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02-04-2019 Meeting Minutes BOC February 4, 2019 1 PERSON COUNTY BOARD OF COMMISSIONERS FEBRUARY 4, 2019 MEMBERS PRESENT OTHERS PRESENT David B. Newell, Sr. Heidi York, County Manager Gordon Powell C. Ronald Aycock, County Attorney Jimmy B. Clayton Brenda B. Reaves, Clerk to the Board Kyle W. Puryear B. Ray Jeffers The Board of Commissioners for the County of Person, North Carolina, met in regular session on Tuesday, February 4, 2019 at 9:00am in the Person County Public Library Gallery. This meeting designated for the Board Retreat focused on Fiscal Year 2019-2020 Budget. Chairman Newell called the meeting to order. Commissioner Powell offered an invocation and Vice Chairman Jeffers led the group in the Pledge of Allegiance. DISCUSSION/ADJUSTMENT/APPROVAL OF AGENDA: It was the consensus of the Board to accept the agenda as presented. DISCUSSION/ADJUSTMENT/APPROVAL OF CONSENT AGENDA: A motion was made by Commissioner Powell and carried 5-0 to approve the Consent Agenda with the following items: A. Report of Unpaid Taxes, and B. Advertisement of Unpaid Real Estate Taxes STRATEGIC PLAN PRIORITIES: Assistant County Manager, Sybil Tate led the Board in discussion related to its Fiscal Year 2020 budgeting priorities as well as facilitated the Board’s discussion in the development of an updated Strategic Plan and/or an Action Plan. Ms. Tate shared the following slides to guide the discussion: February 4, 2019 2 February 4, 2019 3 February 4, 2019 4 February 4, 2019 5 The Board discussed the following priorities, in no particular order: Economic Development, Education, Government Efficiency, Public Safety, Quality of Life, and Human Services. While all priorities were deemed important, it was the consensus of the group that the top three unranked priorities were Public Safety, Economic Development and Education noting that the three are all tied together. Ms. Tate explained the Strategic Plan was a long-range plan, i.e. 5-year plan whereas the Action Plan was a short-term for the next 1-2 years. Much of the discussion revolved around needed assistance with the opioid crisis within Person County. Vice Chairman Jeffers stated the National Association of Counties (NACo) had programming in place and Person County could now review what has or has not worked in other counties as Person County sets its plan in place. Commissioner Clayton noted that Vance, Granville and Alamance Counties had implemented programs. Ms. Tate reminded the Board of funding in the mental health budget that provides training for first responders with the Narcan kits as well as the recently implemented program in the Jail to lower the recidivism rate, both viewed as successful. Vice Chairman Jeffers asked for education related to co-sleeping noting the infant mortality rate in Person County is above the state-wide average. Vice Chairman Jeffers suggested the Board implement a board driven Action Plan and Strategic Plan. Chairman Newell stated the Board should pursue as a unit to set the plan and to target one item at a time to complete and then go on to the next item. County Manager, Heidi York asked if the Board would agree to have additional work sessions to set its strategic priorities to which they all agreed. February 4, 2019 6 ELLIOTT DAVIS, PLLC, AUDITOR’S PRESENTATION: Ms. Rochelle Friend, Senior Manager with Elliott Davis provided the following information related to the Financial Statement Audit Summary: February 4, 2019 7 February 4, 2019 8 February 4, 2019 9 February 4, 2019 10 The Comprehensive Annual Financial Report for the Year Ended June 30, 2018 was handed out to the group. Ms. Friend and Finance Director, Amy Wehrenberg answered questions related to the County’s total debt and the net pension liability. February 4, 2019 11 DEBT MODEL PRESENTATION: Mr. Douglas Carter, President and Mr. Andrew Carter Vice President of DEC Associates Inc. of Charlotte provided the following presentation to the Board related to their services for County Financial Planning for advice for Capital Needs and Debt Affordability alternatives: February 4, 2019 12 February 4, 2019 13 February 4, 2019 14 February 4, 2019 15 February 4, 2019 16 February 4, 2019 17 February 4, 2019 18 February 4, 2019 19 DEC Vice President Carter said DEC would need a good year to develop a plan. Assistant County Manager, Sybil Tate asked for a plan for Fiscal Year 2021, when would DEC need the information from the Schools for its analysis. DEC President Carter stated the Schools should develop its list of priorities, the timing for those priorities and the associated costs for each priority explaining how they got to that cost; he added DEC would need that information by the fall of 2019 or soon thereafter. Chairman Newell announced a brief break at 11:11am. The meeting was reconvened at 11:18 am. County Manager, Heidi York stated she and Amy Wehrenberg, Finance Director were available to facilitate any further discussion or information needed related to any of the presentations thus far. Chairman Newell asked staff about the costs related to DEC financial planning for the County’s debt model. Assistant County Manager, Sybil Tate said the cost was $35,000 for the Debt Model for Person County and thereafter the model was delivered, the County could contract for them to remain as the County’s financial advisors, if deemed appropriate. The Board asked staff if they recommended pursuing a financial plan for a debt model to which Ms. Wehrenberg stated DEC specializes in debt modeling and that they could add layers to the Capital Improvement Plan that she does not have the resources. She added the advice would empower the Board for an option or options for a best decision, the County’s credit rating may improve and the County’s financial policies would be enhanced. Ms. York stated with the level of debt coming to the County from the Schools, the timing was right to pursue financial advice. A motion was made by Chairman Newell and carried 5-0 to hire DEC for its Debt Model services. Commissioner Puryear asked Ms. Wehrenberg how did the new auditor and its services compare to the previous auditor (Creech & Evans) to which she noted it was a different experience and process, mainly due to the first year association with the new firm. February 4, 2019 20 REVENUES: Tax Administrator, Russell Jones provided the following information to the group related to the County’s Revenues: February 4, 2019 21 February 4, 2019 22 February 4, 2019 23 OSFM ISO RATING PRESENTATION: Mr. Brian Cox, Fire Rating Inspector along with Mr. Tony Bailey, Fire Rating Inspector with the NC Department of Insurance-Office of State Fire Marshal (OSFM) Ratings and Inspections Division stated the Ratings and Inspections Division is responsible for inspecting and surveying fire districts for minimum 9S requirement for fire protection under the North Carolina Response Rating System. The Division also serves as a resource to fire districts, local governments and emergency personnel. Chairman Newell asked the fire rating inspectors to explain what Person County needs to do to result in a lower ISO rating for citizens, similar to what Caswell County recently achieved. Mr. Cox noted Caswell County had been working on a lowering its ISO rating for three years. He indicated that first, all VFDs have to agree to work together to implement the plan, then establish and certify all-weather access to water points, have three years of good records, the appropriate maintenance, testing, training, roster of manpower, and approved equipment. Mr. Cox said it would really be helpful to have a knowledgeable person with the process to lead the effort for the County. Mr. Cox further noted that all VFDs are struggling to keep the needed volunteers and the mandated 15 certified on the roster. Mr. Bailey explained the OSFM fire suppression rating system based on the criteria ISO uses in reviewing the major elements of a community’s fire protection system and develops a numerical grading system evaluating facilities and practices; this system assigns credit points for each item. The NC OSFM calculates a total score on a scale of 0 to 105.5 after consideration of emergency communications, fire department (including operational) and water supply. In addition, community efforts to reduce losses through fire prevention, public fire safety education and fire investigations are also recognized. The scale is outlined below: Class 1 90.00 or more points Class 2 80.00 to 89.99 points Class 3 70.00 to 79.99 points Class 4 60.00 to 69.99 points Class 5 50.00 to 59.99 points Class 6 40.00 to 49.99 points Class 7 30.00 to 39.99 points Class 8 20.00 to 29.99 points Class 9 10.00 to 19.99 points Class 10 0.00 to 9.99 points (no fire protection) February 4, 2019 24 County Manager, Heidi York asked Mr. Cox to address the possibility of VFDs to merge. Mr. Cox stated there was a trend whereby VFDs will consider a merger, thus having the main fire station (mandated 15 certified volunteers on roster) and a sub-station (mandated 4 certified volunteers on roster) noting the total would be 19 required versus 30 as two separate fire stations. Mr. Cox said Person County, as the contracting agency could request a merger. Mr. Cox indicated another trend was that counties are transitioning to paid, part-time staff. Vice Chairman Jeffers asked County Attorney, Ron Aycock if a VFD folds, what happens to its assets. Mr. Aycock stated the contract may outline what happens to the assets, and if not, there was nothing in the general law. Mr. Aycock said just because the county provides funding that was not a claim to the assets. He added corporate charters provide for disposition of assets; some charters provide that the assets will be distributed to a government entity or the charter may provide its assets to be distributed to any other non-profit. Mr. Aycock confirmed that real property law provides that should a land owner give property to a VFD on condition that it be used as a VFD, and it ceases to be used as a VFD, the property has to be returned to the original owner. Vice Chairman Jeffers stated there is a VFD in the county that is currently on probation with the OSFM and he wanted to be proactive to have the fire protection services in that area not to jeopardize citizens or industry in that community. He added that his preference was not to make the upcoming payment to this VFD unless they are in good standing with the state. Mr. Bailey stated that May 22, 2019 is the final date for remedy noting there will be a meeting in March that will include the County Manager, Board of Directors President, and the Fire Chief for an update. Mr. Bailey confirmed the two deficiencies included 1) manpower and 2) instant reporting. A motion was made by Vice Chairman Jeffers to hold Woodsdale Volunteer Fire Department’s next payment from the County until in good standing with the state. Ms. York confirmed the budget appropriation for Woodsdale Volunteer Fire Department is $123,871; she added that according to the contract, the County has to notify them in writing regarding a breach of contract and they have 30-days to correct it. After that point, committed funding can be withheld or reduced if the corrections are not in place. An amended motion was made by Vice Chairman Jeffers and carried 5-0 to give notice in writing to Woodsdale Volunteer Fire Department of the breach of contract. February 4, 2019 25 Related to the remaining funding allocations that are budgeted to be distributed to the VFDs, Ms. York asked the Board’s consideration to disburse the funding in one-lump sum versus the multiple disbursements. A motion was made by Commissioner Clayton and carried 5-0 to provide the remaining budget allocations to the VFDs in one lump sum payment according to the schedule as set up by the Finance Department. Chairman Newell announced a brief break at 12:35pm. The meeting was reconvened at 12:39pm. PREVIEW OF NEEDS IN FY2020: County Manager, Heidi York shared the following presentation with the Board highlighting a Preview of Needs for Fiscal Year 2020 for both Capital and Operating as known at this time. Ms. York stated she has received an amended Capital request from Person County Schools and was anticipating an amended Capital request from Piedmont Community College. Ms. York noted the Operating was based on discussions with departments; departments will officially submit its Operating requests within a week or so. Ms. York’s presentation follows: February 4, 2019 26 Chairman Newell asked the County Attorney to investigate the procedures involved with private/public partnership, i.e., for the Exec. Airport Hanger or any other joint venture. February 4, 2019 27 Ms. York noted the Schools’ Superintendent requested a meeting with the Chairman, Vice Chairman and herself to further discuss their funding needs. She added staff have requested the school’s plan for schools to remain open or to be closed prior to the County committing to Capital funding. February 4, 2019 28 February 4, 2019 29 Vice Chairman Jeffers stated a potential request to the Recreation Advisory Board from citizens with children that have disabilities for a wheelchair accessible swing. Ms. York explained the Operating Requests known at this time include an update to the Land Use Plan that is 20 years old that affects economic development substantially. She noted that the City of Roxboro is interested in a joint Land Use Plan development with the County should the County be interested. If interested, the funding could be split $60,000 by the City and $125,000 by the County. Chairman Newell requested a copy of the Land Use Plan. Ms. York told the group that she is bringing some policy updates to the Board at its next meeting; one being the change from a cell phone stipend to a county owned cell phone because the IRS rules have changed and the ability to archive and to more easily fulfill requests for public records. IT Director, Chris Puryear added text messages are public records that need to be archived. Mr. Puryear stated for security purposes and to comply with state laws, he was hopeful to realize a cost savings. Chairman Newell stated the Library Advisory Committee was hopeful to raise the full $59,000 if the $100,000 grant was awarded. Ms. York spoke of the unknown costs for the proposed compression study that would address the movement across the pay scale noting the informal bids for the study would cost $19,500 however the implementation costs are unknown at this time. BUDGET WRAP-UP: County Manager, Heidi York stated staffs’ intent to develop a budget reflecting the priorities of the Board highlighting that education, economic development and public safety remain the key pillars for funding for the next fiscal year. She said for any direction or strategies that any of the commissioners would like to offer to staff would be helpful. A motion was made by Vice Chairman Jeffers and carried 5-0 to eliminate the animal fee effective July 1, 2019. February 4, 2019 30 RECESS: Chairman Newell announced at 1:10pm the meeting was in recess until 2:30pm in the Commissioners’ boardroom 215 in the County Office Building. Chairman Newell called the recessed meeting to order at 2:35pm. CLOSED SESSION #1 A motion was made by Vice Chairman Jeffers and carried 5-0 to enter into Closed Session at 2:35pm per General Statute 143-318.11(a)(3) for the purpose to consult with the county attorney in order to preserve the attorney-client privilege with the following individuals permitted to attend: County Manager, Heidi York, Clerk to the Board, Brenda Reaves, County Attorney, Ron Aycock, and Assistant County Manager, Sybil Tate. A motion was made by Commissioner Powell and carried 5-0 to return to open session at 3:11pm. Chairman Newell asked the County Manager to provide a list of mandated services required by the Health Department. He added he requested a balance sheet noting their expenses are going up and revenues are decreasing. County Manager, Heidi York stated the Board of Health Chair, Dr. Atkins requested to contact Commissioners Clayton and Powell to discuss some issues at the Health Department. Ms. York stated Dr. Atkins preferred to go this route versus agreeing to a joint meeting with both boards. Ms. York added the Health Department has experienced significant turnover, which is costly to the County. In addition, the Health Department has not had the appropriate standing orders to deliver services. ADJOURNMENT: A motion was made by Vice Chairman Jeffers and carried 5-0 to adjourn the meeting at 3:19pm. _____________________________ ______________________________ Brenda B. Reaves David B. Newell, Sr. Clerk to the Board Chairman