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January 20 January 20, 2009 1 PERSON COUNTY BOARD OF COMMISSIONERS January 20, 2009 MEMBERS PRESENT OTHERS PRESENT Johnny Myrl Lunsford ABSENT Heidi York, County Manager Jimmy B. Clayton ABSENT C. Ronald Aycock, County Attorney Kyle W. Puryear Faye T. Fuller, Clerk to the Board B. Ray Jeffers Brenda B. Reaves, Deputy Clerk to the Board Samuel R. Kennington Paul L. Bailey, Assistant County Manager The Board of Commissioners for the County of Person, North Carolina, met in regular session on Monday, January 20, 2009 at 9:00 a.m. in the Commissioners’ meeting room in the Person County Office Building. Chairman Lunsford called the meeting to order and asked Commissioner Clayton to lead in prayer and Commissioner Kennington to lead the Pledge of Allegiance. County Manager Heidi York is currently on maternity leave and Assistant County Manager Paul Bailey attended in Ms. York’s absence. DISCUSSION/ADJUSTMENT/APPROVAL OF AGENDA: Commissioner Clayton stated the Presentation of the Department of Social Services 2007/2008 Annual Report should be deferred until the February 2, 2009 meeting. A motion was made by Commissioner Jeffers, seconded by Commissioner Puryear and carried to approve the agenda as adjusted. INFORMAL COMMENTS: There were no comments from the public. APPROVAL OF MINUTES: A motion was made by Commissioner Puryear, seconded by Commissioner Clayton, and carried to approve the minutes of January 5, 2009. ADMINISTRATIVE REPORTS: A motion was made by Commissioner Clayton, seconded by Commissioner Jeffers, and carried to approve the Administrative Reports for the Detention Center, Emergency Communications, Emergency Medical Services, Inspections, Library, Surplus Vehicles 2008, Surplus Other Items and the Volunteer Fire/Rescue Departments. Commission Kennington noted the Total Values from FY2007-2008 to FY2008- 2009 is currently down $9,247,455 on the Inspections Department Report. January 20, 2009 2 REQUEST FOR CAPITAL FUNDS TO PURCHASE, SET UP AND EQUIP A MODULAR CLASSROOM BUILDING FOR PERSON EARLY COLLEGE HIGH SCHOOL PROGRAM: Person County Schools Superintendent Dr. Larry Cartner summarized the revised information provided to the Board in the packet. Four modular classroom proposals were presented for Commissioners’ consideration on January 5, 2009. The same four options revised, are listed below. Three of the four options would finish school construction in time for Person County Schools and Piedmont Community College to use the entire school in Year 1. Option 3 would likely result in extra work and expense due to the age of the facility, the stress on the building caused by relocation, the need for additional space in Year 4 of the project. The current low bidder is Modular Technologies of Kinston, NC. Proposal 1: Purchase from Modular Technologies an eight-room modular school in Year 1. The building contains 7776 square feet, six classrooms, one media/research room, and one administrative/guidance office space. The unit will also include two restrooms. The modular unit purchase price is $246,012. Revised estimates for the required costs of site-preparation, foundation work, utility installations and furniture areas follows: $8,000 Site work including ramp and sidewalk for handicapped accessibility $25,000 Permanent block foundation with footings $40,000 Installation of utilities to the site; water, sewer, power and telephone/intercom system $30,000 Electrical panels for each section of the unit and internet networking $12,000 Furniture for teachers desks, plus furniture for the research room and the guidance and office areas $6,400 Office technology $7,500 Fire alarm system $3,000 Building permits $8,500 Alternate bid for optional brick façade on the foundation $140,400 Total estimated for all preparatory work and utility installation and furniture/equipment costs. Total purchase price with set-up is estimated to be $386,412. Proposal 2: Lease purchase from Modular Technologies the unit in proposal 1 for 59 months. Annual lease-to-purchase cost at $58,108. Proposal 3A & 3B: Either purchase or lease-to-purchase from Modular Technologies a used, seven-room modular unit with two restrooms from Iredell County for $154,500. January 20, 2009 3 3A: Lease-to-purchase a used classroom pod from Iredell County. The annual lease rate is $37,224 for five years. Cost of Year 1-5 would be $37,224. 3B: Purchase the 7-room unit from Iredell County for $154,500. This used seven- room unit has 800 fewer square feet of usable space (one classroom). The unit was built in 2003. Total cost for this option would be $294,900. Proposal 4: Purchase or lease-purchase a unit built to similar specifications as Proposal 1 above from Mark Line Industries. 4A: Lease purchase would be approximately $63,398 per year for Years 1-5 or less if lease rate is less than 3%. 4B: Purchase the unit from Mark Line Industries for a total purchase price of $268,627. Total costs for this option would be $409,027. Direct financial and in-kind support to be provided by Piedmont Community College: $25,000 value Eight classrooms sets of student furniture $10,000 value Custodial, maintenance and security costs $76,200 value Instructional support and teachers, course development, and wireless connectivity $111,200 value Total value of support from PCC Dr. Cartner stated the proposed modular could be paid for in funds that are either set aside or left over from the Bus Garage Construction. Commissioner Kennington asked about ongoing costs in which Dr. Cartner stated the Community College Liaison position would be included in the grant funds for the first 5 years with intention of funding thereafter possibly shared between Person County Schools and Piedmont Community College beginning 2014-15. An annual cost is estimated at $58,000. The College Liaison position, as well as Counselor and Secretary positions could potentially become part of local expenses based on ADM funding after the five year period. Assistant Superintendent Dave Bennett confirmed the pod size is the same and the reduction in price by $16,318 results from the manufacturer cutting their price. Mr. Bennett also stated the set up costs were reduced from $160,000 to $140,400 due to estimates from local subcontractors. Dr. Cartner stated that the Board of Education is working on a couple of scenarios to come up with additional funds if needed over the Board of Commissioners decision to be able to purchase the new pod proposed instead of the used pod. Dr. Cartner was unable to share any of the plans they are considering and went on to say the Board of Education feels the long view benefits of buying the new unit far outweighs the potential January 20, 2009 4 problems associated with purchasing and moving the used unit proposed. The price is within $45,000-$46,000 for the new unit. Commissioner Jeffers asked Dr. Cartner if it would be possible to re-apply for this grant in the future in which Dr. Cartner replied no. It is believed this is the last round for this grant award. Dr. Cartner confirmed to Commissioner Puryear that lottery funds are not valid for this project. Dr. Cartner answered Commissioner Jeffers question regarding ADM funds possibly being at risk noting ADM allotments have been delayed until mid March. Commissioner Clayton noted his support of the proposed program but felt the timing is caught up in the economic squeeze. Unemployment is expected to increase up to 50% more than currently i.e., 8 to 12 % and the sales revenue tax is projected to decrease by 5-7%, and along with the ADM funding potentially being at risk for next budget year, Commissioner Clayton felt it is hard to take money out of the County fund balance for anything. Commissioner Clayton also noted the effects of services, i.e. increase case loads at Social Services and Sheriff’s Office due to the economic condition. Commissioner Lunsford recommended the process by which the Board approves capital project funds well ahead of a project getting started. Commissioner Lunsford stated he had not heard from the new governor’s office relative to committing to fund the continuation of this project. Commissioner Lunsford continued that the Board has to consider the greater demand on the County’s Sheriff and Social Services Departments and lowering the fund balance could impact those programs. Commissioner Lunsford noted that Piedmont Community College already has programs in place for students to enroll in college prep courses and felt that starting a new program with the economy in its current state is not a wise idea. Commissioner Lunsford further committed his support to the program but could not support funding of this program at this time. A motion was made by Commissioner Clayton, seconded by Commissioner Lunsford for the Request for Capital funds to Purchase, Set Up and Equip a Modular Classroom Building for the Person Early College High School Program to be denied due to the economic situation. Commissioner Puryear made a substitute motion to allot $198,000 from the Capital Building Fund. Commission Kennington seconded the substitute motion. The substitute motion failed 2/3. Commissioners Lunsford, Clayton and Jeffers cast the dissenting votes. Commissioner Lunsford reverted the Board back to the original motion which passed 3/2. Commissioners Lunsford, Clayton and Jeffers voted favorably. Commissioners Puryear and Kennington were in opposition. January 20, 2009 5 DISCUSSION AND APPOINTMENT OF THE THREE-MEMBER HIGH SPEED INTERNET COMMITTEE: A motion was made by Commissioner Puryear, seconded by Commissioner Kennington to add an additional member from three to four members on the recently established High Speed Internet Committee and for Roy K. Holler, Larry H. Bowes, Larry E. Yarborough, and Karen Walker to be appointed as the four members. Commissioner Jeffers made a substitute motion to add Ray Bechtel to the list of members of the High Speed Internet Committee for appointment. The substitute motion was seconded by Commissioner Kennington, and carried to appoint Roy K. Holler, Larry H. Bowes, Larry E. Yarborough, Karen Walker and Ray Bechtel to serve on the High Speed Internet Committee. COMPREHENSIVE THOROUGHFARE PLAN STEERING COMMITTEE: Leigh Woodall, Joint Roxboro/Person County Thoroughfare Advisory Committee Chairman stated that The Roxboro City Council and the Person County Board of Commissioners took action in November 2008 at their respective Board meetings to authorize the NCDOT to update the existing Roxboro Area Thoroughfare Plan and the Person County Thoroughfare Plan into a single Comprehensive Transportation Plan in accordance with current NCDOT criteria. On December 2, 2008, both City and County Staff met with Scott Walston and Mark Eatman from NCDOT Planning to discuss the scope of the comprehensive planning process. Mr. Walston requested that a local steering committee be established to assist in guiding NCDOT officials in the planning process. On December 15, 2008, the joint Roxboro/Person County Thoroughfare Advisory Committee recommends that the following individuals serve on the Steering Committee: Jon Barlow, Roxboro City Manager Paul Bailey, Person County Assistant Manager Julie Kelly, Roxboro Planning and Zoning Director Paula Murphy, Person County Planning and Zoning Director Andy Oakley, Roxboro Public Works Director Leigh Woodall, Joint Roxboro/Person County Thoroughfare Advisory Committee Chairman A motion was made by Commissioner Puryear, seconded by Commissioner Kennington, and carried to approve the six individuals named above to serve on the Steering Committee. PRESENTATION OF COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR FISCAL YEAR ENDING JUNE 30, 2008: Mr. James Winston, Certified Public Accountant of Winston, Williams, Creech and Evans & Company, LLP presented to the Board the Comprehensive Annual Financial Report (CAFR) for Person County for Fiscal Year ending June 30, 2008. January 20, 2009 6 January 20, 2009 7 January 20, 2009 8 January 20, 2009 9 Mr. Winston prefaced his presentation by saying the figures in the June 30, 2008 audit look good; however, reviews at December 31, 2008 indicate a different scenario. Mr. Winston feels the estimation of sales tax revenues at 7% less may actually be a little low based on what he is seeing in other counties. Mr. Winston noted in Person County’s audit report for next year, the Board already has appropriated $3,237,000 of fund balance. Mr. Winston announced that Person County again received the Certificate of Excellence in Financial Reporting for fiscal year 06/30/07 and submitted the 6/30/08 report to GFOA. This is the twentieth year in a row Person County has received this Certificate of Excellence in Financial Reporting. Mr. Winston noted that only 3% of governments in the United States and Canada receive this award. Mr. Winston recommended to the Board to be very conservative in the future. Mr. Winston also told the Board that in FY09 Person County is required to appropriate or budget the current year payment for expenses recognizing those benefits (primarily health benefits) promised to retirees. FUND BALANCE: Finance Director Amy Wehrenberg led a discussion about Person County Fund Balance for information purposes only in terms of its general meaning and to highlight items that affect this number during the year. This discussion was at the request of Commission Kennington at the January 5, 2009 meeting. Ms. Wehrenberg presented the Board with the following presentation. January 20, 2009 10 January 20, 2009 11 January 20, 2009 12 PRESENTATION OF BANK BID PROPOSALS AND FINANCING DOCUMENTS ASSOCIATED WITH THE MRF FOR APPROVAL OF THE LENDING INSTITUTION AND ADOPTION OF THE RESOLUTION APPROVING FINANCING TERMS: Finance Director Amy Wehrenberg presented the Board with the bank bid proposals and financing documents associated with the Material Recycling Facility for approval of the lending institution. The original Request for Proposal was sent out to banks on December 19, 2008 seeking proposals to finance the specifically listed Equipment and Baler. The Request for Proposal noted the total purchase for the Equipment and Baler is $457,777.97 and also included the vendor’s payment terms and the County’s financing conditions under which the agreement was to be made. Ms. Wehrenberg summarized the bank bids received that met the requirements of the total payoff including principal and interest to be under $500,000 and a term under 5 years in order to avoid the application and approval process through the Local Government Commission. The rates from the banks ranged from the low bid of 2.71% to 3.21%. Ms. Wehrenberg recommended to the Board that the Project be financed through the low bidder, Branch Banking and Trust Company (“BB&T”) in accordance with the bid proposal dated January 5, 2009. Ms. Wehrenberg stated should the Board award the bid to BB&T, adoption of the Resolution Approving Financing Terms is included for approval. Draft BB&T documents establishing the contractual relationship between BB&T and Person County for the purposes of financing the Material Recycling Facility that need to be signed and completed at closing by January 30, 2009 are also in the packet. Ms. Wehrenberg stated that the draft financing documents have been reviewed by the County Attorney and herself and all documents have been found to be in relatively good order. Observations by the County Attorney refer to items for Person County to note and insure compliance and wording changes. Any items that would need to be reconciled will be done so by the closing date by the County Attorney and/or the Finance Director. Both the County Attorney and the Finance Director feel the Board can move forward with the authorization. Ms. Wehrenberg requested the Board to award BB&T as the lending institution for the Material Recycling Facility project and to adopt the Financing documents and Resolution Approving Financing Terms that establishes the financing contract for the Material Recycling Facility project between Person County and BB&T as well as approve the financing documents with the contingency that any changes or additional information required to the documents be addressed and amended as needed by the Finance Director with consultation from the County Attorney in order to proceed with the closing that is scheduled to take place by January 30, 2009. January 20, 2009 13 A motion was made by Commissioner Puryear, seconded by Commissioner Kennington to place this project on hold due to the trying economic times. The motion died with a 2/3 vote. Commissioners Lunsford, Clayton and Jeffers cast the dissenting votes. A motion was made by Commissioner Clayton, seconded by Commissioner Jeffers, and passed with a 4/1 vote to approve BB&T as the lending institution for the Material Recycling Facility, and for all the Financing Documents and Resolution Approving Finance Terms be approved, and that the Finance Officer and County Attorney be authorized to make any changes to such documents necessary to assure a closing by January 30, 2009. Casting ayes votes were Commissioners Lunsford, Clayton, Jeffers and Kennington. Commissioner Puryear cast the one dissenting vote. January 20, 2009 14 January 20, 2009 15 STATE OF THE COUNTY HEALTH REPORT 2008 The Board accepted the State of the County Health Report 2008 from LeighAnn Creson, Health Education Supervisor/Healthy Personians Coordinator for the Person County Health Department. This report provides current mortality and morbidity data for the county. It also lists health priorities identified through the 2007 Community Health Assessment process and reveals progress made towards addressing those priorities in the past year. New and emerging issues in public health are addressed as well as other changes in the county that have or could potentially impact the health of Personians. Highlights of the 2009 State of the County Health Report include health priorities for 2008-2012 as chronic disease, health promotion, adolescent health, community issues and access to health resources. Efforts to address these priorities include installing fitness stations at the Huck Sansbury walking track, establishing an Eat Smart, Move More section at the public library, constructing a walking track at the Animal Shelter and many more through the many partners in the community using grant resources for funding. The Report indicated the top 5 leading causes of death in Person County 2002- 2006 pretty much remained the same as in 2001-2005. The four consistent causes are heart disease, cancer, stroke, and chronic lower respiratory disease. The fifth leading cause was pneumonia/influenza. Ms. Creson identified new and emerging public health issues faced in the past year noting rabies alerts in several communities, the food borne intoxication that affected 76 people, contaminated wells in a community north of Roxboro, and two active cases of Tuberculosis, both of which are still undergoing treatment. Ms. Creson reported teen pregnancies among girls ages 15-19 in Person County had increased each year from 2002-2007. Numbers indicate an increase will also be evident in 2008. CHAIRMAN’S REPORT: Commissioner Lunsford encouraged fellow Commissioners to attend workshops and conferences to obtain information from State and Federal level to help the Board to make decisions on the local level. MANAGER’S REPORT: Assistant County Manager Paul Bailey had nothing to report. COMMISSIONER REPORT/COMMENTS: Commissioner Clayton stated he attended the Legislative Goals Conference in Raleigh last week. Commissioner Clayton encouraged fellow Commissioners to attend the new commissioner school offered for the invaluable information gained on budgeting and financing. January 20, 2009 16 Commissioner Jeffers stated he attended the Legislative Goals Conference in Raleigh last week and found it very informative and provided an opportunity to meet his counterparts from across the State. Commissioner Puryear had nothing to report. Commissioner Kennington thanked Mr. Bailey for facts reported regarding the bridge on Rolling Hills Road and also asked Mr. Bailey to contact US Senator Richard Burr’s office as well as our State Senators to request the repair to be done sooner than indicated. Commissioner Kennington also recommended using our county web site to highlight information or link to information such as the State of the County Health Report. ADJOURNMENT: A motion was made by Commissioner Puryear, seconded by Commissioner Clayton and carried to adjourn the meeting at 11:14 a.m. _____________________________ ______________________________ Brenda B. Reaves Johnny Myrl Lunsford Deputy Clerk to the Board Chairman