Jail switches data managers

The server will run approximately $4,000. Evercom will provide the jail with the money to buy the server as part of their new jail management system. Heathcote also provided the board with some projected upgrading cost.

After further discussion the board accepted the IT proposals.

Midwest Data’s contract will expire July 30. They are the jail’s present IT department and host its website.

Eugene Walker, Pattonsburg mayor, discussed the utility bill at the factory. The jail has been using the factory building for meetings and training sessions. The city will turn the electricity on at the factory for the days of the jail’s monthly meeting and otherwise it will be turned off.

The financial report was given by Norma Crabtree. June’s aging report was $16,484.71. Commissary grossed $12,126.35. Balances in the following accounts were: Sales Tax, $197,353.04; Operating, $33839.51; Payroll $538.38.

Micki Knowles name is to be removed from all bank accounts as a signer.

Steve Grant, CPA, recommended the board set a dollar amount to determine the difference between expenses and capital purchases for fixed assets. The board voted that any fixed asset purchased for $750 or over become a capital asset instead of an expense.

Bids will be put in the paper for the roof repair, depending on the refinancing of the jail. The bid will include a clause that bids may be rejected.

Bids for the two vans were opened. Pat Smith bid $150 for each van, total $300; Pettit Farms bid $275 for each van, total $550; and Jeff Foli bid $285 for each van, total $570. The bid was awarded to Jeff Foli.

AETNA Insurance notified the jail it could acquire $20,000 ($40,000 accidental) Life Insurance for each employee at a very low premium, based on age. The employee is covered for as long as they work at the jail. Once they are not on the payroll, their benefit will expire. For the jail’s employees now working, the premium will run around $300 per month. The board members agreed to acquire the insurance as an added benefit to the jail’s employees.

Scotland County has been added to the jail’s customer list.

Lance Critten asked for minutes and financials of the jail. He was given those reports. Critten was concerned over the refinancing of the jail. He said coffee shop talk was it was a waste of money. Critten said the jail could pay off the debt as early as they wanted and after five years there were no interest charges anyway.

The jail’s refinancing company, D.A. Davidson & Co., has informed the jail it would save around $160,000 in interest.

Next regular meeting will be July 22, 2011, location to be determined.

The above are the unofficial minutes of the meeting held June 29. Present were Harold Allison, DeKalb County Commissioner; Randy Sims, Daviess County Commissioner; Sheriff Wes Raines, DeKalb County; Sheriff Ben Becerra, Daviess County; Administrator Bob Gray, Norma Crabtree, Administrative Assistant; Ed Howard, Mayor Eugene Walker; Lance Critten; Lesa Heathcote, IT Services Pros, LLC, Chief Technology Officer; Ken Nelson, IT Tech.

Charlie Zitner, senior vice president, public finance banker with D.A. Davidson,

was not present at the meeting. He provided Bob Gray, the jail’s administrator, with a letter in which the following was stated:

The interest rates on the remaining Series 2006 Certificates (2011 – 2016) range from 4.2% to 4.7%. The average interest rate on the remaining certificates is 4.56%

The proposed (preliminary) interest rates on the new certificates (2011 – 2015) range from 1.25% to 3.05%. The average proposed (preliminary) interest rates on the new certificates will be 2.59%.

This is a 44% reduction in interest rate.

The total interest remaining on the Series 2006 Certificates is approximately $370,000 if you do not refinance

The total interest remaining on the Series 2006 Certificates is approximately $144,000 if you do refinance

This is a 60% reduction in the interest expense.

This is after paying the Costs of Issuance.

In summary: Interest rate will be lower. Term will be shorter. It will not cost the District, it will save the District.