board of Directors meeting. He said his next listening post is scheduled for September 2, 2008, at 7:30 a.m. at Bruegger's on Riverside Drive; and announced the Regina Fall Fest is scheduled for the weekend of August 30, 2008.
Meyers attended the Empowerment Board Fiscal Committee meeting, Planning and Zoning site visits, met with Schultz about the phone system, and attended a birthday party at Ecumenical Towers for Marguirite Cubrick who turned 100 years old.
R. Sullivan had a meeting with Iowa State Department of Homeland Security Employee Joe Hearn concerning Rebuild Iowa and Temporary Housing that has come into Johnson County, had a meeting with people who have worked with the County Free Tax Help Program headed by Social Services Coordinator Amy Correia; and spoke with Iowa Department of Human Services Area Administrator Marc Baty. R. Sullivan discussed the Hills Bridge FEMA assistance situation; he met with JCCOG Executive Director John Yapp, and announced a street-dance fundraiser for the Sutliff Bridge Authority.
Harney clarified that the Hills Bridge project wasn't turned down because of the bridge not qualifying, it was due to lack of funds. Stutsman added the bridge is open and repaired.
Adjourned at 11:14 a.m.
Attest: Tom Slockett, Auditor
By Nancy Tomkovicz, Recording Secretary