Not Approved by Committee

Not Approved by Committee

(Not Approved by Committee)

Minutes

February 14, 2012
ECONOMIC DEVELOPMENT AND TOURISMCOMMITTEE

OF OCONTO COUNTYBOARD OF SUPERVISORS

Committee Present: DonGlynn, KenLinzmeyer, GregSekela, RoseStellmacher, and EdYoung

Others Present:Lee Rymer, Chairman Oconto County Board of Supervisors;Ron Korzeniewski, Vice Chairman, Oconto County Board of Supervisors;Terry Hinds, Oconto County Finance Director; Kevin Hamann, Oconto County Administrative Coordinator; Bruce Mommaerts and Nancy Rhode, Oconto County Economic Development Corporation,Inc. AlSchlorf and MaryLemmen of the OcontoCounty Revolving Fund Loan Committee

  1. Open Meeting Statement – Quorum Verification that Open Meeting Laws are Complied With

The open meeting statement was read by the Chair. AFinance Committee agenda was posted in the event a quorum is present at the ED&T meeting.

  1. Call to Order

The meeting was called to order at9:40a.m. by Chair Stellmacher.

  1. Approval of Agenda

Linzmeyer questioned the loan client being listed on the agenda as North American Finishing and in the resolution it is Northern Premium Hardwoods. Mommaerts explained that OCEDC has been calling the loan client Northern Premium Hardwoods, as this the company which the Wisconsin Economic Development Corporation’s documents refer to. The two are sister companies, and recently it was brought to his attention that it will be North American Finishing that will be applying for the County loan. Linzmeyer questioned if the correctness of the agenda. Hamann explained the resolutions are draft documents and will be revised to reflect the correct company name. Sekela questioned the legality if the agenda and resolution are different. Hamann clarified there is no problem at all, and the resolutions will be changed.

Mommaerts asked the ED&T Committee to move agenda items 6 thru 11 up on the agenda item 6 in consideration of the RLF Committee. There were no objections. Motion byGlynn, second by Sekela, to approve the agenda as amended, moving items 6 thru 11 to after item 3. Vote carried unanimously.

  1. At Approximately 9:40 the Committee May Elect to go into Closed Session per Wis Stats 19.85 to Consider Recommendations From the RLF Committee Regarding a New Loan Application

Motion by Young, second by Linzmeyer, to enter into closed session at 9:47 a.m, allowing Rymer, Korzeniewski, Hamann, Mommaerts, Schlorf and Lemmen to enter into closed session. Vote carried unanimously.

  1. At Approximately 10:00 the Committee May Elect to Return to Open Session

Motion by Linzmeyer, second by Young to return to open session.

  1. Action on Items Discussed in Closed Session Including Recommendations by the RLF Committee
    (Items taken up after the closed session appear below as numbered agenda items)

Lemmen and Schlorf left the meeting at approximately 10:20 am.

  1. Resolution to CountyBoard of Supervisors Regarding Application and Acceptance of a Grant from WEDC for the purpose of making a loan to North American Finishing LLC
    Rhode distributed a revised resolution which updated the company name from Northern Premium Hardwoods to North American Finishing. Mommaerts reviewed the resolution which would authorize applying for, and accepting a $1million grant from Wisconsin Economic Development Corporation. Motion by Sekela, second by Linzmeyer, to forward the resolution to CountyBoard. Vote carried unanimously.
  2. Resolution to CountyBoard of Supervisors Regarding Application and Acceptance of a Grant from WEDC and the Making of a Loan to NP Acquisitions
    Mommaerts reviewed this resolution stating this resolution was necessary as Resolution 82-2011did not include authorization for the CountyClerk and Chair to execute any and all documents required for the loan. Motion Glynn, second by Young, to forward the resolution to CountyBoard. Vote carried unanimously.
  3. Resolution to County Board of Supervisors Regarding Making a RLF Loan to North American Finishing LLC
    Mommaerts explained the previous motion provided for the application for the WEDC grant, and this Resolution will authorize the loan to North American Finishing from those grant funds. Motion by Sekela, second by Linzmeyer, to forward the resolution to the CountyBoard. Vote carried unanimously. Mommaerts reminded the Committee that $100,000 for the CountyRLF has been reserved for this project, as WEDC is expecting the County to provide matching funds. Mommaerts said he will work with the lenders to get the best collateral possible, and will keep the committee informed.
  1. Approval of Minutes of January 10, 2012 Meeting

Motion by Linzmeyer, second by Glynn, to approve the minutes of the meeting as printed. Vote carried unanimously.

  1. Communications
    a. Receipt of JanuaryCounty Finance General Ledger Report
    The report was mailed to the Committee for review. The Committee asked about the admin amount being 78% of budget. Mommaerts and Rhode explained that the 78% is the remaining balance as the draws to date includes January and February amounts. Mommaerts also explained that, per Terry Hinds, there will no longer be a two month lag in payments for tourism, as there has been in the past. Hamann explained that the general ledger reports might not be in 1/12th increments, as payments can be made quarterly or bi-yearly.

b. JEM Grant Application

As requested by Sekela, a copy of the grant application was distributed to the Committee. Mommaerts explained the grants have gone from Joint Effort Marketing (JEM) Grants to Destination Marketing Grants, and briefly reviewed the information.

c.ATV Map
The Committee was shown a copy of the ad that will be placed on the new ATV map.

  1. Review of Billboard Proposal from Koehne

The Committee was provided with a printed price comparison between Koehn and Next Media. Sekela asked about per view numbers for each sign, and Mommaerts stated both have the same traffic count. Mommaerts provided information on the owner and site location, and reviewed the price comparison with Next Media costs. Mommaerts indicted he thought the Committee should pursue this location only if they want a sign near the county line. It was the consensus of the committee not to pursue this opportunity as it is not in the budget, and the sign is on a less desirable side of the highway, and asked Mommaerts to thank Koehne for the offer.

  1. Reports

Projects & Activity Report
Mommaerts briefly reviewed the Report. Motion by Young, second by Glynn, to accept the Projects and Activity Report. Vote carried unanimously.

Report on Status of Revolving Loan Funds

Mommaerts distributed a printed summary of the Revolving Loan Funds outstanding loan total, the balances in the Funds, and the encumbered amounts. Discussion was held on the progress/situation with WEDC regionalizing RL funds. Mommaerts and those attending a WEDC informational meeting, concurred there is much work to be done. Hamann stated that regionalizing RLFs was discussed at a meeting he recently attended of WCA administrators, and WEDC is stating regionalizing is voluntary, but if not done no other funds will be available to those communities.

  1. Discussion with Finance Director and OCEDC on 2011 & 2012 Budget & Expenditures

Terry Hinds entered the meeting. Mommaerts gave much credit to Hinds and Rhode in working through issues. He reported the 2011 year end tracked by OCEDC, agrees with the County Finance General Ledger, and explained the difference between budgeted and spent funds. Mommaerts explained a change the Finance Department has implemented that will provide for vouchers that are submitted in a month to be paid in that same month.Mommaerts provided a 2012 adjusted budget that separated project income and expense from tax levy income and expense. He felt this was necessary as the County doesn’t acknowledge encumbrances on funds, and only reports the balance in an account. Mommaerts stated that for many years the income, from a Discovery Guide which was received within two calendar years, with expenses to be paid in the second calendar year, was not shown as encumbered. Mommaerts stated that in the past the Committee wanted to see all money from projects, whether going throughthe County accounts or not, which he stated he understood. Mommaertsagain reviewed the revised 2012 budget which separated out project specific income, which pays for projects the committee does, but which funds do not go through the County accounts. Mommaerts reported the real carry over from 2011 into 2012 is $1,884. Mommaerts reviewed 2012 adjusted budget general expenses, and reviewed adjustments made to Marketing and Promotion line in order to reduce expenses with the carry over being less than anticipated. He stated the billboard project and Davidson-Peterson Study were reduced. Hinds confirmed for 2011 the OCEDC tracking of revenue and expenses equal the County’s General Ledger, and agreeswith the $1,884 in fund balance carried into 2012. Mommaerts suggested that in future contracts with OCEDC the language be changed to correct a past practice that isn’t accurate, which states the County is contracting with OCEDC for the full tax levy amount. Mommaerts pointed out this isn’t accurate, as there are project expenses versus admin expenses. He also suggested separating out project income which will eliminate future confusion. Hinds asked why all of the income and expense isn’t submitted to the County, and Mommaerts explained it is cleaner when there are multiple investors in a project, and allows for faster response for payment, and meeting approval deadlines. Mommaerts gave an example of the website, with part of it being economic development based and part of it being tourism based, and income to support the website is s from different sources. Sekela summarized that JEM, Davidson-Peterson Study and billboard funds were reduced. Mommaerts said yes, as this was falsely making it look like there was more money in the Tourism account than there was. Rymer asked if the $6,000 for 2011 for JEM Grant match were carried over from 2011 into 2012. Mommaerts stated that was the intent, but the funds were not available to carry over, as he thought there was more money in the non-lapsing fund than was really there. Sekela commented the budget format is very confusing and a new format is needed. Rymer asked is Davidson-Peterson Study funds were spent in 2011, and Mommaerts replied no, that was part of the intended roll over, but the carry over is only $1,884. The Committee asked if Hinds was satisfied, and he responded yes. He stated that several things were accomplished; the OCEDC and County Ledger agree, the 2011 budget agrees with General Ledger,the December 31, 20111 fund balance is agreed upon , and the process for vouchers has been streamlined which will make it easier for OCEDC to reconcile the County General Ledger. Hinds stated that also accomplished was the creation of a more detailed General Ledger Report to the Committee which will make it easier to see the income and expense in relationship to 2012 budget.Rhode thanked Hinds for his assistance in the process. Hinds left the meeting.

  1. 2012 Governor’s Conference on Tourism

Rhode provided registration confirmations to each member.

  1. ED&T Tourism Committee Requests for Proposals
    Mommaerts reminded the Committee they released a Request for Proposals (RFP) for economic development and tourism services, with a January 31, 2012 deadline. Hamann reported that although he received several phone calls inquiring about the RFP, nowritten proposals were received, and the County is under contract with OCEDC for 2012.
  1. WEDC Information on Regional RLFs
    Written information provided at the January meeting held in Green Bay was provided to the Committee. Mommaerts stated that NEWREP and other economic development organizations will continue discussions, and as new information becomes available he will keep the Committee informed. Stellmacher indicated she attended the WEDC meeting in January as Chair of the ED&T Committee, but did not become aware of the RLF meeting until after the ED&T meeting. She asked the Committee for per diem and mileage for attending. Motion by Sekela, second by Linzmeyer,to authorize Stellmacher’s attendance at the RLF meeting, and reimbursement for mileage and a perdiem. Stellmacher directed staff to include on all future agendas a standing item authorizing attendance at meetings.
  1. Approve Payment of Vouchers
    Motion by Linzmeyer, second by Glynn, to approve the vouchers as presented. Vote carried unanimously.
  1. Set Next Meeting Date

The next meeting was scheduled for March 13, 2012, at 9:00 a.m.at the office of OCEDC.

  1. Adjournment

The meeting was adjourned by the Chair at approximately 11:45 am.

______

DonGlynn, Secretary

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