November 14
November 14, 2011
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PERSON COUNTY BOARD OF COMMISSIONERS NOVEMBER 14, 2011
MEMBERS PRESENT OTHERS PRESENT
Jimmy B. Clayton Heidi York, County Manager
Kyle W. Puryear - ABSENT C. Ronald Aycock, County Attorney
B. Ray Jeffers Brenda B. Reaves, Clerk to the Board
Samuel R. Kennington
Frances P. Blalock
The Board of Commissioners for the County of Person, North Carolina, met in
regular session on Monday, November 14, 2011 at 9:00 a.m. in the FEMA room located
at 355 S. Madison Boulevard, Roxboro.
Chairman Clayton called the meeting to order, led invocation and asked
Commissioner Kennington to lead the Pledge of Allegiance. Vice Chairman Puryear was
absent.
RECOGNITION OF LOCAL GOVERNMENT DAY:
Chairman Clayton welcomed the Person High School students participating in
Local Government Day to observe the Board of County Commissioners in session.
DISCUSSION/ADJUSTMENT/APPROVAL OF AGENDA:
A motion was made by Commissioner Jeffers, seconded by Commissioner
Blalock and carried 4-0 to add items to the agenda and approve the agenda as adjusted.
The items added to the agenda included:
· Medical Director Contract
· National Day of Recycling
· Follow up discussion related to staffing options for Economic Development
· Falls Lake Utility
INFORMAL COMMENTS:
There were no comments from the public.
November 14, 2011
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SITE PLAN FOR THE VIPER TOWER:
County Manager, Heidi York told the Board the North Carolina Highway Patrol,
working in partnership with Person County Government is presenting the site plan for the
VIPER Communications Tower. Ms. York noted the VIPER Tower is proposed to be
constructed on the County-owned thirteen acre parcel located at Wesleyan and Critcher
Wilkerson Roads, further noting the proposed tower would be 380 feet in height,
positioned on the upper corner of the property as to not infringe on any possible future
building plans for that property. Ms. York stated the access road has been located at the
bottom of the property to shorten the distance and lessen the impact on the property.
Ms. York stated once the site plan has been approved, a lease will be drafted and
brought to the Board for approval. Ms. York requested Board consideration to approve
the site plan and if approved, direct the County Attorney and County Manager to work
with the NC Highway Patrol on a draft lease agreement.
A motion was made by Commissioner Jeffers, seconded by Commissioner
Blalock and carried 4-0 to approve the site plan as presented and directed the County
Attorney and County Manager to work with the NC Highway Patrol on a draft lease
agreement to be brought back before the Board.
2011 COMMUNITY HEALTH ASSESSMENT:
Health Education Supervisor, LeighAnn Creson revealed the results of the 2011
Community Health Assessment (CHA) by providing an overview of the overall CHA
process as well as the methodology for collecting and using community input. The Board
was made aware that demographic and socioeconomic data was available but the focus of
the presentation was on the health data and the results of the community health survey.
Ms. Creson presented health data that included leading causes of death for the county,
teen pregnancy rates, infant mortality rates, morbidity data, and others. The Board was
informed about the new health priorities for the county for 2010-2016 as well as
populations at risk for poor health outcomes. Trends in data were presented as well as
comparisons to NC and Granville County (peer county used in the assessment).
Health Director, Janet Clayton discussed the environmental health portion of the
CHA. The Board was made aware that the CHA could be accessed on the Health
Department’s website at http://health.personcounty.net. and due to size (400 pages) hard
copies were not as readily available as they had been in the past. Ms. Creson stated an
executive summary will be produced after the first of the year to summarize CHA
findings. The executive summary will also be posted on the Health Department’s website
upon completion.
Chairman Clayton thanked the Health Department staff for their report and stated
his support of the importance of immunizations.
November 14, 2011
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SEWER LINE EXTENSION ON HALIFAX ROAD:
General Services Director, Ray Foushee told the Board that during the
construction of the HWY 501 bypass, NC Department of Transportation (NCDOT) will
impact the existing septic fields of 3 residences along State Road 1521 (Halifax Road)
near its intersection with US 501. NCDOT is planning to install a new 8” sanitary
gravity sewer line from a manhole in front of Force Protection Industries, Inc. extending
north along Halifax Road for approximately 1050 feet resulting in new sewer laterals to
be extended to the affected residences. Mr. Foushee requested the Board to approve
NCDOT’s proposal to extend the sewer line to the affected residences.
Mr. Foushee confirmed for the Board that the construction would take place
around January 1, 2013 and there would be no costs associated with the request directed
to the county.
A motion was made by Commissioner Blalock, seconded by Commissioner
Jeffers and carried 4-0 to approved NCDOT’s proposal to extend the sewer line to
affected residences as presented.
EMPLOYEE COMPENSATION STUDY:
County Manager, Heidi York stated during the Fiscal Year 2011-2012 budget
process, the Board directed the Manager to bring back a study that would allow
Commissioners to consider all possible compensation methods for employees of Person
County Government. The Board wanted to be in a position to evaluate the financial
situation a few months into the fiscal year, before making a decision. The compensation
methods study has considered all available options for the Board’s consideration; the best
methods to implement depend on the Board’s goals and compensation philosophy. The
study evaluates cost of living increases; merit pay; bonuses; across the board increases;
longevity; certification increases; probationary increases; and other adjustments.
Ms. York noted the study also includes data from other counties and a few
municipalities for the purpose of benchmarking, which can offer information about
whether Person County is competitive with its peers in terms of compensation. Ms. York
requested the Board to review the possible compensation methods and decide on an
implementation schedule for those selected.
Ms. York gave the following presentation of the Study of Employee
Compensation Methods:
November 14, 2011
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Study of Employee Compensation Methods
One of the greatest responsibilities that we share as leaders of an organization is to
provide for our workforce through a progressive and competitive pay system. G.S. 153A-
92(c) provides that "In counties with a county manager, the manager is responsible for
preparing position classification and pay plans for submission to the board of
commissioners and for administering the pay plan and any position classification plan in
accordance with general policies and directives adopted by the board."
The success of this organization comes from the quality of the workforce providing
services to the citizens of Person County. Obviously there is a vested interest then in
employing the highest caliber employees. In order to attract, employ, and retain highly
skilled employees, Person County Government must provide a comprehensive
compensation system that is competitive and progressive. An ideal compensation system
appeals to employees throughout all levels of the organization and at all stages of their
careers. Best practices suggest that compensation methods be aimed at recruiting the
highest skilled employees and retaining only the highest performing employees.
Therefore, not only is it necessary to have a competitive pay system in place but it is
critical to assess employees’ performance and then to create additional incentives to
achieve high performance and reward those that excel.
The major challenges to the current compensation system are the lack of competitive
salaries and pay compression.
Market Competiveness: Over the last several years, we have had difficulty
recruiting the highest skilled employees. Often, our salaries are lower than our
neighbors’ and not only is this reflected in low applicant pools, but also in the
ability to employ first and second choice candidates. When salaries are not
viewed as competitive, an organization can become a “training ground” for
employees and the organization will see a high turnover rate.
Pay Compression: This is a serious issue experienced at all levels of the
organization. While employees are hired at the hiring rate for a job, they then
remain at that low rate despite performance and years of service. New employees
are offered similar positions at the very same rate as those with lengthy tenure and
experience. Person County Government lacks a consistent method for advancing
employees through their pay range.
The primary focus of this study is to examine various components of a competitive and
progressive compensation system beyond the base salaries and pay scales.
A Glimpse of the Workforce
Person County Government currently employs 381 full time individuals in a variety of
positions.
Average Salary for a County Employee: $36,270
Average Tenure: 9 years
Turnover Rate: 8.5% average per year
November 14, 2011
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Compensation methods beyond an employee’s base salary:
Cost of Living Adjustment (COLA)
Philosophy: an annual adjustment to employee’s salary to compensate for inflation. The
amount of the adjustment is based on the annual increase in consumer prices (as
measured by the Consumer Price Index (CPI), prepared by the Bureau of Labor Statistics
from the U.S. Department of Labor)
Purpose: to offset the corrosive effects of inflation; to ensure that the purchasing power
of any employees’ income is not eroded by inflation
Implementation: applied annually to all employees’ base salaries, based on the increase
in the CPI over a 12 month period. The CPI, and thus the average cost of living increased
by 2.85% for the period of September 2010 to September 2011.
Effect: advances the entire pay scale, everyone stays at same place within their salary
range and the pay scale remains competitive
Cost: 2.85% increase for half year: $248,655 (recurring)
2.85% for whole year: $497,310 (recurring)
Merit Pay
Philosophy: reward employees relative to their job performance
Purpose: provide a systematic program to reward employees based on job performance;
provide incentive for improved performance and maintain a high performing workforce
Implementation: increases employees’ base salaries; a percentage increase is awarded
based on the overall performance rating received for the full year on their performance
review form. Performance is measured against mutually agreed and established
performance standards for each job type. To be awarded on the employee’s anniversary
date. Merit Pay was intended to complement and enhance the performance review
system, now in place for over a year.
Effect: advances high performing employees through their salary range, helps to alleviate
compression at the beginning of the salary range
2% increase if Achieves Standards (67.20% of all reviews submitted)
3% increase if Exceeds Standards (31.21% of all reviews submitted)
0% if Fails to Meet Standards (1.59% of all reviews submitted)
Cost: for half year: $218,116 (recurring)
for whole year: $436,231 (recurring)
Bonus
Philosophy: typically awarded when there is a surplus or a windfall in revenues; a one-
time award to employees
Purpose: to provide a one-time reward to employees without increasing their salaries
Implementation: can be awarded at any point
Effect: provides cash in hand to employee, does not apply to their base salary. The “take
home” amount is approximately 60% of the amount awarded once taxes are taken out
(ex. $250 becomes $150).
Cost: $250 per employee: $115,141 (non-recurring)
$500 per employee: $230,283 (non-recurring)
$1,000 per employee: $460,564 (non-recurring)
November 14, 2011
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Across-the-Board Increases
Philosophy: rewards every employee in exactly the same manner regardless of position,
contribution, performance, responsibilities, or length of service
Purpose: provide a random increase to all employees’ base salaries
Implementation: can be awarded at any point, can be a percentage increase or a flat
amount
Effect: increases all employees’ base salaries, adjusts the entire pay scale, preserves the
employee’s position in the salary range
Cost: 1% for whole year is $174,501 (half year $87,250) (recurring)
2% for whole year is $349,003 (half year $174,502) (recurring)
5% for whole year is $872,474 (half year $436,237) (recurring)
Longevity currently in place
Philosophy: reward employees based on their length of service
Purpose: a retention tool; provides an incentive for employees to remain with the County
and rewards dedication
Implementation: awarded to all permanent employees after 5 years of continuous
service as of November 1 of each year, disbursed with their November paycheck
current structure:
5 years, but less than 10 years 1% of annual salary
10 years, but less than 15 years 2% of annual salary
15 years, but less than 20 years 3.25% of annual salary
20 years, but less than 25 years 4.5% of annual salary
25 years or more 5.75% of annual salary
Effect: provides an annual bonus to employees; the longer they remain with the County,
the greater the award.
Cost: $233,890 for November 2011; $256,816 November 2012
Certification Increases currently in place
Philosophy: employees who seek advanced degrees and certifications related to their job
have an increased value to their employer
Purpose: to provide a reward and incentive for employees to seek advanced degrees and
certifications necessary for their duties and responsibilities as a County employee and to
recognize them for enhancing the level of service
Implementation: employees must obtain certification in their professional field then are
eligible for a 1.5% increase as requested by the employee's supervisor upon successful
completion and award of advance degree or certification; limited to two awards per
employee per year
Effect: increases the employee’s base salary by 1.5%
Cost: varies by individual position, budgeted within individual departments salary lines
and is a recurring cost
November 14, 2011
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Probationary Increases currently in place
Philosophy: employees are subject to a probationary hiring upon initial employment with
the County, allowing a ”trial” period for both the County and the employee; successful
completion updates employee status to permanent status and thus increases their value to
their employer
Purpose: Advances the employee from the hiring rate
Implementation: increases employees’ base salaries by 5%; awarded to employees after
successful completion of a 9 month probationary period for most employees; 12 month
probationary period for Department Heads
Effect: advances the employee in the pay range; provides a one-time opportunity for an
employee to move beyond their hiring rate
Cost: budgeted within individual departments’ salaries lines and increased only when a
new hire is made.
Classification & Compensation Adjustments
Philosophy: An organization should consistently review its positions and pay structure
for accuracy and competitiveness with the market in order to attract and retain the highest
skilled employees. Studies are conducted (usually by an objective outsider) to review the
positions relative to job descriptions, organizational structure, and compare the pay
structure to benchmarked peers to ensure that the salaries are competitive with the
market. Individual employees are not reviewed, rather only positions are compared.
Purpose: Classification studies examine the job duties to ensure the job descriptions are
accurate.
Compensation studies examine the market for the position to ensure a competitive salary
range
Implementation: should be reviewed regularly to keep the costs of the adjustments at
manageable amounts. Last study for Person County was conducted in 2006
(implemented over three years: FY08-09; FY09-10; FY10-11) and increases were capped
at 5% to manage costs.
Effect: in order to remain competitive, these adjustments must be part of an ongoing and
continuous implementation, otherwise an organization may experience significant
turnover
Cost: varies depending on the frequency of the assessments
MAPS study 2006 cost: $885,345
MAPS study 2009 cost: $100,219
MAPS study 2010 cost: $43,179
MAPS study 2011 cost: $135,699
November 14, 2011
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Options for Implementation:
The Board of Commissioners should consider the following compensation options for the
establishment and continuation of a competitive and progressive compensation system:
Implement a 2.85% Cost of Living Adjustment on January 1
Implement a Merit Pay System effective January 1
Restructure Longevity, effective FY12-13 (only if merit pay is funded):
$400 after 5 years of service
$500 after 10 years
$600 after 15 years
$800 after 20 years
$1,000 after 25 years
This restructuring saves the County $110,056 in that year of implementation
Conduct classification and compensation studies every five years
Continue probationary increases at 5%
Continue certification increases at 1.5%
Ms. York concluded her presentation noting the financial audit would be
presented in January which will indicate a healthy fund balance noting funding an
employment compensation package is a good use of fund balance savings.
Commissioner Jeffers requested consideration from the Board before continuing
discussion related to the employee compensation study for each Board member to
introduce themselves for the benefit of the students attending local government day. The
Board agreed and proceeded to introduce themselves. The County Attorney, County
Manager, Assistant County Manager, Clerk to the Board and representatives from IT,
Finance, General Services, Sheriff Office, Park & Recreation, Health Department,
Emergency Medical Services, and Human Resources gave an introduction to the group.
Commissioner Blalock suggested the Board to continue discussion of this item at
a meeting scheduled for this purpose. Commissioner Jeffers asked the County Manager
if the intention was to make any new action effective January 1. Ms. York stated even if
action took place after the first of the year, any such action could be made retroactive
noting that the Finance Department would need time to implement any changes to all
employees’ records.
Commissioner Blalock noted a handout she provided related to a teacher’s salary
schedule noting the gradient scale based on years of experience could be tied to merit pay
which is one of the components not included in the county schedule. Commissioner
Blalock stated support of the County Manager’s proposed longevity rewarding years of
service.
November 14, 2011
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Commissioner Kennington noted Ms. York left out 401K benefit to employees.
Ms. York stated 401K is considered one of the fringe benefits (retirement contribution
outside the employee’s salary with no implication on the pay scale or pay range
advancement) and not considered a compensation method. Ms. York reminded the Board
agreed to keep the employees 401K at a 3 ½ contribution in June, 2011. Ms. York asked
if the Board would like for the benefits (health, retirement, dental, vision and 401K) to be
included in the employee compensation study.
Commissioner Kennington stated he would like to see the total recruitment and
retention package of the employee of which he stated his belief the benefits are a part.
Commissioner Jeffers stated his preference of not changing the longevity plan and
noted his disagreement to comparing the teacher salary scale to county employees as he
believes the teachers are currently underpaid with county government being so different.
Commissioner Blalock countered that the teacher salary scale caused mobility within the
salary scale.
A motion was made by Commissioner Blalock, seconded by Commissioner
Jeffers and carried 4-0 to table Employee Compensation Study discussion to a date and
time to be set by Administration.
Chairman Clayton requested the National Day of Recycling item be placed prior
to the Budget Amendment. It was the consensus of the Board for the National Day of
Recycling to be placed before the Budget Amendment.
NATIONAL DAY OF RECYCLING:
Commissioner Blalock announced November 15, 2011 will be America Recycles
Day and urged the group complete the pledge at www.americarecyclesday.org/pledge to
reduce personal waste by recycling more. America Recycles Day is the only day
dedicated to promoting recycling in the United States, a time to educate and motivate
friends and neighbors and community leaders get into the habit of recycling.
Commissioner Blalock stated recycling is economic development noting Person County’s
Recycling Center currently employs 25 people. Commissioner Blalock stated there is
money and jobs in recycling noting $200,000 has been made from selling recycled
materials and also reduces the costs of waste disposal (over 2.500 tons kept out of the
landfill in 2 years equates to approximately $80,000). Person County currently ranks 65th
in the State of North Carolina in recycling. The Person County Recycling Center will
observe America Recycles Day with a customer appreciation information booth from
10:30 am to 3:30 pm on November 15, 2011. A informational handout was passed out
highlighting the Person County Recycle Center noting a new item being accepted is water
based paint and coatings. Commissioner Blalock shared Satisfaction Survey comments
noting the outstanding customer service and Person County a leader in recycling service.
November 14, 2011
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BUDGET AMENDMENT:
Finance Director, Amy Wehrenberg presented and explained the following
Budget Amendment.
Upon a motion by Commissioner Jeffers, and a second by Commissioner Blalock
and majority vote (4-0), the Board of Commissioners of Person County does hereby
amend the Budget of the Fund(s) listed below on this, the 14th day of November 2011,
as follows:
Dept./Acct No. Department Name Amount
Incr / (Decr)
EXPENDITURES General Fund
Public Safety 15,214
REVENUES General Fund
Fund Balance Appropriated 15,214
Explanation:
Appropriation of fund balance in the Law Enforcement Restricted Fund for the
purchase of a replacement vehicle ($15,214).
MEDICAL DIRECTOR CONTRACT:
Interim Emergency Services Director , Penny Payne told the Board that Wake
Forest Baptist Medical Center legal department requests their contract name be changed
from “Wake Forest University Physicians” and “WFUP” to “Wake Forest University
Baptist Medical Center” or “WFUBMC” to allow the contract to reflect the legal name of
Wake Forest Baptist Medical Center. Ms. Payne indicated the other change requested by
Wake Forest Baptist Legal Department is the removal of William Applegate, M.D.
President and COO who recently retired to Thomas Sibert, MD, MBA President & Chief
Operating Officer. Ms. Payne noted there were no other changes requested and the copy
presented to the Board reflects signatures of Dr. Sibert and Dr. Ghim as accepting the
current contract. Ms. Payne requested the Board to accept the recommended changes and
sign the Medical Director contract.
A motion was made by Commissioner Jeffers, seconded by Commissioner
Blalock and carried 4-0 to approve the Medical Director Contract as presented with the
requested changes by Wake Forest Baptist Medical Center.
FALLS LAKE UTILITY:
Chairman Clayton requested Board consideration to rescind Board action taken on
September 19, 2011 due to personnel changes and on the advice of Mr. Jim Wrenn,
attorney representing Person County, Granville County, South Granville Water & Sewer,
Creedmoor and Butner related to the Falls Lake Utility.
November 14, 2011
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A motion was made by Commissioner Jeffers, seconded by Commissioner
Blalock, and carried 4-0 to rescind the motion passed September 19, 2011 authorizing a
scope of work with the local consulting firm, AMEC.
A motion was made by Commissioner Jeffers, seconded by Commissioner
Blalock, and carried 4-0 to approve the consulting firm, Raftelis Financial Consultants,
to be funded from Fund Balance and to authorize the County Manager to execute the
interlocal agreement.
FOLLOW UP DISCUSSION RELATED TO STAFFING OPTIONS FOR
ECONOMIC DEVELOPMENT:
County Manager, Heidi York stated at the Board’s November 7, 2011 meeting,
the Manager was directed to bring back to the Board information on how other counties
are staffing economic development and the associated costs. Ms. York directed the
Board’s attention to a Memo re: Economic Development Staff outlining pay grades, pay
scales and salary with operating costs for a director and assistant staff, Economic
Development Director job description from 2009 and a spreadsheet from the School of
Government with salary data against benchmark peer counties Person County as well as
Council of Governments (COG) counties. Ms. York stated the Board would be
considering an estimated total annual cost of $207,147 to restore both positions and
operating budget in line with the fiscal year 2008-09 budget.
A motion was made by Commissioner Jeffers, seconded by Commissioner
Blalock, and carried 4-0 to table the follow up discussion related to staffing options for
Economic Development to the same meeting date (to be determined by Administration)
as the Employee Compensation Study.
Chairman Clayton asked Board members to let the County Manager know prior to
the Board meetings if additional information is required.
CHAIRMAN’S REPORT:
Chairman Clayton reminded the Board that they will be electing officers on
December 5, 2011 (Chairman and Vice Chairman).
Chairman Clayton noted he would be taking the environmental goals to the
Association meeting on November 15, 2011.
Chairman Clayton shared a notebook titled “High School Financial Planning
Program” with Person High School teacher, Mr. Patrick Holms. Mr. Holms accepted the
notebook for possible use of ideas noting students do participate in financial literacy as a
part of the Civics and Economics classes.
November 14, 2011
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MANAGER’S REPORT:
County Manager, Heidi York stated the Community Conversations meeting
would be taking place on November 28, 2011 at the Kirby starting at 6:30 pm, noting the
Board may like to consider setting an individual speaker time limit. It was the consensus
of the Board to set a 3 minute individual time limit for the Community Conversations.
Ms. York there would be a sign up process for individuals wishing to speak to sign up
with the Clerk to the Board. Ms. York explained the Community Conversations meeting
is an open forum for citizens to come before the Board to speak on any topic.
COMMISSIONER REPORT/COMMENTS:
Commissioner Jeffers stated he would be participating the Rural Center’s Annual
Forum November 15-16, 2011 as a panelist and speaker advocating for youth to return to
rural NC and encouraged the students in the audience to return to Person County to live
and work making their community the best they could.
Commissioner Blalock thanked the students for attending noting that public office
serves its community.
Commissioner Kennington also thanked the students for attending wishing them
the best of luck.
RECESS:
A motion was made by Commissioner Jeffers, seconded by Commissioner
Blalock, and carried 4-0 to recess the meeting at 10:28 am until November 28, 2011 at
6:30 pm at the Kirby.
_____________________________ ______________________________
Brenda B. Reaves Jimmy B. Clayton
Clerk to the Board Chairman