PROCEEDINGS OF THE BOARD OF COUNTY COMMISSIONERS
(The following minutes are draft, pending formal approval on Jan 5, 2021)
Date: Wednesday, December 15, 2020 9:00 am
Place: Virtual Meeting Held due to Peacetime Emergency Declaration in response to
COVID-19 Pandemic.
Members Present via Computer: Eric Johnson, Teresa Walter, Jack Miller, Robert Burns,
Greg Myhre
Call to order: 9:30 am
Presiding: Chairman Johnson
Call to order. Pledge of Allegiance.
Miller moved, Walter seconded, unanimously carried to approve the agenda.
Burns moved, Walter seconded, unanimously carried to approve the minutes of the
December 8, 2020 Board Meeting and Workgroup Session.
Public Comment: None
Walter moved, Myhre seconded, unanimously carried to approve the Consent Agenda, which consisted of the following items:
1) Approve payment of the License Center and Human Services disbursements and
the following claims
County Revenue Fund $90,958.54
Road & Bridge Fund $11,722.30
Total $102,680.84
2) Approve the 2021 Ability Building Center contract for Woodland Industries support
to County Dropsite/Recycling program.
3) Approve a three-year extension to the property lease with Keith Comstock for the
Caledonia Drop Site.
4) Approve 2021 Tobacco Licenses for:
i. Houston Food Mart, Houston
ii. River Valley Convenience Store, Houston
iii. Dollar General, Houston
5) Affirm the following personnel actions:
1. Sheriff’s Office
1. Change the status of Brady Auger, Jailer/Dispatcher from probationary to regular effective January 8, 2021.
The Board of Commissioners extended a hearty congratulations and thank you to the following county employees for their steadfast service to the people of Houston County: Marilyn S. Moore and Sheila M. Schroeder for 25 years of service; Susanne M. Bublitz, Ann E. Diersen, Holly J. Gleason, Heather L. Myhre, Shawn L. Peter, Luke T. Sass, and Susan K. Schwebach for 20 years of service; Duane D. Brownlee Jr, Daniel T. Coogan, Andrew J. Milde, and Matthew W. Seitz for 15 years of service; and Kelly J. Petersen for 10 years of service.
At 9:59 am, Miller moved, Walter seconded, unanimously carried to enter a closed session pursuant to MS Statute 13D.05, Sub. 3(b) to discuss matters protected by attorney-client privilege related to the Mound Prairie Township v. Houston County et al lawsuit with Attorney Kuboushek.
The closed session began at 9:59 am, with Commissioners Johnson, Miller, Walter, Burns and Myhre, Administrator Babinski, Engineer Pogodzinski, and Attorney Kuboushek present.
At 10:16am, Burns moved, Miller seconded, unanimously carried to end the closed session and return to the regular meeting session. Attorney Kuboushek provided a brief summary that he would continue to work on mediation options for the board.
At. 10:25 am, Miller moved, Walter seconded, unanimously carried to enter a closed session pursuant to MS Statute 13D.05, Sub. 3(b) to discuss matters protected by attorney-client privilege related to the Schutz Quarry MCIT File No. 18PC0852 with Attorney Jay Squires.
The closed session began at 10:25 am, with Commissioners Johnson, Miller, Walter, Burns and Myhre, Administrator Babinski, Environmental Services Director Lacher, and Attorney Squires present.
At 10:45am, Burns moved, Myhre seconded, unanimously carried to end the closed session and return to the regular meeting session. Attorney Squires provided a brief summary that he reviewed ongoing mediation discussions with the board.
Mr. Bruce Kimmel, Municipal Advisor, Ehlers, provided the board with a pre-sale report for the bonding of $3,000,000 for use to construct the County Highway Department facility. The bond would be a ‘state aid’ bond, backed by payments from the County’s State Aid for highway maintenance. The Board’s intention is to fund the bond with the current Wheelage Tax, which would offset the payments from the state aid funds. Mr. Kimmel shared the county has AA rating and could expect to see an interest rate at a near record low, with the possibility of even receiving bids including a premium, given recent bond awards in other municipalities. Bids will be received and brought to the board for sale approval at the January 24, 2021 board meeting.
ACTION ITEMS
File No. 6 – Myhre moved, Miller seconded, unanimously carried to approve Resolution 20-58 Providing for the Sale of $3,090,000 General Obligation State Aid Bonds, Series 2021A.
RESOLUTION NO. 20-58
SALE OF $3,090,000 GENERAL OBLIGATION STATE AID BONDS, SERIES 2021A
WHEREAS, Houston County, Minnesota (the “County”) from time to time will issue tax-exempt and tax-advantaged governmental bonds; and
WHEREAS, under the Internal Revenue Code of 1986, as amended and related regulations (the “Code”), and Securities and Exchange Commission (the “SEC”) the County is required to take certain actions after bond issuance to ensure that interest on those bonds remains in compliance with the Code and SEC; and
WHEREAS, the County has determined to adopt a policy regarding how the County will carry out its compliance responsibilities via written procedures, and to that end, has caused to be prepared documents titled Post-Issuance Debt Compliance Policy and Post-Issuance Debt Compliance Procedures; and
WHEREAS, the County Board (the “Board”) of the County has reviewed the Post-Issuance Debt Compliance Policy in connection with the Post-Issuance Debt Compliance Procedures and has determined that it is in the best interest of the District to adopt the Policy.
NOW THEREFORE, BE IT RESOLVED BY HOUSTON COUNTY, MINNESOTA; the Board approves the Policy as shown in the form attached; and
BE IT FURTHER RESOLVED; County staff are authorized to take all actions necessary to carry out the Post-Issuance Debt Compliance Policy and Post-Issuance Debt Compliance Procedures.
Burns moved, Walter seconded, unanimously carried to approve Resolution 20-62 Post Issuance Debt Compliance Policy and adopting the Post Issuance Debt Compliance Policy and Procedures.
RESOLUTION NO. 20-62
POST-ISSUANCE DEPT COMPLIANCE POLICY FOR TAX-EXEMPT AND TAX-ADVANTAGED GOVERNMENT BONDS
WHEREAS, Houston County, Minnesota (the “County”) from time to time will issue tax-exempt and tax-advantaged governmental bonds; and
WHEREAS, under the Internal Revenue Code of 1986, as amended and related regulations (the “Code”), and Securities and Exchange Commission (the “SEC”) the County is required to take certain actions after bond issuance to ensure that interest on those bonds remains in compliance with the Code and SEC; and
WHEREAS, the County has determined to adopt a policy regarding how the County will carry out its compliance responsibilities via written procedures, and to that end, has caused to be prepared documents titled Post-Issuance Debt Compliance Policy and Post-Issuance Debt Compliance Procedures; and
WHEREAS, the County Board (the “Board”) of the County has reviewed the Post-Issuance Debt Compliance Policy in connection with the Post-Issuance Debt Compliance Procedures and has determined that it is in the best interest of the District to adopt the Policy.
NOW THEREFORE, BE IT RESOLVED BY HOUSTON COUNTY, MINNESOTA; the Board approves the Policy as shown in the form attached; and
BE IT FURTHER RESOLVED; County staff are authorized to take all actions necessary to carry out the Post-Issuance Debt Compliance Policy and Post-Issuance Debt Compliance Procedures.
Miller moved, Johnson seconded, unanimously carried to approve the January 1, 2021 – December 31, 2023 Labor Agreement between Houston County and the International Union of Operating Engineers, Local No. 49. HR Director Arrick-Kruger explained this agreement merged two Local 49’ers groups into one unit. The agreement provides a 0% COLA for one year, with wages only to be renegotiated for 2022-2023. The agreement also allows all members to participate in the 49’ers health plan and provides an initial employee contribution of 95%, subject to an annual limit of 4.9% cap on any premium changes during the contract period. The cost of the agreement to the 2021 budget is $62,000.
Burns moved, Walter seconded, unanimously carried to approve the departmental budget amendments and adjustments for CARES Act expenses to the 2020 budget. The net effect of the departmental adjustments on the 2020 budget brought the planned $449,478 deficit down to $335,118. The unallocated payroll dollars from the CARES Funding decreased that deficit by $291,173 for a 2020 bottom line budgeted deficit of $43,945.
Miller moved, Walter seconded, unanimously carried to approve the 2021 Non-Union Wage Grid with a 0% COLA adjustment. HR Director Arrick-Kruger shared this as the recommendation of the personnel committee and emphasized that it did not prevent non-union employees from progressing through step promotions, if otherwise eligible. Burns questioned if the board could later change the non-union wage grid if the board felt it was appropriate after agreements are settled with the other county employee bargaining units. He was assured the board could make that change in the future if they wished to.
Miller moved, Johnson seconded, unanimously carried to approve Resolution 20-59 Salary for Houston County Elected Officials. The salary for the elected County Attorney and County Commissioners remains unchanged from 2020. The salary for the elected County Sheriff, Auditor/Treasurer and Recorder reflect adjustments made to align their salary with the equivalent step increases a non-elected employee may receive.
RESOLUTION NO. 20-59
2021 Salary for Houston County Elected Officials
WHEREAS, Minnesota Statute 375.01 Subd. 1, 384.151 Subd. 1a, 385.373 Subd. 1a, 386.015 Subd. 2, 387.20 Subd. 1,b, 388.18 Subd. 2, collectively state the salary of Houston County Elected Officials must be established on an annual basis by board resolution;
THEREFORE, BE IT RESOLVED, the Houston County Board of Commissioners authorizes the 2021 salary of the Commissioners to be $19,016.34; and
BE IT FURTHER RESOLVED, the Houston County Board of Commissioners authorizes the 2021 salary of the County Auditor/Treasurer to be $83,657.60; and
BE IT FURTHER RESOLVED, the Houston County Board of Commissioners authorizes the 2021 salary of the County Recorder to be $65,998.40; and
BE IT FURTHER RESOLVED, the Houston County Board of Commissioners authorizes the 2021 salary of the County Sheriff to be $107,598.40; and
BE IT FURTHER RESOLVED, the Houston County Board of Commissioners authorizes the 2021 salary of the County Attorney to be $116,653.66.
Burns moved, Walter seconded, unanimously carried to approve Resolution 20-60 – 2021 Final Budget. Finance Director Lapham reviewed the final budget numbers with the board, which reflect reductions resulting in a $34,644 surplus without an increase to the 2020 levy amount.
RESOLUTION NO. 20-60
ADOPTION OF 2021 OPERATING BUDGET
BE IT RESOLVED, the Houston County Board of Commissioners adopts the budget for 2021 Revenue and Expenditures within the following funds:
Revenues
Over (Under)
Revenue Expenditures Expenditures
County Revenue $11,699,408 $11,664,744 $34,664
Road & Bridge 9,453,526 9,453,526 0
Human Services 6,830,829 6,830,829 0
Debt Service 1,362,848 1,362,848 0
Grand Total $29,346,611 $29,311,947 $34,664
Miller moved, Burns seconded, unanimously carried to approve Resolution 20-61 – 2021 Final Certified Levy. Finance Director Lapham explained the approved final budget allowed for a 2021 levy without any increase over 2020. Johnson thanked the staff and finance committee for getting the levy down to a zero percent increase, but stated he’d like to see it further reduced to a -1% to provide some relief to taxpayers. The board discussed the impact of that on the fund balance, including the yet unknown impact of union agreement settlements. The other commissioners expressed agreement with the sentiment of further reductions, but also expressed concern over future costs increases, uncertainty in state aid money and other potential losses of revenue.
RESOLUTION NO. 20-61
ADOPTION OF 2021 LEVY
BE IT RESOLVED, the Houston County Board of Commissioners authorizes the certified levy after the deduction of County Program Aid (CPA), in the amount of $12,405,057 be made on all taxable property in the County of Houston for taxes payable in 2021 in the following amounts by County Fund:
County Revenue $8,245,548
Road & Bridge 2,069,390
Human Services 1,850,212
Bond Fund – 2017A Jail Bonds 497,123
Bond Fund – 2020A Jail Bonds 865,725
Total $13,527,998
Less CPA (1,088,277)
Total Levy $12,439,721
Myhre moved, Johnson seconded, unanimously carried to approve an abatement for John Fischel, Houston, MN.
Walter moved, Miller seconded, unanimously carried to the Family Child Care Variance Policy.
Walter moved, Burns seconded, unanimously carried to approve the lease agreement with Pitney Bowes for mailing base, postage meter rental, and service agreement.
Burns moved, Walter seconded, motion failed (3-2, Miller, Johnson, Myhre opposed) to approve the Minnesota Historical and Cultural Heritage Grant Agreement with the Minnesota Historical Society for rehabilitative construction of the east stairs of the historical courthouse building. HR/Facilities Director Arrick-Kruger presented the grant agreement, which provided for a 50% match of funds from the Historical Society to replace the east stairs with historically accurate stone steps. The project estimate was $142,000, which included funding for engineering and construction, preservation oversight, and contingency funds. She stated the project would be bid out via a request for proposal based on the agreed standards with the Historical Society, so the project could come in less that the estimate. The board previously asked for a review of alternatives, which included an approximately $80,000 estimate for stone steps, but not to the specifics of the stone proposed for historic preservation. She also presented quote for cement steps, which with some potential modification would fall under $25,000. The board discussed previous suggestions that turning down this grant project may impact planned application for additional preservation funding for repairing the roof of the historic courthouse. Miller proposed using some of the banked capital improvement funds to keep the county on the grant trail. Johnson suggested that the steps and roof project could both be completed with local money only without going through the grant process in the future.
Miller moved, Myhre seconded, carried (3-2, Burns, Water opposed) to abolish the office of County Administrator as of 31 December 2020. Johnson stated he proposed this change at last week’s workgroup session as an avenue to control the budget, knowing that many people in the county are hurting due the status of the economy. He is concerned about future impacts of Winona’s new jail on our operations and the potential impacts at the state level on the County Program Aid funds, so needed to find savings where possible, and as this was the newest staff addition, should be removed first. Walter expressed support for the position and sited the unanimous decision to create the position in the past. Miller expressed that things have changed with Covid-19 and the cloudy future of the jail and state funding. Burns expressed support for the position and questioned the plans for operating without the position.
DISCUSSION
Administrator Babinski shared the application period was still open for positions on the Extension committee and Water Planning Committee. He also shared news that the state just approved another round of business economic relief. Two rounds would be handled at the state level, but the third round provides $387,594 to the county to distribute to local businesses.
Miller shared he attended the SHAK meeting and MCIT meetings, both of which were primarily focused on COVID-related subjects. He shared that Ward (Winona County) was elected to a full term on the MCIT board. He also attend the radio meeting and passed along information from a meeting with the La Crescent City council.
Walter attended the Winona-La Crescent One Watershed One Plan meeting.
Burns provided an update on county-owned cemetery plots.
Johnson shared info from a recent HRA meeting. He stated they were having a reorganization meeting in January and also shared information about a pilot project in Rushford concerning home improvement loans.
PUBLIC COMMENT: None
There being no further business and the time being 1:28 p.m., motion was made by Miller, seconded by Myhre, unanimously carried to adjourn the meeting. The next meeting being Special Meeting/Workgroup Session on Tuesday, December 22, 2020.
BOARD OF COUNTY COMMISSIONERS
HOUSTON COUNTY, MINNESOTA
By: Eric Johnson, Chairperson
Attest: Jeffrey Babinski, County Administrator
THE ABOVE PROCEEDINGS OF THE HOUSTON COUNTY BOARD OF COM-MISSIONERS IS ONLY A SUMMARY. THE FULL TEXT IS AVAILABLE FOR PUBLIC INSPECTION AT THE HOUSTON COUNTY ADMINISTRATOR’S OFFICE AS WELL AS ON THE HOUSTON COUNTY WEBSITE LOCATED AT THE FOLLOWING WEB ADDRESS: http://www.co.houston.mn.us/
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