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05-16-2022 Closed Session Meeting Minutes BOCMay 16, 2022, Closed Session #1 Page 1 of 2 Person County Board of Commissioners Minutes of a Closed Session DATE: May 16, 2022 MEMBERS OF BOARD OF COMMISSIONERS PRESENT: Chairman Powell, Vice Chairman Sims, Commissioner Puryear, Commissioner Gentry, and Commissioner Palmer OTHERS PRESENT: County Manager, Heidi York, Clerk to the Board, Brenda Reaves, County Attorney, Ellis Hankins, and Miranda Harrison, Human Resources Director CLOSED SESSION #1 A motion was made by Commissioner Gentry and carried 5-0 to enter into Closed Session at 10:14am per General Statute 143-318.11(a)(6) for the purpose to discuss personnel to consider the qualifications, competence, performance, character, fitness, conditions of appointment, or conditions of initial employment of an individual public officer or employee or prospective public officer or employee with an Interim County Manager candidate with the following individuals permitted to attend: County Manager, Heidi York, Clerk to the Board, Brenda Reaves, County Attorney, Ellis Hankins, and Human Resources Director, Miranda Harrison. Chairman Powell called the Closed Session #1 to order at 10:14am. The purpose of the Closed Session #1 was to interview an interim County Manager candidate, Ralph Clark. County Manager, Heidi York introduced Mr. Ralph Clark to the group. She passed out his resume that was received from Mr. Neil Emory from the NC Association of County Commissioners along with a list of structured questions to use in the interview. Mr. Ralph Clark stated his interest in serving as the Interim County Manager for Person County. He stated his background included 30+ years in local government working in cities and towns, never working in a county role. Mr. Clark said he retired in 2007 at which time he pursued a career in the private sector with a start-up engineering firm for 12 years until it was sold. Since that time, Mr. Clark said he recently completed his 8th interim assignment. Mr. Clark stated he was prepared to provide the necessary leadership keeping the daily operations moving forward while the Board searches for a new full-time County Manager. May 16, 2022, Closed Session #1 Page 2 of 2 Mr. Clark stated he resides in Trent Woods, near New Bern and owns a home in Danville, Virginia. He noted his intent to live in Danville to commute to Person County during his work days, i.e. Monday-Thursday and then would travel to Trent Woods for the three-day break. Mr. Clark stated his immediate availability and flexibility with his schedule based on the needs of the Board. He further noted his limitation, with his retired status of 1,000 working hours noting he has used 280 hours. Mr. Clark stated he was comfortable working at the pleasure of the Board, however, County Attorney, Ellis Hankins recommended a contractual agreement. The Board asked structured questions of Mr. Clark. When asked about a transition period, Mr. Clark stated he would like to have a few days with County Manager, Heidi York. Mr. Clark left the Closed Session #1 at 10:49am. County Manager, Heidi York reported Mr. Emory spoke with ten individuals but none of those had availability to assist Person County at this time. Ms. York said she was contacting the NC League of Municipalities to request assistance with an interim. Ms. York said, and the Board agreed, they would like to interview at least one other candidate. Ms. York noted the Assistant County Manager, Katherine Cathey has great interpersonal skills, was knowledgeable and a quick- learner noting she was not interested in the permanent manager position but would consider the interim role. Ms. York stated Ms. Cathey would also be a good support to any candidate selected to serve as the Interim County Manager and had the skillset to fill any gaps. Mr. Hankins stated there was a shortage of candidates for an interim role across the state. Commissioner Puryear suggested to wait a week and to offer Mr. Clark a contract if there were no further candidates to interview. The Board had consensus with this suggestion. The Board asked Ms. York to communicate with Mr. Clark to let him know they were interested in working with him. Mr. Hankins reminded the Board that an appointment of any candidate to the Interim County Manager position would have to be done in open session. A motion was made by Vice Chairman Sims and carried 5-0 to return to open session at 10:58am. May 16, 2022, Closed Session #2 Page 1 of 2 Person County Board of Commissioners Minutes of a Closed Session DATE: May 16, 2022 MEMBERS OF BOARD OF COMMISSIONERS PRESENT: Chairman Powell, Vice Chairman Sims, Commissioner Puryear, Commissioner Gentry, and Commissioner Palmer OTHERS PRESENT: County Manager, Heidi York, Clerk to the Board, Brenda Reaves, County Attorney, Ellis Hankins, and Economic Development Director, Sherry Wilborn CLOSED SESSION #2 A motion was made by Vice Chairman Sims and carried 5-0 to enter into Closed Session at 11:05am 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, Ellis Hankins and Economic Development Director, Sherry Wilborn. Chairman Powell called the Closed Session #2 to order at 11:05am. County Attorney, Ellis Hankins explained the purpose of the Closed Session #2 was for the Board to consider legal representation with individuals with the appropriate expertise related to Duke Energy’s Carbon Reduction Plan that was due to be filed on this date with the NC Utilities Commission. Mr. Hankins stated in a big deal such as this, lawyers get hired by entities with interests in the matter to have all information and to lobby on behalf of the entity. Mr. Hankins said Person County has significant interests and needs to be represented and heard in the pending utilities commission process. Mr. Hankins and Economic Development Director, Sherry Wilborn vetted and recommended Mr. Patrick Buffkin, of Buffkin Law Firm of Raleigh to represent Person County. Mr. Hankins noted that he personally knows Mr. Buffkin and further noted that Mr. Buffkin is currently a member of Raleigh City Council and a candidate for a state Senate seat in the Democratic primary. Mr. Hankins disclosed Mr. Buffkin represents a client involved with an interest in this matter in South Carolina. Mr. Hankins stated Mr. Buffkin discloses and waives as a potential conflict. May 16, 2022, Closed Session #2 Page 2 of 2 In addition, Ms. Wilborn recommended the Board consider engaging with a financial analyst for research for this project to help inform the attorney in the Utilities Commission process. Mr. Hankins and Ms. Wilborn suggested the Board engage with Mr. Kevin O’Donnell with Nova Energy Consultants. Ms. Wilborn stated Person County needs to intervene as a party to the process of the Utilities Commission and with legal representation; they would be able to make discovery requests, file comments, as well as have the ability to appeal with access to Duke Energy’s data. Ms. Wilborn stated with the consulting agreement, technical and financial review of the data from Person County’s perspective to make a case for more affordable and reliable source of energy generation located in Person County. Ms. Wilborn noted the Utilities Commission is not evaluating the economic impact on Person County but only that the energy is affordable and reliable. Mr. Hankins confirmed that this proposal was not part of a class action suit noting the first order of business was to file a motion for Person County to intervene as a party in the proceeding which will give the County access to all filings for review leading to submittal of formal written comments on behalf of the County making recommendations to the Utilities Commission that is hopeful to be incorporated into their Order that is beneficial to Person County. Ms. Wilborn stated legal representation would cost $350/hour with a $5,000 retainer to be paid up front with the engagement letter and up to $20,000 for this phase of the project not including an appeal. The consultant fee is projected to not to exceed $30,000. She added that they are not expecting a decision and/or legislation in the current short session noting it was more probable in 2023 in the long session to have energy related legislation. Ms. Wilborn stated there might be a need to engage with a legislative lobbyist for this purpose in 2023. Ms. Wilborn and Chairman Powell stated they were contacting our legislators, Senator Mike Woodard and Representative Larry Yarborough, Jr. Mr. Hankins said procedurally, if the Board so desired, that when back into open session, the Board should make separate motions to retain legal and consulting representation for Person County for the pending Reduction Plan before the NC Utilities Commission. He included that the Board should waive any potential conflict that Buffkin Law Firm, through its principal, Patrick T. Buffkin should have. A motion was made by Commissioner Puryear and carried 5-0 to return to open session at 11:20am. May 16, 2022, Closed Session #3 Page 1 of 2 Person County Board of Commissioners Minutes of a Closed Session DATE: May 16, 2022 MEMBERS OF BOARD OF COMMISSIONERS PRESENT: Chairman Powell, Vice Chairman Sims, Commissioner Puryear, Commissioner Gentry, and Commissioner Palmer OTHERS PRESENT: County Manager, Heidi York, Clerk to the Board, Brenda Reaves, and County Attorney, Ellis Hankins CLOSED SESSION #3 A motion was made by Vice Chairman Sims and carried 5-0 to enter into Closed Session at 11:24am per General Statute 143-318.11(a)(4) for the purpose of discussion of matters relating to the location or expansion of industries or other businesses in the area served by the public body, including agreement on a tentative list of economic development incentives that may be offered by the public body in negotiations with the following individuals permitted to attend: County Manager, Heidi York, Clerk to the Board, Brenda Reaves, County Attorney, Ellis Hankins, and Economic Development Director, Sherry Wilborn. Economic Development Director, Sherry Wilborn reminded the Board that in a recent Closed Session, the Board was updated on two active projects, Project Eddie ($3B investment, now 1,000 jobs) and Project Lamb ($300M investment and 150 jobs) & Chops (supplier for Lamb with $170M investment with 162 jobs). Combined Project Lamb & Chops totals $470M with 312 jobs and Ms. Wilborn stated the Board previously consented to financial incentives for Project Lamb & Chops separately but the project changed fundamentally when the supplier was added and the area would have to be rezone to Industrial and they will need rail. She noted the combined Project Lamb & Chops will require 500-700 acres. Ms. Wilborn stated as she pursued both Project Eddie and Project Lamb & Chops, she evaluated other sites that could accommodate the need for rail. She said when Project Lamb found out that the Board would enter into a 20-day exclusivity agreement with Project Eddie (she noted the exclusivity agreement was never fully executed) they requested a 30-day exclusivity agreement, which was the purpose of the Closed Session #3. Ms. Wilborn explained to the Board that if they enter into a 30-day exclusivity agreement with Project Lamb & Chops, then the county can no longer pursue Project Eddie for the next 30- days. She added Project Eddie was prioritizing another site in the state but have not eliminated Person County. May 16, 2022, Closed Session #3 Page 2 of 2 Ms. Wilborn illustrated Project Eddie on a map showing permitted development cut-fill with conceptual layout that it will not fit in the proposed area and does not provide expansion area, which is why they are prioritizing another site at this point and makes the Mega Site unfeasible with the layout shown. Ms. Wilborn illustrated with a map a proposed route to bring rail to the Mega Site and prepared by Norfolk Southern engineers to illustrate how bringing rail would fundamentally change the site as the rail bisects the permitted area for development. In addition, to bring rail to the Mega Site, the County would have to obtain property easements/acquisitions of 12 parcels, 10 separate landowners with six of those that currently have homes located on them. Ms. Wilborn proposed if the Board desired to pursue rail at the Mega Site for Project Lamb & Chops, that the Board reevaluate the project related to costs and take the financial incentives pledged and appropriate differently to accommodate the new infrastructure need that was not there originally. Ms. Wilborn reminded the group that the Board consented to $9.8M over 10 years for Project Lamb and $4.35M over 10 years for a total of $13.5M with $6M up-front to help with land acquisition/infrastructure costs. Ms. Wilborn noted Project Lamb has received an incentive proposal from the state that did not include the supplier. Ms. Wilborn asked direction from the Board on the following: o Does the Board want to enter into a 30-day exclusivity agreement with Project Lamp & Chops? o Does the Board want to investigate bringing rail to the Mega Site noting it would be on the County to obtain the needed easement/acquisition of property? She noted an estimate was needed from a rail contractor. Chairman Powell asked which project was most likely, to which Ms. Wilborn stated Project Lamb & Chops really wanted to be in Person County. She added the cost for sewer is $15M regardless and not enough jobs to get that fully funded through infrastructure grant agencies. Ms. Wilborn said she was not recommending the 30-day exclusivity agreement due to having multiple prospects interested in the site and having an exclusivity agreement would prevent the County to submit for any new projects. She suggested consideration for a second opinion and the associated costs for the route to bring rail to the site to which the Board consented. Ms. Wilborn stated she would report to Project Lamb & Chops that the County was seeing too much activity at this time to enter into an exclusivity agreement noting staff are working on a new budget to provide to the state to see the total development costs for state support. Commissioner Gentry asked Ms. Wilborn which industry would be the best candidate with the least expense/work to utilize the site to which Ms. Wilborn noted rarely does she see a request for cut only. A motion was made by Vice Chairman Sims and carried 5-0 to return to open session at 11:41am.