Revolving fund to finance mobile gourmet coffee firm

Tuesday, April 8, 2003

Red Willow County commissioners okayed a loan from the county's revolving loan fund to help finance a new business in McCook and purchased a used pickup for the county's weed department during their first-ever Monday morning meeting.

Commissioners -- who changed their regular meeting from Tuesday afternoon to Monday morning to better accommodate commissioners' work schedules -- okayed a $15,000 loan from the county's revolving CDBG loan fund to Daniel and Amy Jones of McCook, who plan to develop a portable drive-through gourmet coffee and cappuccino business in a kiosk. The loan will be repaid at 3 1/2 percent interest over six years. The $15,000 is half of the cost of the total project; the remaining amount is being borrowed from the Rural Enterprise Assistance Program of the Center for Rural Affairs. The business creates one full-time job with benefits.

Kay Lavene, director of McCook Economic Development, which oversees the loan program for the county, told commissioners the Jones' payments will be put back into the loan fund, and made available for other loans. This is the same fund, Lavene said, that has helped finance two dairies north of McCook, a crane for Doak Construction and the creation/expansion of Gaston Lawns and Landscapes and Pet Pros.

Lavene said she would like to encourage more people to apply for the loan funds.

Commissioners opened bids on a used pickup for Bill Elliott's weed department, and, once again, wrestled with the options ---- buy the least-expensive, equally-serviceable pickup or buy the more-expensive pickup that more closely met the specs they outlined in the bid advertisements.

Commissioners had asked for a 2000 model or newer with 45,000 or fewer miles.

Wagner Ford-Mercury of McCook offered a 2000 Ford F250 7.3 liter diesel 4x4 with 68,877 miles for $17,995; and a 2000 Chevrolet K2500 4x4x 350/V8 with 55,908 miles for $13,239. Howard Kool Motors offered a 2000 Chevy Silverado 3/4-ton 4x4 with 21,900 miles for $17,515.

Commissioners eliminated a bid for $14,850 from Budke Motors, because the dealer would have to find a pickup to fit the specs if they were awarded the bid. Commission Chairman Earl McNutt said commissioners were not comfortable bidding on a vehicle in this manner.

Commissioner Steve Downer made a motion to accept the bid from Wagner, but his fellow commissioner, Leigh Hoyt, said, "I'd be all for saving money if we hadn't specified miles in the bid."

The Chevy pickup at Wagner Ford has 10,900 miles more than what commissioners requested in the bid advertisement, and 34,008 miles than the Chevy pickup at Howard Kool Motors. The Wagner Chevy costs $4,276 less than the Kool Chevy.

Hoyt continued, "What we buy where doesn't mean a thing to me, but it's not fair to Howard (Kool) if we go outside the bid specs."

Downer and McNutt, however, couldn't ignore the lower price on the bid from Wagner's, for what McNutt called an equally-serviceable pickup. "Are 34,000 (less) miles worth 42 hundred dollars?" McNutt asked.

McNutt seconded Downer's motion to purchase the Wagner Chevy pickup, saying, "I know I'm going to catch some flack, but with the economy the way it is, I'm going to vote for it (the Wagner Chevy). It's a chance for the county to save some money, and the pickup will do the job for us."

Commissioners approved a flood plain variance for Doug and Trevor Taylor of McCook, who plan to build an agricultural metal building near Bartley to store their tractors and a front-end loader.

The variance will allow the Taylors to build the 40x75-foot structure below the base flood elevation, providing the building is single-wall construction, the electrical service is above the flood plain and they install automatic flow-through louvers.

Commissioners met with the county's elected officials to discuss upcoming budget challenges, wages, across-the-board raises and/or merit raises and increases in insurance costs.

Although McNutt suggested across-the-board raises, Hoyt recommended holding wages where they are now and creating a budget that is the same as 2002-2003 or even lower.

Hoyt cited economic challenges, such as the ag economy, less state funding for counties and irrigated land that may ultimately be taxed at dry land rates because of the drought, to justify his recommendation. Hoyt said he would rather forego raises and keep the current employees, than have to start eliminating positions to offset raises.

Sandra Kotschwar, county assessor, said she would like to give her employees raises and keep the experience they are gaining. Kotschwar said department budgets are already very conservative, and she has cut her budget in the past five or so years to offset increases in salaries, but added, "We're at the bottom now," she said.

Sheriff Gene Mahon said he works hard to offset increases and variabilities within his budget -- such as gas prices and prisoner housing costs. He said he would also like to provide employees incentives to stay with the county -- keeping good people and maintaining and enhancing the caliber of his staff.

McNutt agreed, "We do a pretty darned good job at watching the budget already."

County Attorney Paul Wood reminded commissioners that they do not set salaries. "The board approves the overall budget," Wood said, "and ultimately, elected officials set the salaries. The board doesn't set wages."

Downer said although he would not like to cut insurance benefits, insurance costs must be monitored closely. County Treasurer Marleen Garcia told commissioners, "Our benefits are very important to us."

County Clerk Pauletta Gerver reminded her fellow officers that county jobs are very good jobs -- most are 35 hours a week, 8 a.m. to 4 p.m., an hour off for lunch, no weekends, two weeks vacation after one year, family insurance benefits. She encouraged them to compare these to other full-time job opportunities.

Wood, Kotschwar and Mahon described instances where employees do work overtime, for which they accumulate compensation time. Sometimes it's difficult to accommodate the comp time, Garcia said.

Mahon said, "There are lots of employees who are willing to work overtime, if needed, to get the job done."

Commissioners and elected officials will discuss wages at another meeting before budgets are written this summer.

In other action, commissioners:

- Heard from Sheila Hrnchir, housing director for the McCook Economic Development Corp., about a housing grant MEDC is requesting from the Nebraska Department of Economic Development, to provide down payment and closing cost assistance and buyer education to low-moderate income families.

- Adopted a resolution confirming the county's compliance with the federal government's Health Insurance Portability and Accountability Act. Commissioners appointed Deputy County Attorney Phil Lyons as the county's chief compliance officer.

- Set advertising dates (April 11 and 18) and a bid-opening date (April 21, 10 a.m.) for roadside chemicals.

- Approved health insurance claims and reviewed and filed monthly reports from the county clerk and clerk of the district court.

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