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HomeMy WebLinkAboutDecember 20 2011 Regular MinutesIREDELL COUNTY BOARD OF COMMISSIONERS REGULAR MINUTES DECEMBER 20, 2011 The Iredell County Board of Commissioners met on Tuesday, December 20, 2011, at 7:00 P.M., in the Iredell County Government Center (Commissioners' Meeting Room), 200 South Center Street, Statesville, NC. Board Members Present Chairman Steve Johnson Vice Chairman Marvin Norman Renee Griffith Frank Mitchell Ken Robertson Staff present: County Manager Ron Smith, County Attorney Bill Pope, Deputy County Manager Tracy Jackson, Planning/Transportation Director Joey Raczkowski, EMS Director David Cloer, Inspections/Special Projects Director Lynn Niblock, and Clerk to the Board Jean Moore. CALL TO ORDER by Chairman Johnson INVOCATION by Chairman Johnson PLEDGE OF ALLEGIANCE: Boy Scout Troop 175, chartered by Broad Street Methodist Church in Statesville, NC, led the Pledge. ADJUSTMENTS OF THE AGENDA: MOTION by Vice Chairman Norman to approve the agenda with the following adjustment. Addition: Request for Approval of Budget Amendment #30 to Create an EMS Special Services Enterprise Fund & Appropriate Funds from Inception through June 30, 2012 VOTING: Ayes — 5; Nays — 0. PUBLIC HEARINGS Chairman Johnson declared the meeting to be in a public hearing. Consideration of an Economic Development Incentive for an Undisclosed Company Based on a $5 Million to $5.5 Million Investment in Iredell County: John Marek, with the Statesville Regional Development Corporation, requested an incentive for the C. R. Onsrud Company based in Troutman, NC. He provided the following information about the company and its expansion plans. • Manufacturer of CNC routers for the aerospace, marine, furniture, and general manufacturing sector, plus services these products • Construction is scheduled to begin in the first quarter of 2012 on a 30,000 sq. ft. expansion, contingent upon permitting, with completion estimated for the third quarter of 2012 • Equipment will be added between the third quarter of 2012 & first quarter of 2013 • Company plans a $5 million to $5.5 million capital investment over a 14 -month period ($1.5 million in building and $3.5 million to $4 million in capital equipment/fixtures) • 30 new jobs will be created (10 in first year; 10 in 2°d year; and 10 in year 3 with average wages at 140% of county average) • Between $84,711 to $92,656 (over five years) is the incentive request Marek said the expansion would increase the vertical integration of the company's manufacturing processes to remain competitive with offshore competitors. No one else desired to speak, and Chairman Johnson adjourned the hearing. OTION by Vice Chairman Norman to approve the $84,711 to $92,656 incentive, over a five-year period, based on the company's investment ranging between $5 million to $5.5 million and contingent upon a contract being executed within 180 days. VOTING: Ayes — 5; Nays — 0. Chairman Johnson declared the meeting to be in a public hearing. Consideration of an Economic Development Incentive for an Undisclosed Company Based on a $9 Million Investment in Iredell County: Statesville Regional Development Corporation Executive Director Mike Smith requested a $143,001 incentive for the Pate Dawson Company based on a $9 million investment. Smith said the 100 -year old company, based in Goldsboro, NC, was in the food service distribution business. Smith provided the following information about the company's plans. • 49 new jobs will be created with average wages of $47,531 • An existing shell building in the Statesville Business Park will be enlarged by 63,000 sq. ft. for a total of 105,000 sq. ft. • Additional phases are planned (Phase 2 with 250,000 sq. ft. and Phase 3 with 350,000 sq. ft.) Smith said this was a good example of a private/public partnership. No one else desired to speak, and Chairman Johnson closed the hearing. OTION by Commissioner Mitchell to approve the $143,001 incentive, over a five-year period, based upon the $9 million investment and contingent upon a contract being executed within 180 days. VOTING: Ayes - 5; Nays — 0. ADMINISTRATIVE MATTERS Request from the Sheriff's Office for Approval of Budget Amendment #24 to Appropriate Funding from Seized Funds to SCAN, Inc: Mike Phillips, with the Sheriff's Office said the SCAN organization was a non-profit child abuse advocacy facility that worked with the department's special needs victims. He requested approval to transfer $5,000 in seized funds to the organization. OTION by Vice Chairman Norman to approve Budget Amendment #24. VOTING: Ayes — 5; Nays — 0. BA#24 12/20/2011 To appropriate funds to SCAN, Inc from Seized Funds in the Sheriffs Department. Account # Current Change Amended 104880 499401 105510 574240 Appropriated Fund Balance - Seized SCAN (300,000) (5,000) 5,000 (305,000) 5,000 Request for Approval of Budget Amendment #25 to Appropriate Additional Funding to Mitchell Community College for Operating Costs: County Manager Ron Smith said community college officials had requested financial assistance due to increased utility and operating costs. He said the college had the following two requests: 1. An additional allocation of $125,000 for current year's operating expenses. 2. Permission to use up to $125,000 of already allocated capital expense funds for operating expenses. 2 OTION by Commissioner Robertson to approve Budget Amendment #25. VOTING: Ayes — 5; Nays — 0. BA#25 12/20/2011 Account # Current Chane Amended 105480 5302.00 Contingency 250,000 (125,000) 125,000 105700 5604.03 MCC - Capital Outlay 510,591 (125,000) 385,591 105700 5604.01 MCC - Current Expense 2,571,530 250,000 2,821,530 Request for Approval of Budget Amendment #26 to Transfer Funds from Appropriated Fund Balance, Contingency, and Depreciable Assets to Depreciable Assets Computers in the Code Enforcement Budget to Complete the Ongoing MUNIS Permitting Software Project: County Manager Ron Smith said this request involved the following two components as follows: 1. It has been determined that not enough funds are available for the new permitting system, plus it was discovered there was a need for a content management system. The content management system will allow Finance, Human Resources, and other departments to prepare digital copies of records allowing better access of the materials to the county departments as well as the public. The project will cost $41,690 and it is recommended that $16,690 be taken from contingency leaving a remaining cost of $25,000. 2. Previously, $25,000 was received in a settlement from a company that failed to complete the permitting software project. The money was placed in the general fund. These funds will be transferred to the Code Enforcement Department for completion of both projects (MUNIS permitting system and content management system). OTION by Commissioner Mitchell to approve Budget Amendment #26. VOTING: Ayes — 5; Nays — 0. Request for Approval of Budget Amendment #27 to Recognize Funding from the Dept. of Juvenile Justice & Delinquency Prevention for Additional Appropriations to the Juvenile Crime Prevention Council's Community Based Youth Gang Violence Programs Managed by Appropriate Placement Options & the Barium Springs Home for Children: Finance Director Susan Blumenstein said this amendment was to recognize an additional $54,407 in American Recovery and Reinvestment Act Funding for juvenile justice delinquency prevention. She said the funding would be for two current agencies (Appropriate Placement Options and Barium Springs Home for Children) to continue their gang prevention programs. Blumenstein said there were no county dollars involved. OTION by Vice Chairman Norman to approve Budget Amendment #27. VOTING: Ayes — 5; Nays — 0. 3 To appropriate from Fund Balance $25,000 received from Concord Engineering on 5/10/2011 from the Settlement on LDO Project for additional consultation, $25,000 currently budgeted for unexpected equipment BA#26 needs, and $16,690 from Contingency for implementation and training costs to be incurred with the new MUNIS 12/20/2011 software modules and the addition of a content management system. Account# Current Change Amended 104880 4995.00 Appropriated Fund Balance - (25,000) (25,000) 105480 5302.00 Contingency 125,000 (16,690) 108,310 105480 6100.00 Depreciable Assets 25,000 (25,000) - 105562 6101.50 Depreciable Assets - Computer 47,515 66,690 114,205 Request for Approval of Budget Amendment #27 to Recognize Funding from the Dept. of Juvenile Justice & Delinquency Prevention for Additional Appropriations to the Juvenile Crime Prevention Council's Community Based Youth Gang Violence Programs Managed by Appropriate Placement Options & the Barium Springs Home for Children: Finance Director Susan Blumenstein said this amendment was to recognize an additional $54,407 in American Recovery and Reinvestment Act Funding for juvenile justice delinquency prevention. She said the funding would be for two current agencies (Appropriate Placement Options and Barium Springs Home for Children) to continue their gang prevention programs. Blumenstein said there were no county dollars involved. OTION by Vice Chairman Norman to approve Budget Amendment #27. VOTING: Ayes — 5; Nays — 0. 3 Request for Approval of Budget Amendment #28 to Appropriate $123,106 of Fund Balance Reserved for Schools to the Iredell -Statesville Schools for Capital Outlay: Finance Director Susan Blumenstein said the school system had requested the withdrawal of $123,106 that resulted from interest earnings on previous bond accounts. She said the funds had been carried over to this fiscal year, and the school system now desired to use the money for the Career Technical Academy project. Commissioner Mitchell asked about the next phase for the technical academy. Dr. Kenny Miller, with the school system, said the projects were based on the curriculum design and a digital media class would begin in the fall of 2012. Commissioner Robertson asked if the funds were enough to finish the project. Miller said no, and that additional funds would be used. Robertson asked if the school system had enough funds identified and appropriated to complete the project. Miller said yes, and these funds would be for the design work and the initial work for the building. He said CTE funds, identified in the career technical education program, would pay for the equipment. OTION by Commissioner Robertson to approve Budget Amendment #28. VOTING: Ayes — 5; Nays — 0. BA#28 tzrz0n0tt 04880 4993.00 05700 5600.02 appropriate Fund Balance Reserved for Schools to Iredell-Statesville Schools Capital Outlay per uest. Funds to be used for next phase of the Career Academy and Technical School. Fund Balance - Schools - Capital Outlay (1,400)1 (123,106) 2,143,139 1 123,106 1 2,266,245 Request for Approval of Lottery Proceeds Applications Submitted by the Iredell- Statesville Schools Totaling $501,807 and Approval of Budget Amendment #29 to Recognize the Funds (Projects: Lighting Upgrades at Five Schools, Brawley Middle School Parking Lot & Entrance Contract and Woodland Heights Water/Wastewater Upgrade): Finance Director Blumenstein said the school system had submitted lottery applications totaling $501,807. She said the funds were available and on deposit with the State Treasurer. Blumenstein said a budget amendment was being requested to allow the county to immediately transfer the funds to the school system once received. Commissioner Robertson asked if this request would use up all of the lottery funds. Dr. Miller said approximately $10,000 would remain. 4 To recognize funding from DJJDP for additional appropriations for the JCPC Community -Based Youth Gang Violence programs managed by Appropriate Placement Options and Barium Springs Home for Children. BA#27 12/20/2011 Account# Current Change Amended 394486 4341.22 ARRA - JCPC Gang Prevention Grnt (54,407) (54,407) 395486 5634.01 ARRA -Appro Placement Options 22,518 22,518 395486 5634.02 ARRA - Barium Springs HC 31,889 31,889 Request for Approval of Budget Amendment #28 to Appropriate $123,106 of Fund Balance Reserved for Schools to the Iredell -Statesville Schools for Capital Outlay: Finance Director Susan Blumenstein said the school system had requested the withdrawal of $123,106 that resulted from interest earnings on previous bond accounts. She said the funds had been carried over to this fiscal year, and the school system now desired to use the money for the Career Technical Academy project. Commissioner Mitchell asked about the next phase for the technical academy. Dr. Kenny Miller, with the school system, said the projects were based on the curriculum design and a digital media class would begin in the fall of 2012. Commissioner Robertson asked if the funds were enough to finish the project. Miller said no, and that additional funds would be used. Robertson asked if the school system had enough funds identified and appropriated to complete the project. Miller said yes, and these funds would be for the design work and the initial work for the building. He said CTE funds, identified in the career technical education program, would pay for the equipment. OTION by Commissioner Robertson to approve Budget Amendment #28. VOTING: Ayes — 5; Nays — 0. BA#28 tzrz0n0tt 04880 4993.00 05700 5600.02 appropriate Fund Balance Reserved for Schools to Iredell-Statesville Schools Capital Outlay per uest. Funds to be used for next phase of the Career Academy and Technical School. Fund Balance - Schools - Capital Outlay (1,400)1 (123,106) 2,143,139 1 123,106 1 2,266,245 Request for Approval of Lottery Proceeds Applications Submitted by the Iredell- Statesville Schools Totaling $501,807 and Approval of Budget Amendment #29 to Recognize the Funds (Projects: Lighting Upgrades at Five Schools, Brawley Middle School Parking Lot & Entrance Contract and Woodland Heights Water/Wastewater Upgrade): Finance Director Blumenstein said the school system had submitted lottery applications totaling $501,807. She said the funds were available and on deposit with the State Treasurer. Blumenstein said a budget amendment was being requested to allow the county to immediately transfer the funds to the school system once received. Commissioner Robertson asked if this request would use up all of the lottery funds. Dr. Miller said approximately $10,000 would remain. 4 OTION by Commissioner Robertson to approve Budget Amendment #29. VOTING: Ayes — 5; Nays — 0. Request for an Amendment to the Twin Oaks Golf Course Lease: Finance Director Susan Blumenstein said this item was first presented for consideration on November 15, 2011, and since that time, Patti Keath had been negotiating with Chris Odom in regards to him becoming a partner in Twin Oaks Golf Club, LLC. Blumenstein said that in 2008, Iredell County received proposals from golf course operators to lease the property at 320 Twin Oaks Road, and subsequently leased the property to Twin Oaks Golf Club LLC for a period of nine years. She said the county's intent in leasing the property was to eliminate buildings and grounds maintenance costs. Blumenstein said the golf club now desired to improve the property/equipment, and based on past history, David Lambert, the Solid Waste Director, had estimated the golf course property would not be needed for solid waste disposal or cover soils for at least 24 years. She noted, however, that disposal rates and future technologies could change the estimate of when the site might be needed. Blumenstein then reviewed the proposed lease changes as follows: Term: The existing lease is for the period December 31, 2008 through December 31, 2017. Recommend termination of the existing lease on December 31, 2011 and execute a new lease beginning January, 1, 2012 continuing until December 30, 2020. Rent: The existing lease requires monthly rental payments of $2,000 plus 3% of the gross annual revenue due within twenty days after the final accounting for the prior year but not later than March 31". Recommend monthly rental payments of $2,000, with a waiver for the existing lease for December, 2011 and for the months of January, 2012 through August, 2012, for the new lease. Monthly rental payments will be increased 4% January 1, 2013 with an additional 4% increase each subsequent year through January 1, 2020. In addition, the percentage of gross annual revenue due to Iredell County will remain at 3% far the lease terminating December 31, 2011 payment of which is due no later than March 31, 2012. Beginning with the calendar year ending December 31, 2012, and each subsequent year thereafter, Twin Oaks Golf Club LLC will pay 3.5% of the gross annual revenue within twenty days after the final accounting for the prior calendar year but not later than March 31. Termination: The existing lease may be terminated by either party without cause upon 90 -days notice. Recommend termination by either party without cause with one-year notice by Twin Oaks Golf Course LLC and seven year's notice by Iredell County. Commissioner Griffith asked why the termination clause was being amended to seven years. Blumenstein said Twin Oaks was going to make major improvements, and the extended lease would offer some security to the owners on their investment. Griffith asked why the company was requesting that no lease payments occur from December 2011 to August 2012. Blumenstein said the golf course company would be making an investment into the property during that time. She said the rental rate and percentage in sales had been increased to account for these months. k, To recognize Lottery Proceeds for I -SS application for Lighting Upgrade Debt Service Payment, $100,000 for Woodland Heights Elementary, and $148,156 for Brawley Middle Parking Lot BA#29 improvements. 12.20.11 Account # Current Change Amended General Fund 104700457101 Lottery Proceeds - ISS (735,651) (501,807) (1,237,458) 105700 560004 ISS - Lottery Projects 735,651 501,807 1,237,458 Request for an Amendment to the Twin Oaks Golf Course Lease: Finance Director Susan Blumenstein said this item was first presented for consideration on November 15, 2011, and since that time, Patti Keath had been negotiating with Chris Odom in regards to him becoming a partner in Twin Oaks Golf Club, LLC. Blumenstein said that in 2008, Iredell County received proposals from golf course operators to lease the property at 320 Twin Oaks Road, and subsequently leased the property to Twin Oaks Golf Club LLC for a period of nine years. She said the county's intent in leasing the property was to eliminate buildings and grounds maintenance costs. Blumenstein said the golf club now desired to improve the property/equipment, and based on past history, David Lambert, the Solid Waste Director, had estimated the golf course property would not be needed for solid waste disposal or cover soils for at least 24 years. She noted, however, that disposal rates and future technologies could change the estimate of when the site might be needed. Blumenstein then reviewed the proposed lease changes as follows: Term: The existing lease is for the period December 31, 2008 through December 31, 2017. Recommend termination of the existing lease on December 31, 2011 and execute a new lease beginning January, 1, 2012 continuing until December 30, 2020. Rent: The existing lease requires monthly rental payments of $2,000 plus 3% of the gross annual revenue due within twenty days after the final accounting for the prior year but not later than March 31". Recommend monthly rental payments of $2,000, with a waiver for the existing lease for December, 2011 and for the months of January, 2012 through August, 2012, for the new lease. Monthly rental payments will be increased 4% January 1, 2013 with an additional 4% increase each subsequent year through January 1, 2020. In addition, the percentage of gross annual revenue due to Iredell County will remain at 3% far the lease terminating December 31, 2011 payment of which is due no later than March 31, 2012. Beginning with the calendar year ending December 31, 2012, and each subsequent year thereafter, Twin Oaks Golf Club LLC will pay 3.5% of the gross annual revenue within twenty days after the final accounting for the prior calendar year but not later than March 31. Termination: The existing lease may be terminated by either party without cause upon 90 -days notice. Recommend termination by either party without cause with one-year notice by Twin Oaks Golf Course LLC and seven year's notice by Iredell County. Commissioner Griffith asked why the termination clause was being amended to seven years. Blumenstein said Twin Oaks was going to make major improvements, and the extended lease would offer some security to the owners on their investment. Griffith asked why the company was requesting that no lease payments occur from December 2011 to August 2012. Blumenstein said the golf course company would be making an investment into the property during that time. She said the rental rate and percentage in sales had been increased to account for these months. k, Commissioner Robertson noted the payback schedule assumed that sales would continually increase. He asked why there had been a 17% loss of revenue during one time period. Patti Keath, with the golf course, said a groundskeeper had applied the wrong product on the greens, and this had harmed their appearance. She said the greens had now improved, plus another positive was that one partner was a PGA pro who would be providing clinics and holding tournaments to increase the revenue. Chad Odom said the revenue projections were conservative. He said there was an effort being made to turn the facility into a place with affordable golf for families, and a goal was for the business to be a "highlight' for the county. Chairman Johnson said he assumed the lease was written to indicate that if the payments were not made, termination would be immediate. Attorney Pope said he had never drafted a lease that didn't protect the landlord. OTION by Commissioner Mitchell to approve the lease changes as presented. VOTING: Ayes — 4; Nays — 1 (Griffith) Request to Call for a Public Hearing on January 3, 2012 Regarding a Release of Zoning & Subdivision Jurisdiction to the Town of Mooresville (Location: 1.796 Acre Parcel between Brawley School Road & Swift Arrow Drive in Mooresville, NC): Planning Director Joey Raczkowski said Dale Tweedy, with Stonegate Developers LLC, had submitted this release request. He said the property was owned by David B. & Eileen M. Rainess and was proposed to be used as a 1,400 square foot "drive -up" grocery store called Swiss Farms. Raczkowski said the release was being requested in order to receive water and sewer services from the Town of Mooresville. MOTION by Vice Chairman Norman to call for the public hearing as requested. VOTING: Ayes — 5; Nays — 0. Request from the Health Department for Approval of New Current Procedural Terminology Codes (CPTs) & Related Fees: Health Director Donna Campbell requested new CPT codes and fees as follows: CPT Code 81015: urine microscopic $ 13.00 CPT Code 59425: antepartum care only 4-6 visits $ 850.00 CPT Code 59426: antepartum care only 7+ visits $1,300.00 OTIO by Commissioner Mitchell to approve the request as presented. VOTING: Ayes — 5; Nays — 0. Request from the EMS Department for the EMS Director to Create a Specialty Services Ambulance Division: EMS Director David Cloer said that at the last meeting, he was directed to create a long-term plan for convalescent transport services. He said that on December 16, 2011, the department started providing the non -emergency calls, and a long-term plan involving a loan from the general fund was being requested to start an enterprise fund. Chairman Johnson added that in a previous meeting with the staff, a directive had been given to create a business plan where the county would loan the initial capital and operational costs for the startup. He said there was an understanding the department would pay the county back over a period of time (within five years). He said from that point on, an enterprise fund would be used to operate the service. Johnson said he understood the complexities, but as much as possible, an enterprise system method should be used. Commissioner Robertson asked if the convalescent enterprise fund could be used to pay for additional ambulances for emergency services. 6 County Manager Smith said that in the first five years there would be a $100,000 payment to the general fund, and the program would be treated as much as possible as an enterprise fund. He said that from that point on, the county might be able to offset costs in the 911 side based on additional revenues. Blumenstein noted these activities would be governmental functions, and the county would not be issuing any public debt as was done in the solid waste department with its enterprise fund. She said the solid waste revenues had been pledged for the debt which would not be the case for EMS. She said the EMS plan funded the depreciation, and funds would be set aside for ambulance replacements and equipment. Commissioner Griffith asked how many convalescent calls had occurred since December 16. Cloer said about 52. OTION by Commissioner Mitchell to allow the EMS Director to create a Specialty Services Ambulance Division. VOTING: Ayes — 5; Nays — 0. Request for Approval of Budget Amendment #30 to Create an EMS Special Services Enterprise Fund & Appropriate Funds from Inception through June 30, 2012: Finance Director Blumenstein said this budget amendment would appropriate $500,000 as a loan to the EMS Special Services Enterprise Fund. She said it would be shown as a receivable from that fund next June 30. Blumenstein said it also appropriated the funds needed to operate through June 30 for the gap, plus the operation period through June 30`h, and recognized $486,780 in anticipated received fees. Commissioner Robertson asked the lag time for Medicare and Medicare from invoicing to the receipt of funds. Blumenstein said around 40 to 45 days total. She said these were pre -approved trips and Medicare turned around within 14 days. Chairman Johnson asked when the first payment to the county might be received. Blumenstein said 2013. OTION by Commissioner Griffith to approve Budget Amendment #30 to create the EMS Special Services Enterprise Fund and to appropriate the funds from inception through June 30, 2012. VOTING: Ayes — 5; Nays — 0. Budget Amendment Fiscal Year 2011.12 To create EMS Special Services Enterprise Fund and appropriate funds from inception through June 30, 2012. BA#30 12.20.11 Account# Current Chanae Amended %I General Fund 104880 499500 Appropriated Fund Balance - (500,000) (500,000) 105780 576050 Loan to EMS Special Services - 500,000 500,000 EMS Special Services Enterprise Fund 574542 471030 Convalescent Transport Fees - (486,780) (486,780) 574880 495010 Loan from General Fund - (500,000) (500,000) 575542 510002 Salaries & Wages -Regular - 138,050 138,050 575442 510003 Salaries & Wages - Part time - 2,920 2,920 575442 510004 Salaries & Wages - Overtime - 78,995 78,995 %I 575442 512501 FICA - 16,830 16,830 575442 512502 Health Insurance - 31,765 31,765 575442 512503 Retirement - 25,960 25,960 575542 531500 Insurance & Bonds - 600 600 575542 532502 Main & Repairs - Vehicles - 2,000 2,000 575542 534500 Rental Payments - Buildings - 4,000 4,000 575542 534501 Rental Payments - Equipment - 24,000 24,000 575542 535000 Supplies - Departmental - 15,600 15,600 575542 535004 Supplies -Vehicle Fuel - 27,000 27,000 575542 535005 Supplies - Vehicle Other - 1,250 1,250 575542 535016 Supplies -Ambulance - 17,000 17,000 575542 535500 Telephone - 3,060 3,060 575542 536600 Uniforms - 21,640 21,640 575542 537508 Contracted Services - Other - 36,500 36,500 575542 610000 Depreciable Assets - 142,000 142,000 575542 620000 Non -depreciable Assets - 20,000 20,000 575542 650000 Vehicles - 340,000 340,000 575542 530200 Continaencv - 37,610 37,610 Request for Approval of the October and November 2011 Refunds & Releases: County Manager Smith said the tax office was recommending approval of the October and November refunds and releases. MOTION by Vice Chairman Norman to approve the refunds and releases as presented. VOTING: Ayes - 5; Nays - 0. Monthly $155,800.18 Releases for the Month of October 2011 Total County $ 5,100.78 Solid Waste Fees $ Breakdown of Releases: E. Alex. Co. Fire #1 $ County $ 81,075.18 10.15 Solid Waste Fees $ 159.00 All County Fire #4 E. Alex. Co. Fire #1 $ - $ Shepherd's Fire 2 $ 522.65 572.45 Mt. Mourne Fire#3 $ 135.89 Downtown All County Fire #4 $ 2,382.07 $ B&F Fire #5 $ 711.93 Statesville City $ 4,826.78 Statesville Downtown $ 3.08 Mooresville Town $ 52,970.22 Mooresville Downtown $ - Mooresville School $ 7,116.15 Love Valley $ - Harmony $ - Troutman $ 5,762.85 Davidson $ 134.38 Monthly Refunds for the Month of October 2011 Total $11,904.86 8 Breakdown of Refunds: County $ 5,100.78 Solid Waste Fees $ - E. Alex. Co. Fire #1 $ - Shepherd's Fire #2 $ 10.15 Mt. Mourne Fire #3 $ - All County Fire #4 $ 61.68 B&F Fire #5 $ 7.07 Statesville City $ 572.45 Statesville Downtown $ - Mooresville Town $ 5,080.26 8 Mooresville Downtown $ - Mooresville School $ 1,072.47 Love Valley $ - Harmony $ - Troutman $ - Davidson $ - Releases for the Month of November 2011 Breakdown of Releases: County $ 86,023.98 Solid Waste Fees $ 104.00 E. Alex. Co. Fire #1 $ - Shepherd's Fire #2 $ 2,182.08 Mt. Mourne Fire #3 $ 570.47 All County Fire #4 $ 1,914.74 B&F Fire #5 $ 1,519.22 Statesville City $ 4,894.66 Statesville Downtown $ 15.88 Mooresville Town $ 32,930.19 Mooresville Downtown $ - Mooresville School $ 4,179.46 Love Valley $ - Harmony $ - Troutman $ 12,140.67 Davidson $ - Refunds for the Month of November 2011 Monthly Total $146,475.35 Monthly Total $2,888.08 Request for Approval of the December 6, 2011 Minutes: OTION by Chairman Johnson to approve the minutes as presented. VOTING: Ayes — 5; Nays — 0. ANNOUNCEMENT OF VACANCIES OCCURRING ON BOARDS & COMMISSIONS Adult Care Home Community Advisory Committee (1 announcement) Juvenile Crime Prevention Program Committee (1 announcement) 9 Breakdown of Refunds: County $ 2,338.98 Solid Waste Fees $ - E. Alex. Co. Fire #1 $ - Shepherd's Fire #2 $ - Mt. Mourne Fire #3 $ 2.45 All County Fire #4 $ 298.59 B&F Fire #5 $ - Statesville City $ 94.77 Statesville Downtown $ - Mooresville Town $ 124.35 Mooresville Downtown $ - Mooresville School $ 28.94 Love Valley $ - Harmony $ Troutman $ Davidson $ Monthly Total $146,475.35 Monthly Total $2,888.08 Request for Approval of the December 6, 2011 Minutes: OTION by Chairman Johnson to approve the minutes as presented. VOTING: Ayes — 5; Nays — 0. ANNOUNCEMENT OF VACANCIES OCCURRING ON BOARDS & COMMISSIONS Adult Care Home Community Advisory Committee (1 announcement) Juvenile Crime Prevention Program Committee (1 announcement) 9 APPOINTMENTS TO BOARDS AND Facilities Task Force for Schools (1 appointment/western zone): MOTIO by Commissioner Mitchell to postpone this appointment until the next meeting. VOTING: Ayes — 5; Nays — 0. Nursing Home Advisory Committee (1 appointment): MOTION by Commissioner Robertson to postpone this appointment. VOTING: Ayes — 5; Nays — 0. UNFINISHED BUSINESS Red Line Project: Commissioner Robertson requested the county attorney to research four questions pertaining to the Red Line Project. He said the Department of Transportation had previously discussed financial options available to fund the project. Robertson said, "At the last meeting we were told about special assessment districts and tax increment financings. It was presented to us that if we were to support the Red Line concept, the general public in Iredell County would not be affected. Sometimes when things don't seem quite right, it makes me ask a few questions. They said in order for these special assessment districts to be allowed, the members of the district would have to vote the tax increase upon themselves. What I did not get answered was: Who votes to be in the district? For instance, if there is a convenience store, and it's owned by a chain, who votes? If there is a grocery store next to it that is worth ten times the amount of money, or ten times the land, and it is also owned by a chain, who gets to vote, and are the votes the same? This relates to the biggest property owner, Lowes, so does that mean the CEO of Lowes votes, and is his vote the same as the convenience store company? Who gets to vote?" Attorney Pope asked if Mr. Robertson wanted to know if the owner or tenant voted. Commissioner Robertson said, "No, as I'm sure it will be the owner, but if the owner is a corporation, who votes? How is it determined who votes? My next question is: Is it weighted? If someone has a parcel number, and if you have a parcel number, you get to vote once, but if your parcel is a third of an acre worth $20,000 while someone else has six acres worth a million dollars, they both have one pin number, they only get to vote once. My farm has four pin numbers, if I were a business, and my business was on four different parcels, do I get to vote four times? Compared to someone else whose business has only one parcel, do they get to vote once? Who gets to vote, and how is it weighted?" Robertson said, "We are a subset of state government and we have had members of the General Assembly to excuse different categories of different people from paying county taxes. My third question is: If property owners along the Red Line in fact get themselves to be in one of the special assessment districts, can the General Assembly then vote, after the fact, to exclude certain property owners or categories from having to pay the taxes in that district." Robertson continued by saying, "My final and fourth question is: If there are shortfalls to these exemptions that the General Assembly might be able to give people, or if there are just general shortfalls period, then, is the county on the hook to make up those differences? I asked question number four multiple times, and he (Red Line representative) basically said, `No that just can't happen, that just can't happen.' Anybody that's been awake for the last four years knows there have been a lot of people who thought they were going to have money, and they don't have money. Bad things happen when you don't have the money you thought you were going to have. I just want to know if anything bad is going to happen to us." The four questions were: 1. Who gets to vote? 2. How is it weighted? 3. If property owners along the Red Line in fact get themselves to be in one of the special assessment districts, can the General Assembly then vote, after the fact, to exclude certain property owners or categories from having to pay the taxes in that district? 10 4. If there are shortfalls to these exemptions that the General Assembly might be able to give people, or if there are just general shortfalls period, then, is the county on the hook to make up those differences? Chairman Johnson said, "I can answer one of those questions right now. What are the potential costs you are exposing the taxpayers to? A lot." Commissioner Robertson said, "If we get into the exemption game, I'm out. If we start picking winners and losers, we will be the losers." Chairman Johnson said, "There are two approaches to decision making. There's the correspondence theory of decision making. It says this: You come up with a business plan or a theory. Is it plausible? Does it sound good? Then you compare that theory, business plan, or philosophy, whatever, to reality. If that philosophy or business plan or what have you corresponds with reality, then it is a valid theory and worth pursuing. You have another approach to decision making which is called the coherence theory of decision making. This is where a room of idiots get together and decide that something is coherent. Jim says to Bob, `This is coherent. Don't you think soT Bob says, `Yes, this is coherent.' Then they ask Ed, Phyllis, Shirley, Mary, and everybody in the room says, `This is coherent.' Since everybody in the room thinks it's coherent, then it's true. They have not done the second part of the exercise and that is to find out how it relates to reality. The people who are proposing this clearly fit into the second theory of approach to decision making. It sounds coherent, but how does it measure to reality? I would maintain that it does not. They have come up, again they have reinvented themselves. It didn't work as a commuter rail, the fallacy of their decision making was exposed, and the fallacy of their decision making was exposed because it was three times what they said it would be to build. They have been losing money ever since. Now, they have reinvented themselves. They say it will be commuter rail/commercial hauling freight. They tell us they are going to have all of these customers. Well, where are the customers? Well, they are going to come. We're supposed to sit here and make a business decision based on tens of millions of dollars based on a group of people who approached decision making on a coherent philosophy of business. I'm going to say that I'm not merely reluctant to do that, I will not do that. Look at their record. They cannot estimate the cost of anything, and they cannot make money doing this. I'll go along with one more exercise, but when they are asked about a contingency plan if Iredell County does not want to be involved in it, apparently they do not have one. If we want to let Mr. Pope research this, that's fine. We can do that, but between now and the next time they appear here, a lot of people will be asked to do a lot of things. People who are not in this room, 20 and 30 miles south of here, and jump through a lot of hoops. Mr. Raczkowski and Mr. Smith, they are just a couple of them. If these folks want an answer, I can only speak for myself, they have an answer tonight. The answer is no. It's been no. It will forever be no. I've listened to these people obfuscate. Ever time you ask them a question. I do not trust them. I do not trust their judgment, business model, or decision making. I would suggest that Mr. Pope be allowed to research this, if anyone needs a level of comfort, but we schedule a vote on this as soon as possible so that our staff will quit wasting their time if there is no interest on this board to move forward and so that other people can quit wasting their time. They can come up with a business plan as soon as possible if they deem that necessary that does, or does not, include Iredell County. I will not vote in the affirmative, and I recommend that the night Mr. Pope provides the information that a vote be scheduled for the same evening." Chairman Johnson asked Mr. Pope if the information would be provided at the second meeting in January (January 17). Mr. Pope said yes. Chairman Johnson instructed the staff to place the matter on the agenda for a vote at the second meeting in January. Commissioner Robertson said the questions were asked in order for the public to know there were "gaping holes" in the Red Line proposal. PUBLIC COMMENT PERIOD Rhonda Kontos, on behalf of LifeSpan, Inc., requested assistance with driveway improvements. She said the lowest bid received was for $25,000.00, and through fundraisers, $5,000 had been raised. Kontos asked if the county would fund one half of the costs. She also asked if the county would perform the work, if LifeSpan provided one half of the costs. Chairman Johnson said the county did not have the ability to perform the work in-house, and LifeSpan would need a contractor. He suggested that Kontos contact the county manager with the request, and the board would take the matter under consideration. COUNTY MANAGER'S REPORT: County Manager Smith said it might be irrelevant, but information had been distributed regarding the Red Line Rail project. Commissioner Griffith noted that based on the Red Line presentation, Iredell County's citizens would be asked to pay $1,575 per person for the project. She stressed this was per person, not necessarily the actual taxpayers. ADJOURNMENT: MOTION by Commissioner Griffith, at 8:20 P.M., to adjourn the meeting. (NEXT MEETING: Tuesday, January 3, 2012 at 7:00 P.M. in the Iredell County Government Center, 200 South Center Street, Statesville, NC.) Approval: 12 Clerk to the Board