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HomeMy WebLinkAboutMay_17_2011_Regular_MinutesIREDELL COUNTY BOARD OF COMMISSIONERS REGULAR MINUTES MAY 17, 2011 The Iredell County Board of Commissioners met on Tuesday, May 17, 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 Joel Mashburn, County Attorney Bill Pope, Deputy County Manager Tracy Jackson, Assistant County Manager Ron Smith, Finance Director Susan Blumenstein, Human Resources Director Sandra Gregory, Purchasing Agent Dean Lail, Vehicle Services Director John Williams, Inspections/Code Enforcement Director Lynn Niblock, Planner Matthew Todd, and Clerk to the Board Jean Moore. CALL TO ORDER by Chairman Johnson INVOCATION by Commissioner Griffith PLEDGE OF ALLEGIANCE ADJUSTMENTS OF THE AGENDA: approve the agenda. VOTING: Ayes — 5; Nays — 0. MOTION by Commissioner Griffith to APPOINTMENT BEFORE THE BOARD David Swann, the CEO with Crossroads Behavioral Healthcare, Discusses a Prepaid Inpatient Health Plan & Requests Approval of a Resolution: Mr. Swann said the NC Department of Health and Human Services had made significant changes in the recommended delivery of mental health services. He said the changes involved applications, legislation, and policies due to the state desiring to create a statewide prepaid health plan for Medicaid services, funds, and populations. He said Medicaid was the largest provider or payer for behavioral healthcare, and the change would establish a capitated, full risk management system for operating a managed care waiver (other names are pre -paid health plan or a 1915 b/c waiver). Swann said the program would operate similarly to an insurance program in that at the beginning of a year, Medicaid money would be loaded into the system, and administrators would manage the funds. He said North Carolina released an application to apply for the waiver on April 1, and the applications were due May 20. Swann said that due to the full risk managed care program, the state had stipulated that a minimum population requirement had to be met. He said the minimum general population was 300,000 by July 1, 2012, and this would increase to 500,000 on July 1, 2013. Swann said the Medicaid population minimum was 70,000. He said currently, Crossroads did not meet either one of the minimums, and this was forcing the agency to merge with other local management entities (LMEs). Swann said merger discussions had occurred with two other LMEs: Mental Health Partners (Burke and Catawba Counties) and Pathways (Cleveland, Gaston and Lincoln Counties). He said the combined populations for all three LMEs would then be 914,000, plus the Medicaid count would increase to 140,000. Swann said the benefits would be (1) the prepaid system would save money, (2) healthcare would improve, and (3) additional services, not currently available to the Medicaid population, would exist. Continuing he said the waiver waived the rules and granted flexibility in obtaining services. Swann said the application was due May 20 which would be followed by a desk review, and then a face-to-face interview. He said that if the application were successful, the merger would become effective July 1, 2012, but if it failed, the state would assign Crossroads to another program. Commissioner Griffith asked how services would be impacted if the minimum was not met. Swann said Crossroads would probably be assigned to another program. Commissioner Robertson said it was understood the state wanted the mergers, but he couldn't understand why the merger plan might be rejected. Swann said the application was competitive. He said the state might reject the waiver, but not object to an actual merger. Swann said that even if successful, the state might assign Crossroads to another program, and it might not even be contiguous to the three counties. plan. MOTION by Chairman Johnson to adopt the resolution for the prepaid inpatient health VOTING: Ayes — 5; Nays — 0. RESOLUTION FOR THE PREPAID INPATIENT HEALTH PLAN WHEREAS, the North Carolina Department of Health and Human Services issued a Request for Applications on March 31, 2011 requesting Local Management Entities to apply to operate a Prepaid Inpatient health Plan under the Expansion of the Medicaid 1915 (b)/(c) Waiver; and WHEREAS, the minimum total populations required to operate a Prepaid Inpatient Health Plan and to provide Local Management Entity services is set at 300,000 by July 12, 2012, and 500,000 by July 2013; and WHEREAS, if a Local Management Entity did not apply or was not successful in its application, the North Carolina Department of Health and Human Services would assign that entity to another entity that had successfully applied; and WHEREAS, the three counties in the Crossroads Behavioral Healthcare catchment area do not, and will not, meet these total population requirements; and WHEREAS, it is in the best interest of the citizens of our county who use public behavioral health services for those services to continue to be delivered in a manner that is responsive to local needs and governed by local leadership; and WHEREAS, the Crossroads Behavioral Healthcare Area Board of Directors voted unanimously on April 26, 2011, to pursue the Request for Applications in a joint venture with the Local Management Entity partners known as Mental Health Partners (Burke and Catawba counties) and Pathways (Cleveland, Gaston and Lincoln counties) and to merge to achieve and exceed the minimum population threshold as set out in the Request for Applications and the proposed legislation anticipated to be enacted in the 2011 Session; and WHEREAS, this vote requested support of this merger by the Boards of County Commissioners for each county in the Crossroads Behavioral Healthcare catchment area to be submitted to the NC Department of Health and Human Services with the Request for Applications response on May 20, 2011. NOW, THEREFORE BE IT RESOLVED, that the Iredell County Board of Commissioners hereby supports the proposed merger of the Crossroads LME (Iredell, Sorry and Yadkin Counties) with the Local Management Entity partners known as Mental Health Partners (Burke and Catawba Counties) and Pathways (Cleveland, Gaston and Lincoln Counties). This merger is to achieve and exceed the minimum population threshold as set out in the Request for Applications and the proposed legislation anticipated to be enacted in the 2011 Session. ADMINISTRATIVE MATTERS Request for Approval of the FY 2012 Juvenile Justice and Delinquency Prevention Funding Allocation Plan: Juvenile Crime Prevention Council (JCPC) Vice Chairman Jim Mixson said the group met on April 12 to consider proposals from agencies offering services to juveniles who were (1) at risk of delinquency (2) been adjudicated undisciplined, or (3) delinquent. He said $286,796 was estimated for the FY 12 funding; however, only $258,102 had been allocated in case the state reduced the grant. Mixson said that if the state did not cut the funding, the county had until December 31, 2011, to allocate the remaining funds. MOTION by Vice Chairman Norman to approve the FY 2012 Juvenile Justice and Delinquency Prevention Funding Allocation Plan. VOTING: Ayes — 5; Nays — 0. 2 Iredell Department of Juvenile Justice and Delinquency Prevention County Funding Allocation Available Funds: $ $286,796 Local Match: $ $92,012 Rate: 30% A Program Agreement Form for each program listed below is included as an attachment to the Community Prevention and Intervention Plan. # Program Provider DJJDP Funding LOCAL FUNDING OTHER OTHER Total Non - oD JDP Program Revenues Local Cash Match Local In- Kind State/ Federal Funds i Barium Springs $85,602 $30,042 $115,644 1 Exchange/SCAN $47,000 $20,681 $67,681 3 Mediation Center $31,500 $14,000 $45,500 a DonLin Counseling $16,500 $4,950 $21,450 e Project Challenge $62,000 $22,339 $84,339 ,Y I JCPC Admin. $15,500 $15,500 9 $0 to Unallocated Funds $28,694 $28,694 n $0 TOTALS: $286,796 $14,000 $78,012 $0 $0 $378,808 The above plan was derived through a planning process by the Iredell Juvenile Crime Prevention Council and represents the County's Plan for use of these funds in FY County 2011-2012 Request from the Human Resources Department for Approval to Apply for a Wellness Grant: Human Resources Director Sandra Gregory requested permission to apply for a $4,330 wellness grant from the North Carolina Association of County Commissioners. She said the funds would purchase exercise DVD rentals, monthly wellness incentive prizes, and exercise equipment for on-site classes. Chairman Johnson asked when the exercising materials would be used, especially since on- site classes had been mentioned. He asked if the employees would exercise after work. Gregory said the exercising occurred during the employees' lunch times. MOTION by Commissioner Robertson to allow the staff to apply for the wellness grant. VOTING: Ayes — 5; Nays — 0. Request to Declare 24 Vehicles Surplus and to Authorize the Purchasing Agent to Dispose of them by On -Line Auction or Other Acceptable Methods and to Transfer the Titles: Purchasing Agent Dean Lail said the Vehicle Services Director had determined that several vehicles needed to be removed from the sheriff's fleet because they were beyond their economically feasible life. He said one was a total loss, and all of the vehicles had been replaced. Lail requested for the vehicles to be declared surplus, and that he be authorized to dispose of them through either on-line auction or by the use of other statutory methods. He said one Ford Van had been pulled from the original list (#2) to replace a vehicle in the inspections department. Chairman Johnson asked about the anticipated value for the vehicle that had been totaled and the insurance settlement. Lail said the county only had liability and not collision insurance. He said the vehicle had sustained interior fire damage, but there would be some salvage value. 3 Commissioner Robertson said most of the vehicles had high mileage; however, some were lower such as 108,000 and 115,000 miles. He asked if the staff had determined these vehicles were not worth retaining. Vehicle Services Director John Williams said the vehicle with 108,000 miles had paint problems. He said the Ford vehicle, formerly driven by a detective, needed to be painted, but it would cost more to do this than to sell it at auction. Williams said the sheriff's department preferred to surplus it rather than pay $3,000 to have it repainted. He said the car was only worth about $2,200. Robertson asked if the county would have to replace or purchase 24 new vehicles. County Manager Mashburn said they had already been replaced. Williams said they had been replaced during the "last round of purchases for the sheriffs department." Commissioner Mitchell asked about the on-line method. Lail said GovDeals.com was used, and the company specialized only in government surplus. He said pictures with a description were placed on-line, and typically the auction extended for 14 days allowing anyone in the U.S. to bid. Commissioner Griffith asked if the only issue with the former detective's vehicle was the peeling paint. She asked if there were motor or transmission problems. Williams said the paint was the only problem. He said, otherwise, the vehicle was mechanically sound. Griffith asked if the paint defect made the vehicle unusable. Williams said the peeling paint patches were the size of a basketball, and the vehicle looked bad. Griffith asked if any of the other cars on the list had paint problems. Williams said 80% of the vehicles had paint problems, plus they were at their mechanical limits due to their mileages (150,000 running and 150,000 sitting/idling). He said the sheriffs vehicles idled as much as they were driven. Griffith said 12 vehicles had less than 150,000 miles. She mentioned that her personal vehicle had 150,000 miles on it. Williams said his personal vehicle had 200,000 miles, but the sheriff's vehicles experienced a different type of use -- they were driven either wide open or stopped. Griffith said it concerned her that peeling paint was the only problem on some of the vehicles. Williams said generally, the employees tried to obtain 150,000 miles on the odometer before the vehicles were placed into surplus. Commissioner Mitchell said the state highway patrol currently replaced vehicles at 100,000 miles, but previously the department had replaced them at 70,000 or 80,000. Griffith said she didn't want a deputy in a broken-down vehicle, but due to the current economic situation, the county needed to be careful with its resources. OTION by Vice Chairman Norman to approve the surplus vehicle resolution and to remove the second vehicle from the list as requested. VOTING: Ayes — 4; Nays —1 (Griffith) 4 Resolution Authorizing the Disposition of Certain Surplus Personal Property WHEREAS, the County oflredell has possession of an inventory of vehicles that are surplus to its needs and desires to dispose ofsame. NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of Iredell County that Dean A. Lail, Purchasing Agent, pursuant to the provisions ofN.C.G.S. 160A-266, is hereby authorized to dispose ofsaid vehicles by on-line auction or other acceptable method and that the Purchasing Agent is hereby authorized to schedule, conduct, and execute all actions required to convey title to this property. Request for Approval of Budget Amendment #43 to Recognize Municipal Reimbursements ($7,200) and to Transfer Funds from Contracted Services ($30,000) to Depreciable Assets/Computer to Purchase a MUNIS Permitting Software: Code Enforcement Director Lynn Niblock requested approval to purchase a MUNIS Code Enforcement and Permitting Module from Tyler Technologies. He said the county had a good history with the company due to having purchased financial software in 1996 and human resources/payroll software in 2004. Niblock said the current system was (1) over 10 years old (2) it was unreliable, and (3) it was no longer supported by the initial software provider. He said the new system's cost would be $37,000.00, and the Code Enforcement budget for this year included $30,000 for software that could be used. In addition, he said Mooresville, Statesville and Troutman would contribute to the project on a pro -rated basis (based on permit numbers) for the new system. He requested a budget amendment to accept the following amounts from the three municipalities to purchase the system. Mooresville $4,175 Statesville $2,750 Troutman $275 Total $7,200 MOTION by Commissioner Mitchell to approve Budget Amendment #43 to receive the $7,200 and to authorize the MUNIS software purchase. VOTING: Ayes — 5; Nays — 0. 5 Munis P rmitting & Code Enforcement Software Conversion To recognize rrunicipal reimbursements and transfer funds from Contracted Services to 13A#43 Depreciable Assets Comp -ter to purchase NUNIS Permitting Software. 5/17/2011 Account # Current Change Amended Price General Fund Cost Funding Source Amount 104551 472410 Mndpal Reimbursement - (7,200) (7,200) 105551 537514 Contracted Servioes - Software 30,000 (30,000) - 105562 610150 DepreciableAssets - er - 37,200 37,200 Munis P rmitting & Code Enforcement Software Conversion Item Price Discount Cost Funding Source Amount Notes Permitting Code Enforcement Software $13,200.00 $2,640.00 $10,560.00 Current Inspection Budget $30,000 utilizing FY 2010-2011 Approved Funds Pending Board Approval Citizen Self Service Software $6,600.00 $1,320.00 $5,280.00 Maplink GIS Integration Software $5,000.00 $1,000.00 $4,000.00 Role Tailored Dashboard Software $5,000.00 $5,000.00 $0.00 Central Property File Software $2,200.00 $2,200.00 $0.00 Tyler Forms $2,000.00 $0.00 $2,000.00 Maplink GIS Integration Installation $500.00 $0.00 $500.00 Consulting $3,825.00 $0.00 $3,825.00 Data Conversion (master files; applications; inspections) $7,000.00 $0.00 $7,000.00 Munici- polities $7,200. Training $2,282.00 $0.00 $2,282.00 4 Hard drives $1,117.00 $0.00 $1,117.00 Backup Software for Dashboard $636.00 $0.00 $636.00 Total $49,360.00 $12,160.00 $37,200.00 $37,200 Discount Savings $12,160.00 Request for Approval of Budget Amendment #44 to Transfer a Computer Support Specialist 11 Position from the Register of Deeds to Information Technology Services (IT): Assistant County Manager Ron Smith requested approval of a budget amendment to transfer a Computer Support Specialist II Position from the Register of Deeds Office to the Information Technology (IT) Services Department, effective May 19, 2011. He said there had been an effort to bring more of the outlying computer personnel into the IT Department, and the Register of Deeds was agreeable to the transfer. Commissioner Robertson asked if the state had paid any of the person's salary while employed with the Register of Deeds' Office. Smith said no. Commissioner Griffith asked if a new position was being created in IT. Smith said it would be a new position in IT, but not a new position to the county. He said the position would be removed from the Register of Deeds' Office. County Manager Mashburn said that information technology responsibilities had not solely occupied the employee's time at the Register of Deeds, and at times the person waited on customers. He said the person's skills would be utilized more effectively if moved to the IT Department. Griffith asked if the IT work demand was great enough to justify the transfer. Smith said yes. He said there were some backlogs. Griffith asked if the Register of Deeds had plans to replace the person. 6 Smith said he did not know. Chairman Johnson said a conversation with the Register of Deeds revealed that the person would not be replaced. MOTTO by Commissioner Robertson to approve Budget Amendment 44. VOTING: Ayes — 5; Nays — 0. Request for Endorsement of a Letter of Support for the Charlotte Regional Produce Assessment's Grant Application for a United States Department of Agriculture Specialty Crop Block Grant Program: Planner Matthew Todd requested an endorsement letter for the Charlotte City Market to pursue a USDA Specialty Crop Block Grant Program. He said the program would be administered through the NC Department of Agriculture, and the Charlotte region would be researched to determine the supply and demand for specialty crops such as fruits and vegetables. He said due to this area having several farmers' markets, the information would be beneficial to Iredell County. Todd said the Farmland Protection Advisory Board was supportive of the $70,000 grant application, and if successful, the study would take about two years to complete. Commissioner Robertson asked what group supplied the study. Todd said it was the Appalachian Sustainable Agriculture Project Group out of Asheville, NC. He said there were some Iredell County farms already involved with the Asheville group, and no county staff would be involved. Commissioner Griffith said it was understood the study would reveal what type of fruit and vegetables were being grown in this area. Todd said the study would indicate what types of fruits and vegetables were already grown in this area, and then determine the demand for such products. MOTION by Vice Chairman Norman to approve the letter endorsing the Specialty Crop Block Grant Program. VOTING: Ayes — 4; Nays — 1 (Griffith). Request for Approval to Amend the Mitchell Community College Project Ordinance for the 2008 Community College Projects by Appropriating Additional Investment Earnings: Finance Director Susan Blumenstein requested approval of an ordinance to close out the Student Services Center Project Ordinance at the main college campus. She said $95,197 remained, and there was a request to transfer these funds to the Mooresville Classroom Building Project. Blumenstein said the original plan for the 2008 bonds was to split the funds between the Statesville and Mooresville facilities. She said lien waivers had been received for the Statesville project, and everything was in order for the close-out. 7 MOTION by Commissioner Mitchell to approve the amended project ordinance for the 2008 community college projects. VOTING: Ayes — 5; Nays — 0. Amended Mitchell Community College Conymnity College C,onstnx tion Projects - 2008 Be it Ordained try the Board of County Gormissioners of Iredell County, Nath Cardin: Original Amervied Section 1. Funds for this Capital' • ect Fund wIl be poovided from the followng • •esOrdinance . Ordinance • /• 4900.12 70224 GO Bo • Proceeds 00,00 00,00 /• 4800.10 70224 Interest on Bond Proceed95,197 95,197 11 111 95,197 $5,395,197 4535705 5200.00 70224 Professional Fees -Architect $ 234,100 $ 234,100 Testing, Pemits, and Cther 4535705 5200.20 70224 Fees 39,020 39,020 4535705 5610.00 70224 Closing Costs 60,000 60,000 4535705 5802.00 70224 General Construction 4,021,000 4,021,000 Contract 3,901,000 U ictnbered 120,000 4535705 5800.50 70224 Future CapitalPrcject $ 945,880 $ 95,197 $1,041,077 Water/S%ner - Fumrture, Fxtures & Equipment $ 5,300,000 $ 95,197 $5,395,197 Section 3. This Capital Project Fund shall continue until the projects are comoete. Section 4. Transfers between line items shall only be made upon fomr al action by the MCC Board of Trustees and such action shell be reported to the Iredell County Board of Corrmssianes at its next regularly scheduled meeting. Section 5. Payments from this Capital Project Fund shall be authorized by the County Manager or his designee. Request for Approval to Amend the Mitchell Community College Project Ordinance for the 2009 Community College Projects with the Appropriation and Transfer of Residual Investment Earnings from the 2008 Community College Capital Project: Finance Director Blumenstem said this request was to amend the 2009 project ordinance to reflect additional funding of $97,000 (transfer from 2008 completed project for Statesville campus) for the Mooresville Classroom project. MOTION by Chairman Norman to approve the amendment to the 2009 community college project ordinance. VOTNG: Ayes — 5; Nays — 0. Amended Capital Project Ordinance Mitchell Community College - Mooresville Classroom Building Be it Ordained by the Board of County Commissioners of Iredell County, North Carolina: Original Amended Section 1. Funds for this Capital Project Fund will be provided from the Ordinance Revision Ordinance following sources: Financing Proceeds $ 2,785,000 $ 2,785,000 Interest on Financing Proceeds - 2008 GO Bond Proceeds 670,380 (243,978) 426,402 Interest on 2006 and 2008 GO Bonds 94,305 300 94,605 NC Community Colleges State Bond Fund 900,000 (900,000) - MCC - Private Gifts 9 300,000 (300,000) Contribution from County General Fund - Reserved for MCC Contribution from Mitchell Community College Section 2. The following costs for school projects shall be paid by this fund: 895,625 317,585 (317, 895,625 $ 5,962,895 $ (1,761,263) $ 4,201,632 Professional Fees -Architect, Management, Printing $ 425,920 $ (425,920) $ Closing Costs 21,600 - $ Other Fiscal Costs 53,240 (53,240) $ General Construction 4,250,700 (4,250,700) $ Contingency 659,720 (659,720) $ Furniture, Fixtures & Equipment Reimbursements to MCC 21,600 551,715 (551,715) $ - 4,180,032 $ 4,180,032 $ 5,962,895 $ (1,761,263) $ 4,201,632 Section 3. This Capital Project Fund shall continue until the projects are complete. Section 4. Transfers between line items shall only be made upon formal action by the Mitchell Community College Board of Trustees and such action shall be reported to the Iredell County Board of Commissioners at its next regularly scheduled meeting. Section S. Payments from this Capital Project Fund shall be authorized by the County Manager or his designee. Request for Approval to Amend the 2006 School Project Ordinance for the Iredell- Statesville Schools (I -SS) by the Appropriation of Additional Investment Earnings and Sales Tax Reimbursements: Finance Director Susan Blumenstein requested approval of an amendment to the 2006 I -SS Project Ordinance that initially totaled $77 million. She said (1) the school system was able to complete all of the projects within the budget, (2) that $64,559 would be refunded to I -SS, and (3) the lien waivers had been obtained. OTIO by Commissioner Robertson to approve the 2006 school project ordinance. VOTING: Ayes — 5; Nays — 0. Amended Capital Project Ordinance Iredell-Statesville Schools School Construction Projects - 2006 Be it Ordained by the Board of County Carrrissioiers of Iredell Courtly, North Carolina: Origiral Amended Sectionl. Funds for this CapitdProject Fund willbeprovided from the fdloging souroes: Orcinwme Amerxbrent Ordinance QZAB Pylic School Building Capital Fund Contribution - Ireddl Statesville Sdtools Lottery Roceeds Sales Taxes Reimbursed Investment Earrings 9 36,400,000 85,002 36,485,002 X11 ill ..... ..... 111 111 111 111 Ewfxl 33 111 CT•y.:l�yCP•.17 iPW $7/,392,055 8,159,436 $85,551,491 156,452 4,779,746 CorstnxtionManagJment 910,114 (412,957) 497,157 Testing, Pemrits, and Other Fees 513,500 792,625 1,306,125 Closing Costs 645,000 (10,000) 635,000 Cast REirrburserrenttoISS General 64,559 64,559 Construction 65,170,483 7,281,935 72,452,418 Contract 66,539,520 (1) Lkiencurt-tiered 4,213,551 Grading, Excavation & Other - - - V\ter/Sena' 110,448 110,448 Transitional Costs(modles) 2,790,000 (472,870) 2,317,130 Land Purchases 1,220,000 398,191 1,618,191 Furniture, Fees&Equiprrent 1,519,665 251,052 1,770,717 $77,392,055 8,159,436 $85,551,491 Section 3. This Capital Project Fund shall continue until the projects are complete. Section 4. Transfers betvveen line items shall only be made upon form action by the Iredell-Statesville Board of Education or Mooresville Graded Sdhool District 130E and such action shall be reported to the Iredell County hoard of Carcrissianers at its next regularly scheduled meeting. Section 5. Payrrents from this Capital Project Fund shall be authorized by the Canty fvbnager or his designee. Request for Approval to Amend the 2008 School Project Ordinance for the Iredell- Statesville Schools (I -SS) and the Mooresville Graded School District (MGSD) by the Appropriation of Additional Investment Earnings and Sales Tax Reimbursements: Finance Director Blumenstein requested approval to closeout a 2008 project ordinance for both I -SS and the Mooresville School System. She said residual funds of $79,984 would be refunded to I -SS and $194,292 to MGSD. Blumenstein said Mooresville originally contributed $1,244,555 and I -SS supplied $225,641. Commissioner Robertson asked if the school systems had considered these amounts in next year's budget planning. Blumenstem said the school systems knew about the money. OTION by Commissioner Robertson to closeout the projects by the amendment and to refund the remaining funds to the two school systems. VOTING: Ayes — 5; Nays — 0. Arrended Capital Project Orcinance Iredelialesville Schools School Constn>ction Projects - 2008 Be it Ordaned by the Board of County Commissioners of Ireddl County, North Carolina: Original Amended Section 1. Funds for this Capital Project Fund Wll be provided from the fdloWgsources: Ordinance Revised Ordinance e rr• • .•>a.. • . • a• - Schools Sales Taxes a• Tom rN/locresmlle 10 $ 80,904,446 $ 80,904,446 1,098,960 162,862 1,261,822 899,700 899,700 86,471,645 $ 912,594 $ 87,384,239 Professional Fees - AroNted, M}atagerrent, Printing ConshIction Nbrogernertt Testing, Permits, and Other Fees Closing Costs Cost Fbntursed to ISS General Construction Contract 69,818,915 (1) Llnencuntered 3,350,000 Grading, Excavation & Other Water/Sew Transitional Costs (mobiles) Land Purchases Furniture, Fixtures & Equi{xrent $ 5,097,230 $ 37,639 $ 5,134,869 262,500 (262,500) - 1,199,500 (195,228) 1,004,272 79,984 79,9&4 73,168,915 (267,074) 72,901,841 113,500 (113,500) - - 374,432 374,432 1,175,000 1,272,143 2,447,143 3,030,000 (111,629) 2,918,371 2,425,000 98,327 2,523,327 $ 86,471,645 $ 912,594 $ 87,384,239 Section 3. This Capital Project Fund shall continue until the projects are oorrplete. Section 4. Transfers behm)en line items shall only be made upon foetal action by the Iredell-Statesville Board of Education and such action shill be reported to the lreddl Courtly Board of Coamssioreis at its next regularly sct)eGled meeting. Section 5. Payrrents from this Capital Project Fund shall be authorized by the County Manager or his designee. Amended Capital Project Ordinance Mooresville Graded School District Construction Projects - 2008 Be it Ordained by the Bard of County C,ormissiorers of Iredell County, North Cardin: Original Arrowled Section 1. Funds for this Capital Project Fund will be provided from the follorung sources: Ordinance Reprised Ordinance OW M •e—Ug a• • - • . . ••. . • .• •.. >••- •c • • • Testing,Professional Fees - Aiol-vtect Permits,•t a Closing Costs Cost . ed • GSD Construction Contract s • ••u Gradrxj, . • : Other Transitional.. ••� Land Purchases Furniture, Fixtures & • • _ $ 25,710,360 $ 29 $25,710,389 289,640 175,980 465,620 1,020,000 (1,020,000) - 1,124,555 220,121 1,344,676 707,500 (133,626) 573,874 $ 28,852,055 $ (757,496) $28,094,559 $ 1,430,695 $ 48,614 $ 1,479,309 989,545 (683,020) 306,525 194,292 194,292 23,601,775 (453,878) 23,147,897 •• ac-ailm •. •• Section 3. This Capital Project Fund shall continue until the projects are cenplete. Section 4. Transfers bete een line items shall only be made upon foetal action by the Mooresville Graded Schools Board of Trustees and such action shall be reported to the Iredell County Board of Camissioners at its red regularly scheduled r eeting. Section 5. Payrrents from this Capital Project Fund shall be authorized by the County Manager or his designee. Request for Approval of an Outdoor Vending Stand Agreement with Mr. Jeff Dawson for Operation of an Outdoor Food Cart at the Iredell County Hall of Justice: Deputy County Manager Tracy Jackson requested approval of a vendor agreement with Mr. Jeff Dawson. He said $200 would be requested from the vendor for the first and last month's fee along with $100 a month as a privilege charge. Jackson said the agreement stipulated that only vending type food items would be sold. Commissioners Mitchell and Johnson voiced concerns about restricting the vendor too much in trying to make a profit. Johnson said the agreement could be "revisited," if the vendor requested. OTION by Vice Chairman Norman to approve the vendor agreement. VOTING: Ayes — 5; Nays — 0. Request for Adoption of a Proposed Air Quality Policy for Departments and Agencies of Iredell County Government: Deputy County Manager Tracy Jackson requested approval of an air quality policy for county departments. He said the policy basically related to no idling in county vehicles that were under the county manager's authority (not the sheriffs office). Jackson said the policy had "common sense" guidelines and procedures in reducing vehicle emissions. He said air quality became a larger issue during the summer months, and adoption of the policy would indicate the county was trying to improve the situation. Commissioner Griffith said the policy stipulated that employees who violated the policy would be subject to disciplinary action. She asked Mr. Jackson if he felt it was the role of county government to enforce something deemed as "common sense" with disciplinary action. She said the policy also stated that department heads/supervisors could conduct periodic roadside/jobsite inspections to ensure compliance. Griffith asked if the county really wanted to impose a disciplinary action if an employee left a vehicle idling for more than two minutes. Jackson said that in terms of other policies, the department heads had leeway in making a decision. He said the supervisors and department heads had discretion in the matter. Griffith asked if there was already a problem. Jackson said it depended upon a person's perspective in terms of air quality, especially with Iredell County being attached to the Charlotte region in regards of emission/ozone issues. Commissioner Robertson asked if the policy stemmed out of one of the Council of Governments' Air Quality proposals. Jackson said yes. He said the Council had asked counties/cities to sign on with the initiative. Robertson said the Environmental Protection Agency (EPA) continued to lower the compliance threshold, and thus, this area was never in compliance. He said that in order for the federal government to not punish an area for having too much pollution, it had to be shown that an effort was being made to mitigate the problem. Robertson said the policy would show the county was trying to achieve compliancy. Griffith said this was a "nanny state" example where the governments were saying the employees did not have the intelligence to perform a job. She said it was insulting to her that the federal and state governments did not feel the county employees could make good judgment calls on the issue. Robertson mentioned that everyone should be prepared for "Big Brother" to place the restrictions on citizens' personal vehicles. Jackson said the policy could be described as more of a "tool to educate and not to punish." He said county vehicles were assets of the county, and they did contribute to air quality. Chairman Johnson said the Council of Governments area had narrowly avoided nonattainment twice. He said that if this area were ever deemed a nonattainment area, it would be impossible to locate an industry here. County Manager Mashburn said it wasn't anticipated that the policy would be difficult to enforce because it was felt the employees were already complying. He said that in regards to 12 supervision, that supervisors/department heads were already monitoring their employees in the field so a greater level of supervision shouldn't have to occur. OTIO by Vice Chairman Norman to approve the air quality policy. VOTING: Ayes - 5; Nays - 0. Request for Approval of the April 2011 Refunds and Releases: County Manager Mashburn said the releases and refunds had been submitted by the tax office for approval. MOTIO by Commissioner Mitchell to approve the April refunds and releases as submitted. VOTING: Ayes - 5; Nays - 0. Releases for the month of April 2011 Monthly $28,585.28 Total Breakdown of Releases: County $15,08624 Solid Waste Fees $20.25 E. Alex. Co. Fire #1 $6.36 Shepherd's Fire #2 $66.58 Mt. Mourne Fire #3 $18.85 All County Fire #4 $475.35 B&F Fire #5 $225.77 Statesville City $1,263.13 Statesville Downtown $0.00 Mooresville Town $9,151.84 Mooresville Downtown $0.00 Mooresville School $1,484.16 Love Valley $0.00 Harmony $0.00 Troutman $7B6.75 Davidson $0.00 Refunds for the month of April 2011 Monthly $431.01 Total Breakdown of Refunds: County $381.79 Solid Waste Fees $0.00 E. Alex. Co. Fire #1 $0.00 Shepherd's Fire #2 $0.00 Mt. Mourne Fire #3 $0.00 All County Fire #4 $49.22 B&F Fire #5 $0.00 Statesville City $0.00 Statesville Downtown $0.00 Mooresville Town $0.00 Mooresville Downtown $0.00 Mooresville School $0.00 Love Valley $0.00 Harmony $0.00 Troutman $0.00 Davidson $000 Request for Approval of the May 3, 2011 Minutes: OTIO by Vice Chairman Norman for approval of the May 3 minutes as presented. VOTING: Ayes - 5; Nays - 0. ANNOUNCEMENT OF VACANCIES OCCURRING ON BOARDS & COMMISSIONS Adult Care Community Advisory Committee (1 announcement) Centralina Workforce Development Board (2 announcements) Fire Tax District Board (3 announcements) I -CARE Board of Directors (2 announcements) Jury Commission (1 announcement) Juvenile Crime Prevention Council (16 announcements) Planning Board (5 announcements) Social Services Board (1 announcement) 13 Allen. APPOINTMENTS TO BOARDS & COMMISSIONS Carolinas Partnership (1 appointment): Commissioner Mitchell nominated Charlton MOTION by Chairman Johnson to close the nominations and appoint Allen by acclamation. VOTING: Ayes — 5; Nays- 0. Farmland Preservation Advisory Board (2 appointments): Commissioner Mitchell nominated Danny Allen. Chairman Johnson nominated Drew Sherrill. MOTION by Chairman Johnson to close the nominations and to appoint Allen and Sherrill by acclamation. VOTING: Ayes — 5; Nays — 0. Region F Aging Advisory Committee (2 appointments): Commissioner Robertson nominated Lynda Harmon and Carolyn Jordan. MOTION by Chairman Johnson to close the nominations and to appoint Harmon and Jordan by acclamation. VOTING: Ayes — 5; Nays — 0. Mitchell Community College Board of Trustees (1 appointment): Vice Chairman Norman nominated Dr. Jackie Grigg. MOTTO by Chairman Johnson to close the nominations and to appoint Grigg by acclamation. VOTING: Ayes — 5; Nays — 0. Mooresville Planning Board (ETJ) (2 appointments): Commissioner Griffith nominated Matt McCall. Vice Chairman Norman nominated Allen Brawley. MOTTO by Chairman Johnson to close the nominations and to appoint McCall and Brawley by acclamation. VOTING: Ayes — 5; Nays — 0. Nursing Home Advisory Committee (1 appointment): Commissioner Robertson nominated Ruth Waters. MOTION by Chainnan Johnson to close the nominations and to appoint Waters by acclamation. VOTING: Ayes — 5; Nays — 0. REMINDER LIST FOR BOARDS AND COMMITTEES: Juvenile Crime Prevention Council (JCPC): Chairman Johnson nominated Hannah Ellis (youth appointee) to the JCPC. OTIO by Chairman Johnson to close the nominations and to appoint Ellis by acclamation. VOTING: Ayes — 5; Nays — 0. 14 Adult Care Home Community Advisory Committee (ACHCAC): Commissioner Mitchell nominated Emily Poole to the AC ICAC. MOTION by Chairman Johnson to close the nominations and to appoint Poole by acclamation. VOTING: Ayes — 5; Nays — 0. Industrial Facilities & Pollution Control Financing Authority: Commissioner Mitchell nominated William (Bill) Coffey. MOTION by Chairman Johnson to close the nominations and to appoint Coffey by acclamation. VOTING: Ayes — 5; Nays — 0. UNFINISHED BUSINESS — Air Quality Policy: Commissioner Robertson said that as Iredell County's representative on the Council of Governments' (COG) Board of Directors, and in regards to the air quality policy, that he desired to make some comments. He said it was difficult to achieve the EPA's goals because they were "moving targets," and waivers had to be requested to let companies operate and to obtain federal highway dollars. He said several times in the COG meetings he had suggested that instead of trying to achieve the EPA goals, to instead "call their bluff' and let them cut the highway dollars. Robertson said at that point, it could be said that Obama's administration had just cut North Carolina's federal highway dollars and whatever senators and congressmen who let this happen could be held accountable. Robertson said publicly, he had mentioned that the right thing to do was to say, "We're not going to do this." He said if this didn't occur, then the county was "stuck" with trying to comply by adopting policies such as the air quality policy. Robertson said he was making these remarks in case anyone read the COG minutes and noted that he had offered suggestions to not comply. PUBLIC COMMENT PERIOD Children's Home of Iredell County: Executive Director Brenda Speece, along with Board Vice President Bob Ferguson and Director of Residential Services Daniel Edward, attended the meeting. Speece provided information on what the agency was providing with county funds. She said one example was the Career Life for Youth Workforce Development Pilot Program that helped educate youth and prepare them for work. Mr. Ferguson said he wanted to make sure that when the commissioners started discussing funding for the children's homes that "faces to the money" was considered. COUNTY MANAGER'S REPORT Fiscal Year 2011-12 Budget County Manager Joel Mashburn said there was a state requirement to present what a revenue neutral tax rate would be during a revaluation year. He said the tax assessor would share information about the calculation. Presentation by Tax Assessor Steve Ervin: Ervin showed a worksheet to help explain the revenue neutral rate. He said the legislation was adopted prior to the last revaluation, and there were two calculation steps as follows: Step 1. Years 2007 and 2008 were the last reval years and a calculation had to occur on the percentage growth between the years up until this reval year. He said the county was at 5.31% the first period, then 2.36%, followed by being under 1% (0.91%). Ervin said the average of these percentages was 2.86% for growth over that period of time. Step 2. What rate would produce a neutral revenue stream or the exact same revenue? He said taking the revenues (estimated for the end of this year) and applying the 0.4579 rate produced the same revenue for last year under the current rate of .0445. Ervin said then, by statute, the staff had to apply back the 2.8% growth determined by the previous years. He said that when the growth factor was applied back to the 0.4579, a rate of 0.4710 was determined. He said this was the revenue neutral rate per the statute guidelines. 15 2011.12 Revenue Neutral Tax Rate Calculation Revaluations as of: January 1, 2011 and 2007 Estimate as of 51312011 Assessed Valuation Total Valuation Increase Percentage Fiscal year as of June 30 change 2011.12 20,209,093,820 11-12 20,209,093,820 1011 20,795,365,319 Revaluation 2810.11 11112041 20765,365.319 10-11 20,795,365,319 186,809,559 0,91% 09-10 20,608.555.780 2009.10 20,608,555,760 09-10 20.608,656,700 475,128,862 2.36°% 0849 20,133,426,898 2008.09 20,133,426,698 08-00 20,133-02608 1,014,869,556 5.31% 07-08 19,118,557,342 2007-08 Revaluation 19,118,557,342 Average growth° la 11112007 2.86% doesn't include revaluation Increase Last year prior to revaluation Tax rate Estimated tax levy 2010.11 20,795165,319 a4450 92,539,376 First year of revaluation 2011.12 20,209,093,820 Increase tax rate for average growth rate 2011.12 20,209,093,820 Chairman Johnson said Mr statute required. Tax rate to produce equivalent levy 0.4579 92,539,376 Revenue neutral tax rate, is he Included CAM 05,184,355 Increase In Tax Levy 2,644,989 ZION. Ervin had been called upon to explain to the public what the Commissioner Mitchell asked about the equalization and review board meetings. Ervin said only one meeting had occurred. He said it would take several months to conclude the meetings; however, the appeals were lower than anticipated, with the exception of commercial appeals. Commissioner Griffith said it was being understood that by using the statute's formula that a revenue neutral tax rate would be an increase of 2.6 cents. She asked Mr. Ervin to speak about the percent increase in the northern part of the county. Ervin said there were several different increases, but the New Hope Township had the highest. He estimated the increase was 10%. Griffith said it was possible that a property in that area could increase 10% in value and then the owner would pay an additional 2.6 cents over the current tax rate. She said that in the southern end of the county, where there was a property value decrease, there was a potential for these properties to be below their last tax value. Ervin said, potentially, this was correct. Robertson said four years ago, however, the property values in the southern end increased 30, 40 and 50%. He said this needed to be recalled. Commissioner Mitchell said the farmers would not be "hit" as hard due to farm use. Griffith said the majority of the property might fall under farm use but not all properties. Chairman Johnson said the cap rate had been raised to the maximum. He said if no adjustments occurred in the next few years, then nothing could be done when farm use rents were calculated. 16 Ervin said the demand for farmland was still strong, especially for rents. He said the revaluation process tried to achieve equalization. Before actually presenting the FY 11-12 budget message, County Manager Joel Mashburn prefaced his remarks by the following: "First of all, this is the 36 h budget that I have presented to boards of commissioners throughout my career, and I must say it has been one of the most difficult. Not because 1 am recommending an increase in the tax rate, but because this is probably one of the worst times, economically speaking, to even consider recommending a tax increase. 7t is also difficult because I understand full well that the budget I will be recommending goes beyond the parameters that have been previously laid out at work sessions or retreats in the past. That goes against the grain and I certainly am not comfortable with doing so. I realize that what I am proposing for you to do could not be coming at a more difficult time, with many of our citizens still out of work or under employed, including several of'our own county employees. The hope of any improvement appears to be in the distant future since there is little prospect that we are going to see a major upswing in the economy for several years to come. So much of our local economy for the past several years was driven by the housing industry and that has come almost to a complete standstill. "Notwithstanding all of the above, we must look beyond the circumstances that we currently find ourselves in, and put in place NOW that which is going to be necessary to carry us FORWARD. I believe the proposed budget does that. Although departments have presented requests in excess (Y'$160 million, the recommendation has already been reduced by $2.5 million, and the budget is still well below WHAT the board approved back in 2008. "I hope you will not reject the recommended budget out right, but that you will wait until there is an opportunity for the staff to present its justifications for the request being made. " Budget Message Proposed Budget 2011-2012 Iredell Countv Introduction When the stgff;frrst started working on the budget recommendation for FYI 1-12, we were faced with an economy still in the doldrums and unemployment hovering at or above 10%. We were also faced with building a budget on a tax base that was worth less than it had been the year before. Although the Board of Commissioners had wisely predicted, back in FY09, that the economy would be slow in returning and had authorized us to dig into our savings for three years at a rate of $2 million per year, there was also the need to cut expenses at a rate never here -to fore called for. We have seen our budget fall from a high of $165,591,850 in FY09 to a low of $150,307,275 in FYI 1. Just in 2 years, the county has budgeted to spend over $27 million dollars less than it would have spent if spending had continued at the same level as FY09. These reductions were only possible because needed expenditures were delayed. It is true that in the departments that are tied so closely to the building industry there has been a reduction in the demand for those services, but we have addressed that by reassigning employees to other Jobs using grant funds to cover the cost or we have laid people off In other departments, the demand for services has actually increased, yet we have seen a reduction in funding for those departments. This has been accomplished mainly by delaying the purchase of needed technical improvements or other capital items as well as delaying the hiring of personnel needed to meet service demands. Additionally, remaining employees have gone two years without any increase in pay, yet the work placed on them has increased. Not only has there not been an increase in pay, in FY10, all employees except those in emergency services took a 2% cut in pay. Even though we have had to reduce budgets and services one major portion of our annual budget has continued to increase. Our debt service is an obligation that must be met regardless of our economic condition. It has gone from 12% or $18,410,426 annually in FY08 to 18% or $27,023,048 in FYI 1. We have many new and renovated schools in the county which were much needed but the cost of the debt on those schools hasn't gone down just because the economy has. Other areas ofgrave concern arefacilities and equipment that are needed to provide an adequate level of emergency services. We have delayed purchasing new ambulances to the point that reliability, of many of our units is in serious question. And even though we have seen a leveling off of the accelerated growth in population there are still areas of the county where we need to increase staffrng and equipment to maintain an acceptable response time. 17 In addition to delaying the replacement of life saving equipment in EMS, we have done likewise n the Sheriffs office. There is an immediate need for over $400,000 in vehicles and another $840,000 in needed equipment and software, and of course, fuel cost for both EMS and Sheriff is accelerating at a rate not experienced in some time. What has not been addressed in the budget of the last couple ofyears are the future capital needs of the county. Currently we have courts that have insuff cient facilities much of the time, and a jail that is overcrowded everyday. Although it is the responsibility, of the Sheriff to operate the jail and to bring before the commissioners the need for additional facilities, one only has to look at the numbers to know that the needfor expanded facilities cannot be delayed much longer. Education Another area that has been extremely hard hit from all sides the last couple ofyears has been our schools. Since FY09, our funding for school current expenses has dropped from $32,923,428 to $29,292,900 or cumulatively the funds budgeted for schools have been reduced by over $5.6 million. This is in addition to reductions made by the state to balance its own budget The budget has been reduced, but there has not been a commensurate reduction in the number of children enrolled in our school systems. If the Board approves the budget as proposed, funding for schools will increase to $1387 per pupil still well below the $1466 in FY09. This is necessary to maintain our standard of having two of the finest local school systems in the state. Personnel As I said earlier, county employees have gone two years without a pay increase of any kind The budget as proposed will set aside 3.50% that will be granted as a pay adjustment either on an across-the- board or a merit or a combination as the board determines. The only new positions are four new in EMS, one in Recreation and one position that is presently unfunded will be brought back to full funding. Appropriation of Iund balance Even though the Board of Commissioners had previously, authorized the expenditure from the fund balance of $2 million per year for 3 years, if that is done this year even at a revenue neutral tax rate, the fund balance will drop to 13.72%. That would be a sound decision if there were more signs that the economy is going to see an accelerated recovery, but the signs are just not there to support that conclusion. Therefore, the proposed budget does not recommend using anvfund balance in FY12. To do so now could probably mean a heftier increase in the tax rate next year. Not only will we see the possible need to dig into the fund balance more next year, we will delay, even further our ability to be in stable financial position to meet the capital needs that are coming and the increase in service demands as the growth of the county picks back up. Recommendation For the reasons stated or summarized above it is recommended that the county commissioners approve a general fund budget in the amount of $157,558,285. Ifyou approve as presented, it will set the tax rate at 50e per $100 in valuation based on a tax base of $20,209,093,820 and a collection rate of 96.77%. In addition to the above, it is estimated that sales tax revenue will continue to see a slow and gradual increase but it may be years before we see a return to the amounts before the recession. Even if this budget is adopted as recommended, it does not take us back to the funding level of FY08, and considering an average CPI of 2.3%from FY08, this budget is $15,778,000 less than it would have been ifwe had been keeping up with the cost of living. Conclusion Obviously 1 had hoped that my last budget proposal would have been one that could have been more favorably accepted by the public. Thinking back to 1988 when I came here, I believed it to be necessary then to recommend a tax rate increase of 3¢ my very first year. The second year, it was necessary to recommend a 10¢ tax rate increase. This was necessary for a couple of reasons. One was because the fund balance in previous years had been allowed to drop below the 8% required by the state treasurer. Another reason is the slate began shifting more of its funding obligations to the county. That is continuing even today. Another reason for these increases was because of the need to start making significantfunds available for school construction to meet actual and projected growth. Then there were also the changes in Medicaid eligibility placing a heavier burden on the county to fund its local share. These tax rate increases were not popular, and some may argue that they were not necessary, but without them, I do not believe the county would have been able to accomplish all that it has accomplished and maintain such a balanced tax rate for so long. 1 believe that we are at a juncture similar to the one in 1989. No one wants to do it, but one must consider the consequences if it isn't done. This completes my obligation to recommend a balanced budget as required by GS 195-11. 1 recommend its approval to you. Joel Mashburn Iredell County Manager 18 CLOSED SESSION: MOTIO by Chairman Johnson, pursuant to Economic Development — G.S. 143-318.11 (a) (4), to enter into closed session at 8:50 P.M. VOTING: Ayes — 5; Nays — 0. (RETURN TO OPEN SESSION AT 9:20 P.M.) PUBLIC HEARING CALLED FOR AN UNDISCLOSED COMPANY: MOTION by Commissioner Mitchell to call for a public hearing on June 7, 2011, at 7:00 P.M., regarding an economic development incentive of $379,042.00, over a five-year period, for an undisclosed company based on a $26 million investment in Iredell County. VOTING: Ayes — 5; Nays — 0. ADJOURNMENT: MOTION by Chairman Johnson to adjourn the meeting at 9:16 P.M. (Next Meeting: Tuesday, May 24, 2011 for a budget review session in the South Wing Conference Room, of the Iredell County Government Center, 200 South Center Street, Statesville, NC.) Approval: 19 Clerk to the Board