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HomeMy WebLinkAboutMarch_9-10_2012_Winter_Planning_Session_MinutesIREDELL COUNTY BOARD OF COMMISSIONERS WINTER PLANNING SESSION MINUTES FRIDAY, MARCH 9 & SATURDAY, MARCH 10, 2012 The Iredell County Board of Commissioners met for a Winter Budget Planning Session on Friday, March 9, 2012, at 8:00 A.M., in the Agricultural Resource Center, 444 Bristol Drive, Statesville, NC. Board Members Present Chairman Stephen D. Johnson Vice Chairman Marvin Norman Renee Griffith Frank Mitchell Ken Robertson Staff present: County Manager Ron Smith, Deputy County Manager Tracy Jackson, Finance Director Susan Blumenstein, Tax Administrator Bill Furches, County Assessor Steve Ervin, and Clerk to the Board Jean Moore. Others in attendance: Jim Munoz -McNally with the Statesville Record and Landmark CALL TO ORDER by Chairman Johnson FY12 UPDATE AND FY13 PROJECTIONS: Finance Director Susan Blumenstein provided an FY I 1-12 financial update as of February 29, 2012. She said the expenditures and revenues were in line with projections, and there were no problem areas with any departments. Blumenstein said sales taxes were up by 13%, and in revenues, 78% of the revised budget had been collected with the biggest bulk being in ad valorem taxes which represented about 63% of the adopted budget. She explained that a "revised budget' occurred due to $3 million being encumbered as of June 30, 2011, but not spent. Blumenstein said this money, along with grant and lottery funds were the reasons for the increased or revised budget. Blumenstein said there was a 9% increase in general governmental expense, and this was due to many companies qualifying for economic development incentives either in December and January. In regards to the estimated fund balance at June 30, 2012, Blumenstein provided the following estimates: Addition to Fund Balance at 06/30/12 $ 1,945,928 Estimated Fund Balance at 06/30/12 35,937,774 Revised Budget as of 02/29/12 160,920,033 Fund Balance as a % of Revised Budget 22.33% Blumenstein said EMS fees were up by 3%. In response to a question about convalescent transport revenues, Ms. Blumenstein said this money would be shown in the EMS Special Services & Enterprise Fund. Chairman Johnson said it was difficult to make long term decisions based on sales tax revenue due to the funding stream being cyclical. He said the area that needed to increase was the ad valorem valuation. Commissioner Robertson said the tax increase last year occurred due to the board wanting a buffer. He asked how much of a financial cushion was available. Blumenstein said that in undesignated and unreserved money, that like -sized counties such as Iredell should have 17% in fund balance. She said 17% would be $27.5 million. Commissioner Griffith asked the percentage last year, and Blumenstein said it was 19.7% In response to a question about comparing personal property to real estate revenues, County Assessor Steve Ervin said business and personal property were increasing. He said real property wasn't changing with the exception of new construction which appeared to be on the increase. OPERATING AND FACILITY NEEDS: County Manager Ron Smith said the staff had compiled a list of facility needs and they had been broken down into three priorities. He said the more urgent projects were classified as #1. The list is as follows: Welton mof :65,000 Leaks in this *too affect rho safety of the inmates. $1300 in leak repair orals in FY 11. 1 tsovemmenawsorn Naw fire alarm panel 512,000 -t Overall BUILDING&ADDRESS REQUEST COST JUSTIFICATION (Rowamptkkw Mprq«u hive pbrtyasslgrsd; tdodrytlo,niahr trine—'I eeitlw7 Rankin 6 RaIIPIJ4sUC4^ A3beslos rer9oval 'S20o0D fi20;Wkvear [anflMS..XearsaMthe, earw3tof51g0,0001s oil�'agagion (appfo nialely l0�jo11Wa1,6os[s, OnfloJnl' 1219 Wa(etSVee1 : 1 .. $15,000 ` . Resudace(oveday pa Mftg Al Resource Center Commercial stove 15. years old; finishes arewom to the pont that the uoltwrmotbe thoroughly sanfized; potential for unsafe rood 1 Welton mof :65,000 Leaks in this *too affect rho safety of the inmates. $1300 in leak repair orals in FY 11. 1 tsovemmenawsorn Naw fire alarm panel 512,000 RepacemenWPgfsde 1 610 E. Center AwLa Davnspouls among coverage, motel slasvrellc and haMmap ramp all affected 2 Nawroof on ma!n wing of gI40,000 Priority Ranking l: Reef leaks are wnstantwdh each precipitation Brent. S650D In leak repahasls in FY 11, 1 building Ca"Lparol EAft, excess, Retaining wag replacement $15,000 Rota n419 wall fa nag i Resudace(oveday pa Mftg 535,000 Padtn9 let is full ofholes, broken wncreto and asphalt mol Ezterkxpalntng $200,000 Rust and mlden are Natant on rhe malotty of the erector 1 . Hall of Justice Annex HVAC Upfit $15,000 Mold growing mbooks 2 201 E. Walef6ireet , $15,000 Tree limbs lap on shed vehkks. Thl wdl n4od approval from aMtl dinated Wth"of Slatesvilie. 2 Naw rof $25,000 Temporary leak repairs ren be made at this peril (December2011),$1000 in leak repalrwsle in FYI 1. 2 rax nevemn uw9 employee and ha",cap $25,DD0 $35000 Routine mainlenarha of curbing and sWaraiks. 735 E. Water Starrett entrance. Davnspouls among coverage, motel slasvrellc and haMmap ramp all affected 2 Ruyan Resptrrce�.Deyt Carye6paaM, Ming ,$20000' fnGaka`Road..=. (Oka'CWMaasel;:-:,i . a44@Sr''. t Ca"Lparol EAft, excess, inox $489600 $12,000 Oo_vaKmtsNCtrAnneR 2aulomagc'dao(epenars $7-000 Fahepait"pedpatreeerespede8y"a Neibrb Veteren'aServices olfwes 202.3 Can(oY5Gea1 NNNAMorypryagl ,•. •.: : ,. ;pg 000 Fo hangwpped paVdni; espeUagy L4usav N Veleans Sa kes $' ,�yRoutine `Carpet 8ndbaU[ovm tdemfn r ' '. arele agEbalhroom We (s`Nj va7 pooreondtlom. 0 ParYJagLot 1 Street Social Services Security enhancements to $20,000 Network enlerprise level access to record employee and patron access to rhe 033 buidmg 3 549 Eastside Drive record acdess Navy rental a VCT ties for 3 1 Padang lot sNplag $18000 Reslnpng oNp tines are lain) but Stif We to be seen (December 2011) 3 ppin6�g '$?o,WO PainFF,Sthtppirg andf,,Wn � ., . $ Carpet $12000 Ceryelis inpoacabitonand ceases odor 3 Justice Wafer Street Repktirgnepou:ingoi saJevalks and amrah $35000 Routine mainlenarha of curbing and sWaraiks. 3 Imam $h91(et,' RonovatiahsprdemoFtari $25000 77$s buSdng e�wldpoleniNlybe usedfaMainidnance Depasime0isldage, ' .. l 3... fnGaka`Road..=. :. .,. _ _...,• s inox Newyrpeta VCT ole fa $12,000 3 Water Sheet olfwes carpefepacemenl due to wear and fear. roballon5 ', vfe Averee. ,�yRoutine `Carpet 8ndbaU[ovm tdemfn r ' '. arele agEbalhroom We (s`Nj va7 pooreondtlom. 0 ParYJagLot 1 Street RelalNng wall replacement $24,750 Relalning wall a" Meeting Stream is uumb6ng. 3 $10,000 Replacement . } . $60.000 Replacement 2 Planning and Transportation Director Joey Raczkowski said asbestos removal in the Hall of Justice was expensive as specialized personnel had to be used. He noted that any time phone lines had to be added or moved there were extra costs. In regards to the asbestos, however, Raczkowski said the building was safe. Facility Services Operations Manager Tanya Landis added that the Hall of Justice was asbestos monitored on a quarterly basis. Deputy County Manager Tracy Jackson said many times the state made changes which incurred unexpected costs to the county, such as when the clerk of court received a new phone system. Chairman Johnson asked for the square footage on the flat roofs. Commissioner Griffith asked what source had provided the cost estimates. Landis said local contractors provided the estimates. County Manager Smith said the estimates were preliminary figures. Commissioner Robertson said the staff could start at the top of the list making the repairs and improvements after the funding was allocated. Chairman Johnson mentioned the possibility of a budget amendment to allocate funding, especially for the more urgent items, including the HVAC work at the satellite jail. Mr. Johnson also mentioned that some individuals had complained about the "stops" at the tax building (backside where employees parked) and that repair work was needed. Raczkowski said the existing facility needs study would be updated on an annual basis. He said a repair and improvements tracking system would be implemented. It was noted that the total for all of the projects was estimated at $1,664,350. County Manager Smith said the priority #1 needs were definitely needed, and that if they didn't occur soon, they would cost even more. Chairman Johnson said the roofs needed the repairs. He asked the staff to revise the list as follows: (1) list any items where there were safety concerns and (2) list any items where the repairs/improvements would cost more in the future, if delayed. Commissioner Griffith agreed. She said some of the repairs needed to occur immediately rather than postponing them. Smith said that if any items were added to the priority #I s, it should be the parking lots, as delays would make them more expensive in the future. Commissioner Mitchell said the HVAC upfit at the Hall of Justice probably needed to occur soon. He also mentioned that Register of Deeds Matt McCall had volunteered storage space in his office area for the clerk of court. County Manager Smith said a capital project ordinance could be created using fund balance. Johnson said that as the money was spent, it could be replenished as the economy improved. Blumenstein said at one point in the past, there was a $2 million annual appropriation to a capital reserve fund, and many projects were completed in a pay-as-you-go method. Johnson said the jail annex (Hwy. 21) needed to be completed soon. 3 Commissioner Robertson asked Vice Chairman Norman if he agreed that an appropriation should be made to at least take care of the priority one projects. Norman said the economy was still uncertain, and if improvements began, they needed to occur in a cautious manner. Robertson said the repairs and improvements had not occurred due to the economic downturn. He said that if the county had remained with a 44.5 cent tax rate last year, instead of increasing it to 48.5 cents, there would be no discussion about making the needed facility improvements. Chairman Johnson said the board wasn't really talking about a capital budget, rather it was really a maintenance budget. He said real capital needs, such as the jail and ECOM expansion, still existed. Johnson said unfortunately, economic growth wasn't envisioned in the foreseeable future, and this was what was needed. Technology Needs: County Manager Smith said the social services department would have to replace 50 computers due to state changes, and this would be at least $50,000 over two years. He said the IT Department would have a financial increase in 2013 due to a lease for equipment that was integral to county operations along with virtualization The following technology needs were shared for the next five years. Commissioner Robertson asked how long it would take for county departments to be compatible. He said, for example, when the Register of Deeds' Office listed a property as sold, when would the GIS department and the tax offices automatically have the information in their computer systems. Robertson said this would eliminate the same data from having to be entered numerous times. County Manager Smith said the content management program approved in December 2011 would add a program to MUNIS to allow much of this type of integration to happen. He said the content management system was directly related to permitting as well as finance and human resources. Smith said imaged records would be accessible. IT Director Nettie Feimster said usually the Register of Deeds' Office chose its own software applications, regardless of whether or not they integrated with other systems or departments in the county network. She said that unless all departments agreed to work together, there would always be a problem. Feimster said the county was trying to eliminate the problem by forming a committee with representation from all the departments. She said the committee would determine if software applications met the county's strategic plan. Feimster said that if the equipment failed to meet the plan, then the committee had the option of declining approval. Feimster said the committee's first meeting would be held in a few weeks. Robertson said it was understood that future technology requests would be filtered by the committee. 4 Tee nology Needs 2013 2014 2015 2016 2017 Total ECOM $41,000 $962,000 $340,000 $15,000 $45,000 $1,403,000 IT Services $392,500 $431,500 $650,000 $306,000 $236,000 $2,016,000 Animal Services $40,500 $40,500 Finance $13,800 $53,450 $11,930 7,220 $86,400 DSS $100,000 $100,000 Health $186,775 $186,775 Sheriff $224,905 $224,905 GIS $5,500 $5,550 Tax Collector $5,340 $5,340 Tax Revaluation $20,000 $20,000 Library $36,600 32,000 32,000 32,000 $132,600 HR $10,000 $10,000 Totals $1,076,920 $1,478,950 $1,033,930 $360,220 $281,000 $4,231,000 rounded off Commissioner Robertson asked how long it would take for county departments to be compatible. He said, for example, when the Register of Deeds' Office listed a property as sold, when would the GIS department and the tax offices automatically have the information in their computer systems. Robertson said this would eliminate the same data from having to be entered numerous times. County Manager Smith said the content management program approved in December 2011 would add a program to MUNIS to allow much of this type of integration to happen. He said the content management system was directly related to permitting as well as finance and human resources. Smith said imaged records would be accessible. IT Director Nettie Feimster said usually the Register of Deeds' Office chose its own software applications, regardless of whether or not they integrated with other systems or departments in the county network. She said that unless all departments agreed to work together, there would always be a problem. Feimster said the county was trying to eliminate the problem by forming a committee with representation from all the departments. She said the committee would determine if software applications met the county's strategic plan. Feimster said that if the equipment failed to meet the plan, then the committee had the option of declining approval. Feimster said the committee's first meeting would be held in a few weeks. Robertson said it was understood that future technology requests would be filtered by the committee. 4 Smith said yes, but Mrs. Feimster was assuming the role for the FY 12-13 technology requests. Robertson asked about the durability of the laptops being used by the field personnel. Feimster said the usage varied. She said the inspections department was able to retain tough books for five to six years. Feimster said that in the EMS department the tough books were not as durable, and this was probably due to having multiple people on different shifts using them. Commissioner Griffith asked if the 2013 technology requests would be ranked as the #1 priorities, similar to the facility needs rankings. Smith said yes. He said there were definite IT needs, and many computers needed to be replaced. Chairman Johnson asked if the ECOM request of $962,000 had to happen in 2014. Commissioner Griffith asked if there might be other funds that would assist, for example, the state, on the ECOM Department's needs. Feimster said it was unknown if 9-1-1 funds could be used. Deputy County Manager Tracy Jackson said that if the expenses were tied to ECOM telephone lines, then the 9-1-1 funds could be used. Jackson said radios could not be purchased with 9-1-1 funds. Feimster said $50,000 was for switches, and the 9-1-1 fund could be used. Jackson said a 9-1-1 Commission meeting occurred this week, and the staff felt the funding would be decreased in the future. He said it was anticipated the state would change towards a grant type of funding with emphasis on the coordination of 9-1-1 centers. He said the staff felt this type of direction would be disadvantageous for Iredell County. Commissioner Griffith asked why the county wasn't purchasing some of ECOM's needs now, while 9-1-1 funding existed. Jackson said the staff had been working on a budget amendment for some projects that would be eligible for 9-1-1 funds. Blumenstein said the equipment would have to be placed out for bids, installed, and paid for by June 30. She said the county had purchased EMS monitors and the 9-1-1 money could be requested. Blumenstein said the money could be held in abeyance for the ECOM consoles. Commissioner Mitchell asked if the social services technology upgrade was a result of legislation. He asked if Iredell County was perhaps getting hid harder than other counties. Chairman Johnson said the state had changed its software program to provide faster service, and this was the reason. County Manager Smith said that in the past, social services had purchased some subpar equipment, and it was not "robust" enough for some of the applications. funds. Chairman Johnson asked if any of the sheriff's requests could be funded out of seized Smith said a discussion with the chief deputy would occur. Feimster said the sheriff's office had purchased cameras for the law enforcement vehicles from a vendor that was now out of business. She said there were problems uploading the recorded information to an application to be viewed. Feimster said the sheriff's office had to manually transfer from a laptop to a jump drive, and take it inside a building to view. She said k, with the new equipment, the staff could drive into the parking lot and upload the videos directly to an office server. Smith said the technology and facility needs estimates were "fluid," and work on them would continue. Chairman Johnson said realistically speaking, the board could expect the technology budget to be at least a quarter of a million dollars higher than what was being paid in 2011-12. Smith said probably so. SALARIES: County Manager Smith reviewed the following four salary increase options: Salary Increase Options Key Points: 0 1% ATB = $427,7S9,2% ATB = $855,519, 3% ATB = $1,283,278 0 4% Merit (based on historical data) = $922,294 o Applying an increase at the employee's anniversary will decrease the yearly budgeted amount significantly. 0 64% of employees make r= $41,000 0 949/o of employees make <= $61,000 Option 1 — Across the board increase of up to 39v.. n Pros • Everyone gets a raise. Finite amount of money that can be easily allocated at the beginning of FY13. Immediate morale boost. • 3% attempts to get us back on track to cover some cost of living expenses. • Addresses one part of the compression issue. o Cons Does not reward high performers differently than lower performers. • Only one part of compression issue. Allocated all at one time. Doesn't provide as much for lower paid majority. • Commits us for future years — unlike a bonus. Option 2 — Merit increase of up to 4% applied at anniversary - Pros Awards those who deserve it based on performance. • Less expensive when compared to across the board. Will be applied at employee's anniversary, therefore spreading the appropriations out through the year-. Addresses one aspect of compression. o Cons Does not address cost of living increases over the past three years. • Only addresses part of compression problem. • Commits us to future years. Not as big a morale boost. Option 3—Tiered bonus approach. o Pros • Rewards those hit hardest by the recession (lowest paid employees would receive a higher percentage). • Popular among the majority of the employees. ® Does not commit us to future years. o Cons Does not address compression at all — compounds it by prolonging lack of raises. • Cannot easily phase in, ie at anniversary date. Arbitrary numbers. • Does not address performance. Option 4 — 1% across the board plus c or = 3% merit applied at anniversary date. o Pros • Addresses compression better than other options. Flexibility in administration — can apply at employee's anniversary. Covers two parts of compression issue_ Rewards higher performing employees. • Overall cost versus perceived gain is beneficial to the County due to time factor. O Cons Does not provide a significant amount to all. • May not adequately address morale due to 1% across the board. 6 Commissioner Robertson asked how much money was needed to correct the compression issue. Smith said this was unknown; however, a step in the right direction would be to resume the salary studies. He said these looked at the position and not the person. Smith said the salary increases for these stopped three years ago due to the economy. Blumenstein noted the salary studies had positions classified into four classifications and the funded ended with the jobs being studied in Cycle 4. She said the county was currently in Cycle 2. Commissioner Robertson asked how much was needed to get everyone at the same starting line. He said this might be the best that could occur until the compression issues were settled. Robertson mentioned he hadn't worked for a company that provided a cost -of -living allowance (COLA) in many years. Robertson mentioned concern about adding to the baseline salary budget. In regards to the compression issue, Human Resources Director Sandra Gregory said the costs were unknown, and much work would have to occur to determine the amount. She said each employee, in the same job grade, would have to be evaluated. Gregory said rather than being a compression issue, there might be employees with performance problems, and they had not received merit increases. Chairman Johnson mentioned concern for the employees left out during Cycle Four of the salary study. He concurred with Robertson about not wanting to add to the salary base. Johnson said the most that might be done was to look at some type of performance pay as well as to remedy the Cycle 4 situation. Smith said he assumed the performance pay would be based on the system already in place. Robertson said this was correct. Smith then reviewed the merit pay historical data. Johnson said there might be unwillingness to go a full four percent for the performance pay. Commissioner Griffith said many people in the private sector were still seeing no pay increases, and some were having salary and benefit decreases. She said the public's sentiment appeared to be that overall, county employees had fared well with their benefits and retirement even though there had not been pay increases. Griffith said, "This is a tricky tightrope when you consider what is happening in the economy and with county employees. It's very tricky, and I think we should still error on the side of caution, but something has to be addressed. It seems a lot to go from nothing to four percent. I don't feel this will be warmly received by those who have not seen pay increases and by the ones with pay decreases." Smith said the board needed to remember it was difficult to replace some employees (Inspectors, EMTs, and Environmental Health Personnel), and when the job market picked up, these people might start looking elsewhere for better salaries. Robertson mentioned this happening in the health department when trainees were hired in the environmental division. He said once they were fully trained they left the county for higher pay in other governmental units. In reference to how others perceived county employees, he said people who had lost their jobs, or who were making less money, didn't want to hear about anyone making more money, or having a better job, regardless of whether they were in the public or private sector. Robertson said any organization with 800 to 900 people had to have some incentive for high job performance other than job loss or termination. Griffith said a company's greatest asset was its employees not its customers. VA Jackson reminded everyone that one year the county had furloughs that amounted to a two percent decrease in pay for everyone with the exception of emergency personnel. Johnson asked the cost for the Cycle 4 salary study. Smith said by memory the dollar amount was not recollected, but a staff member would return to the office, obtain the information, and share it after lunch. Robertson said a total dollar figure was needed, and the staff could determine the system. Johnson agreed, and he said after the amount was determined, performance pay could be discussed. Smith said there were four cycles in the salary studies, but they were not evenly distributed as far as positions. Blumenstein asked if the performance pay would be added to the base salary. She said compression wouldn't be helped if the base salary remained the same. Robertson said the salary study cycle pay would be added to the salary base. Blumenstein said there were only a few positions in Cycle 4. Smith said they were primarily department heads and other professionals. Vice Chairman Norman said the actual dollar amount was needed before a decision could be made. Smith said some direction regarding salaries would be helpful for budget planning purposes. (See page 18 for additional information regarding salaries.) PERSONNEL REQUESTS: Smith reviewed the personnel requests that would be in the FY 13 budget (2 positions for ECOM; 1.5 for Animal Services; 7 for EMS {related to shift changes}; 1 for tax department; 1 for ITS; 1 for Parks/Recreation; a 32 -hr. position for Vehicle Services; part-time position for Solid Waste, and 1 position for Facility Services). Commissioner Mitchell asked if inmates could assist with cleaning the animal kennels at Animal Control. Jackson said the staff had to have rabies boosters. He said that if volunteers or inmates were used, they also had to have the rabies vaccine. Jackson said volunteers were restricted to only the adoption areas. VEHICLE NEEDS: County Manager Smith said the department heads had submitted a list of FY 13 vehicle needs. The list is as follows: Vehicle Needs Jail $ 87,000 Sheriff $ 420,000 Code Enforcement $ 27,000 Animal Control $ 81,000 Emergency Management $ 27,000 EMS (5 year plan) $ 385,300 Facility Services $ 152,450 Parks & Recreation $ 68,500 Total $1,248,250 Smith said mileages had not been reviewed at this time, and there would probably be a decrease in the actual number of automotive requests. He said the Vehicle Services Director reviewed each request and gave a recommendation. 8 HEALTH CARE ISSUES: Mark Browder, with the Mark III Company, reviewed the 2012-2013 medical renewal plan. He said the current plan had operated well, and the upcoming year should be easy compared to previous ones. Browder said that in the past, a higher deductible was approved as well as a pharmacy modification. He said about $7.5 million would be needed for the health plan. Browder said pharmacy costs were trending down about 16.5% and overall the downward trend was about 16%. He said the county was in a positive position with about $275,981. Browder projected about a 3% funding increase, or a couple hundred thousand dollars. Browder said the only change in FY 13, for Option 1, would be adding a front- end deductible of $150 to the pharmacy plan. He said currently, generic drugs were $10; second tiers were $45; third tiers were $60 and specialty meds were 25% of the cost with a minimum of $50 and a maximum of $100. Browder said the deductible was upfront, for example, "If a person takes Nexium, which is a $200 medication, normally, the employee would pay a $45 or $60 co -pay, in FY 12-13, the person will pay $150 one time. After that, the co -pay will apply." Browder said his company worked with 30 governmental units and about 7 or 8 had the $150 deductible. He said this was a cost share, and it helped to drive more generic utilization. Mr. Browder said this was the only change needed for FY 13. Robertson asked if everything else remained the same. Browder said this was correct. Robertson asked if any data could be shared on how much healthier the employees were who took advantage of the Wellness Program. He asked about any savings being realized. Browder said the population had not been stratified to determine if the employees in the Wellness Program were healthier versus the ones who were not participating. He said the vast majority of the employees participated in the Wellness Program. Browder said ultimately, the program was strictly participatory, and some clients were "headed towards accountability based standards." He said that was when the impact should be evaluated. Browder said with Healthcare Reform that one segment ACO (accountable care organizations) would be used, and these units would manage the population's healthcare in greater detail. He said CIGNA would have to work with the ACOS and determine what could be done in healthcare management. Browder said, "Ultimately, you will be establishing standards for accountability for your population. The participatory or non -accountability based standards that are in place, for most employers, will ultimately have to be tightened up. You meet height and weight criteria. You do the things to improve your health status." He said clients were already setting up performance based standards for FY 13-14. Smith said there had been significant changes from the first year of the Wellness Program to the statistics for the past year. Commissioner Mitchell asked how the employees' contribution rate compared to other counties. Browder said, "They are on the better side." He said the dependent coverage contribution was probably less than the average; however, some units had less costs. The board did not have any objections to the Option 1 changes as mentioned by Mr. Browder. LUNCHEON MEETING Joining the commissioners and county staff for lunch were Senator Chris Carney, Department of Transportation District Engineer Mike Holder, Mooresville Board of Education Chairman Karen Hart, Mooresville Superintendent Dr. Mark Edwards, Mooresville Finance Officer Terry Haas, and Dr. Kenny Miller with the Iredell-Statesville Schools. Senator Carney said the following: • Education will be the dominant issue for the legislature this year. 9 • Educational units that have done well should not be punished by the ones needing more accountability. • Economic development will also be discussed in the legislature. The tier system is not fair and should be abolished. In addition, when North Carolina competes with other states for jobs, the tier system doesn't make any sense. Jobs are crucial, and the state will be looking at better ways to create them. • In regards to gas taxes, there needs to be a method to keep these steady or down. • The scheduled list for road/bridge improvements was cut last year, and this didn't occur equally across the state. During a recent transportation meeting, the first topics were the train, the Gaston Parkway, and the 85/321 Interchange. At the meeting, the DOT officials were told that I-77 was more of a priority than the ones mentioned. In the future, it is hoped the projects that bring about the most impact to correct congestion will be the number one priorities. Commissioner Robertson said the same per pupil school funding across the state was needed. Carney said another needed component in education was to have the state transmitting the funding amounts to the local governments on a earlier basis as well as moving some of the control back to the local level. Chairman Johnson said the state's economic development tier system affected other organizations, such as the community college system. Carney said many people were now realizing the community college system was the "real backbone" in retraining the workforce. DOT Update: District Engineer Mike Holder provided the following information: • Brawley School Road (2nd section) continues under construction and is about 60% completed. A final completion date is the spring or summer of next year. A new interchange on I-77 will occur. • Project I-3819, or the junction of I-77 and I-40, along with the reconstruction of the US 21/I-40 interchange, is scheduled to be let for bids in June 2012. Work should begin around August 2012. • The realignment of Mazeppa Road, at NGK Ceramics, is being developed which will result in a new intersection for NC 115. This will allow a $100 million expansion by NGK, and the creation of 150 new jobs. • There are several bridge replacements in Iredell County occurring and others are scheduled. • The usual resurfacing of secondary and primary roads in the county is occurring. • I-40 resurfacing in Catawba County (Conover) to the Stamey Farm Road continues. A private contractor for the improvements is using a process called diamond grinding which makes the existing pavement smooth making for better driving and riding. The same process will be used in Iredell County starting at the Catawba County bridge. A product called Nova Chip will be added to the pavement which will be asphalt. The I-40 project should be completed by this fall. • There is a project on I-77 to smooth out some of the existing concrete and for re - pavement. The area will be at the end of the I-3819 project (around US 70/Broad Street south to Exit 45 Troutman along with a section on US 21). • A DOT goal is to touch a segment of all interstates each year to retain their quality and smoothness. • DOT supports the perspective of directing funds toward the projects with the biggest bang for the bucks, or the ones having the biggest congestion points. Commissioner Griffith asked the timeframe for the I-40/US 21 project. Holder said 2.5 years. Commissioner Robertson asked about the congestion occurring on I-77 between Exit 33 and Huntersville. He asked if the causeway bridge was the problem area. 10 Holder said that on I-77 there was a project (public/private participation) scheduled to be let in the fall of 2012. He said a contractor would be used to build a high occupancy toll lane up to Exit 28 in Davidson. Holder said environmental work had occurred to that point, and with the concessionaire, there would be a long-term lease. He said another engineer in Division 10 had primarily been working on this project, and as a part of the study, there had been discussion about taking the work from Exit 28 to Exit 36. Holder said the causeway was an impediment to the project, and the I-77 work would probably take ten years. Commissioner Mitchell mentioned how difficult it was for drivers on I-77 southbound to return to the right lane after they moved to the left to allow oncoming traffic entering from I-40. He asked if this would be corrected. Holder said this area would be worked on. Mr. Holder said the DOT was trying to pride itself in being a delivery organization with a primary purpose to deliver projects safely and within budget. Annexation Reform Act: Planning/Transportation Director Joey Raczkowski said that in June of 2011, the General Assembly passed an Annexation Reform Act. He said the two types of annexation were voluntary and involuntary, and most of the revisions related to the latter type. Raczkowski provided the following information about involuntary annexation changes: 10- The length of time has significantly increased for municipalities to work through the process. 10- The amount of required public input into the process from both the affected property owners as well as the citizens of the municipality as a whole has increased. 10- Firm deadlines have been set as to when municipalities have to provide services. 10- The statutes shift most of the costs for expanding the services to the municipalities rather than the property owners. Raczkowski distributed a handout showing highlights of the reform act as well as the following flowchart for forced annexations. /r�vo/ur�tary (Forced) Annexafior� Process Pass Resclutlon of Consid era tion Identify area under consideration; file resolution with Clark, advertise resolution in newspaper mail copy of resolution within 30 days of resolution adoption_ Set boundaries of proposed annexation, set dates for public information meeting and publlc hearing 30 nays Prior to Public Information Maatlng Governing board must approve Annexation Report and post report In municipal clerk's office Pubtic Information Meatlno & Public H¢arinct Contents of Annexation Report must be explained by representative of municipality. In addit€on, representativo must explain available municipal services and how property owners can request service. All property owners and other residents ask questions and receive � answers J M unicl pal ociaing Boartl Action At least but no mora thanng0O days after public hearing, board may adopt an ordinance annexing all part of identified area. Copy of ordinance and blank petition form mailed to all affected property owners Board of Elections Involvomont For 130 days after adoption of annexation ordinance, accepts signatures on petitions from affected property owners. Petitions ob lacuna to Ann on At the close of the 130 cloy period, if % off the te affected property owners 'oppose annexation, the annexatiti on ordinance is nuki and void and the munlc€pality may not attempt to annex the properties again for a period of three years. Have 60 days from close of petition process in which to file an appeal to NC S.D.nor Court Municipal Services Provided � Municipality must provide police and fire protection, solid waste collection, and street ,naintcnance services on effective date cf annexation. Municipality must provide water and sewer service to the annexed area within 3.5 years fron3 effective date of ordinance Writ of Mantle mus within 15 months If the municipality is not providing services, affected property owner may apply for a writ of mandamus. School Presentations IREDELL-STATESVILLE SCHOOL SYSTEM: Board of Education Chairman Dr. David Cash, Superintendent Brady Johnson, Finance Officer Melissa Wike, and Director of Facilities Dr. Kenny Miller discussed the needs of the Iredell-Statesville School System. Dr. Cash said despite the economic challenge there were many student successes over the last year. He said the deficits were beginning to make an impact, and in some areas the system was slipping. Dr. Cash said there was a fear that members of the public were becoming complacent about trying to achieve higher success as they automatically assumed this would occur. Supt. Johnson reviewed the following information relating to the ABC Composite Scores, along with the graduation and drop-out rates. ABC Composite Scores 2007-2008 2008-2009 2009-2010 2010-11 72.31% 78.63% 80.78% 80.01% SAT scores went up this year and the ACT is above the state/national average. Graduation Rate 2007-2008 2008-2009 2009-2010 2010-2011 80.7 80.9 82.7 85.1 On the graduation rate, Iredell-Statesville is ranked 13`h in the. Drop Out Rate 2007-2008 2008-2009 2009-2010 2010-2011 3.52 2.96 2.36 2.27 On the drop-out rate, Iredell-Statesville ranks 14° in the state. Supt. Johnson said the increase from the county commissioners last year helped, but 46 employees were laid off. He said, to date, the system had eliminated 287 positions in the last three years. Supt. Johnson said education was a labor intensive business, and in 2012-13, the system would be faced with a federal and state funding crisis with 2008-09 being the last fully funded year. He said a reversion to the state next year would be $1.1 million, and other sources of money (ARRA and jobs bill fund) would no longer exist. Supt. Johnson said there would be a $5 million gap that the system would have to work out. He said the following proposed budget cuts were presented to the board of education on March 5, 2012. Description Cost Savings Jobs Effected Reclassify assistant principals to 11 months $174,500.00 33 positions Reclassify bookkeepers/data managers 160,000.00 67 positions High School: reclassify to 11.5 mo position Middle/Elem: reclassify to 11 mo position Reclassify instructional facilitators to 10.5 mo 121,000.00 22 positions (7 are already at 10 mos.) Reduce student assistance program 236,800.00 4 positions Eliminate Central Office adm. position TBD 1 position No Middle School Resource Officers 188,900.00 HS & Monticello remain along with one MS floater Eliminate school based office positions 172,800.00 6 positions Reduce social workers 116,200.00 2 positions Eliminate central office OSP positions 119,200.00 3 positions Eliminate high school gate guards 75,000.00 $1,364,400.00 Supt. Johnson said this would be the first $1.3 million in making up the $5 million cut. He said the remainder would come from previous reductions that would remain, and there would be a recommendation to use fund balance for current expense. Supt. Johnson said fund balance was currently at $7.7 million, but it was known that these funds were not intended to pay current expense. 12 Supt. Johnson said that with the exception of Kindergarten, class sizes were increasing. He said the referenced cuts would have an impact on the effectiveness of the schools along with the students' well being and safety. Commissioner Robertson said the system in 2002 ranked 55`h in the state, then, it ranked 12`h_ but now it was down to 38`h. He asked what had caused the decline. Supt. Johnson said performance had improved, but the rank had decreased. He said many children, about 20%, were not on their grade levels. Supt. Johnson said many of the children were homeless, transient, had learning disabilities (over 2,000), or they came from homes that did not value education. Dr. Cash said that with more mandates to help the 20%, it was feared the 80% would start losing ground. Vice Chairman Norman asked about the elimination of the high school gate guards and the student resource officers. He said these were critical positions. Supt. Johnson said the cuts would jeopardize academic success and marginalize student safety. He said there was much traffic in/out of the schools, and the system felt the guards and resource officer positions were important. Chairman Johnson asked the school system's assumptions in making the cuts. He asked if the system was assuming the state money would be decreased and the county money would remain level. Supt. Johnson said it was assumed that county funding would remain the same, but the state money would decrease by $1.1 million. Iredell-Statesville School Board Member Bill Bracer said the cuts were difficult to "swallow," and he would be more in favor of letting teachers go. He said, "The fat is gone." Brader said his vote would not be to compromise safety and security with the SROs and the security guards. Commissioner Mitchell said he was told the SROs were worth more than what they were being paid in the middle schools. Dr. Cash said the school system was not trying to be dramatic, but major problems would occur if the community did not come together and find solutions. Commissioner Griffith said the county funded social services which had social workers. She asked why the school system was duplicating services by having its own social workers when the ones at social services were available. She asked why the duplication ever started occurring. Supt. Johnson said the current structure of the social services department was not geared to provide services at the school level. He said referrals were made to social services, but the school system's five social workers served five elementary schools with a primary emphasis on truancy. Supt. Johnson said the social workers worked with the 20% not on grade level whose parents did not send them to school. He said Iredell-Statesville had the 11`h best attendance rate in NC, and much of the credit was due to the social workers and their home visits. Commissioner Mitchell commended the system on the drop-out rate, and Supt. Johnson attributed the success to the Student Assistance Program as well as the school alternative program. Commissioner Mitchell asked why the fines and forfeiture revenues were decreasing for the schools. Iredell-Statesville Schools Finance Officer Melissa Wike said a definitive answer from the courts had not been given during a recent inquiry; however, it was mentioned that some fines 13 had not been as readily collected as in the past due to the economic situation. Wike said, too, that many of the issued bonds were unsecured, so forfeitures were not occurring. Commissioner Griffith asked Supt. Johnson if all public school systems were facing the same cuts. Supt. Johnson said all of them would face the reversion as well as a depletion of the federal stimulus dollars. Griffith asked strategies being used by other systems to offset the cuts. Supt. Johnson said across the board similar cuts were being made. Chairman Johnson said there were economic consequences for moral failure. He said that if people failed to be good parents, the responsibility fell on someone else. Johnson said he didn't know how much more could be expected of that "someone else." Mr. Johnson said the county was looking at $1.4 million in property taxes over what was budgeted. He said, however, that historically, the number had been higher. Johnson acknowledged that sales taxes were up, but he said long-term planning could not occur on this type of growth because it was cyclical. Mr. Johnson said unfortunately, business personal property continued to be level, and an increase here would be the first indication that the economy was improving. In regards to the ABC composite scores, Chairman Johnson said the higher the percentage there would be an ever increasing cost with the next percentile increase. He said Iredell County was not considered a low wealth county, and money from the state and federal government would not be there to help in maintaining high scores, rather it would fall on the county taxpayers. Johnson said, "This is indicative by taking state and federal money as a total of expenditure per student. Iredell County ranks at the bottom, but taking these governmental units out, Iredell County would be favorably ranked." Mr. Johnson said he couldn't tell the school system that the county would make the problems go away when there was only a small increase in property taxes. Johnson said, "I can't sit here in good faith and tell you we are going to make all of your problems go away when I'm looking at a one and three, or one and four, increase year over year in property tax revenues which are the basis for any long term commitments that you can make for anyone. It simply doesn't exist. The biggest concern is year over year, but I've been doing this awhile and what has always happened in a revaluation year, to subsequent years, is you're looking at a 20 to 22% increase in revenues. In intervening years you saw an eight to nine percent increase. In the full cycle of revaluation you may have been approaching 50% more money in property tax revenues than you had in the previous reval cycle. You're coming off of a reval cycle where if we had let the tax rate go down you would have had less money. Yet, we raised the tax rate four cents, and we're looking at a one point four percent increase the year after a revaluation. You cannot hope to imagine to get eight or nine percent in intervening years. You're looking at four or five years out having almost a third less money coming in for property tax revenues then you would have if this economic debacle had never occurred. This is the economic reality of where we are, and it's going to be here for a long time. If economic fiscal and monetary policies were put in place to turn this thing around, you're still looking at a minimum of two years." Commissioner Robertson said he knew student retention was a state policy. He asked if the policy couldn't be challenged, because it appeared that much lost efficiency was occurring due to students being in the wrong grade. Robertson said studies had shown there was a retention stigma, but it appeared the solution being used was costly due to many teachers having to provide the extra work. He asked if the school system had the option of reviewing the pass/fail policy. Wike said the board of education still had the option. She said any student not meeting the standards had to go before a waiver committee at the local school level to determine whether they would be promoted or not. Wike said the system had tried to be proactive in pursuing grants to address the gaps and close them by using other funding sources. Supt. Johnson mentioned other handouts provided to the commissioners. He mentioned one that pertained to raising student achievement and closing the learning gaps. Supt. Johnson said "incredible" things were being asked of the teachers. He acknowledged the nation was in a 14 "mess," and the commissioners did not have the capacity to replace all of the money that had been previously received by the state and federal governments. Supt. Johnson requested for the commissioners to consider moving money from capital to current expense. Director of Facilities Dr. Kenny Miller said his operational budget had been cut, and that the custodial staff was down 15% with maintenance being reduced 15 to 18% from normal. He mentioned that fuel costs continued to increase. Dr. Miller said the Facilities Task Force recently met, and a recommendation would soon be shared. He said the task force realized there was deferred maintenance, similar to what was occurring with the county, due to not having enough capital money. Miller said it was understood; however, the number one priority was the students and teachers. He said the system would ensure that the academic standing did not decrease; however, a large investment had been made in the past few years in the facilities. Dr. Miller said no one wanted to see that component go backwards either. Commissioner Robertson said that to summarize, the system would be facing a state and federal hit of $5 million next year. Supt. Johnson said yes. MOORESVILLE GRADED SCHOOL SYSTEM: Discussing the Mooresville Graded Schools were Chairman of the Board Karen Hart, Superintendent Dr. Mark Edwards, and School Finance Officer Terry Haas. Mrs. Hart said Mooresville would be facing a $1.4 million deficit next year with the discretionary cut being $300,000. She said over the past three years, the system had cut 10% of the workforce with reductions at the central office, three assistant principals at the three pre -K schools, elimination of all assistant principals at the elementary schools, and the hours of the other assistant principals were cut. Hart said personnel amounted to 77% of the entire system's budget. She mentioned the importance of education in economic development and good employment opportunities. Dr. Edwards said 40% of the students were enrolled in the free or reduced lunch program, and the number of pupils needing help was increasing. He said the special needs program had 14% of the student population, and this percentage increased each year. Edwards said it had been discovered that some families were moving to the Mooresville district because their children had special needs. He said the graduation rate was second in the state, and last year 400 graduated compared to Mt. Airy, the system with the highest graduation rate, with 87 students. Dr. Edwards said Mooresville raised funds for staff development by holding conferences where others throughout the state attended and paid registration fees. He said the system was trying to be creative, and it was returning an investment on the money received from the county. Commissioner Robertson asked how the cuts would affect Mooresville's academic rank (number three in the state). He asked if the ranking would be at risk. Edwards said yes. Robertson asked why, and what it would take to mitigate the risk. Edwards said most of the top ten districts averaged around $1,500 to $2,000 or more in per pupil funding. He said larger classrooms would be a factor, especially with more and more new students being behind and needing tutorial help. Edwards said the system had a 97% pass rate goal in every school, but as more in -need students were enrolled there were concerns. He said the teachers were giving all they could, and it was difficult to push them anymore. Robertson said it was assumed that with the laptops being used, the teachers could identify any problem areas. He asked if this reduced the need for resource teachers. Robertson asked if the technology helped with the learning problems, or did it primarily help the normal or high achievers. 15 Hart said the laptops were only tools, and they were not replacing teachers. She said the teachers knew their students through tracking tools and this included deficiencies and what needed to be re -taught. Edwards said the system wanted accountability and even the custodians were evaluated. Commissioner Mitchell asked if Mooresville would be facing the same reductions as Iredell-Statesville from the state and federal government. He also asked if the FY 11-12 fines and forfeitures were low for Mooresville. Edwards said the system was counting on the state to improve the funding. Hart said the proposed discretionary state cut was $300,000. Senator Chris Carney mentioned that several high ranking legislative members visited a Mooresville school recently to determine how a top rated system was achieving success. He said a goal would be to share the information gained from Mooresville throughout the state. Commissioner Griffith asked the number of assistant principals at the elementary schools. Edwards said the assistants were cut at the elementary schools. He said the intermediate school had one assistant principal, and there were three at the high school. MITCHELL COMMUNITY COLLEGE: Joining the commissioners to discuss the needs of Mitchell Community College were Board of Trustees Chairman Dr. Ralph Bentley, President Dr. Tim Brewer, Chief Financial Officer Dick LeFevre, Budget Officer Barbara Wheeler, and Director of Facilities Gary Johnson. Dr. Bentley said Mitchell was one of the top community colleges in the state. Dr. Brewer said that in January, the college had mentioned the need for an Allied Health Building (approximately 40,000 sq. ft). He said pre -planning had been completed. Brewer also mentioned the need for a Public Safety Facility and more classrooms at the main campus. Dr. Brewer then discussed the following needs: HVAC replacement for D. Matt Thompson Building (preliminary estimate $500,000) Roof replacement for Vocational Building (main campus — estimate of $100,000) Roof replacement for Science Building (main campus — estimate of $65,000) Facilities Director Gary Johnson said there was little deferred maintenance. He said the Cherry Street facility had an HVAC system that needed repairs, and the board of trustees had given approval to vacate the building, if needed. Johnson said there was a future plan to demolish the structure. He said the chiller at D Matt Thompson had a low -life expectancy, and it had been repaired several times. Johnson recommended the purchase of an oversized chiller to provide air conditioning for the gym and the workforce development building. He said an eight- year-old chiller at the workforce development center would remain as a backup. Commissioner Mitchell asked if the two roofs were flat. Facilities Director Johnson said they were shingle or asphalt roofs. Mitchell asked if metal roofs could be used. Facilities Director Johnson said metal hadn't been considered, but some of the buildings were in the historic district and prior approval had to be obtained. He said the architectural shingles had a 30 -year life. Chairman Johnson asked about the life expectancy of the D Matt chiller. Facilities Director Johnson said the technician predicted through this summer but there was no guarantee. 16 Mitchell asked how the Cherry Street facility was being used. Facilities Director Johnson said curriculum classes and programs. He said the building was acquired from the Davis Hospital Foundation, and a study suggested that proper renovations would cost $2.5 million while demolishing the structure and replacing it would be $3 million. Dr. Brewer said that in the near future, a request for land acquisition would be discussed with the commissioners. Mitchell asked, assuming the Cherry Street facility was demolished, if the college could use the property. Brewer said there was much potential, and if for nothing else right now, it could be used for extra main campus parking. Chairman Johnson said the commissioners seemed to concur on the $250,000 (additional funding for current expense), but there were still concerns about a funding formula based on square footage. He mentioned that perhaps a couple commissioners could meet with some of the college's officials to discuss a designated amount. (At a regular meeting on January 6, 2012, the board of commissioners approved an additional $250,000 to help with the college's current expense.) Brewer said the college would work with the county in anyway needed. Chairman Johnson asked if the roof replacements were anticipated or were problems already occurring. Facilities Director Johnson said there were a few leaks, but nothing that wasn't manageable. He said, however, that deferring maintenance led to problems down the road. Johnson said a maintenance priority list was maintained, and the two roofs were at the top. PERFORMANCE CONTRACTING: Joining the board to discuss performance contracting were Code Enforcement & Special Projects Director Lynn Niblock along with Lyn Martin and Reid Convey, both energy engineers with the North Carolina State Energy Office. Martin said the state had approximately 70 utility savings initiative contracts throughout North Carolina where energy cost reduction measures were designed and proposed as well installed and implemented. He said there was a cost cut guarantee, and the contract was paid for over time by the savings. Martin said many local government units did not have the manpower or expertise to create the cost saving measures. Vice Chairman Norman asked what type of system managed the data. Martin said existing protocols were used with computer modeling. Convey said the energy measures would be implemented on existing structures not new construction. He said there were several state statutes regarding performance contracting and these were primarily GS Article 3B 143-64.10 through 143-64.171, along with G.S. Article 8 142-60; 142-70 as well as the North Carolina Administrative Code. Convey said the Local Government Commission would also have to approve all applications. No action occurred regarding performance contracting. (Additional discussion occurs on page 19.) CONTINUATION OF THE DISCUSSION REGARDING FY 13 SALARIES: Mrs. Blumenstein reported that Cycle 4 would cost $51,253. (This was a much lower amount than had been anticipated. It was noted that the Cycle 1 study had also been completed and to implement its recommended changes the cost would be $186,270.) FY 13. The board appeared to be in consensus about implementing Cycle 1 and Cycle 4 in 17 Chairman Johnson said that if a four percent merit increase cost $922,294.00, it could be assumed that a two percent performance amount would be $461,147. He mentioned apprehension about adding performance pay to the salary base. Mr. Johnson said Cycle 4 would cost $51,253 and Cycle 1 was $186,270 for a total of $237,523. Robertson said the actual percentage for the performance pay would be left to the county manager. Chairman Johnson said latitude could be given to the department heads on the percentages, but the total county dollar amount would be capped. Johnson said the employees should be told this was a good faith effort on the board's part to show appreciation. The board was in agreement on the following: The Cycle 1 and Cycle 4 market adjustments will occur in 2013 for a total cost of $237,523. (Cycle 1 at $51,253 and Cycle 4 at $186,270. The increases will apply to the base salaries to help with compression.) A one-time pay for performance amount of money will be capped at $461,147 and implemented in 2013. The pay for performance money will be provided to the employees who achieve the increase on their anniversary date. The actual pay for performance percentage for the employees will be determined by the county manager and department heads. The one-time pay for performance increases will not be applied to the salary base. BUDGET PRIORITIES County Taxes: Commissioner Mitchell said the county was not looking at a tax hike. Capital Improvements: Commissioner Griffith asked if the discussion on capital improvements was finished. Chairman Johnson said there was a consensus to place $1.664 million ($1,664,350) in capital reserve. He said, however, it wasn't expected that the staff would spend the full amount as some of the improvements might occur at a lower cost. Mr. Johnson asked if the $1.664 million could be placed in a capital project ordinance, and if only $1.3 million were spent, the remainder would roll over to next year. The staff said yes. Johnson said the understanding on the $1.664 was that the three #1 priorities would occur followed by the items being safety related as well as those that would be more costly in the future, if delayed. Smith said the staff would try to accomplish as much as possible. Johnson said additionally, a budget amendment would be submitted for repairs at the jail annex (HVAC) along with a corrective measure for the mold in the Register of Deeds' office. Robertson said the funds would be taken out of contingency. Blumenstein said the budget amendment would be prepared for the March 20 meeting. She asked if a capital project ordinance should be done now or in June. Chairman Johnson said at the current time. 18 Sewer at Jail Annex: Commissioner Mitchell said it was time to start taking action on the sewer for the former prison site, especially since the City of Statesville was willing to work with the county. He said there was a need for the jail space. Chairman Johnson said a little more time was needed, but he would start work on the process. Performance Contracting: County Manager Smith said an immediate decision was not needed on performance contracting, and the staff would perform more research to determine its viability. Commissioner Robertson said that in his experience in the private sector, the savings were questionable. He gave an example as follows: 40 watt bulbs replace 80 watt bulbs and a percentage of the savings is paid to the contractor. A year later, everyone is using a lamp. Another scenario might be to cut down the heat, but then everyone starts placing small heaters under their desks. He said sometimes the suggestions were not feasible. Robertson mentioned that Duke Power, and EnergyUnited, as well as the gas companies, performed energy audits. In addition, he said the two state engineers had said, "Sometimes we'll take the savings and have a two-year payback, and then we'll use them for items with a ten-year payback." Robertson said if something had a two-year payback it should be done, but no one in the industry did things with a ten-year payback. Robertson said the piece of equipment, etc., should be allowed to run its life cycle, and then replace it with an energy efficient model. Commissioner Robertson and Commissioner Mitchell said they understood the concept but they were not impressed with the presentation. Long -Term Capital Project Ordinance: Chairman Johnson said the staff needed to address long term capital projects. He said a cost estimate wasn't immediately needed, but a priority list needed to be developed. Smith said the staff would try to develop the list. He said a draft would probably be available in April. Commissioner Robertson said the technology in ECOM was constantly changing and evolving. He said care should be given in designing anything before there were actual funds to make the purchases. Adjournment: The board adjourned the Friday session of the Winter Planning Session at approximately 4:10 P.M. Continuation of the Winter Budget Planning Session Saturday, March 10, 2012 Agricultural Resource Center 9:30 A.M. Board Members Present Chairman Stephen D. Johnson Vice Chairman Marvin Norman Renee Griffith Frank Mitchell Ken Robertson Staff present: County Manager Ron Smith, Deputy County Manager Tracy Jackson, Finance Director Susan Blumenstein, EMS Director David Cloer, ECOM/Emergency Management Director David Martin, and Clerk to the Board Jean Moore. Others in attendance: Jim Munoz -McNally with the Statesville Record and Landmark CALL TO ORDER by Chairman Johnson 19 EMS (12 HR. V. 24 HR. SHIFT CHANGE): County Manager Smith said there was a proposal to change the EMS (Statesville base) shift from 24 hours to 12 hours. Chairman Johnson asked the justification for the change. EMS Director David Cloer said that over the last three years there had been a 12% call volume increase. He said the "wear and tear" on the staff was a concern, especially due to the night call volume. Cloer said that in the past five years, there had been a 15.5% increase in call volume after 8 P.M. He said the call volume during the day could go up and the staff could get rest at night, but with more calls during the evening, this did not occur. Cloer said employee fatigue was a factor, especially if the staff was on calls 20 out of 24 hours. Robertson asked if the 20 out of 24 hours were estimates or actual numbers. Cloer said on some days this could occur. He said some crews ran 11, 12, 13 calls a day with an hour to an hour -and -a -half turnaround for each call, and this didn't count the paperwork which was done at the station. Robertson asked additional information on the timing. Cloer said this would be when the 911 phone rang, the staff departed, then, they returned for the next call. He said, however, the time for individual calls varied depending upon the need. Cloer said the staff trying to get rest or sleep found it difficult due to the other two squads going out on calls. He said overtime was increasing due to the employees needing to finish the paperwork. Cloer said the numbers did not include the convalescent night time calls. Cloer summarized the staffing difference as follows: Statesville Base Ambulances QRVs EMTs Supervisors 24 hr. 3 1 6 1 12 hr. 3 1 12 2 * Includes benefits and uniforms $1,000. Commissioner Robertson asked how the salaries compared to surrounding counties. Cloer said the salary was similar. He said there might be a starting salary difference of Robertson asked the actual starting salary, not including benefits. Cloer said $32,000. Commissioner Griffith asked if the 12 hours were straight or rotating shifts. Cloer said the shifts would be day and night. (The employees would not rotate.) Chairman Johnson expressed concern about the overtime. He asked how the shift change would assist in this aspect. Cloer said that instead of being eight or nine tickets behind, the employees might only need to catch up two or three. Jackson said the 12 -hour shift was only for the Statesville base. He said the Mooresville base could be reviewed in the future. 20 Salary Cost Employees Total Supervisor $62,271 1 $ 62,271 Paramedics * $52,078 6 $312,468 Total 7 $374,739 * Includes benefits and uniforms $1,000. Commissioner Robertson asked how the salaries compared to surrounding counties. Cloer said the salary was similar. He said there might be a starting salary difference of Robertson asked the actual starting salary, not including benefits. Cloer said $32,000. Commissioner Griffith asked if the 12 hours were straight or rotating shifts. Cloer said the shifts would be day and night. (The employees would not rotate.) Chairman Johnson expressed concern about the overtime. He asked how the shift change would assist in this aspect. Cloer said that instead of being eight or nine tickets behind, the employees might only need to catch up two or three. Jackson said the 12 -hour shift was only for the Statesville base. He said the Mooresville base could be reviewed in the future. 20 Chairman Johnson asked where the 12 -hour shift ranked as far as a priority, especially in regards to the cost. County Manager Smith said he felt this was a high priority, especially if the funding was available for implementation. He said some renovations might have to occur, but the actual costs would probably be lower than the estimated $374,739. Chairman Johnson said the change was supported, "if it fit." County Manager Smith said the justification for the new EMS personnel was much better than for the other requested positions. Chairman Johnson asked for an update on the convalescent transports. Cloer said that since December 16, 2012, approximately 926 convalescent calls had occurred, and this was slightly lower than projections. He mentioned that some calls might be classified wrong. He said before December the staff had not made convalescent calls, and it took a little time to enter the correct codes and data. ECOM FUTURE NEEDS: ECOM/Emergency Management Director David Martin said the ECOM system had basically four networks. Jackson said the Nextel Sprint coverage had degraded and many wanted to switch to Verizon. Martin said that on the CAD system, installation would occur on March 19. He said testing had occurred, and a problem area was the run card. Johnson asked if everyone was cooperating. Martin said for the most part. He said there was a question as to whether the dispatches would be by unit or station. Martin said the decision was to dispatch by station. He said some information was still needed from four or five stations. Martin said his department's needs would be broken down into three main areas: employees, equipment, and space. He said the employees were the key, and they were the main priority. He said space was a big issue. Martin said incident volume since 2003 had increased by 60.5%; however, staffing had only gone up by 22%. He provided the following chart on the number of employees and incidents: Year Telecommunicator *Incidents Incidents Per Telecommunicator 2003 18 telecommunicators 64,327 3,573 2011 22 telecommunicators 103,287 4,695 * An incident may involve several agencies (4 or 5 agencies might be dispatched plus there was radio communication). Commissioner Robertson asked the industry standard for incidents per telecommunicator. Martin said he was not aware of a standard. Robertson asked if 4,600 incidents per telecommunicator were all the current employees could handle. Martin said the staff had a stress level, and even in 2003 there was a heavy workload. He said the current employees were overburdened. Martin mentioned that the agencies and departments utilizing ECOM had expanded and added more staff. He said this increased the workload for the telecommunicators. FY 13. County Manager Smith said that two new telecommunicators were being requested in 21 Chairman Johnson asked if a needs assessment had ever occurred. Martin said this would be included in the FY 13 budget request. He then reviewed the following needed equipment items: Next Generation 9-1-1 telephone switch: The RFP is due March 23, 2012. Radio Over Internet Protocol (ROIP) Radio Consoles: The department will have to review this due to technology, plus the current consoles are not supported anymore. The manufacturer no longer builds them. ESI CAD to Firehouse Integration: This is in the budget this year, and it will allow the fire departments to retrieve data directly from ECOM. ESI CAD to Marvlus Integration: This is not in the budget. Add Eighth Console In regards to space, Chairman Johnson asked if there would be anymore when the eighth console was installed. Martin said there would be no more space, unless a different type of console was used. (Continuation of Equipment Items in FY 13 Budget) Upgrade CAD to WEBFUSION: Replace Transmitters/Add Fox Mountain site: The transmitters are aging. RescueStar Switch for Mooresville: This will have to be discussed in the future. 911 Recorders for all Three Sites (ECOM/Statesville PD/MooresvillePD) Recorders will be reviewed for all three sites. 911 Workstations for all Three Sites: Eventually will have to be replaced. EOC Technology Ups Network Infrastructure In regards to space, Martin said the ECOM Center was near capacity. He said the transmitter and equipment rooms were past capacity. Additionally, he said that when there was an activation, the EOC "was tight," and there was no storage space. Mr. Martin then discussed additional FY 13 needs as follows. Future Needs FY 2013 *Two additional telecommunicators — ($76,000) (Personnel will be on "prime time.") *FCC required 12.5 KHz Upgrade ($30,000) Communications Study ($45,000) Note: ECOM is outgrowing current space and will require additional space in the next 5-10 years ESI CAD to Firehouse Interface ($27,500) Marvlus Tracking ($175,000) Note: Currently not included in the FY 12-13 Budget. In reference to the space study, Chairman Johnson said it was assumed the consultant would provide different options, for example, construction offsite or expanding into the Register of Deeds' area. Martin said the wall between the Register of Deeds and ECOM was a firewall, but between EOC it was not. Chairman Johnson said that once the study was completed, the county could figure out the less expensive route. Martin said his office space, as well as the area used by Brad Brawley, could be opened up for use by communications. He said this would be less expensive, but he would prefer for all of emergency services (EOC, Fire, EMS) to be situated in the same building with a conference and training room. Commissioner Mitchell said that if the Register of Deeds moved somewhere else, that ECOM would have enough space. 22 Smith said with call volume increasing for EMS, that Mr. Martin's suggestion on one building to house all emergency services could be justified, but the proposal to move the Register of Deeds' Office to allow ECOM to expand would be the cheapest way. Mr. Martin then reviewed the needs for 2014, 2015, 2016 & 2017 as follows: 2014 Replace radio consoles with ROIP ($240k and 9-1-1 funds cannot be used) Add administrative assistant ($40k) Equipment at Fox Mountain Viper Site ($50k) Replace ECOM workstations ($20k — can use 9-1-1 funds) Replace Voice Recorder (MPD) ($45k) 2015 Upgrade MPD 9-1-1 switch ($350k) Replace MPD workstations ($15k) Add 4 telecommunicators ($152k/yr) Replace Simulcast transmitter x 9 ($65k) 2016 Training Officer ($45k) Add 81" console ($200k) Add 8`h console phone ($65k & is 9-1-1 fund eligible) Replace voice recorder (SPD) ($45k) Replace SPD workstations ($15k) 2017 Add 4 telecommunicators ($152k/yr) Replace Voice Recorder (ECOM - $45k and is 9-1-1 fund eligible) Upgrade to WEBFUSION CAD ($250k) Build new communications/EOC facility Commissioner Griffith said that if county citizens were asked where the county's money should be sent, the response would be towards emergency services and public safety. Chairman Johnson said the best option would be to move the Register of Deeds' Office to allow ECOM to expand into its space. Martin said some fund balance remained in the 9-1-1 fund, and the state would only allow 20% of the appropriation to be carried over. He said the state had indicated it would not take the fund balance, but there were concerns this might happen. Martin said it was believed the state would discover how much remained in the 9-1-1 fund, minus the 20%n, and then cut the allotment. Griffith asked if any of the needs could be addressed now with the 9-1-1 money. Blumenstein said a budget amendment would be presented in the future for a past purchase of 15 heart monitors. She said the cost would be shown in the 9-1-1 budget, and then there would be a reimbursement to the general fund for ECOM. Martin said the amount above the 20% was $260,000. He said the 20% that could be carried over was around $68,000 a year. When asked, Martin said his largest customer was the sheriff's department followed by the fire service. Chairman Johnson said the customers should be given an opportunity to provide input on ECOM's equipment needs; however, none of the agencies should be allowed to dominate the decision making. He said the other agencies should be told this from the beginning. County Manager Smith said it appeared that the board was in consensus with the communications study. 23 Mitchell asked if the study was needed since everyone agreed that space was needed. Smith said the study would cover space, technology, and people. He said that even though there was not an industry standard for personnel, the study might assist. Jackson said the county did not have expertise in technical engineering, and this would be needed. Chairman Johnson said the consultant would have to be aware of forthcoming technology. Martin said RCC did a good job with simulcast. Jackson said RCC came highly recommended. Robertson advised against paying for a study unless the county was ready to build or expand a building. Commissioner Griffith asked if the study would evaluate the existing building for expansion. Martin said the consultant would probably say, "This is the technology you will need now, and you need to find the place." Smith said the consultant could be asked to determine the feasibility of expanding into the Register of Deeds' Office. MISCELLANEOUS Contingency on Fuel: Finance Director Blumenstein said, so far, no fuel contingency money had been used, and $150,000 had been set aside. She said the county was at 52% of annual budget (8 months). Funding for the Fire Departments: Commissioner Griffith asked about the funding for the volunteer fire departments. Blumenstein said the Fire Tax District Board recommended the budgets for the county- wide district. Commissioner Mitchell, a member of the Fire Tax District Board, said it wasn't expected that there would be any changes. Blumenstein said there had been little change in the valuations for the fire districts. Schools: Commissioner Mitchell asked the solution for the overcrowding in the Mooresville Schools. Smith said the overcrowding was primarily at the high school and there were plans for expansion. Chairman Johnson said a way to mitigate some of the watershed problems at Lake Norman High School had been found. The proposed Langtree at the Lake project was briefly discussed, and it was mentioned that a 3,000 unit apartment complex was planned. Iredell-Statesville Board Member Bill Brader said a block of land on Overcash Road was available for a K-12 complex. He said some school boundary lines could be moved to accommodate the growth, if needed. 24 Paperless Agendas: County Manager Smith asked the board members if they would like to go paperless with the agendas. He said, if so, now would be the time to budget for i -Pads. Commissioner Griffith said she already had an i -Pad. Commissioner Robertson said he preferred a paper package. Commissioner Mitchell said he had a computer, but it took a long time to open attachments. Commissioner Norman said he also preferred a hard copy, or paper package. Immediate and Long Term Needs: County Manager Smith advised the board that the staff was trying to look at immediate and long term needs so there wouldn't be any surprises. ADJOURNMENT: There being no further business to conduct, the meeting adjourned at 11:10 P.M. Approval: 25 Clerk to the Board