County Board Conservatives Gone Wild – Wasting $100,000 or more?!

Wow . . . I thought conservatives were all about saving money, not wasting it.

This concerns an items that normally most people wouldn’t have a clue about.

Res. 107, 11-12 – An Initial Resolution Authorizing General Obligation Corporate Purpose Bonds
and Promissory Notes (Adopt Sub. 2)

Maybe that’s why they thought they could get away with acting a little nuts. No media was there last Thursday when they discussed this. But it is on Channel 12, and easily accessible and after some advocacy, the Wisconsin State Journal wrote about it. Here’s what happened.

Bill Clausius moves to postpone to the October 6th meeting. Seconded by Jack Martz.

County Board Chair Scott McDonell asks if they want to discuss their motion. They decline.

John Hendrick has questions of staff – for the Sheriff. He asks about projects that would get postponed and is there any urgency?

Sheriff Dave Mahoney, he says there are projects that directly impact public safety. He says that understand Willet’s comments about the importance to plan and have efficient pricing, and public concerns about overspending tax payers tax dollars. He plans to save $1M in the 2012 budget and another half million on Jan 1st. Ford model company starts a new plan in 2012, so they were looking at 2011 cars so that the cars they replacing would be the old model year but new cars. They had 19 vehicles picked out and would save $100,000 to capitalize on Willett’s comments. Because he knew there might be a motion to postpone they were looking into these vehicle which are all over the united states, not just sitting somewhere on a lot. They are competing with police departments all over the united states, because thye have to do their due diligence. Staff met with the local dealer this morning about a potential delay and the possible consequences and despite committee approval, and they were told that the cars might not be available. He says it is his duty to save the tax payer dollars where he can. We have done a good job of identifying how we can do that. He says that he sees the potential problems in delaying 911 center funding, we are behind now, if we don’t move forward not we won’t meet the deadline of 2012 and we may be subject to fines and penalties and we might not get the equipment we need. We are not the only one’s challenging the FCC on that deadline and we don’t want to lead the parade in finding out what the consequences might be. He is concerned about not saving $100,000 and not meeting the FCC deadline.

John Hendrick asks John Dejung (911 Center Director) about radio system replacement and the consequences of not voting for it or delaying it.

Dejung says holy Toledo, more than a year ago this body decided to delay to save $15M and at that time we were talking about time being of the essence and we were rushing to meet the FCC deadline. We are in that position now, every day matters. We re-bid year. We are well into the contracting process and owe 30% to Harris, not approving the bonding is a work stoppage situation and he can understand why they would do that. We don’t know what will happen if we don’t meet the FCC deadline, there is a 10K per day, per frequency fine, will they levy that?, no. Will they let us off scot-free? no.

Hendrick asks Chuck Hicklin, the County Controller, about borrowing for the capital budget and paying back in debt service, with respect to the state levy cap. How will it impact Human Services and other items.

Hicklin says that he sent a memo after the meeting on the 1st. Under the state levy limit can increase the operating limit by $920,000 and the levy for the capital budget is exempt. We can go over the $920,000 and levy as much as we need for debt service. If the bonds don’t go forward, we can’t levy that money.

Hendrick asks what the consequences of rejecting the bond resolution are?

He says there is a memo on their desk from the Executives office. About $5M already spent, if no revenue from the bonds to replace the funds, we would need to satisfy through the general fund and we only will have 700K at the end of the year and this will wipe that out. We would have a higher negative number than we had at the end of 2012. The item on our credit profile is fiscal management that is often and issue. To spend the money and then not borrow as planned would impact our credit rating. This would very likely lead to a downgrade of the credit rating.

Hendrick asks about the money already spent, but what is the consequence of cancelling some of our contracts.

The largest one was mentioned by Dejung. There is another large on for the 911 center for the computer aided dispatch system. The implications of that would be Corporation Council’s issue about the legal ramifications of breaking the contracts. It would be irresponsible to continue paying without notifying them that the funds may not be available.

Dennis O’Loughlin asks about the sheriff vehicles. He says there is a typo and it should say 400K where is says 900K, its a typo that should be corrected.

They disagree with him.

Chuck Hicklin says that the sheriff spent $400K, and then this is additional.

O’Loughlin asks them to vote no on postponement. He wants to think about what the sheriff and Dejung has said, and three weeks from now it you know it is going to pass. It is important. It came out of Personnel and Finance 7-0, unanimously. There is good logic in doing it. It makes sense to move things out of operating into capital. This is not a decision we made, it is a decision made for us. Vote to pass these tonight.

Ronn Ferrell. He clarifies this is for the bonding.

McDonell says right.

Ferrell asks if the cars have to be approved again separately or can they do it if we pass this resolution.

Hicklin says that the bonding needs to be authorized or a separate resolution would be needed in advance of borrowing.

Ferrell asks if it would need 2/3 vote.

Hicklin says that it wouldn’t, it would just need to be authorized from another account, its already in the budget and you would pass a resolution allowing the purchase in advance of borrowing.

Ferrell asks if they have had resolutions allowing these purchases in advance of borrowing for the $5.9M.

Hicklin says yes, there have been resolutions. They also passed a resolution at the beginning of the year allowing the smaller projects to be paid for in advance of borrowing.

Ferrell asks fi the radio replacement and dispatch in advance of borrowing?

Yes.

So the real number is higher approved in advance?

That is spent to date.

McDonell clarifies “spent”.

Hicklin says authorized is $12.75M, the majority being the radio system and cad system for 911.

Cynda Solberg asks Hicklin about postponement, is there anything else that would be detrimental if they wait.

Hicklin says that there is the refinancing of the leases with Land and Water Resources, this impacts their savings in their budget. There are other projects in process, the ramp project is underway $700,000 the uncertainty of the project is causing issues and highway has some contracts to be signed if they don’t have the funds.

Solberg asks what they would gain, will there be additional information if they wait.

Hicklin says no more information, time is not necessarily our friend, there are a lot of serious issues going on. Greece is going to run out of money in the middle of October, if that happens it could impact the world system, what they are doing is inadequate, it might not be like Lehman Brothers, we issues debt before that happened and city waited and they paid for that in their interest. He says this also includes refinancing and saves us $12K, so delay is not going to help. The uncertainty is the issue. She urges to vote for it tonight.

Al Matano says O’Loughlin has a good point, bottom line total didn’t change. The total in sub 2 is correct, the error is in the original.

Jack Martz asks Hicklin about if delay of 21 days is a major element in our credit rating?

No, if the county board can’t resolve it, it would be a problem.

If delayed 21 days there would be no impact?

The issue is uncertainty, this is an unusual situation, we have not faced this. There has always been a strong consensus and that creates uncertainty of the projects going forward.

Martz asks if this uncertainty would happen if the committees delayed it.

Hicklin says that has happened, it was delayed one week in committee by Finance.

And the impact was nothing?

Yes, that was the committee. It is not the county board. The issue is the 3/4 vote, the margin is thin, that is moving the county to a place where we might not have the votes and the they would have obligations they can not meet.

The Personnel and Finance committee delay did not cause the same concern.

No, that was committee and it passed unanimously.

Dave deFelice says this reminds him of the debate they had in Congress, the wasteful, asinine debate they had about debt and the brinksmanship now that we are seeing here. We are debating against ourselves, he hasn’t heard a word about why they are delaying. Don’t know if we are debating about the zoo, or morgue.

Willett says he wants to see the capital budget for next year. He says things are moving around and he wants to see next year’s capital budget. He’s probably going to vote to postpone.

Hendrick asks for collegiality of his colleagues on both sides. deFelice asks a rational question. He says if you are going to vote no, please vote for postponement. If in favor, vote no on postponement because we don’t want to take a final vote on record to not pass the bond resolution, that will be painful for all of us. Please vote yes if you are going to vote no. If 28 people are in favor we will pass it. Just vote the same way on postponement as you are going to vote in the end.

deFelice moves to call the question.

McDonell says there are only a few people left on the board. It’s a 2/3 vote and its not debatable. There is no second after a long pause.

Richmond appreciates deFelice’s question and Willett answering the question. He’s not sure that is a good reason to postpone. He wants to see the County Exectutive’s proposal for a capital budget. He would like to know why as well, is that the purpose of the motion?

Willett asks the chair about postponement, what number of votes do we need.

McDonell says they just need majority.

And if we are really going to vote against this bond issue?

3/4 of the body, not who is present, so 28 votes.

So, if we got 10 votes on postponement, we would have enough votes to stop the bonding which would be a really bad idea, so I don’t quite know what he is trying to do. If you are worried about it passing you should vote for postponement. You might not get what you are thinking.

Hendrick only asks that people signal how going to vote, once we know that, we’ll know what to do, the numbers are not mysterious. If 28 people vote no on postponement I think we know where we stand.

Pat Downing wants to clarify. We understand the negative effect if we don’t approve the bonding. What if 10 people vote to postpone, then not postpone then forced to take a vote that will fail.

McDonell says he doesn’t want to put words in anyone’s mouth, but if he was on the floor he would change his vote and vote for reconsideration, but he’s up there.

deFelice asks how many are in attendance tonight.

McDonell says 34.

Bob Salov objects to being told how to vote. He encourages them not to vote for postponement and will speak on bonding issue when it comes.

Roll Call on postponement for three weeks.

No – Stubbs, Vedder, Bayrd, Corrigan, deFelice, Downing, Duranczyk, Eicher, Erickson, Hampton, Hendrick, Hesselbein, Matano, Miles, O’Loughlin, Richmond, Ripp, Rusk, Salov, Sargent, Schmidt, Solberg, Stoebig, McDonell
Aye – Wiggy, Willett, Bruskewitz, Clausius, Ferrell, Gau, Imhoff, Jensen, Martz, Schlicht
Absent – Veldran, Hulsey, Levin

Ok – now let the vote changing begin.

Hendrick, Downing, Solberg, Duranczyk, Hesselbein, Rusk, deFelice, McDonell, Miles, Corrigan and a whole bunch of other people start changing their votes – McDonell says he will stop them when they have enough. 10 votes changed. McDonell says that should do it.

McDonell, 20 ayes, 14 nos, postponed to next meeting.

So, the conservatives just wasted $100,000 and possibly more.

The very next motion is to postpone their purchase with Harris for the 911 center.

Note: Looks like Jeff and I might have doubled up on this one, and I’m not sure how well I did, I’m not feeling well and going back to bed.