Dear District Attorney Wambach,

I am concerned about the lack of public access to two organizations related to the operation of the City of Jefferson. I believe they should be conducted in open session subject to Wisconsin's open meetings law.

In 1984, a City Council task force created the Jefferson Development Corporation (JDC), a Chapter 181 Wisconsin corporation. This group oversees economic development in Jefferson such as administration of the industrial park. The JDC board now has eleven members. Its by-laws describe nine members, but there is a provision for two additional seats. Two are City of Jefferson officials, appointed by the Mayor with the approval of the Common Council. One is from the Chamber of Commerce, appointed by its board of directors. Six are from the JDC membership. Two additional seats exist.

The City is the only source of funding of the JDC. It has accumulated approximately $45,000 by not spending its allocations from the City. It maintains rent-free offices in the city's Carnegie Building. The City pays its Executive Director.

I spoke with former City of Jefferson Clerk Faith Elford, who said that during the first five years of her term, JDC meetings were always publically announced and the minutes posted, but this changed about two years ago, when the JDC's records were removed from public access at City Hall and moved to the Carnegie Building where they are no longer available to the public. Six months ago, she formally raised the issue of the JDC and the open meetings law with the City Administrator. The JDC decided that it was not subject to them.

When I asked City Administrator David Schornack about the JDC, he said the JDC is a private corporation that is not subject to open meeting law, and that they intended to keep its negotiations private due to the sensitive nature of corporations considering moving to Jefferson. I received a similar explanation from JDC Executive Director David Olsen, who said it would be a hassle to constantly go in and out of closed session, and for that reason ultimately it would be more expensive to the City to be subject to open meeting laws.

In 1993, the City Council formed the Commerce and Industry Association (CIA). In its by-laws, it is described as an association, not a Wisconsin corporation. Its by-laws do not describe any methods for membership or public meetings. Its by-laws describe a seven-member Executive Committee, appointed from fixed positions: the Mayor, a City Council member, the City Administrator, the President and Vice-President of the JDC, and the President and President-Elect of the Chamber of Commerce. The Executive Committee is charged with hiring and overseeing a full-time Executive Director position. This position was first held by Bob Coffman and is now held by David Olsen.

According to the CIA by-laws, this position is "responsible for the day-to-day operations of the Chamber of Commerce and the Development Corporation." The CIA's sole source of funding is the City of Jefferson. The City's 1999 budget allocates $43,000 to the CIA, split three ways between the City, the Sewer utility, and the Electric utility. This pays the Executive Director's salary of $32,400 plus benefits. The CIA receives no other funding.

The Chamber of Commerce is a private, for-profit corporation. It also maintains its offices in the Carnegie Building. In 1998, the Chamber received $12,000 from the City. In 1999, this was reduced to $6,000.

The rent of the Carnegie Building is complicated. The City rents it to the Council for Performing Arts (CPA) for $500 a year. The CPA pays itself $110 a month for rent, and manages a fund to pay the utilities, cleaning, insurance and all maintenance expenses less than $750. The JDC pays nothing to house its offices there. The Chamber pays $75 for the space for the Executive Director and its Secretary. The Wisconsin Art Educators Association rents the basement for $135 a month. The Jefferson Historical Society pays $135 a month to house its Museum.

I spoke to Gaylin Morgan, a founding member of the JDC and current President of its Board of Directors. He said he'd always hoped the JDC would have broad public support and participation. The JDC by-laws state that membership is open to any Jefferson area resident upon payment of annual dues; however, at this time, there are no dues. When I asked to become a member, I encountered only resistance from David Olsen and it's still not clear whether I am a member or would be allowed to attend its meetings. Morgan welcomed me to join. Another Board member welcomed me with the admonition that "they didn't want the group to get too large."

I implore you to investigate the Jefferson Development Corporation and the Commerce and Industry Association with regard to the Wisconsin open meeting laws. These groups were formed by the City, sustained with public funds, and operate from city buildings. In this way, the situation resembles the 1991 opinion of the Attorney General concluding that the Milwaukee Economic Development Corporation fell under open meetings law. If you have any questions, please feel free to call me at 674-5200.

Sincerely, 

John Foust