BOC Minutes May 21 2018approve
May 21, 2018
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PERSON COUNTY BOARD OF COMMISSIONERS MAY 21, 2018
MEMBERS PRESENT OTHERS PRESENT
Tracey L. Kendrick 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 Monday, May 21, 2018 at 9:00am in the Commissioners’ meeting room
in the Person County Office Building.
Chairman Kendrick called the meeting to order. Vice Chairman Powell gave an
invocation and Commissioner Puryear led the group in the Pledge of Allegiance.
DISCUSSION/ADJUSTMENT/APPROVAL OF AGENDA:
A motion was made by Vice Chairman Powell and carried 5-0 to approve the
agenda.
INFORMAL COMMENTS:
The following individuals appeared before the Board to make informal comments:
Ms. Susan Naylor of 481 Valhalla Drive, Timberlake stated her appreciation of the
County’s Senior Center facility noting how participation has increased. She advocated for
the Board to consider the continued funding in the upcoming budget.
Ms. Frances Blalock of 1504 Surl Mt. Tirzah Road, Timberlake asked the Board
what happened to the option to close the landfill and utilize transfer stations to haul to
Granville County’s landfill. She added that with the new state legislation the Board should
consider a year-to-year option to have some reign of control.
Ms. Betty Blalock of 144 Tirzah Ridge, Rougemont addressed the Board of her
community being called collateral damage noting the many deaths by cancer occurring in
the one and one-half mile radius of the landfill. She said the dynamite blasts shakes and
cracks her home. Ms. Blalock stated she would be contacting the Neuse River Association
as well.
Mr. Roy Brooks of 383 Parsonage Drive, Timberlake requested Board
consideration to allow county staff to perform the necessary monitoring of commercial
stormwater plans noting this would be a tremendous service to small businesses.
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Mr. David Fyke of 171 Robert Whitfield Road, Hurdle Mills, and a full-time staff
at the County’s Hospice program told the group of the services offered by Hospice to its
patients.
DISCUSSION/ADJUSTMENT/APPROVAL OF CONSENT AGENDA:
A motion was made by Commissioner Puryear and carried 5-0 to approve the
Consent Agenda with the following items:
A. Approval of Minutes of April 23, 2018,
B. Budget Amendment # 16, and
C. Memorandum of Agreement for Person County Sheriff Office and United
Way Grant funding in the amount of $4,000 for the GREAT Camp
UNFINISHED BUSINESS:
CONSIDERATION OF RESOLUTION OF INTENT TO AUTHORIZE A
REQUEST FOR PROPOSALS TO EXPLORE THE FEASIBILITY OF A SALE OF
THE PERSON COUNTY HOME HEALTH AND HOSPICE AGENCY:
At the Board’s January 22, 2018 meeting, the Board of Commissioners authorized
a contract with CliftonLarsonAllen to assist the County with the process of preparing a
request for non-binding proposals to consider divesting the home health and hospice
services. At the Board’s April 9th meeting a public hearing was conducted. A majority of
Board members wanted the opportunity to talk with health department staff to gain a better
understanding of the situation in home health and hospice before the adoption of the
Resolution, so it was tabled.
As required by General Statute 131E-13, the County must adopt a Resolution of
Intent and conduct a public hearing before it can request proposals for purchase. Once
proposals are received the Board must conduct another public hearing. The Board will have
the opportunity to consider all proposals and negotiate with any potential buyers. During
the negotiations process, terms such as employee transitions, and purchase price, etc. can
be discussed. By state regulations, the office of the buyer must remain within the
geographic limits of Person County. A decision to sell is not made until the negotiations
are finalized and both parties mutually agree to an Asset Purchase Agreement. The
consultants estimate that the process of selling the two services takes about six months.
Counties across the State are facing the same struggles as Person County as it is
becoming increasingly difficult to compete with private sector providers of these services.
New federal Home Health Conditions of Participation are very onerous and costly, and,
payment rates continue decline and not keep pace with providers’ inflationary expenses
inflation. The CliftonLarsonAllen firm has brokered the sale of 23 county/regional health
departments; only 11 county-owned home health and hospice (HHH) services exist today.
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The average sale price for both services is about $2M. Both home health and
hospice have private sector providers serving patients in Person County.
There are currently 7 filled full-time positions in Home Health and Hospice. Most
other counties have negotiated a transition plan for their employees with the private sector
buyers.
The Board of Health met and discussed the options on Nov. 27 and again on Jan.
11. Their recommendation was to sell Home Health, but retain Hospice. They expressed
concern over serving indigent patients, although the data shows that in FY16 the county
served 3 indigent patients in home health; 0 in hospice. In FY17 the county served 1 patient
in home health; 0 in hospice. The Board of Health and staff believe that with additional
investments in Hospice to provide for better marketing and enhanced technology, they
might be able to increase revenues and make the program more viable.
Chairman Kendrick requested the Board to adopt a Resolution of Intent to
Authorize a Request for Proposals to explore the feasibility of a Sale of the Person County
Home Health and Hospice.
Commissioner Clayton recommended hospice be taken out. County Manager,
Heidi York stated unanimous action by the Board for the County’s consultant to market
the bundled services of home health and hospice for interest via a Request for Proposals.
She added that the consultant told the group the hospice program made the bundle more
attractive for the best offer; once proposals are in hand, the Board would conduct another
public hearing and would be able to negotiate terms for approval or the Board has the
ability to reject any proposals. Ms. York posed the question to amend the contract with the
consultant to exclude the hospice program should the Board desire to do so. County
Attorney, Ron Aycock reiterated the Board had instructed the consultant to solicit for
proposal noting they could be submitted either separately or bundled which gave the Board
alternative approaches.
A motion was made by Chairman Kendrick and carried 3-2 to adopt a Resolution
of Intent to Authorize a Request for Proposals to explore the feasibility of a Sale of the
Person County Home Health and Hospice. Chairman Kendrick, Vice Chairman Powell
and Commissioner Puryear voted in favor of the motion. Commissioners Clayton and
Jeffers cast the dissenting votes.
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NEW BUSINESS:
PROPOSED CONTRACT FOR VOLUNTEER FIRE DEPARTMENTS:
County Manager, Heidi York reminded the group that the County contracts with
each Volunteer Fire Department and the Rescue Squad to provide fire protection services
in addition to other stated responsibilities. The contracts for the current FY17-18 were for
a one year term. In previous years, the contracts spanned two fiscal years. Ms. York
proposed the new contract would be valid for a two year period from July 1, 2018 to June
30, 2020. Vice Chairman Powell and Commissioner Jeffers recommended the new contract
to be ongoing with an out-clause notice similar to the City of Roxboro’s fire services
contract. It was also the consensus of the Board to increase the funding to the VFDs and
Rescue Squad by 2% or greater with a cap at the current inflationary rate, every other year
opposite of the City of Roxboro’s increase.
Ms. York stated that due to the proposed increase in funding for the VFDs with the
creation of the fire tax, Commissioners have requested some revisions to the current
contract. Ms. York highlighted a proposed contract with the following major changes:
Deletion of reference to capital funding program
Document progress towards improving the ISO rating, with a written plan
submitted by 12/31/18 to the Emergency Services Director as to how and when,
setting a target date, the department will achieve a reduction in their ISO rating.
VFDs and Rescue Squad are recommended to hold a minimum of two community-
based fundraisers per fiscal year.
Agree to be a Point of Distribution site for the county during emergencies/disasters
Changes the responsibility for paying for the audit to the individual VFDs and
Rescue Squad; staff to provide basic financial audit parameters for minimum
standards of reporting to be submitted per the deadline; the intent was to have the
audits for review by the County prior to the next appropriation of funding.
Funds to be disbursed in the same amount as the current FY17-18 per district
amount (operating and capital) and made available once the returned copy of the
contract with signatures and all requirements of Section III are satisfied. In
addition, each VFD and Rescue Squad must have passed its state inspection to
receive the County disbursement. The remaining amount of funds will be disbursed
monthly beginning in March up to the total aggregate amount to all departments of
$1M overall. This plan of disbursement of funds was recommended by the Fire
Chiefs. Ms. York stated the final appropriations to the VFDs and Rescue Squad is
determined upon the budget being adopted.
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ONE-YEAR EXTENSION OF SOLID WASTE CONTRACT WITH REPUBLIC:
County Attorney, Ron Aycock explained the following scenarios related to the
future option for Republic and Person County, if:
1-The County takes no action at all:
Republic would secure an extension of its state permit to a life of site or 60 years from the
original 1997 first receipt of waste which would be 2057. This would enable Republic to
continue to receive waste and operate the facility without paying anything to the County.
The permit would contain the same conditions as the existing permit daily tonnage, area,
etc.) The County would receive no compensation.
2-Republic secures the extension of its permit to a life of site permit and the county
enacts a new franchise and enters into a new contract to match the new permit:
The county would be entitled to receive the same compensation as in the existing contract.
The county’s new franchise would not be subject to the procedural requirements of a public
hearing, etc. It is possible that the County could negotiate some changes in the franchise
fee and contract provisions. Additionally, it would be possible to increase the allowed daily
tonnage amount not to exceed 110% of the original amount.
3-Republic and the County negotiate a new agreement:
Republic and the County could negotiate a new agreement allowing a larger amount of
daily tonnage, different rates and franchise fees. This would require a new state permit for
Republic with the consequent procedural requirements of studies of environmental impact,
etc. as well as public hearings. The County would have to enact a new franchise. This
approach would likely require at least a one year extension as in 2 above in order to allow
the necessary time to comply with the more extensive procedural requirements.
Mr. Aycock provided the following Facts and Analysis:
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FACTS AND ANALYSIS
Person County has an existing contract with Republic Services for operation of a landfill
in Person County and a franchise issued to Republic for such operation which expired on
June 30, 2017. The contract provides that after scheduled expiration the contract may be
extended for 10 additional years at the option of the County. The County has elected to
extend the contract for the first of those 10 years (expiration June 30, 2018) and has issued
a franchise for that one year period plus one additional year (franchise expires on June 30,
2019). Among other provisions the contract provides for a fee to be paid to Person County
based upon usage which yields Person County in excess of $500,000 per year. It also
provides that Person County will use its “best efforts” to assure that waste from Person
County will be disposed of in the Republic facility. It further provides that waste will not
be accepted from certain jurisdictions (Raleigh and Durham) and will not be accepted from
areas 60 miles or more from the landfill.
Republic has made application to the state for an extension of its existing permit to a “life
of site” permit. The application is not for a new permit. That application has not yet been
acted upon.
The 2015 General assembly has enacted two provisions which impact the county options.
For convenience in identification, Mr. Aycock designated those provisions as “flow
control” and “life of site” provisions.
FLOW CONTROL PROVISION
The new law prohibits a county from requiring that all waste in a county go to a specific
site (flow control) except in very limited circumstances. For Person County that limited
circumstance means for the period of its existing franchise (until June 30, 2019). It is likely
then that if the County grants additional franchises to effectuate the remaining years (8) of
the original contract extension that it may not be able to direct that all waste go to the
Republic site.
An additional likely effect of the new law is to limit the ability of the County to restrict the
receipt of waste from areas 60+ miles away, since to do so would limit the flow of waste.
This effect is not as clear as the prohibition on the direction of waste from within the
County, but is likely to be the effect of the law.
The pertinent legislation is set out below:
(Please note that the legislation still establishes a policy that a solid waste facility should
serve a specific geographic area, but prohibits a county from requiring that service.)
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“130A-294(b) In furtherance of this purpose and intent, it is hereby determined and
declared that it is necessary for the health and welfare of the inhabitants of the State that
solid waste management facilities permitted hereunder and serving a specified geographic
area shall be used by public or private owners or occupants of all lands, buildings, and
premises within the geographic area, and a unit of local government may, by ordinance,
require that all solid waste generated within the geographic area and placed in the waste
stream for disposal, shall be delivered to the permitted solid waste management facility or
facilities serving the geographic area. Actions taken pursuant to this Article shall be
deemed to be acts of the sovereign power of the State of North Carolina, and to the extent
reasonably necessary to achieve the purposes of this section, a unit of local government
may displace competition with public service for solid waste management and disposal. It
is further determined and declared that no person, firm, corporation, association or entity
within the geographic area shall engage in any activities which would be competitive with
this purpose or with ordinances, rules adopted pursuant to the authority granted herein.
(c) Except as provided in subsections (d) {REGIONAL SOLID WASTE FACILITIES}
and (e)[CONSTRUCTION AND DEMOLITION MATERIALS MAY NOT BE
DIRECTED] of this section, a unit of local government may, by ordinance, franchise,
business license, contract, or otherwise, require that all solid waste generated within the
geographic area and placed in the waste stream for disposal be delivered to the permitted
solid waste management facility or facilities serving the geographic area only under one
of the following conditions:
(1) If the unit of local government has debt associated with solid waste management
facilities and equipment outstanding on September 1, 2017, the unit of local government
may adopt and enforce such an ordinance until the date that such debt has matured.
(2) If the unit of local government is a party to an exclusive franchise agreement with a
private entity governing the management or disposal of waste within the jurisdiction in
effect on September 1, 2017, the unit of local government may adopt and enforce such an
ordinance until the date that such franchise has expired.”
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LIFE OF SITE PROVISION
The new law provides that all new permits for solid waste facilities be issued by the state
for life of the site not to exceed 60 years. Life of site is defined to be from inception of the
permit until the facility reaches its permitted height. The legislation explicitly provides that
a life of site permit survives the expiration of its underlying franchise. But a county may
extend the old franchise under the same terms and conditions until the expiration of the life
of site permit. A franchise extended to match the life of site permit period is not required
to be enacted with a public hearing, deposit of materials, at the public library, etc.
The applicable law is set out below:
"§ 130A-294. Solid waste management program.
…
(a2) Permits for sanitary landfills and transfer stations shall be issued for the life-of-site
of the facility unless revoked as otherwise provided under this Article or upon the
expiration of any local government franchise required for the facility pursuant to
subsection (b1) of this section, revoked. For purposes of this section, "life-of- site" means
the period from the initial receipt of solid waste at the facility until the Department
approves final closure of the facility. The facility reaches its final permitted elevations,
which period shall not exceed 60 years. Permits issued pursuant to this subsection shall
take into account the duration of any permits previously issued for the facility and the
remaining capacity at the facility.
(a3) In order to preserve long - term disposal capacity, a life - of - site permit issued for a
sanitary landfill shall survive the expiration of a local government approval or franchise.
In order to preserve any economic benefits included in the franchise, the County may
extend the franchise under the same terms and conditions for the term of the life - of - site
permit. The extension of the franchise hereby shall not trigger the requirements for a new
permit, a major permit modification, or a substantial amendment to the permit.”
Commissioner Jeffers requested for the data for the remaining years of life under
the current contract terms. County Manager, Heidi York stated she could obtain that
information from Republic and the State of NC. Current landfill Manager, Chris Gustin
stated the existing life of landfill varied dependent upon the density factor of the material
taken in.
A motion was made by Chairman Kendrick and carried 5-0 to extend the contract
period for one-year to match the current franchise agreement for the Solid Waste Contract
with Republic.
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PRESENTATION OF THE COUNTY MANAGER’S FISCAL YEAR 2018-2019
RECOMMENDED BUDGET:
North Carolina General Statute 159 specifies that a recommended budget for the
upcoming fiscal year be given to the Board of County Commissioners by June 1st. The
Local Government Budget and Fiscal Control Act requires that the recommended budget
be balanced. County Manager, Heidi York provided the following overview of the
recommended budget:
Ms. York stated one penny was up from $438K in current year noting very little
growth in the county budget with the costs of goods & services trending at a 2.3% growth
rate.
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Ms. York said the above Tax Base chart reflects extremely modest growth; only
$62M combined in growth.
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The Board identified the following priorities for the FY18-19 Budget:
Ms. York stated her recommended budget reflects an 8.2% increase in public safety
for FY19 with increased funding for VFDs and four EMT paramedic positions to complete
a full shift as well as two sheriff deputies.
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Ms. York stated she cut $4.3M from budget requests for a balanced budget.
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Ms. York stated to fully fund the Person County Schools current expense request,
an additional $470,631 was needed.
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Ms. York stated to fully fund the Piedmont Community College current expense
request, an additional $35,687 was needed.
Vice Chairman Powell requested to change the June 11th budget work session to
another time or another day.
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CHAIRMAN’S REPORT:
Chairman Kendrick thanked County Manager, Heidi York and Assistant County
Manager, Sybil Tate for leading the budget efforts. He also reported that Animal Services
has seen an increase in its adoption rates noting the social media efforts have proven to be
effective.
MANAGER’S REPORT:
County Manager, Heidi York reported an Economic Development Commission
followed by a Person County Business Industrial Center meeting will be held on May 22,
2018 starting at 4:00pm at Piedmont Community College in room D120.
COMMISSIONER REPORT/COMMENTS:
Commissioner Jeffers reported the following:
Attended an Environmental Issues Committee meeting in which most of the
discussion was focused on the liter on the sides of roads,
Attended St. James Baptist Church located in Leasburg to celebrate its 150
years anniversary,
He, along with fourteen other commissioners, will be attending an upcoming
NACo Community Summit focusing on health issues.
Commissioner Clayton commented on the Home Health program being costly and
could be closed immediately but he would like to retain Hospice. He reported he would be
attending a NC Association of County Commissioners’ Environmental Committee meeting
on May 22, 2018.
Commissioner Puryear thanked Assistant County Manager, Sybil Tate for her
assistance with a potential safety issue that was quickly corrected with the contractor
installing the fiber.
Vice Chairman Powell reported the Raleigh Durham Airport would be undergoing
an expansion which would mean more opportunities for the County’s Airport. He added
the County’s Airport runway extension was approved last week and would take
approximately three years to complete.
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CLOSED SESSION #1
A motion was made by Commissioner Puryear and carried 5-0 to enter into Closed
Session per General Statute 143-318.11(a)(4) at 10:27am for the purpose of discussion of
matters relating to the location or expansion of industries or other businesses in the county
(economic development) with the following individuals permitted to attend: County
Manager, Heidi York, Clerk to the Board, Brenda Reaves, County Attorney, Ron Aycock
and Economic Development Director, Stuart Gilbert.
A motion was made by Commissioner Jeffers and carried 5-0 to return to open
session at 10:52am.
A motion was made by Commissioner Clayton and carried 5-0 to call for a Public
Hearing for a financial grant incentives for Project RE to be scheduled on June 4, 2018 at
7:00pm.
ADJOURNMENT:
A motion was made by Commissioner Puryear and carried 5-0 to adjourn the
meeting at 10:52am.
_____________________________ ______________________________
Brenda B. Reaves Tracey L. Kendrick
Clerk to the Board Chairman