DRAFT MINUTES
APRIL 5, 2000
WAYFARER INN,
BEDFORD, NH
Commission Members in Attendance:
CT: Shirley Ferris, Robert Jacquier, Mae Schmidle.
MA: Mary Kassler, Charlie Arbing, Jim Hines.
ME: Fred Hardy, Colon Durrell, Stanley Millay.
NH: Doug Morris, Debora Erb, Powell Cabot.
RI: Ron Newman, Al Bettencourt Jr., Aaron Briggs, Peter Petrone, Jametta Alston.
VT: Bobby Starr, Harold Howrigan, Andy Dykstra, Millicent Rooney, Jacques Couture.
Ex Officio Members Present:
Leon Graves, Commissioner, Vermont Department of Agriculture, Foods and Markets.
Commission Staff Present:
Kenneth Becker, Executive Director; Dixie Henry, General Counsel; Carmen Ross, Regulations Administrator; David Ferch, Public Information Director; and Patricia Lammott, Temporary Office Assistant.
Vice Chair Mae Schmidle called the meeting to order at 10:45 a.m. on Wednesday,
April 5, 2000.
Public Participation:
None
Introduction of Guests:
Two new commissioners were introduced: Stanley Millay of Maine and Jametta
Alston of Rhode Island.
Consideration of Minutes:
Mr. Hardy said that motion 3/1-3 failed to include the designation of “Class 1”
in reference to the Federal Milk Market Order price. He moved to adopt the
minutes with this correction.
Moved that the minutes as corrected be adopted.
Consideration of Communications:
Mrs. Schmidle read an email message from Maine Commissioner of Agriculture
Robert Spear notifying the Commission that Fred Hardy is named to Committee on
Administration in Linda Dyer’s absence.
Financial and Budget reports for the months ending January and February:
Mr. Cabot said the Finance Committee met by phone and recommends the Commission
approve the payment of the Market Administrator’s bill.
Mr. Cabot said the accountants have added a designation on the balance sheet
regarding the money sent back to Maine.
Mr. Starr asked about the surplus account and the Commission’s ability to waive
an administrative assessment if warranted. Mr. Cabot said the Finance Committee
will review the matter.
Mr. Cabot said he would like to propose a one-page presentation formatting
change to the financial documents.
Ms. Alston asked about the year-to-year and month-to-month reports and the
accountant’s statement regarding compilation of financial materials.
Mr. Becker said the
formatting change could be readily prepared for a cost. He indicated that the
annual audited financial statements are annotated while the monthly compiled
statements are not.
Reports:
Chair’s Report:
Mrs. Schmidle said the Committee on Administration met and discussed the
acquisition of insurance, anti-Compact legislation being introduced in
Massachusetts, and the New York State Dairy Foods Association case.
Executive Director’s Report:
Mr. Becker discussed the producer referendum on the proposed technical
corrections to the Compact regulations, the acquisition of an insurance policy
for the Commission and progress on reports by the auditors and accountants.
The March pool for
$6.9 million was disbursed. The Over-Order Obligation was $2.98 and the
Over-Order Producer Price was $1.29.
Mr. Becker said he
attended the annual meeting of Massachusetts Cooperative Milk Producers
Federation the preceding week.
Mr. Becker said that
in response to a previously reported communication from USDA he is preparing an
analysis for review by the regulations and rulemaking committee and the
Commission for submission to the USDA regarding the CCC.
Mr. Becker also said General Counsel Henry and the attorneys from Wiley, Rein
and Fielding submitted a brief in the New York State Dairy Foods Association
case to the Supreme Court on Friday.
Mr. Newman asked
about the insurance policy. Mr. Becker said the Director’s and Officer’s policy
is identical to previous policy except the premium and deductible are higher.
Mr. Arbing said he believes there will be no more lawsuits filed by processors.
Mr. Arbing also said he believed the use or non-use of lawyers by the
Commission is dependent on the recommendation of the General Counsel.
Ms. Alston expressed concerns about the new insurance policy.
Mr. Becker said the new policy covers any new claims of which the Commission
has no current knowledge, while existing claims would continue to be covered by
the prior carrier.
Mr. Starr asked if
the Commission has enough money to cover the deductible.
Mr. Becker said the
budget was crafted to take the eventuality into account.
Mr. Becker also
discussed the process of securing the insurance policy.
Mr. Starr asked if the Commission had been kept apprised of the progress of the
New York State Dairy Foods case.
Mr. Becker said the
minutes of the March meeting reflect the issue has been discussed.
The Commissioners discussed the news segment on milk pricing that appeared on
the Lehrer News Hour.
Mrs. Schmidle said she would like to see the Executive Director’s report put
into writing.
Finance Committee Report:
Ms. Ferris said the Finance Committee should maintain the reserve fund with
the potential of paying the deductible in mind.
Mr. Dykstra asked if the Commission could use reserve funds on reauthorization.
Mr. Becker said the
Compact does not provide for such a use and he would advise against it.
Committee on Administration:
Delivered above.
Audit Committee:
None
Bylaws Committee:
Ms. Erb said the committee met on March 23rd. A memorandum provided
to the Commission will be discussed later.
Committee on Regulations and Rulemaking:
Mr. Starr said the
committee has not met since last meeting. He said he has discussed the
testimony regarding the CCC with Mr. Becker. The committee will meet before
next meeting to discuss the CCC and to follow the public hearing being held
this afternoon.
Old Business:
Bylaws Committee Recommendations:
Ms. Erb said a memorandum detailing proposed changes to the bylaws and the
proposed personnel manual was given to the Commissioners. The Commissioners
should review the proposals for discussion at the May meeting. If everyone
agrees, the changes can be voted on then. If further changes are required, the
adoption of the changes can be postponed another month.
Ms. Alston said
there could be no conflict with the enacted bylaws and proposed personnel
manual.
Ms. Kassler said
many problems could be avoided by addressing potential problems in the bylaws,
which would then clear the way to the adoption of the personnel manual.
Committee on Rules and Regulations:
Mr. Starr reported that in the producer referendum on the proposed technical corrections
to the Compact regulation 3,982 ballots were mailed. 3,064 were returned of
which 42 were disqualified. 3,022
ballots were cast, of which 3,015 were cast in favor of the changes. Seven
ballots were cast in opposition. The results were signed March 21.
Ad Hoc Personnel
Committee:
Mr. Petrone said the
committee would meet in April and provide a report at the May meeting.
Moved that the Federal Milk Market Administrator’s Invoice – January 2000 Pool and Audits Completed During February be paid.
Moved to Accept the January and February 2000 Financial Statements and file for Audit Purposes.
Committee on Administration:
Mrs. Schmidle said there were no recommendations.
Committee on Regulations and Rulemaking:
None.
Report from Massachusetts:
Mr. Hines said the state of Massachusetts has become aware of an attempt to
file legislation to withdraw Massachusetts from the Compact. The proposed
legislation includes a subsidy payment for the state’s farmers to come out of
the general fund.
The Massachusetts
Farm Bureau previously had a strong campaign, Save the Family Farm, which has
been reactivated and will meet Friday. Commissioner of Agriculture Healy has
been in touch with the governor who has offered strong support for
Massachusetts’ continued role in the Compact.
Mr. Dykstra asked who is sponsoring Massachusetts’ withdrawal.
Mr. Hines said that
International Dairy Foods Association appears to be behind the effort.
Mr. Starr offered whatever support might be appropriate.
Mr. Bettencourt asked about the procedure for withdrawing from the Compact. He
was told that the state legislature must pass a bill repealing the enabling
legislation and that it would then take effect a year later.
Announcements:
Mr. Becker said the
Centennial Inn approached staff with a proposed contract. The Centennial Inn
would reserve meeting space on the first Wednesday of each month from May
through December. This would alleviate month-to-month planning. The contract
would include a preferential discount.
Moved to Accept a Proposal from the Centennial Inn in Concord as our meetings place on the first Wednesday of every month through December 2000.
The Commissioners debated the merits of entering into a contract with the Centennial Inn.
Moved the previous question
Vote on Motion 4/5-3 to accept a Proposal from the Centennial Inn in
Concord regarding the meeting place.
MOTION PASSED 6 TO
0
The meeting recessed
for lunch at 12:25 a.m.
Following a public
hearing at 1 p.m., the Commission returned to open session.
Ms. Alston asked
about the Compact’s procedure in the event of a prolonged absence by the chair.
Mr. Starr said that if an officer is ill for extended period, that person takes
it upon herself to resign and Commission moves forward with the established
officer selection process.
Mr. Dykstra said the
members of the audience had not been introduced.
At the request of
Mrs. Schmidle the members of the
audience introduced themselves. They included Susan Harlow, Pat Green,
Ellen Taggert, Pete Gregg, Jenny Nelson, Guy Choiniere, Jacques Rainville,
Steve Watous, Carl Peterson, Ray Christensen, Gail Christensen, Kay Zeosky, and
Erik Rasmussen.
Public Statement:
Mr. Briggs said a Rhode Islander made Hoard’s Dairyman Round Table, a notable
distinction.
Ms. Ferris said a Connecticut farmer was a
JC Young Farmer national winner.
Executive Session:
Ms. Ferris said she would offer a motion to go into executive session and added
that she is obligated to alert the subject because the subject of the executive
session has the right to attend the session.
Mrs. Schmidle read bylaws as to what grounds could be used to call an executive
session.
While Ms. Ferris reviewed the bylaws, Mr. Graves gave a report of Compact
authorization efforts.
Mr. Howrigan said a bill has been introduced in the Senate to kill the Compact.
Mr. Arbing asked
about New York’s role in the authorization effort.
With permission, Mr. Peterson explained that New York has been consistently
supportive and has played a significant role in the Compact authorization
efforts.
Motion to go into executive session for Section B, Article 5, Item i – evaluation of an employee.
The Commission emerged from executive session and adjourned at 3:55 p.m.
Respectfully
Submitted,
Mary Kelligrew Kassler, Secretary