Fourth Annual and
Regular Monthly Meeting
March 14, 2001 – Holiday Inn, Manchester, NH
Commissioners in attendance:
CT: Bob Jacquier; Mae Schmidle; Robert D’Alessandro; Gabe Moquin, as designee for Shirley Ferris
MA: Bill Gillmeister, as designee for Jay Healy
ME: Fred Hardy; Colon Durrell; Stan Millay
NH: Powell Cabot; Doug Morris; Deb Erb
RI: Aaron Briggs; Peter Petrone; Al Bettencourt
VT: Jacques Couture; Andy Dykstra; Millicent Rooney; Harold Howrigan
Commission Staff in Attendance:
Tom Lehner, Staff Counsel; Nancy Audette, Office Manager
Chair Mae Schmidle convened the Fourth Annual Meeting of the Northeast Dairy Compact Commission at 10:40 AM.
Motion 3/14/01-AM by Commissioner Petrone, on behalf of
the Committee on Administration, moved to adjourn the Fourth Annual Meeting of the Compact Commission to
10:00 AM, Wednesday, April 11, 2001, at the Capital Plaza Hotel in Montpelier,
Vermont.
The Fourth Annual Meeting was adjourned to 10:00 AM, Wednesday, April 11, 2001, at the Capital Plaza Hotel in Montpelier, Vermont.
Chair Mae Schmidle called the meeting to order at 10:43 AM.
I. Public Participation
Carl Peterson of Agrimark, Inc. spoke of the need to address the adequacy of the Compact Over-order Price in the face of inflation and price increases for fuel and fertilizer.
II. Introduction of Guests
Carl Peterson, Agri-Mark Inc.; Bob Wellington, Agri-Mark, Inc.; Angela Lavallee; Steve Watrous, Allied Federated Cooperatives; Pat Green,Country Folks ; Leon Graves, Vermont Commissioner of Agriculture
III. Consideration and Approval of Minutes of the February 2, 2001 meeting
Moved to approve the minutes of February 7, 2001 as presented.
IV. Consideration of Communications
The Chair noted that Commissioner Howrigan had recently been honored by the National Dairy Promotion and Research Board for his significant contributions to that program. There were no other communications to consider.
V. Financial Report: Month Ending January 31, 2001
Commissioner Durrell, Treasurer, presented the financial statements for the Administrative Fund and the Producer Settlement Fund for the month ending January 31, 2001.
VI. Reports
A. Chair’s Report
Commissioner Schmidle requested that the Committee Chairs prepare and submit their Annual Reports for the Annual Meeting scheduled for April 11, 2001 in Montpelier, Vermont.
B. Executive Director’s Report
Mr. Lehner gave a brief substitute Executive Director’s report. He first reported that he and Commissioner Starr had personally witnessed Dan Smith’s marriage vows in Antigua, Guatemala in both a civil ceremony and a separate religious ceremony. Dan and his new wife, Flor, were enjoying a honeymoon in Paris and the Swiss Alps. Dan is expected back in the office on March 20.
Tom referred to the chart included in the meeting packet that outlined the payments to date of the Out-of-Business Escrow Payment Program and reported that, as of March 13, $17,035.89 had been paid out to 104 out-of-business producers for an average payment of about $164.00.
C. Committee on Finance
Commissioner Durrell reported that the Committee on Finance had met and has two recommendations for action to be taken up under New Business.
D. Committee on Administration
Chair Mae Schmidle reported that the Committee had met weveral times and will report under new business.
E. Audit Committee
No report for this meeting.
F. Committee on Regulations and Rulemaking
No report for this meeting.
VII. Old Business
No pending old business for this meeting.
VIII. New Business
Moved to file the Financial Reports for the period ending January 31, 2001 for audit.
Moved to amend the Commission’s Travel Reimbursement Policy, effective April 1, 2001, to read:
“Staff and Members of the Northeast Dairy Compact Commission, when away from home and office on official business of the Commission, shall be reimbursed for actual expenses incurred for travel accommodations, postage, parking, tolls, telephone, telegraph, express, other incidentals and per diem subsistence at $50.00 per day. Staff and Members of the Commission are expected to make a reasonable effort to procure lodging with as little expense as possible while not unreasonably sacrificing personal convenience and comfort.
And
For automobile mileage actually and necessarily traveled in the performance of official business of the Commission, Staff and Members of the Commission shall be reimbursed at the rate established by the General Services Administration of the United States Government. For airfare, train, bus or other public conveyance necessarily traveled, Staff and Members of the Commission shall be reimbursed actual and reasonable expenses.”
Commissioner Petrone, on behalf of the Committee on Administration, joined in support of the motion. He reported that the Committee had met to consider the proposal and had agreed to recommend the adoption of a $50.00 per diem for subsistence and the mileage rate of the General Services Administration which is adjusted periodically to reflect the cost of operating an automobile.
Commissioner Erb asked if
the policy applied to staff as well.
Tom Lehner explained that it did and that the per diem is meant to
offset the costs of meals and incidentals while on official business.
Moved to amend Motion 3/14/01-3 to delete “effective April 1, 2001” and substitute “Any increase in per diem rates or mileage rates for the Commission Members or Staff shall not take effect until the Over-order Price is increased.”
Commissioner Bettencourt asked that before the Commission recognizes the effect of inflation on travel costs, it ought to recognize the effect of inflation on dairy farmers.
Commission Jacquier commented that it’s not really a per diem since it is intended to cover just meal expenses. Commissioner Hardy agreed that it is merely a maximum.
Commissioner Howrigan pointed out that the costs of operating an automobile had increased over the last four years and that the $50.00 reflects reality regarding meal costs.
Commissioner Petrone reported that the Finance and Administration Committees were merely trying to bring Commission expense reimbursement into line with what the New England states provide for their employees.
Commissioner Briggs said that the farmers should be paid before the administrators.
Commissioner Dykstra was troubled by use of the word per diem but didn’t see the connection between the Commission’s cost reimbursement and price for farmers. The reimbursements are paid from the Administrative Fund and have nothing to do with the Over-order funds.
Motion 3/14/01-3b by Commissioner Erb/ Second by Bill Gillmeister
Moved to table the question.
MOTION FAILED 4 TO 2
Commissioner Couture asked Commissioner Durrell to explain the fiscal impact of the proposal. Commissioner Durrell referred to the two sheets in the packet that showed the travel expenses for Commissioners and staff for the years 1999 compared with 1998 and 2000 compared with 1999. He indicated that impact of the proposal on the budget would be modest.
Commissioner D’Alessandro said that the amendment of the Over-order Price has nothing to do with travel cost reimbursement and should be addressed in a different motion.
Motion 3/14/01-3a to amend by Commissioner Bettencourt renewed.
MOTION FAILED 5 TO 1
Motion 3/14/01-3c by Commissioner Petrone/ Second by Mr. Bettencourt
Moved to amend 3/14/01-3 in line four of the first paragraph by deleting the words “per diem” and substituting “actual cost of” and deleting the word “at” and substituting “up to”.
MOTION PASSED 6 TO 0
Motion 3/14/01-3, as
amended now reads:
Moved to amend the Commission’s Travel Reimbursement Policy to read, effective April 1, 2001:
“Staff and Members of the Northeast Dairy Compact Commission, when away from home and office on official business of the Commission, shall be reimbursed for actual expenses incurred for travel accommodations, postage, parking, tolls, telephone, telegraph, express, other incidentals, and actual costs of subsistence up to $50.00 per day. Staff and Members of the Commission are expected to make a reasonable effort to procure lodging with as little expense as possible while not unreasonably sacrificing personal convenience and comfort.
And
For automobile mileage actually and necessarily traveled in the performance of official business of the Commission, Staff and Members of the Commission shall be reimbursed at the rate established by the General Services Administration of the United States Government. For airfare, train, bus or other public conveyance necessarily traveled, Staff and Members of the Commssion shall be reimbursed actual and reasonable expenses.”
MOTION PASSED 5 TO 1
Motion 3/14/01-4 by Mr. Bettencourt/ Second by Mr. Briggs
Moved that the Commission undertake necessary procedures to increase the Over-order Price.
Commissioners Briggs and Hardy pointed out that the Committee on Regulations and Rulemaking is already analyzing options for increasing the Over-order Price. In response to a question by Commissioner Dykstra, Tom Lehner pointed out that prior to increasing the Over-order Price, the Compact and the Commission’s regulations require informal rulemaking with notice, comment, hearing, and referendum. That process would take at least 60 days. Commissioner Jacquier gave a detailed status report on the issues being examined by the Committee on Regulations in anticipation of making a recommendation in May.
Commissioner Erb stated that now is a good time to increase the price rather than waiting for reauthorization of the Compact. Commissioner Couture suggested that the Commission should defer to the Committee on Regulations. Commissioner Bettencourt said that there was a need for decisive action on the Over-order Price. Bill Gillmeister pointed out that the Committee on Regulations was hard at work and the Commission should let it do its job.
Tom Lehner asked if the intention of the motion that the Committee on Regulations was to open hearings on raising the Over-order Price and if so, he cautioned against that because it would trigger the imposition of the rulemaking regulations, including the ex parte communication rule. Commissioner Jacquier pointed out the Deb Brighton was working as a consultant with the Regulations Committee on an economic analysis of the Over-order Price and that we should wait for that work to be finished before taking action.
Commissioner Erb asked whether the Commission could instruct the Regulations Committee to open a Subjects and Issues hearing. Tom Lehner said that was possible but Bobby Starr had previously indicated the would recommend opening rulemaking with a proposal for a specified increase in the price and that it was now premature to do that. Commissioner Howrigan suggested we indicate to the Regulations Committee the urgency of adjusting the price.
Motion 3/14/01-4 Withdrawn
Commissioner Bettencourt withdrew his motion and Commissioner Briggs his second.
Motion 3/14/01-5 by Mr. Gillmeister/ Second by Commissioner Couture
Moved that the Committee on Regulations and Rulemaking report back to the Commission at the April 11, 2001 meeting on the appropriateness of increasing the Compact Over-order Price.
MOTION PASSED 6 TO 0
IX. Announcements: Opportunity for individual state comments
Vermont Agriculture Commissioner Leon Graves gave a report on the status of the work in Washington of the States’ Ratification Committee, in coordination with the Governors’ Council on Interstate Compacts. They are working on signing up sponsors for the bill to reauthorize the Compact. Commissioner Graves suggested that Commission members should check with either Bob Gray or their Agriculture Commissioners about which Senators and Congressmen had not yet signed on the bill.
Tom Lehner announced that the Over-order Obligation for February was $1.75 and the Producer Price was $.68. He then outlined the preliminary plans for the April 11 meeting at the Capital Plaza Hotel in Montpelier, Vermont. The Annual Meeting would convene at 10:00 AM and the regular meeting to follow at around 11:00 AM, with luncheon from 12:00 to 1:30 PM. A panel presentation and awards are then planned on the original effort to adopt the Compact. A joint press conference led by Governor Dean, Senator Jeffords, and Representative Sanders is scheduled for 2:00 PM and a reception with catered refreshments is planned from 3:00 to 5:00 PM nearby at Dan Smith’s new house in East Calais, Vermont.
Motion 3/14/01-6 by Mr. Bettencourt/ Second by Mr. Millay
Moved to adjourn.
MOTION PASSED 6 TO 0
Respectfully Submitted,
_________________________________
Douglas E. Morris, Secretary