HomeMy WebLinkAboutSeptember_2_2008_Briefing_MinutesIREDELL COUNTY BOARD OF COMMISSIONERS
BRIEFING MINUTES
SEPTEMBER 2, 2008
The Iredell County Board of Commissioners met in Briefing Session on Tuesday,
September 2, 2008, at 5:00 P.M., in the Iredell County Government Center (South Wing
Conference Room), 200 South Center Street, Statesville, NC.
Board Members Present
Chairman Marvin Norman
Vice Chairman Sara Haire Tice
Steve Johnson
Ken Robertson
Godfrey Williams
Staff present: County Manager Joel Mashburn, Deputy County Manager Susan
Blumenstein, Assistant County Manager Tracy Jackson, Purchasing Agent Dean Lail, Health
Director Donna Campbell, Planning & Development Director Ron Smith, Sheriff's Chief Deputy
Rick Dowdle, Animal Services Manager Chris Royal, and Clerk to the Board Jean Moore.
CALL TO ORDER by Chairman Norman.
REQUEST FROM THE SHERIFF'S DEPARTMENT FOR APPROVAL TO (1)
PURCHASE NEW SOFTWARE FROM SPILLMAN TECHNOLOGIES, THE SOLE -
SOURCE PROVIDER AND (2) PURCHASE A NEW CAD SYSTEM FOR ECOM: Chief
Deputy Rick Dowdle requested permission to purchase new software for his department, through
a bank financing, along with a new Computer Automated Data (CAD) System for the
Emergency Communications Department. He said the upfront costs were $708,000 with
$200,000 of this being identified ($100,000 from sheriffs budget and $100,000 from the E-911
budget) leaving $508,000 to be borrowed. Dowdle continued by saying Spillman Technologies
was the sole -provider of the software, and he requested permission for the county's finance
department to develop a Request for Proposals for submission to local banking institutions.
Deputy County Manager Susan Blumenstein said Spillman had suggested a third -party
proposal at 5.5% (75 basis points), but she felt a better rate could be locally obtained.
Commissioner Robertson asked Dowdle how the payments would be made.
Dowdle said through a payment schedule incorporated into future budgets. He said the
CAD System would be beneficial to other departments.
Commissioner Johnson asked how much of the $100,000 was in reoccurring expense.
Dowdle said this was unknown.
Commissioner Robertson said additional information was needed, especially how much
the system would cost in future budgets.
Vice Chair Tice asked what the new CAD System could provide.
Dowdle said its retrieval capability was beneficial, especially in pinpointing specific data,
and the system had a large storage component.
Commissioner Johnson asked if a Memorandum of Understanding could be developed
regarding the usage of seized funds for the project.
Dowdle said this was a decision for Sheriff Redmond. He said the Sheriff was the only
person who could determine the usage for seized funds.
County Manager Mashburn summed up the request by saying the sheriffs department
was asking the board to finance $508,000.
Commissioner Johnson suggested for the item to be removed from the agenda to allow
the sheriffs department more time to determine if there were other revenue sources for the
purchases.
Chief Dowdle said Spillman's financial quotes could only be used for so long.
Commissioner Williams mentioned the need to refrain from obligating future
commissioners with the debt.
REQUEST FOR APPROVAL OF AN IREDELL COUNTY CELL PHONE
POLICY & PROCEDURES EFFECTIVE SEPTEMBER 3,2008: Deputy County Manager
Blumenstein said 538 county employees used cell or wireless phones, and recently, it was
discovered that the Internal Revenue Code considered these telephones as "listed property."
Blumenstein said the "listed property" designation would require employees to differentiate
between business calls and any personal calls. She said business use was excludable from
employee wages, but personal calls had to be included. Blumenstein said if the substantiation
requirements were not provided, all of the calls had to be included in employee wages. She said
that if an IRS audit occurred, and there was no documentation, the county could be assessed
penalties and interest on phone calls determined to be for personal use.
Blumenstein continued by saying that on April 15, 2008, the U.S. House of
Representatives approved legislation, included in the Taxpayer Assistance and Simplification
Act of 2008, to remove cellular phones or similar telecommunication devices, from the "listed
property" designation. She said the legislation was now being studied in the Senate; however, a
cell phone policy had been drafted. Blumenstein said the downside of the policy was that its
implementation would be costly -- conservative estimate of over $100,000 a year. She said it
was unknown when the issue might be debated in the Senate; however, a letter could be sent to
the county's representatives seeking passage of the legislation, and thereby, eliminating the need
for a county cell phone policy.
The board agreed to delete the cell phone policy from the agenda, and to request the staff
to send a letter to the Senators seeking removal of cell phones from the designation.
UPDATE ON THE INSTALLMENT PAYMENT REFUNDING BONDS, SERIES
2003: Deputy County Manager Blumenstein said the municipal insurance market had
destabilized to the point that alternatives were being reviewed for the Series 2003 Refunding
Bonds. She said the bond's insurer, Ambac, had a ratings drop, and this increased the interest
rate up to a point where the savings being made from the actual refunding were being lost.
Blumenstein offered three options, but she said it appeared the best option was to terminate the
Ambac agreement, and to have the bonds re -rated. (The options are shown as follows.)
Scenario 1 Keep 2003 Bonds in Place & Remove Ambac Insurance
Existing Swap Rate Liquidity* 3.300%
Liquidity* 0.500%
Remarketing 0.095%
Ongoing Rating Fees 0.065%
All -in True Interest Cost 3.960%
*Increase from current 0.26% due to 2003 bonds no longer being `AAA' Rated
Note: Est. legal and ratings fees of $85,000 to remove Ambac Insurance
and have bonds re -rated
Scenario 2 Fixed Rate Refunding (Publicly
Offered)
Interest Rates
2.16%-4.48%
Swap Termination Payment*
616,000
All -in True Interest Cost
4.85%
Net Present Value Savings ($)
(941,622)
Average annual increase in debt service over
Scenario 1 (through 2020)
105,732
*Funded with refunding bond proceeds
Note: Est. cost of issuance included in analysis 1,268,784
November LGC approval
2
Scenario 3 Fixed Rate Refunding (Bank Loan)
Interest Rate 4.40%
Swap Termination Payment* 616,000
All -in True Interest Cost 5.00%
Net Present Value Savings ($) (1,080,438)
Average annual increase in debt service over
Scenario 2 (through 2020) 123,298
*Funded with refunding bond proceeds
Note: Estimated cost of issuance included in analysis 1,479,576
Possibly October LGC approval
Blumenstein said no action was needed at this time, but she was recommending Scenario 1.
(All other agenda items were reviewed, and additional information may be found in the
regular minutes.)
ADJOURNMENT: Chairman Norman adjourned the briefing at 6:25 p.m.
Approval:
3
Clerk to the Board