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HomeMy WebLinkAboutAugust 6 2013 Regular MinutesIREDELL COUNTY BOARD OF COMMISSIONERS REGULAR MINUTES AUGUST 6, 2013 The Iredell County Board of Commissioners met on Tuesday, August 6, 2013, at 7:00 PM, 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 David Boone Renee Griffith Ken Robertson Staff present: County Manager Ron Smith, County Attorney Bill Pope, Deputy County Manager Tracy Jackson, Finance Director Susan Blumenstein, Sheriff's Crime Prevention Supervisor Rick Fades, Information Technology Director Nettie Johnson, Purchasing Agent Dean Lail, Tax Administrator Bill Furches, Parks/Recreation/Facility Services Director Robert Woody, and Clerk to the Board Jean Moore. CALL TO ORDER by Chairman Johnson INVOCATION by Chairman Johnson PLEDGE OF ALLEGIANCE ADJUSTMENTS OF THE AGENDA: OTIO by Chairman Johnson to approve the following agenda adjustments. Deletion: •Public Hearing - Consideration of a Possible Economic Development Incentive for Project Soft Revision: *Public Hearing Documents Pertaining to the Proposed 2013 Debt Refunding were Substituted and the Board was Advised that no Action was needed following the hearing Additions: *Request for Approval/Signature of a 36 -Month Agreement with Time Warner Cable for a Wide Area Network (WAN) Connection to Provide Wi-Fi Access in the Hall of Justice •Appointments to Boards and Commissions: Request to Extend Matt McCall's Partners Behavioral Healthcare Board of Director's term until October 1, 2013 •Closed Session Pursuant to Attorney -Client: G.S. 143-318.11 (a) (3) •Commissioner Griffith requested to Speak During the Recognitions/Awards Segment VOTING: Ayes — 5; Nays — 0. PRESENTATION OF SPECIAL RECOGNITIONS & AWARDS Appreciation from Lifespan, Inc.: Commissioner Griffith said the Lifespan agency had presented the board with a decorative bowl as a token of appreciation. She said the Lifespan clients had made the bowl, and it would be on display in the clerk's office. Griffith said the clients and Lifespan staff were thankful for the monetary appropriation given to the agency for driveway paving improvements. PUBLIC HEARINGS Chairman Johnson declared the meeting to be in a public hearing. Consideration of a Release of Zoning and Subdivision Jurisdiction to the Town of Mooresville by B.V. Belk Jr., for 24.47 Acres located off River Highway, Mooresville, NC: Planning, Development and Transportation Director Joey Raczkowski presented the staff report for this request as follows: I EXPLANATION OF THE REQUEST B. V. Belk, Jr. has requested that the zoning and subdivision jurisdiction of a 24.47 acre property be released to the Town of Mooresville. The initial letter, dated February 6, 2013, indicated the proposed use of the property was high density residential. A second letter, dated July 19, 2013, indicated the proposed use was uncertain at this time. Mr. Belk is requesting the release in order to get water and sewer from the Town of Mooresville, due to unfavorable soil characteristics on the property for APPLICANT OWNER: B.V. Belk, Jr. 204-C W. Woodlawn Road Charlotte. N.C. 28217 I PROPERTY INFORMATION I LOCATION: On the south side of Hwy 150 West in Mooresville; more specifically identified as PIN # 4637-48-3781. DIRECTIONS: 1-77 South to Hwy 150 exit and turn right, go past Perth Road, the property is on the left past Berea Baptist Church. SURROUNDING LAND USE: This property is surrounded by multi- family residential uses to the west, vacant land to the north, a church and vacant land to the east, and Lake Norman High School to the south. SIZE: The property is 24.47 acres. EXISTING LAND USE: The parcel is currently vacant. ZONING HISTORY: This property was rezoned from R -A (Residential Agricultural) to GB CUD (General Business Conditional Use District) on June 3, 1997. The condition added was that all uses in the GB district be permitted, except for the following: • automotive repair garages; • bottling works, bus repair and storage terminals; • circuses and carnivals; • contractor offices; • dairy products processing and distributing facilities; • farm machinery assembly, sales and repair, lumber yards; • building material storage and sales; • tire recapping shops; • trucking terminals, transfer companies; and • wholesale storage of gasoline and oil products. OTHER JURISDICTIONAL INFORMATION: This property is located just inside Mooresville's short range USA boundary. On May 6, 2013, the Town of Mooresville Board of Commissioners approved water and sewer extension to the property, but due to town policy, the property will not be considered for annexation in June 2014. The Town Planning staff has submitted a letter of acknowledgement regarding the request and is in support of the request for water and sewer extension only. This area is proposed for commercial uses in the Comprehensive Land Use Plan adopted by the Town of Mooresville. The Mooresville Planning staff would not comment on the proposed use of 2 high density residential without having a proposed development plan, except to say, "there may be a way to integrate some multi -family in with a mixed use project." OTHER SITE CHARACTERISTICS: This property is located in the Catawba/Lake Norman WSIV-CA water supply watershed; therefore, the maximum impervious area permitted is 50 percent. IMPACTS ON LOCAL INFRASTRUCTURE AND/OR FACILITES TRAFFIC: In 2010, the average number of vehicles per day on River Highway was 35,000. The capacity for this section of River Highway is 12,000 vehicles per day. SCHOOLS: Based on the information provided, there is no way to determine how many residential units will be constructed when the property is developed. This area will be served by Lakeshore Elementary, Lakeshore Middle, and Lake Norman High School. At this time, Lake Norman High School is closed to students outside of their school boundary and Lakeshore Elementary is on a watch list due to capacity. Lakeshore Middle is not close to capacity. STAFF COMMENTS STAFF COMMENTS: The property is identified for future commercial uses in the 2030 Horizon Plan as well as the Town of Mooresville's comprehensive plan. The Town Planning staff cannot give a recommendation supporting the request without a proposed development plan. Combined with the capacity concerns at two of the three schools that serve this area, the inability of the applicant to identify the proposed use, as well as the fact that River Highway is already over capacity, there is some cause for concern with this request. The Planning staff could support a request for commercial uses, as is consistent with the future land use identified in the 2030 Horizon Plan. However, we could not support a request for residential development on this property since that would be inconsistent with the future land uses in the 2030 Horizon Plan. Given that Mr. Belk has indicated that he is "not certain what type development will be done in the future on this property," the Planning staff continues to recommend denial Mr. Raczkowski reminded the board that since the last meeting, the applicant had revised his letter of intent. He said that in February the applicant referenced multi -family housing as the proposed use, but in an updated letter there appeared to be more interest in commercial uses. Raczkowski said, however, Mr. Belk had not committed to any type of use. He said that due to not knowing the future intent for the site, a recommendation could not be given for approval. Raczkowski said traffic along River Highway was over capacity and the schools in the area were either over capacity and closed to students outside their district, or on a watch list. He said for these reasons, the staff members were firm in their recommendation for a denial. Chairman Johnson mentioned applicants could list specific types of uses, but the usage could change when the Town was approached for annexation. Raczkowski agreed. Commissioner Griffith asked Mr. Raczkowski if he felt it was a good policy to know a year or two years out what an applicant wanted to do with their property. She said the area and the economy could both change. Raczkowski said the staff was not trying to be anti -business or anti -development, but the site was in an area with overcrowded schools as well as a congested highway corridor. Dick Brolin (Piedmont Design Associates) said he represented the applicant, and the issues about the site were understood. He said, however, many of the issues would be "attended to when the company worked with the Town of Mooresville." Brolin said any development along Highway 150 would necessitate a traffic analysis by the NC DOT. He said the analysis, and any type of development, might trigger lane and traffic light improvements. Brolin said development wasn't bad if done in the right manner. He said the applicant had owned the property over 20 years and previously sold acreage to the school system. Mr. Brolin requested for the board to not look at the request as a zoning matter, but to review it more as a water sewer 3 need. He said the property was in a WSIV-CA Watershed, and as such, the maximum impervious area permitted was 50 percent. Chairman Johnson said he was a strong proponent of personal property rights, but he had concerns. He said there were traffic problems as well as overcrowded schools. Johnson said that if the request were approved, it might appear the board was being complicit and compounding the problem. He asked Mr. Brolin to respond. Brolin said the situation was a "chicken or an egg argument." He said that if development were nonexistent then there was no infrastructure. He said on the other hand if no infrastructure existed that development would be nonexistent. Brolin said any development on the site would be limited due to the watershed restrictions, plus there would be traffic impact requirements. He said the Town, as well as the DOT, were already reviewing Perth and Doolie Roads. Brolin said one traffic problem in the area related to school buses not being able to turn right at red lights and this situation was under review. He said the Traffic Impact Analysis would address some of the traffic problems. Mr. Brolin said he looked at development as being good since more attention would be devoted to problem areas. Chairman Johnson said the decision from the county commissioners was somewhat superfluous due to the Town having the final say next year when the property was annexed. Commissioner Robertson mentioned the steep terrain at the site and how this would limit any development. Brolin agreed and said the site had a perennial stream. Robertson said one side of the property would be used for access and two sides had streams that would require setbacks. He said these conditions along with being in the watershed would limit the site's usage. Brolin said that with a high-density option there would be a 100 -foot buffer around both streams. He said the Town had a more stringent stormwater and water quality program than the county. Commissioner Boone asked how many housing units could be placed on the site if zoned by Mooresville and developed into the highest density for multi -family development. Brolin said the property was not zoned for multi -family at the current time. He said the applicant didn't want to bring zoning and land use into the request. Brolin said the request was for a release of jurisdiction. Boone again asked how many housing units could potentially be placed on the site. Brolin said an apartment complex could be 200 to 280 units depending upon the code. He said the request would go to Mooresville as a highway business, and this did not allow multi- family development. He said anything else would need a rezoning by Mooresville. Commissioner Griffith mentioned that many people purchased land to better themselves and the generations after them. She acknowledged that government had a proper function, but indicated that people should have some freedom in the use of their properties. Griffith suggested for the board members to only look at the request as a release of jurisdiction. She said in a year the property would probably be annexed by Mooresville anyway. Chairman Johnson declared the public hearing closed. Commissioner Boone said he echoed some of Chairman Johnson's concerns about the schools and the traffic problems on Highway 150. He continued by saying the following: "I believe people have a right to develop their property, but if we have zoning laws, we can put some restrictions on how it is developed. If this were a request for commercial development, I would have no problem on it whatsoever, but with high-density residential, there is a potential for over 200 housing units on this property. That's probably 500 people with over 100 of them being school children in an area where the high school and middle school are already at capacity. Guess 4 who pays for school construction? The county does. If we grant a property owner's right to develop his property at high density, and his development causes us to build more schools, the tax payers for the whole county, the people who own real estate in the whole county, including the people who own real estate 30 miles from this site, are going to have to help pay for that. Basically with a property tax, you are buying and paying for a piece of property, and then you are paying the rent to the government in perpetuity for the right to keep the property you've bought and paid for. They (taxes) are a necessary evil, but I want to keep the property tax as low as possible, and it would be very difficult for me to accede to this request knowing it could potentially cause a lot of new school students. From a tax standpoint residential development, especially multi -family residential development, is a loser. Iredell County spends more on schools than the additional houses would yield in tax revenue. For the Town of Mooresville, or for Statesville or Troutman, or for any of our municipalities, the situation is different. They get tax money from residential development, and they also collect water and sewer fees from the development. But, guess who pays for the schools? The county does. The towns don't have to pay for anything except for garbage pickup and things like that. It is a money maker for the municipality. It is a money loser for the county. When a city gets zoning jurisdiction they have a very strong incentive to vote on anything that will bring in more tax revenue and higher water and sewer fees. These things cause me great difficulty." OTION by Commissioner Boone to defer consideration of the request. Boone noted that with this type of motion, the developer would not have to reapply or pay any additional fees. Commissioner Griffith said, "It seems like if we made all of our release of jurisdiction decisions on what someone might do in the future that we would never release any properties. I think that we have to put some trust into Mr. B.V. Belk. In all that I could find he has been a good corporate citizen, and there has been no question about the character of his business. We also have to put some faith and confidence into the elected leaders in Mooresville in what they decide. We may not always agree, but there is a procedure. We are elected, and if folks don't like our decisions, I suspect the folks on River Highway might boot a commissioner or two out. I think some of the speculations in this request don't have a bearing in this discussion. This is a request for a release of jurisdiction and not a zoning request." Commissioner Boone said no one's character was being questioned. He said the original letter from the development stated the probable use would be high density multi -family, and now it was being said the intended use was unknown. Commissioner Griffith noted the developers could indicate a specific use, such as commercial, and then change it once released to Mooresville. VOTING: Ayes — 2 (Boone/Johnson); Nays — 3 MOTION by Commissioner Griffith to release the zoning and subdivision jurisdiction to the Town of Mooresville. VOTING: Ayes — 3; Nays — 2 (Boone/Johnson) Consideration of Proposed Trust Agreements or Installment Financing Agreements in Connection with the Proposed 2013 Debt Refunding: Chairman Johnson announced this was the hour and day of the public hearing on one or more proposed trust agreements or installment financing agreements to be entered into by the county. Finance Director Susan Blumenstein said that in July the board authorized the staff to proceed with a potential refunding of existing debt not to exceed $46 million. She said the bond market had been volatile, and it appeared that three of the deals might occur but not all five. Blumenstein said a request for proposals was sent out on August 2 and the refunding might be placed with a bank instead of a public issue. She said a bank placement eliminated costs such as those for ratings agency fees, trustee fees, underwriters and other costs. Blumenstein said that at the August 20 meeting more information would be shared on the type of placement (public/private, etc.). She mentioned the refunding would not extend the life of any of the past debts, and it was being done to reduce the interest costs. Finance Director Blumenstein then reviewed the various I components of the proposed 2013 debt refunding as follows: (a) an Installment Financing Agreement, dated as of December 1, 2003, between the County and Iredell County Public Facilities Corporation, relating to Certificates of Participation (Iredell County Public Facilities Projects), Series 2003, dated December 15, 2003, the proceeds of which were used to finance the costs of (i) additions and renovations to Scotts Elementary School and Harmony Elementary School, (ii) the acquisition, construction and equipping of a new elementary school and new intermediate school, and (iii) an addition to Mitchell Community College; (b) an Installment Financing and Security Agreement, dated as of August 25, 2004, between the County and SouthTrust Bank, N.A. (as succeeded by Wells Fargo Bank, N.A.), the proceeds of which were used to finance the costs of (i) a facility to house the offices, vehicles and equipment of the Iredell County Rescue Squad and (ii) a fully -equipped 2000 Pierce Heavy Rescue Vehicle; (c) an Installment Financing Agreement (2004 Department of Social Services Building), dated October 28, 2004, between the County and Bank of America, N.A., the proceeds of which were used to finance the costs of the acquisition and construction of an office building for the Iredell County Department of Social Services; (d) a Second Supplemental Installment Financing Agreement, dated as of November 1, 2008, supplementing and amending an Installment Financing Agreement, dated as of July 1, 2000, as amended, each between the County and Iredell County Public Facilities Corporation, relating to Iredell County Public Facilities Revenue Refunding Bonds (Iredell County School Projects), Series 2008, dated November 21, 2008, the proceeds of which were used to refund a series of prior bonds and pay the costs of terminating an interest rate swap agreement relating thereto; and (e) an Installment Financing Contract (Build America Bonds), dated December 18, 2009, between the County and PNC Bank (as successor to RBC Bank (USA)), the proceeds of which were used to finance the construction and equipping of a classroom building for Mitchell Community College and an additional building for Union Grove Elementary School (collectively, the "Prior Indebtedness"). If the County enters into the Agreements, its obligations thereunder will be secured by one or more deeds of trust granting a lien on all or a portion of the sites of the facilities financed with the proceeds of the Prior Indebtedness, together with any existing and all future improvements and fixtures located or to be located thereon. Commissioner Robertson asked if the previous savings estimate of $1.8 million was still accurate. Blumenstein said the amount was on the high end, and as of today, it would be more like $1.2 million. Commissioner Robertson asked if there were any methods the board could use to speed up the process for the purpose of capturing better interest rates. Blumenstein said yes. She said the Local Government Commission would be asked to approve all five debt issues, but the ones not worth accomplishing in the refunding process could be removed until the interest rates improved. Blumenstein noted the county's debt obligations were constantly being reviewed by the staff. Chairman Johnson asked if the board could restrict any savings to the county's capital projects fund. Blumenstein said the DSS refunding was really the only one that could be restricted. She said the 2003 COPS were issued for the schools, and any savings from this refunding would revert to the school systems. Blumenstein said the same would be true for the rescue squad refunding. No one else desired to speak, and Chairman Johnson adjourned the hearing. ADMINISTRATIVE MATTERS Request for Approval of a Resolution Allowing the Shepherd's Volunteer Fire Department to Refinance Two Loans: County Manager Smith said the Shepherd's Volunteer Fire Department desired to refinance loans on its station as well as for two fire trucks. He said the agenda memo gave more specifics, as follows, about the loans. 1. Loan for the VFD building with current debt being approximately $406,000. The original interest rate was 5.09%, and the new rate will be 2.4%. 6 2. Loan for two fire trucks with current debt being approximately $617,000. The original interest rate was 5.78%, and the new rate will be 2.5%. Mr. Smith said the bank was requiring approval by the board due to the county having a fire protection agreement with the VFD. Commissioner Robertson asked if there might be a method to limit the VFD from extending the life of the loans. He said it was preferred for the current term to remain the same in order to not extend the debt any further into the future. Commissioner Boone agreed with Robertson that the maturity date for the loans shouldn't be extended. Attorney Pope said this type of stipulation could be included in the motion. Chairman Johnson said Shepherds VFD Chief Kelly Robinson discussed the refinancing with him, and it was the intent of the VFD to reduce the overall interest being paid. MOTION by Commissioner Robertson, seconded by Vice Chairman Norman, to approve the Resolution allowing the Shepherds Volunteer Fire Department to Refinance Two Loans, but with an understanding the refinancing would not extend the maturity date of the loans. VOTING: Ayes — 5; Nays — 0. The resolution is as follows: STATE OF NORTH CAROLINA COUNTY OF IREDELL CERTIFICATE OF CLERK RE: APPROVAL OF TAX-EXEMPT LOANS TO VOLUNTEER FIRE DEPARTMENT BY BOARD OF COMMISSIONERS The undersigned, being the duly qualified Clerk of IREDELL County, North Carolina, does hereby certify that the following is a true and accurate copy of a Resolution passed by the Board of Commissioners of IREDELL County, North Carolina, at its regular meeting on the 6th day of August, 2013, which Resolution was duly introduced, seconded, and approved, and that said Resolution remains in full force and effect: "NOW THEREFORE, BE IT HEREBY RESOLVED, that the Board of Commissioners of IREDELL County, North Carolina does hereby approve (within the scope of the qualifying language set forth below) a tax-exempt loan to Shepherds Fire -Rescue (the "VFD") from First Community in the principal amount of (will not be known until later), which loan is for the following purpose (check applicable purpose): 1. (_X_) for the refinancing of a fire station for the VFD and trucks. 2. ( ) the purchase by the VFD of a fire truck or fire trucks Which fire trucks and fire station will be owned and operated by the VFD at the following address: 2014 Charlotte Highway, Mooresville, NC 28117 RESOLVED, FURTHER, that the approval of the loan to the VFD set forth above is given solely for purposes of the public approval requirements for tax-exempt financing applicable to the VFD because of Section 150(e) and Section 147(f) of the Internal Revenue Code of 1986, as amended, and such approval does not obligate the County or its Board of Commissioners in any way regarding repayment of the debt. Request from the Sheriffs Office for Approval of Budget Amendment #1 to Transfer $20,000 from Seized Funds to the North Iredell Training Facility to Pay for Electrical Hook -Up, Gravel, and Mulch in Accordance with Requirements from the US Army Corps of Engineers: Crime Prevention Supervisor Rick Eades explained that the sheriff's office was requesting $20,000 from the drug seizure fund for erosion control and for electrical work at the training facility. Commissioner Robertson asked for a cost breakdown. County Manager Smith said $4,000 was for the electrical work and the remaining amount would be used for the erosion control measures and gravel. N Eades said the erosion problem had worsened due to the high amount of rainfall received in the past few months. Commissioner Boone asked if the sheriff's office anticipated that more funding would be needed for the training facility. office. Eades said this was unknown. MOTION by Commissioner Norman to approve Budget Amendment #I for the sheriff's VOTING: Ayes — 5; Nays — 0. Request for Approval/Signature on Two 36 -Month Agreements with Time Warner to Provide (1) A new dedicated 50 -Meg Internet Access Line for the IT Department in the Iredell County Government Center (Statesville) and (2) A Wide Area Network (WAN) Connection to Provide Wi-Fi Access in the Hall of Justice: Information Technology (IT) Director Nettie Johnson said this request was for a contract with Time Warner for a 50 -Megabyte Ethernet connection for the IT Department and a 35 -Meg by 5 Meg Connection for Wi-Fi access at the Clerk of Courts Office. She said the redundant 50 -meg connection would provide a roll over internet connection for the IT staff in case the main intemet connection went down. Mrs. Johnson said the emergency departments (ECOM, Sheriff, EMS) depended on this particular connection in order to provide their services. Commissioner Robertson asked if the public would be able to use the Wi-Fi connection at the courts building. Mrs. Johnson said the public would be able to use the connection. MOTION by Commissioner Robertson to approve both requests as presented. VOTING: Ayes — 5; Nays — 0. Request from Tax Administration for Acceptance of the Annual Tax Settlement for the Preceding Year and the Issuance of 2013 Tax Orders for the Tax Collector and Sheriff: Tax Administrator Bill Furches reviewed the following information about the 2012 annual tax settlement. Real & Personal Levy $93,038,084.33 Motor Vehicles 6,968,929.59 Add: Discoveries 419,692.62 Deduct: Releases (463,230.07) $99,963,476.47 Collections 97,021,176.00 2012 Outstanding Taxes $2,942,300.47 Collection Rates: All Property 97.06% Excluding Motor Vehicles 97.70% Motor Vehicles 88.33% To appropriate seized funds for erosion control requirements at the North Iredell Training Facility in the Sheriffs Department. BA#1 8/6/2013 Account# Current Chane Amended General Fund Appropriated Fund Balance - Seized 104880 499401 Funds (314,485) (20,000) (334,485) 105514 536010 N Iredell Training Facility 20,000 20,000 Request for Approval/Signature on Two 36 -Month Agreements with Time Warner to Provide (1) A new dedicated 50 -Meg Internet Access Line for the IT Department in the Iredell County Government Center (Statesville) and (2) A Wide Area Network (WAN) Connection to Provide Wi-Fi Access in the Hall of Justice: Information Technology (IT) Director Nettie Johnson said this request was for a contract with Time Warner for a 50 -Megabyte Ethernet connection for the IT Department and a 35 -Meg by 5 Meg Connection for Wi-Fi access at the Clerk of Courts Office. She said the redundant 50 -meg connection would provide a roll over internet connection for the IT staff in case the main intemet connection went down. Mrs. Johnson said the emergency departments (ECOM, Sheriff, EMS) depended on this particular connection in order to provide their services. Commissioner Robertson asked if the public would be able to use the Wi-Fi connection at the courts building. Mrs. Johnson said the public would be able to use the connection. MOTION by Commissioner Robertson to approve both requests as presented. VOTING: Ayes — 5; Nays — 0. Request from Tax Administration for Acceptance of the Annual Tax Settlement for the Preceding Year and the Issuance of 2013 Tax Orders for the Tax Collector and Sheriff: Tax Administrator Bill Furches reviewed the following information about the 2012 annual tax settlement. Real & Personal Levy $93,038,084.33 Motor Vehicles 6,968,929.59 Add: Discoveries 419,692.62 Deduct: Releases (463,230.07) $99,963,476.47 Collections 97,021,176.00 2012 Outstanding Taxes $2,942,300.47 Collection Rates: All Property 97.06% Excluding Motor Vehicles 97.70% Motor Vehicles 88.33% Delinquent Taxes: Collections $2,605,828 Delinquent Taxes Outstanding $4,482,975 2013 Taxes Collected $ 331,081 The Numbers Collected $1,717,596 more in current Iredell County taxes than previous year—up 1.8% Collected $1,154,693 more than was budgeted -101.2% of original budget Nine year cumulative total $15.1 million over budgeted revenues Nine year cumulative delinquent collections $18,611,560 Collected for all jurisdictions: 6-30-05 $ 94,678,859 6-30-06 99,371,101 ( 5.0% Increase) 6-30-07 112,791,286 (13.5% Increase) 6-30-08 127,699,814 (13.2% Increase) 6-30-09 144,119,894 (12.9% Increase) 6-30-10 148,391,824 ( 3.0% Increase) 6-30-I1 151,241,103 ( 1.9% Increase) 6-30-12 157,337,149 ( 4.0% Increase) 6-30-13 163,576,747 ( 4.0% Increase) Vehicle Tags Blocked Tax Statements MV Third Notices Debt Setoff Garnishments Payment Arrangements Lien Holder Letters Bank Attachments Foreclosures in Process Tax Collection Actions 25,575 1,257 5,900 ($1,158,433) 40.7% Paid 1,241 ($943,021) 928 ($957,769) 103 233 139($724,638) 250 Tax Collection Problems Bankruptcies 281 for $695,278 (324 for $289,874 FY2012) Foreclosures filed 1,077 (Decrease from 1, 134) Vehicle Taxes 6.8% of total levy — 27.1 % of delinquencies - $798,014 Collection Rates Last Nine Fiscal Years Fiscal Year Original Collection Rate 2012 96.77% 2011 96.81% 2010 96.77% 2009 96.89% 2008 97.58% 2007 96.80% 2006 96.85% 2005 96.94% 2004 96.17% Average 96.84% Debt Setoff Current Collection Rate 98.71% 99.17% 99.39% 99.56% 99.62% 99.34% 99.61% 99.66% 99.60% 99.41% For the fiscal years 2002-2013, Iredell ranked 19TH in the state out of 409 units of government participating with $2,254,000 collected. Iredell County did not participate in 2002 and 2003. For all years, Iredell ranked 15TH among counties. In calendar year 2011, Iredell ranked 11TH among all counties with $422,280 setoff. Foreclosures As of this date, the collector's office has sent 250 properties to foreclosure. We have collected $1,233,770 in current and delinquent taxes. No properties have been foreclosed. 9 OTION by Vice Chairman Norman to accept the annual tax settlement. VOTING: Ayes — 5; Nays — 0. OTION by Vice Chairman Norman to issue the tax collection orders to the Tax Collector and the Sheriff. VOTING: Ayes — 5; Nays — 0. STATE OF NORTH CAROLINA ( ) ( ORDER ) COUNTY OF IREDELL ( ) TO: THE TAX COLLECTOR OF THE COUNTY OF IREDELL You are hereby authorized, empowered, and commanded to collect the taxes set forth in the tax records filed in the Office of the Tax Assessor and in the tax receipts herewith delivered to you, in the amounts and from the taxpayers likewise therein set forth. Such taxes are hereby declared to be a first lien upon all real property of the respective taxpayers in the County of Iredell, and this order shall be a full and sufficient authority to direct, require and enable you to levy on and sell any real or personal property of such taxpayers, for and on account thereof, in accordance with law. STATE OF NORTH CAROLINA ( ) ( ORDER ) COUNTY OF IREDELL ( ) TO: THE SHERIFF OF THE COUNTY OF IREDELL You are hereby authorized, empowered, and commanded to collect the taxes set forth in the tax records filed in the Office of the Tax Assessor and in the tax receipts herewith delivered to you, in the amounts and from the taxpayers likewise therein set forth. Such taxes are hereby declared to be a first lien upon all real property of the respective taxpayers in the County of Iredell, and this order shall be a full and sufficient authority to direct, require and enable you to levy on and sell any real or personal property of such taxpayers, for and on account thereof, in accordance with law. Request from Facility Services for Approval of an Inter -local Agreement with the Town of Mooresville for the Purpose of Providing Road Sign Replacements in the Southern End of Iredell County: Parks/Recreation/Facility Services Director Robert Woody said an agreement was needed with the Town of Mooresville for the replacement of lost or stolen road signs in southern Iredell. He said a demarcation line had been established with the town's public works department where Mooresville's staff would provide the signage work. Woody said the arrangement was being proposed in order to speed up replacement time from 30 to 45 days to 15 days as well as to save on county fuel and staff time. Commissioner Boone asked the cost for the signs. Woody said approximately $150 was needed for one sign replacement. He said the "blanks" were ordered from the State and depending on the length they could cost $20, $30 or $50. Woody said the blanks were sent to a local sign shop, and the signs could cost $60 to $75. He said that if a post needed replacement, this would add another cost, plus there would be the labor expenses for the installation. MOTION by Commissioner Griffith to approve the Inter -local agreement/resolution. VOTING: Ayes — 5; Nays — 0. A copy of the agreement/resolution is as follows: A RESOLUTION ESTABLISHING AN INTER -LOCAL AGREEMENT BETWEEN IREDELL COUNTY AND THE TOWN OF MOORESVILLE ESTABLISHING A PROCEDURE FOR REPLACING LOST OR STOLEN ROAD NAME SIGNS IN CERTAIN PARTS OF IREDELL COUNTY BE IT RESOLVED BY THE BOARD OF TOWN COMMISSIONERS AND THE BOARD OF COMMISSIONERS FOR IREDELL COUNTY: 10 WHEREAS, North Carolina General Statute § 160A-461 authorizes units of local government to enter into contracts or agreements with each other in order to execute any undertaking; and, WHEREAS, pursuant to North Carolina General Statute § 160A-460, "undertaking" means the joint exercise by two or more units of local government, or the contractual exercise by one unit for one or more other units, of any power, function, public enterprise, right, privilege, or immunity of local government; WHEREAS, both the Town and the County desire to enter into an undertaking that will allow the Town to provide a service to the County by replacing road signs that have been lost, damaged, stolen, or that are needed as a result of road name changes in the southern end of Iredell County below an agreed upon demarcation line as shown on the attached map and in accordance to an established procedure, reporting, billing, and payment structure. NOW, THEREFORE, BE IT HEREBY RESOLVED THAT: In consideration of the premises and the mutual covenants and agreements of the parties, the parties hereto agree as follows: Art. 1: Parties. The Town of Mooresville is a North Carolina municipal corporation ("Town') and Iredell County is a corporate political body and a subdivision of the State of North Carolina ("County"). Art. 2: Purpose. The purpose of this agreement is to establish a procedure for the timely replacement of road signs that have been lost, damaged, stolen, or that are needed as a result of road name changes, south of an agreed upon demarcation line being the area south of and including Clontz Hill Road, Flower House Loop, Houston Road, Withrow Creek Road, and Mazeppa Road, to the borders of southern Iredell County. Such area is marked on Exhibit 1 that is attached hereto and incorporated herein by reference. Art. 3: Responsibilities. A. The County agrees to: 1. Notify the Town for the need of a road sign within twenty-four (24) hours of being notified that a sign needs replacing under the terms of this agreement. 2. Establish a single point of contact for reporting. 3. Pay the Town of Mooresville $150.00 for each road sign replaced. 4. Make payment for replaced signs within ten (10) business days of invoice date. B. The Town agrees to: 1. Replace and install such road signs within fifteen (15) business days from receiving notice from the County. 2. Establish a single point of contact for reporting. 3. Notify the County when the reported sign has been replaced. 4. Invoice the County quarterly for replaced signs. 5. Any road name signs within the jurisdiction of the County will remain the property of Iredell County. 6. Manufacture and install such road signs in accordance with specifications provided in Exhibit 2, attached and incorporated herein. Art. 4: Procedure for reporting. Lost, missing, or stolen road name signs that lie within the area on Exhibit 1, but outside the Town limits of Mooresville, will be reported by the County. The County will notify Town by e-mail, phone call, or work order the location and road name of such signs needing replacement. Art. 5: Procedure for payment The County will make payment to the Town via EFT draft. Art. 6: Ownership of Signs. Any signs replaced pursuant to the terms of this Resolution and Agreement shall become the property and responsibility of the County. Art. 7: Term of Agreement. This agreement shall begin on the date of the last approval by the County and the Town and shall automatically renew each year unless terminated as provided herein. 11 Art. 8: Amending the Agreement. This agreement may be amended with notice to the Manager of the other governing unit, and with the mutual approval of the respective governing boards. Art. 9: Termination. This agreement may be terminated without cause by either party. Upon approval of the governing board of the party desiring to terminate this agreement, either Party may terminate this agreement upon giving thirty (30) days written notice to the Manager of the non -terminating Party. Upon termination, the responsibilities of each Party in Art. 3 herein, up to and including the date of termination, shall remain in effect except that any provisions of this agreement concerning payment for signs shall survive the date of termination and remain effective until all amounts due are paid. Art. 10: Indemnity. The Town agrees to indemnify County and hold it harmless from any and all claims for liability, loss, injury, and damages to persons or property that directly result from the negligence or intentional acts of the Town arising from any claims that arise as a direct result of services performed by Town pursuant to this agreement. Art. 11: Effective Date. The terms of this Resolution shall become effective on the last date of its approval by the respective governing body. Exhibit I ROWER HOUSE T ,f L >� WEATHERS CREEK �, auhrz w� WIIdTHRO`Al CREEK TRIPLETT � � t f J L��� e ��,. MAZ EPPA �� 21 n i� 152 10\ 1152 1 1 'U1 I \ l . Demarcation Line Road Sign Interlocal Agreement 12 Exhibit II • Road Sign posts shall be placed securely underneath the ground (estimated 18" to 24"). • Road Sign blanks shall be securely fastened using appropriate bracket(s), as per the Town of Mooresville. • Signage should display correct State Road Number, if available. • Signage lettering should begin with capital letter, followed by lower-case letters. • Signs should be posted as a single blade, unless located at an intersection in which a cross - blade is required by the County. • Road Signs shall be verified and confirmed missing prior to a new sign being made. • All signage and posting/installations shall meet NC State laws and statutes, and meet the current Town of Mooresville signage requirements. • Order of Operations and Point of Contact: Barry Whitesides, Iredell County Planning Department 704-878-3144 bwhitesides(cLco.iredell.nc.us 1- Sign is reported to County missing or damaged 2- Point of Contact reports sign(s) to Town of Mooresville 3- Town of Mooresville responsible for install of new sign 4- Town of Mooresville submits invoice to Iredell County, to be paid quarterly Request from Administration for Approval of a Policy Regarding After -Hour Usage of the Hall of Justice (221 East Water Street, Statesville): Deputy County Manager Tracy Jackson said Clerk of Court Jim Mixson had requested a policy for the after -hour use of the Hall of Justice. Jackson said the purpose of the policy would be to provide guidance and procedures in reserving the building as well as a mechanism to ensure that individuals/groups using the structure left it in an orderly condition. Commissioner Robertson asked if the Hall of Justice was being requested that often. Jackson said the clerk of court wanted the policy primarily to have consistency in its usage. OTIO by Vice Chairman Norman to approve the After -Hour Usage Policy for the Hall of Justice. VOTING: Ayes — 5; Nays — 0. The policy is as follows IREDELL COUNTY POLICY GOVERNING THE AFTER-HOURS USE OF THE HALL OF JUSTICE IREDELL COUNTY HALL OF JUSTICE 221 E. WATER STREET STATESVILLE, NC PURPOSE To provide a consistent policy in regard to outside organizations requesting use of court facilities after normal operating hours and to assure that occupant safety and facility security are maintained. SCHEDULING AND SUPERVISION OF ROOMS The responsibility for scheduling the Iredell County Hall of Justice and the supervising of the uses thereof shall be assigned to the County Manager. The Iredell County Board of Commissioners and the County Manager reserve the right to refuse or cancel any use of the building not in the best interest of the public. PRIORITY OF USE The after-hours use of the Hall of Justice shall be limited to use by Court Officials and Court - related bodies or organizations for court -related activities such as teen court, moot court, citizen/leadership academies sponsored by local governments and political party conventions/activities. Such use may be permitted upon prior notice and approval by the Iredell County Manager, or his designee, and will be coordinated with the Office of the Clerk of Superior Court. Scheduling shall be done only after submission of request in writing on a form provided by the County Manager. 13 OPERATING PROCEDURES 1. The Hall of Justice is available for meetings between the hours of 5:00 p.m. and 10:00 p.m., Monday through Friday, and Saturday from 8:00 a.m. to 10:00 p.m., but not on County -recognized holidays. 2. All requests from agencies other than Court Officials and their affiliate groups shall be made in writing 30 days prior to the event requested except as determined by the County Manager. Confirmation of the schedule will be made immediately upon receipt of the request. 3. Cancellation of a booking must be twenty-four (24) hours in advance of the date reserved 4. Use of the facility does not obligate the County to provide any equipment for the area. No nails, screws, tape, or fixtures of any kind may be driven or applied to the walls, woodwork, floors, or ceiling. No food or drinks are allowed in the facility at all. 5. Courthouse facilities must be left in a clean and orderly condition. All chairs, tables and other equipment must be returned to their original locations after use. Any trash must be disposed of properly by the user(s). Groups using the facility shall accept the responsibility for the cleaning charges for the area after use of the building. The groups will reimburse the County for the actual cost of the extra cleaning necessary because of the use of the facility. 6. Iredell County personnel will be responsible for securing the building after the meeting and will remain on duty throughout the use of the room. An hourly rate will be charged to the facility -user for the security person for any staff time after 5:00 p.m., or before 8:00 a.m., or on weekends. A minimum of three hours will be charged the user for the security person's time. 7. No charge shall be levied by the user against their participants except that amount to cover cost incurred. 8. Court facilities are not to be used for commercial purposes. No solicitation for commercial products or services may be offered. 9. Programs, events and exhibits must not disrupt court proceedings and must not disrupt the use of the courthouse by others. 10. A responsible adult over the age of eighteen (18) years of age must complete the application to reserve the facilities and must be present during the entire event. 11. The County Manager's Office and/or the Office of the Clerk of Superior Court are not responsible for providing publicity about scheduled meetings. 12. Weapons of any type and smoking are not permitted in the Courthouse. STATEMENT OF DISCLAIMER In renting, leasing, or making available the Iredell County Hall of Justice, neither the Iredell County Board of Commissioners nor Iredell County employees assume any responsibility for the loss of or damages to any property placed on the premises by the user or for loss or damage of any property or personal effects, including motor vehicles and their contents of, the user, its members, employees, agents, participants, guests, or attenders. Request from the Finance Department for Adoption of a Resolution to Enter Into an Inter -local Agreement for the Purpose of Joining the North Carolina Association of County Commissioners (NCACC) Risk Management Pool for FY 13-14: Finance Director Susan Blumenstein said that as of July 1, 2013, the County decided to participate in the NCACC Risk Management Pool for property and liability insurance. She said the total cost for FY 13-14 would be approximately $780,000.00, and the NCACC required the adoption of an inter -local agreement to join. MOTION by Vice Chairman Norman to approve the resolution for the NCACC Inter -local Agreement. VOTING: Ayes — 5; Nays — 0 14 Resolution to Adopt the Inter -local Agreement and To Join the NCACC Risk Management Pool WHEREAS, Iredell County desires to pool the retention of its risks, liabilities and/or payments, or for the group purchase of coverage and has completed a Pre -Audit Certification in compliance with N.C.G.S. §159-28; and WHEREAS, the North Carolina Counties Risk Management Agency d.b.a. NCACC Risk Management Pools (hereafter called the "Risk Pool") has been established pursuant to G.S. §153-A-445 (a) (1) and G.S. §160-A-460 through §160A-464; and WHEREAS, it is desirable for Iredell County to join the Risk Pool to obtain the opportunity for risk sharing and/or group purchase of coverage. NOW, THEREAFTER, BE IT RESOLVED that the Board of Commissioners or Governing Board of Iredell County hereby adopts the foregoing Inter -local Agreement and herebyjoins and agrees to participate in the Risk Pool as indicated: © North Carolina Counties Liability and Property Joint Risk Management Agency d.b.a. NCACC Liability and Property Pool North Carolina Workers' Compensation Joint Risk Management Agency d.b.a. NCACC Workers' Compensation Pool BE IT FURTHER RESOLVED that Steve Johnson (authorized county official) is duly authorized to execute the application to join the Risk Pool and hereby executes the Agreement on behalf of Iredell County. Request from the Finance Department for the Ratification of an Executed Agreement for the U.S. Bank National Association to Replace Deutsche Bank National Trust Company as Trustee for the 2006 Certificates of Participation: Finance Director Susan Blumenstein requested the ratification of this agreement. She said Deutsche Bank previously served as the trustee for the Certificates of Participation issued in May 2006, but had sold its Municipal Bond Trustee Business to U.S. Bank National Association. Blumenstein said that due to the sale, Deutsche Bank resigned as trustee, and the U.S. Bank needed to be appointed as successor trustee. MOTION by Commissioner Boone to approve the agreement's ratification. VOTING: Ayes — 5; Nays — 0. A copy of the agreement is as follows: AGREEMENT OF RESIGNATION, APPOINTMENT AND ACCEPTANCE THIS AGREEMENT OF RESIGNATION, APPOINTMENT AND ACCEPTANCE (this "Agreement") dated as of July 18, 2013 by and among Deutsche Bank National Trust Company, a national banking association organized and existing under the laws of the United States of America (the "Resigning Trustee"), County of Iredell North Carolina (the "County" ), Ambac Assurance Corporation (the "Credit Provider") and U.S. Bank National Association, a national banking association organized and existing under the laws of the United States of America (the "Successor"). WHEREAS, the Resigning Trustee, or its predecessor in interest, and the Iredell County Public Facilities Corporation entered into the Trust Agreement dated as of May 1, 2006, as amended and/or supplemented as well as any and all ancillary agreements (together to be known as the "Governing Instruments") pursuant to which the issuer's bonds, as set forth on the attached Schedule 1 (the "Bonds"), were issued; and the Resigning Trustee has been acting in the capacities assigned to it by the Governing Instruments (all such applicable roles being hereinafter included in the term the "Trustee"); WHEREAS, the purchase agreement, dated as of March 14, 2013 as the same may be amended from time to time by and among Deutsche Bank Trust Company Americas, Deutsche Bank National Trust Company, Deutsche Bank AG and U.S. Bank National Association provides for the sale of the Resigning Trustee's portfolio (the "Portfolio") of specified securities including the Governing Instruments to the Successor, subject to receipt of all required consents. WHEREAS, pursuant to the Governing Instruments, the Resigning Trustee desires to resign as the Trustee, the County desires to appoint the Successor as Trustee and the Successor desires to accept appointment as Trustee. NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows: 15 ARTICLE I SUCCESSION Section 1.1 Resignation of Resigning Trustee. The Resigning Trustee resigns as the Trustee as of the close of business August 23, 2013 (the "Effective Date"). The County with the consent of the Credit Provider accepts such resignation and waives any required notice thereof. Section 1.2 Appointment of Successor. The County with the consent of the Credit Provider appoints the Successor to serve as Trustee, with all the authority, rights, powers and immunities vested in, and all duties and obligations binding on, the Trustee, on the Effective Date. All rights, powers, duties, immunities and obligations of the Trustee shall be vested in and undertaken by the Successor on and from the Effective Date. Section 1.3 Acceptance of Appointment; Notice to Bondholders. The Successor accepts its appointment as Trustee by the County with all the authority, rights, powers and immunities vested in the Trustee and agrees to serve as Trustee and to perform the duties and obligations of the Trustee, on and from the Effective Date. The Successor agrees to notify the registered holders of the Bonds of the resignation of the Resigning Trustee and its appointment as Trustee to the extent, if any, and in the manner, if any, required by the relevant Governing Instruments. The Successor also agrees to notify the County and the Credit Provider in the event of a change in the Effective Date. Section 1.4 Assignment of Powers and Property; Delivery of Documents. The Resigning Trustee hereby confirms and assigns to the Successor, in trust under the Governing Instruments, all property, rights, powers, duties, trusts, immunities and obligations of the Resigning Trustee as Trustee. The Resigning Trustee confirms that it has transferred to the Successor (a) all moneys, securities and other assets held under the relevant Governing Instruments; and (b) all documents relating to the trust created by the relevant Governing Instruments. Section 1.5 Further Assurances. The Resigning Trustee agrees, upon reasonable request of the Successor, to execute, acknowledge and deliver such further instruments of transfer and further assurances and to do such other things as may reasonably be required for more fully and certainly vesting and confirming in Successor all the property, rights, powers, duties, trusts, immunities and obligations of the Resigning Trustee as Trustee. ARTICLE 11 REPRESENTATIONS AND WARRANTIES Section 2.1 Representations and Warranties of the Company. The County hereby represents and warrants to the Successor as follows: (a) the form of the relevant Governing Instruments and the Bonds were validly and lawfully approved by the County and constitute obligations of the County enforceable as provided therein by the Successor, subject to laws affecting creditors' rights and equitable principles; (b) the County has performed or fulfilled each covenant, agreement and condition on its part to be performed or fulfilled under the Governing Instruments on or prior to the date hereof and (c) no event of default under the Governing Instruments has occurred and is continuing. Section 2.2 Representations and Warranties of Resigning Trustee. Resigning Trustee hereby represents and warrants to Successor as follows: (a) resigning Trustee is a national banking association, and is duly organized and existing under the laws of the United States of America; (b) from March 14, 2013 until the date hereof, the Governing Instruments have not been amended or supplemented; (c) from March 14, 2013 until the date hereof, Resigning Trustee has received no written notice of any event of default under the terms of the Governing Instruments; and (d) to the knowledge of the officer of the Resigning Trustee who is responsible for the administration of the Governing Instruments, there is no suit, action, claim or proceeding pending or threatened against the Resigning Trustee related to the Bonds, the relevant Governing Instruments, or Resigning Trustee's administration of the trusts created under the Governing Instruments. Section 2.3 Representations of Successor. The Successor hereby represents and warrants to Resigning Trustee and the County as follows: (a) The Successor is a national banking association, and is duly organized and existing under the laws of the United States of America; and (b) The Successor is qualified and eligible to serve as Trustee under the Governing Instruments. ARTICLE III MISCELLANEOUS Section 3.1 Applicable Law. This Agreement shall be governed by the laws of the State of North Carolina without regard to its conflict of law provisions; provided, however, that as between the Resigning Trustee and the Successor, this Agreement shall be governed by the laws of the State of New York, without regard to its conflict of law provisions, PROVIDED, FURTHER, THAT IN NO EVENT SHALL ANY CONTROVERSY, CLAIM OR DISPUTE ARISING OUT OF OR RELATING TO THIS AGREEMENT TO WHICH THE COUNTY IS MADE A PARTY BE ADJUDICATED OUTSIDE OF THE STATE OF NORTH CAROLINA, AND FOR THE PURPOSES OF SUCH CONTROVERSY, CLAIM OR DISPUTE TO WHICH THE COUNTY IS A PARTY, THIS AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NORTH CAROLINA. Section 3.2 Counterparts. This Agreement may be executed in a number of counterparts, each of which shall constitute an original, but such counterparts shall together constitute but one and the same instrument. 16 Section 3.3 Preservation of Rights. Except as expressly provided herein, nothing contained in this Agreement shall in any way affect the obligations or rights of the County, the Resigning Trustee, the Successor or any holder of the Bonds under the Governing Instruments. As between the Resigning Trustee and the Successor, nothing in this Agreement, express or implied, is intended or shall be construed to modify, expand or limit in any way the rights or obligations of the parties under, and the terms of, the Purchase Agreement. Section 3.4 Severability. In the event any provisions of this Agreement shall be held invalid or unenforceable, such holding shall not invalidate or render unenforceable any other provision hereof. Section 3.5 Survival of Obligations. Notwithstanding the resignation of the Resigning Trustee under the Governing Instruments, the County shall remain obligated under the Governing Instruments to compensate, reimburse and indemnify the Resigning Trustee as provided in the Governing Instruments, and nothing contained in this Agreement shall in any way abrogate the obligations of the County to the Resigning Trustee under the Governing Instruments or any lien created in favor of the Resigning Trustee thereunder. Section 3.6 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Resigning Trustee, the Successor, and the County and their respective successors and assigns. Section 3.7 Amendments. This Agreement shall be amended only in a writing signed by the parties hereto. Request from the Finance Department for Approval of a Professional Services Agreement with Pope, McMillan, Kutteh, & Schieck, PA: Finance Director Susan Blumenstein requested approval of a professional services agreement with County Attorney Bill Pope's law firm. She said the Internal Revenue Services had ruled that county and city attorneys were employees of the counties, or cities, even though their law firms were incorporated. Blumenstein said a formal agreement with Attorney Pope's firm was requested in order for him to provide legal services to the county. She noted the two-year agreement would be retroactive to December 3, 2012, when Mr. Pope was last appointed as the County Attorney, and extend to December 2014. MOTION by Vice Chairman Norman to approve the professional services agreement with Pope, McMillan, Kutteh & Sehieck, PA. VOTING: Ayes — 5; Nays — 0. Request for Approval of Pay Adjustments for Three County Employees: County Manager Ron Smith said a closed session was held on June 18, 2013, to review the job performances of the sheriff, register of deeds, and the county manager. He said a request was now being made to formally approve pay increases for the three positions. Sheriff MOTION by Vice Chairman Norman to approve a one-time 2% performance bonus retroactive to June 18, 2013, for the sheriff. Commissioner Boone said that in the FY 13-14, the board had provided for county employees to receive one-time bonuses, not pay raises, of up to 2% depending upon their evaluations. He said the same program was used in the FY 12-13 budget. Mr. Boone said that over one-half of the employees received a 2% bonus, and over 98% received at least 1%. Boone said that if the motion were approved, the sheriff would be receiving the same bonus that had been received by the majority of employees last year and probably for this year too. VOTING: Ayes - 5; Nays — 0. Register of Deeds Chairman Johnson said a motion was needed to approve a 4.5% increase for the register of deeds. Commissioner Boone said that after the June 18 closed session, it was unclear to him on what the consensus of the board was in regards to this matter. He asked if board consensus occurred for a pay raise to be granted in lieu of a bonus, or in addition to, a pay raise. Commissioner Griffith said it was her belief that McCall was to be granted a pay increase instead of a bonus. 17 Commissioner Robertson said that when Mr. McCall was first elected, he was placed at the bottom of the pay scale due to having no experience relative to other Register of Deeds in this region. Robertson said McCall had done a good job, and a salary adjustment was agreed upon at the June 18 closed session to get him in line with register of deeds having job experience. He said the two percent bonus was due to McCall performing his job well. Chairman Johnson said he recollected that the 4.5% included the 2%. Commissioner Griffith agreed with Chairman Johnson. OTIO by Vice Chairman Norman to approve a 4.5% increase retroactive to June 18, 2013 for the Register of Deeds. Boone mentioned that Mr. McCall's work had been impressive and the county had experienced monetary savings due to his management. Commissioner Boone mentioned that if the county had an incentive policy, Mr. McCall would probably earn a larger pay increase. VOTING: Ayes — 5; Nays — 0. County Manager OTION by Vice Chairman Norman to approve the County Manager's salary at $136,642.45 (closest to $136,500 on salary scale) retroactive to June 18, 2013, and a 2% merit bonus on his anniversary date (July). Commissioner Boone said that in regards to the merit bonus, Mr. Smith had done a good job. Boone said, "With the economy we are in, I do have some problems giving our highest paid employee an increase that most other employees will not get. Our economy may be recovering some -- I wonder about that -- but this county still has a high unemployment rate. It has a much higher rate of people who are underemployed making low wages. People who are making less money than they were five or six years ago, and I see this every day. A lot of these people are paying taxes. It is awful hard for me to face these people and vote for this kind of pay raise. It makes it difficult for me to say this because Mr. Smith is doing a good job. He is doing what we hired him to do. My saying this is in no way whatsoever a reflection on his performance. I also realize his salary is not at the very bottom, but it is below the average for counties in our size range. He, however, has less seniority than the majority of county managers in counties of our size. This puts me in a difficult position, but like I said, there are a lot of people struggling to pay their bills every week. I have a hard time facing them and justifying this large of a pay increase. One other factor that is worth mentioning is that the General Assembly has effectively given probably most, or all of the county employees, including Mr. Smith, a pay increase because of a reduction in the state income tax rates. Of course, the more income one has means that more taxes will be taken. I do not know his tax situation, but I would guess someone making that income would probably be paying at least $1,500 to $2,000 less in state income taxes next year because of the General Assembly's actions. That is an effective increase. I think most of our employees will have a pay increase because of the General Assembly's actions. This is something good, and I'm glad they did it. It is something we need to look at and to take into consideration; State income taxes did go down a little bit. These are things I'm looking at. It is difficult to say someone shouldn't get an increase and work with them every day, but sometimes you have to put aside what is in your own self-interest, and what is political, and try to do the right thing even though it is sometimes difficult. I could support the two percent with no problem, but I do have difficulty with the general pay raise." Chairman Johnson said he concurred with both increases for Mr. Smith. Johnson said, "When we hired Mr. Smith he had limited experience; although at that time I had a great deal of confidence in him. I felt he was capable of doing the job, and 1 think he has justified the confidence the board has placed in him. We did hire him, no reflection on you Mr. Smith, pretty cheap in regards to what the counties our size pay. We did that primarily because of the lack of experience despite the confidence we placed in him. At the time we hired him we fully understood that we were paying substantially less than counties our size but the understanding I came away with when we offered the salary was that over time, as the economic and financial condition of the county improved, we would try to bring him up into parity with county 18 managers in counties our size over time. I felt like at that point, from my personal perspective, I had made a moral obligation to do that. I know Mr. Boone wasn't on the board, and he's certainly not morally obligated to fulfill an obligation that 1 incurred at that time. I think this action is a good faith action to fulfill that commitment to him (Smith). I do understand that a salary increase will cost the taxpayers. It will cost the average taxpayer very little money, but I think some consideration needs to be given to what the potential cost to taxpayers will be if we don't make sure we have someone competent in that seat. It could cost them substantially more money if we do not have a competent person and do what is reasonable to retain a competent person in that position. For those reasons, I will support the previous consensus of the board about the pay increase." Commissioner Robertson noted the difficulties in locating candidates for leadership positions at the health department and animal control. He said, "We went through many years without changing the pay grades. I think we went almost five years without doing any sort of adjustment. I think a lot of people are saying, `It's easy to fill these positions because they make more money than I do.' The fact of the matter is that it is a challenge to find good leaders to fill these positions. I think if we were to lose Mr. Smith, it would be incredibly difficult to find someone of his caliber even at the recommended salary. 1 know it is difficult to understand unless you've been involved in the search processes, but it is a reality that we are facing now as well as in the future as we unsuccessfully try to fill these vacancies. I'll support the motion." Chairman Johnson said, "If you look at the pay for average counties our size, Mr. Smith ranks somewhere between 17 and 23% less than their managers, but the majority of them have more seniority. Over time, to be fair about it, he needs to be closer in parity." Commissioner Boone said "Since we are talking about comparable counties, I checked every county with a population of 120,000 to 200,000 and these were the counties within 40,000 in population one way or the other of Iredell. There were 12 counties, and we are below average. However, of those 12, two pay less than we do. Two counties, including Rowan pay almost exactly the same thing we do. The other eight pay more. In regards to the sheriff, his salary is within about $400 of the median for all of those. It is almost precisely in the middle. Of course, our sheriff has more seniority than the others. I do not have the seniority for the managers' counties, but I'm sure most of them have more than two years of service. That is where we stand. We are below average, but we are not on the very bottom by any means." VOTING: Ayes — 4; Nays — I (Boone) Request for a List of Employees Receiving a Pay Increase in the Past Two Fiscal Years: Commissioner Boone requested a list of all the county employees who had received a pay raise in the past two years due to promotions, reclassifications and so forth. He did not request the names of the employees who had received performance bonuses. Mr. Boone said the list should include all pay raises for any other reason such as promotions due to reclassifications. He said the list could begin as of July 1, 2011, and include pay increases for the past two fiscal years. Boone requested for the list to be distributed to the board members by the next meeting (August 20, 2013). Request for Approval of the July 16, 2013 Minutes: OTION by Commissioner Boone to approve the minutes as presented. VOTING: Ayes — 5; Nays — 0. ANNOUNCEMENT OF VACANCIES OCCURRING ON BOARDS & COMMISSIONS Charlotte Douglas International Airport Authority (1 announcement) Adult Care Home Community Advisory Committee (3 announcements) Nursing Home Advisory Committee (1 announcement) Animal Grievance Committee (1 announcement) Troutman Planning Board (ETJ —1 announcement) APPOINTMENTS TO BOARDS AND COMMISSIONS 19 Recreation Advisory Committee (1 appointment): MOTION by Chairman Johnson to postpone this appointment until the August 20 meeting. VOTING: Ayes — 5; Nays — 0. Partners Behavioral Healthcare Board of Directors: MOTION by Commissioner Griffith to extend Matt McCall's term until October 1, 2013. VOTING: Ayes — 5; Nays — 0. Reminder Sheet Planning Board (1 appointment): Commissioner Griffith nominated Doug Holland. MOTIO by Chairman Johnson to close the nominations and to appoint Mr. Holland by acclamation. VOTING: Ayes — 5; Nays — 0. CLOSED SESSION - MOTIO by Chairman Johnson at 8:34 PM to enter into closed session pursuant to Economic Development: G.S. 143-318.11 (a) (4), along with Personnel: G.S. 143-318.11 (a) (6), and Attorney -Client: G.S. 143-318.11 (a) (3). VOTING: Ayes — 5; Nays — 0. (RETURN TO OPEN SESSION AT 9:50 PM) CALL FOR A PUBLIC HEARING REGARDING PROJECT SOFT: OTION by Chairman Johnson to call for a public hearing on August 20, 2013, at 7 PM, regarding and economic development incentive of $179,929 over a five-year period for Project Soft based on an $11.25 million investment in Iredell County. VOTING: Ayes — 5; Nays — 0. CALL FOR A PUBLIC HEARING REGARDING PROJECT WHISKER: OTIO by Chairman Johnson to call for a public hearing on August 20, 2013, at 7 PM, regarding and economic development incentive of $49,422 over a five-year period for Project Whisker based on a $3 million investment in Iredell County. VOTING: Ayes — 5; Nays — 0. CALL FOR A PUBLIC HEARING REGARDING PROJECT BIG MAC: MOTION by Chairman Johnson to call for a public hearing on August 20, 2013, at 7 PM, regarding and economic development incentive of $194,000 over a five-year period for Project Big Mac based on a $10 million investment in Iredell County. VOTING: Ayes — 5; Nays — 0. (Note: The economic developer e-mailed on August 7, 2013, and requested for this public hearing to be cancelled.) ADJOURNMENT: MOTION by Chairman Johnson to adjourn. (NEXT MEETING: Tuesday, August 20, 2013, at 7 PM, in the Iredell County Government Center, 200 South Center Street, Statesville, NC.) VOTING: Ayes — 5; Nays — 0. Approval: 20 Clerk to the Board