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Home My WebLink AboutFebruary 15 2013 Winter Budget SessionIREDELL COUNTY BOARD OF COMMISSIONERS WINTER BUDGET PLANNING SESSION MINUTES FRIDAY, FEBRUARY 15 & SATURDAY, FEBRUARY 16, 2013 The Iredell County Board of Commissioners met for a Winter Budget Planning Session on Friday, February 15, 2013, at 8:30 AM, in the Agricultural Resource Center, 444 Bristol Drive, Statesville, NC. Board Members Present Chairman Stephen D. Johnson Vice Chairman Marvin Norman David Boone Renee Griffith Ken Robertson Staff present: County Manager Ron Smith, Fire & Emergency Services Coordinator David Saleeby, Construction Projects Specialist David Montgomery, Code Enforcement Director Lynn Niblock, Recreation/Facility Services Director Robert Woody, Planner Matthew Todd, Finance Director Susan Blumenstein, and Clerk to the Board Jean Moore. Others in attendance were the following: Jim Munoz -McNally with the Statesville Record and Landmark and Lauren Odomirok with the Lake Norman Citizen. CALL TO ORDER by Chairman Johnson. Chairman Johnson encouraged the other board member to offer motions throughout the planning session and to be specific when providing directives to the staff. OVERVIEW FROM THE COUNTY MANAGER ABOUT THE DIRECTIONS PROVIDED TO THE DEPARTMENT HEADS IN THE CREATION OF THE FY 13-14 BUDGET: County Manager Smith said the department heads had been given the following instructions or comments in regards to the FY 13-14 budget. • No more than a 2% increase • There will have to be "give-and-take" in the budget and a balancing act will have to occur • Big ticket items (new employees, vehicles) will need strong justification • Building projects for individual departments will be listed in facility services Commissioner Robertson mentioned that department heads who were frugal and saved money should not be penalized in future budgets. He said this might prevent the staff from believing that if they did not spend all of the money in this year's budget, they would lose it in future budgets. In addition, Robertson requested that FY 13-14 expenditures be estimated high and revenues on the low side. Commissioner Boone said in past years, a couple of department heads had over budgeted some routine expenses, and during the year, they made a request for something such as a new employee. Boone said the department head would try to justify the new request by saying no money was needed due to having extra funds in the budget. FY 13 Update and FY 14 Projections Finance Director Blumenstein distributed financial spreadsheets that included sales tax revenues and building/land development revenues and expenditures. Blumenstein expressed satisfaction with tax collections due to the county being at 92.18% of the levy (January 31, 2013) compared to 92.02 this time last year. Overall, she said it was estimated the county would collect $1,028,585 more than budgeted. Blumenstein said the county assessor predicted the June 30, 2013 total taxable value would be $100 million more than his initial estimates that were made during the preparation of the FY 13 budget. In sales taxes, Blumenstein mentioned concerns due to the revenues being 2.5% lower than this same time last year. She mentioned the volatility of sales taxes, and noted rising fuel costs and the many jobs being cut by local manufacturers. Copies of the spreadsheets distributed by Blumenstein are as follows: "Other Financing Uses= $4,329,216 to Jall Capital Project Ordinance+$30,050 to JCPC Fund 2 hedeli County General Fund January 31, 2013 with Sales Taxes Reported at 211012013 Updated 2114013 Revenue FY10 113112010 FY11 1131111 FY12 1131112 FY13 1131113 FY12•FY13 Inc(Dec) FY13Revised Budget °%ofFY13 Budget FY13 - Est. Actual Over(Under) Budget Ad Valorem Taxes 84,579,497 85,482,779 90,936,293 93,060,777 2.34% 99,160,415 93.85°% 100,169,000 1,028,585 Other Taxes &Licenses 346,360 351,683 379,387 370,343 2.38% 780,100 4747% 700,000 (80,100) Safes Taxes (1) 9,489,209 9,502,139 10,776,363 f0,510,63f -2.47% 27,487,600 38.24°% 25,890,000 (1,597,600) Bldg& Land Dov (2) 365,509 353,123, 227,417 217,551 434°% 483,898 45°k 401,635 82,263 Register of Deeds 431,936 394,262 408,083 592,239 45.13°k 750,000 78.97% 1,000,000 260,000 Cade Enforcement 995,777 991,283 1,113,492 1,542,289 38.51°% 1,811,020 85.16% 2,BD0,000 788,980 Planning 111,844 100,025 108,291 125,582 15.97% 174,050 72.15% 228,000 53,950 Health-On-SleWasfewaler 194,030 160,05B 162,591 230,555 41.80°% 319,560 72.15'% 400,000 80,440 EMS 1,765,761 1,929,335 2,024,792 2,291,622 13.18°% 3,795,250 60.38% 4,470,000 674,750 Health Dept -all other 1,936,977 1,917,989 2,300,906 1,841,020 -499°% 4,229,555 43,53% 3,560,000 (669,555) SoaalService& 8,432,697 8,496,598 7,662,884 7,358,597 -3.97°% 15,420,145 47.727, 14,430,OW (990,145) ShedffsDepartment 1,765,356 1,001,571 867,070 844,438 -2.61°% 1,195,823 70.62; 1,400,000 204,177 Jail 413,603 350,908 226,325 302,844 3381% 460,850 e5.71°% 510,000 49,150 All Man Revenue 9,199,492 4,100,370 3,265,062 4,082,047 25A2°k 15,835,191 25.78°% 7,040,000 (8,795,191) Other Financing Uses '" 119,664,739 114,769,000 120,231,541 123,152,984 2.43% 171,419,559 71.64°% 162,417,000 (9,002,659) "Other Financing Uses= $4,329,216 to Jall Capital Project Ordinance+$30,050 to JCPC Fund 2 hedell County General Fund January 31, 2013 with Sales Taxes Reported at 2J1012013 Updated 211412013 Expenditures FY10 1131HO FYit 1131111 F 1 1131112 FY13 1131113 FY12-FY13 fro (000) FY13Revlsed Budget °%ofFY13 Budget FY 13 Est. Actual Under (Over) Budget General Governmental 6,787,316 6,904,822 6,861,496 7,850,514 14.41°% 17,235,941 46°k 16,029,425 1,206,516 Public Safely 15,709,309 15,741,338 16,495,112 16,737,804 1.41°% 32,020,646 52% 30,099,407 1,921,239 Bldg & Land Development Register ofDeeds (65%) 365,509 353,123, 227,417 217,551 434°% 483,898 45°k 401,635 82,263 Central Permilting (2) 160,041 100.00°% 284,789 561A 279,093 5,696 Building Standards Center 40,766 44,445 34,698 36,642 5.60°% 92,518 40°% 78,640 13,878 Code Enforcement 1,185,575 1,083,120 1,104,840 966,717 -12.50% 1,730,324 56°% 1,591,898 138,426 Planning 467,670 506,569 378,660 427,013 12.77% 789,033 54% 733,801 55,232 On-site Wastewater 416,955 356,311 362,699 304,441 -16.08% 617,824 49°% 593,111 24,713 Cooperative Extension 215,366 199,130 151,370 169,531 12.00% 414,531 41% 352,351 62,180 HumanSeroes 18,634,194 18,747,723 17,993,089 17,438,493 .3,08% 34,270,62B 51% 31,186,271 3,084,357 Education(Mudes Debt Pon) 43,404,393 37,366,367 37,529,248 37,991,674 1.23% 72,847,415 52% 72,847,415 - Debt Serves (County) 535,394 519,982 504,571 547,820 8.57% 1,034,800 50% 1,084,800 - Cultural&Recrea8onal 3,107,360 2,989,161 2,845,864 2,976,917 4.61% 5,187,947 57% 4,824,791 363,156 Other Financing Uses '" . 0.00°k 4,359,265 0% 4,359,265 - 90,869A09 84,812,091 84,489,054 1,58% 171,419,559 E85,825,156 50.07% 164,461,905 6,957,654 Revenue (Under)Over Expend lfures Fund Balance, July 1, 2012, Unassigned Estimated Unassigned Fund Balance, June 30, 2013 Estimated Unassigned Fund Balance as a% of Revised Budget (2,044,905) 35,266,742 33,221,837 19.38°% "Other Financing Uses= $4,329,216 to Jall Capital Project Ordinance+$30,050 to JCPC Fund 2 General Fund Estimated FY14 Valuation and Property Taxes Real Property Value Less: Deferred taxes - Use Value Real Property Elderly Exemption Adjustments from appeals Total Taxable Real Property MotorVehicles Personal Property Less: Personal Property Elderly Exemption Total Taxable Personal Property Public Service Companies Discoveries, Penalties, & Releases Total Taxable Value Tax Rate FYI FY14 Increase % $ 17,900,000,000 (885,000,000) (112,000,000) (9,000,000) 16,894,000,000 1,345,000,000 1,820,000,000 (500,000) 3,164,500,000 325,000,000 80,000,000 $ 20,463,500,000 $ 20,865,000,000 $ 401,500,000 1.96% 0.00485 0.00485 Total Estimated Taxes $ 99,247,975 $ 101,195,250 $ 1,947,275 Collection Rate 96.95% 96.95% Total Estimated Tax Collections $ 96,220,912 $ 98,108,795 Growth and Activity Update $ '1,887,883 Code Enforcement Director Lynn Niblock and Planner Matthew Todd provided a growth & development update. Niblock said that in reviewing the past six years for growth, it was discovered that 2007 was the peak year and 2011 was the lowest point for residential building permits. Niblock provided the following information on building permits for the past six years. CALENDAR YEAR NUMBER OF BUILDING & RESIDENTIAL PERMITS (single- family) 2006 2657 2007 2789 2008 1919 2009 1417 2010 1401 2011 1359 2012 1481 Does not include mechanical, electrical, etc., but the chart does include new structures, additions, remodeling, and renovations. Todd provided the following information regarding growth for Mooresville, Statesville and Troutman. Mooresville • 2012 zoning permit activity increased 40% as compared to 2011 (renovations, up -fits, commercial, and residential) • Based on sewer tap activity, 349 single family or townhomes were added to the system versus 202 in 2011 • Commercial — Construction of a Sam's Club and smaller commercial projects with redevelopment for restaurants, pharmacies, small retail, etc. 3 • Brawley Point, age -targeted subdivision off of Oak Tree Road, 40 -patio homes • Residences at Morrison Plantation, & apartments; construction to begin within the year, Phase I is 275 units; total project is 482 units • The Farms Phase 6, Forest Lake Boulevard, 128 lots; under construction • The Venues, project was sold, redesigned for 232 apartment units; under construction Troutman • Four residential developments under various stages of review. Developers have indicated an interest in beginning construction in late spring/early summer - Streamwood Phase Two, 370 acres between Autumn Leaf Road and Clontz Hill Road, up to 703 single family homes (rezoning in February) - Oak Creek, 200 acres between East Mombo Road and Talley Road, up to 457 single family homes, along with 10 acres of commercial development, portion could be restricted for senior living (review by the Town in March) - Sutters Mill — 105 acres off Westmoreland Road, up to 224 single family homes (review by the Town in April) - Twin Coves - 92 acres between Stillwater Road and Apache Road, 18 lots of 5+ acres each (approved by the Town) Troutman Development Trends — Next 12-18 months - Moderate increase in residential development - Sluggish commercial development with a hopeful decrease in vacancies that exist in downtown commercial properties and fairgrounds shopping center - Town likely to focus on industrial development - Continued progress on Phase 1 of Troutman ESC Park - Unlikely pursuit of additional capital projects due to fiscal constraints Statesville Development Activity - Expecting higher increase in commercial development - Multi -family development off Broad Street - Minimum subdivision activity, many lots still on paper not yet developed Recent County Development Activity - 38% increase in subdivision activity for total number of lots - Small scale commercial sites In regards to the Langtree at the Lake/RL West Project, Niblock advised of the following: Lanaree at the Lake (currently under construction) • The Gateway building (restaurant, convenience store with a deli downstairs, and offices) will be ready for occupancy by the end of March. • Phase I, which is currently under construction and consists of 300 apartments and approximately 50,000 square feet of retail (7 buildings total) will be turned over from July 2013 to November 2013. • There will be a charter school with 63,795 square feet. • The estimated construction value of these projects is $37,537,492.00 with $355,332.31 being the cost for building permits. Langtree Phase II — Future Development Activity • Two buildings and a precast parking deck on Langtree Road next to current Phase I. (Will likely consist of apartment homes over two floors of commercial/retail.) Start date: 2013-2014 — Estimated construction value of $13,000,000. • Ethosphere — 14 story mixed use building housing ground -floor retail, luxury full-service hotel, office space, condominiums, convention space, entertainment complex, and parking deck. Start date: 2013/2014. Estimated construction value of $80,000,000. Additionally, Niblock gave the following growth information provided from G.S. Wilson: Future Development Activity • Possible expansion of buildings for ASMO USA (2013-3014) • Expansion of Providencia USA. (Addition of another line at this company during 2013-2014.) This would require an addition to the building which would be 4 approximately a 6-8 million dollar investment and the total tax base (building/machinery) would be approximately 100 million. • Randy Marion Chevrolet: New 8-10 million dollar facility in 2013 • Currently looking at additional projects of approximately 5 million in 2013; 10 million in 2014; and 12 million in 2015. Mr. Todd concluded the growth and development segment by saying: • Staff will continue to maintain close contact with the school systems and municipalities to assess rate and impact of residential development relating to school needs. • Next update of county demographic analysis will be produced in the fall of 2013 by the planning department. • Public demand for county services may increase prior to the actual collection of the increased tax base/tax revenue resulting from the new development. • Based on trend data, it does appear that growth/development are on the rebound in Iredell County. Health Care Issues / Mark III and Human Resources Joining the board to discuss health care issues were Human Resources Director Sandra Gregory, Wellness Program Manager Sarah Williams, and Mark Browder with Mark III Employment Benefits. Browder said the following about the county's current medical health plan: • Pharmacy spending is down 28.5% • Overall medical plan costs are flat at about I% • There are some high claims that revolve around in -stage renal disease (some are "catastrophic" claims). Kidney disease is heavily driven by high blood pressure. Most of the cases are behavior driven rather than genetic predisposition. • All in all, the county is still in the "black" based on how the health program was budgeted and stop -loss insurance. • Within the county's "disease burden stratification," 35.5% have chronic health issues with the top condition being high blood pressure. • A 16 to 17% increase is anticipated in the plan with $115,000 being directly related to healthcare reform. • Due to the county having a self funded health plan, there are some taxes that do not have to be paid. (These taxes are the state tax and health insurance industry fee). Mr. Browder said 2013-2014 goals would be as follows: • Improve the health of the population • Improve consumerism • Move toward accountability Browder said the top five chronic conditions for Iredell County employees were: Hypertension (19.7%) Metabolism/Immune Disorders (12.8%) Diabetes (8.9%) Disease/Thyroid (6.1%) Psychiatric/Neurotic Disorder (5.3%) Mr. Browder said the county provided employees with opportunities to visit a registered nurse to discuss wellness and to have diabetes monitoring, plus there were weight control activities. He said in addition, biometric screenings and health risk assessments were conducted each year. Browder said that if employees scored lower than a 50 on the Health Risk Assessment, they had to meet with the nurse on a quarterly basis. Continuing, he said the county paid for "episodic" care where the employee could see a local physician for minor illnesses, injuries, and basic physicals. Browder said one problem for county employees, as well as adults and children across the nation, was obesity. He said a sedentary society was contributing to the problem, but that genetics, access to care, a person's environment, as well as a person's socio-economic status also k, played a part in obesity. Browder said, however, some studies indicated that behavior was driving 50 to 75% of the healthcare demand. Mr. Browder then discussed the following 2013-2014 renewal options for the county's medical plan. 2013201$Abrw al,Optiops � mi He said Option 1 included the following changes: (1) At the present time, an $80 co -pay happens when an employee visits a specialist. This will change to a deductible/30%, and once the deductible is met, the insurance will pay 70% with the employee paying 30%. Browder said a deductible change would also occur in the Health Savings Account. (There will be a change from $1500 to $2,000 to match the PPO plan, plus the co-insurance limit changes as well). Browder said the following plan would be implemented during the upcoming year using Iredell Memorial Hospital services. 1. Enrollment will occur in the spring for health improvement initiatives. 2. The incentive for employees to participate in the wellness program will continue with a discounted premium structure. 3. In order to receive free medical coverage, employees must participate in biometrics, and when recommended, health coaching. Mr. Browder said currently the employees who did not participate in the wellness program paid $30 a month ($15 a pay period), but this would change to $60. He said in FY 14- 15 it was recommended that a wellness fund be created for employees who met the health criteria, and it would be delivered in either a Health Reimbursement Account (HRA) or the Health Savings Account (HSA). Browder said the employees meeting four out of five control standards would receive the incentive ($250 in either the HRA or HSA). He said the five risk factors would be based on: (1) waist circumference (2) blood pressure (3) cholesterol ratio (4) Hemoglobin AIC and (5) being tobacco free. Browder said the incentive program did not penalize, rather it was reward based. County Manager Smith said under the current wellness program, the staff had done everything they could to improve the employees' health, but a diminishing return was now being seen and participants were dropping out. Human Resources Director Sandra Gregory and Wellness Program Manager Sarah Williams then reviewed medical claims and shared information about the wellness clinic. Gregory said the highest claims were originating from actual employees and not retirees or dependents. 6 Iredell County Medical Plan CIGNA CIGNA CIGNA CIGNA CIGNA CIGNA look/120%100k/120% 160k/120% 100k/120% 100k/120% 100k/120% 7112-6/13 7/12-6/13 7/13-6/14 7/13-6/14 7/13-6114 Current „:Renawa a�, _7/13-6/14 O tion 1 Renewal Current HSA Current Current HSA Renewal Current HSA In -Network In Network In -Network In Network In -Network In -Network Primary Care Ph siclan Visits $40 0eductible/20% _ $40 Deductible 20% $40 Deductible/30% Specialist Physician Visits $80 Deductible/20% $80 Deductible/20% DeductibleJ30%. i. Deductible/30% Preventive Care _. _ - 0% 0% 0% 1 0% 0% 0% Deductible $2000 $1,500 $2,000 $1,500 $2,000 c-$2,000 Deductible - Family Maximum $4,000 $3,000 $4,000 $3,000 $4,000 $3,500' Coinsurance Limit $3,000 $2,D00 $3,000 $2,000 $3,000 Coinsuranre Limit- Family Max $9,000 $2,000 $9,000 $2,aDn _ $9,000 _ _$2,000 $2000 Radiolo Deductible/20% Deductible/20% Deductible/20% Deductible/20% Deductible/3D%.n Deductible/30% Hos ital Services Deductible/20% Dotluctibie/20% Deductible/20% ❑eductlbleJ20% >'L Deductible 3D% Deductible/30% Ur. eot Care Deductible/20% Deductible/20% DeductibleJ20% Deductible/20% ".Deductible 30%'e Deductible%30% Emergent Room Deductible/20% Deductible/20% Deductible/20% Deductible 20% Deductible/30%t. gedUctl0le/30% $150 Deductible $150 Deductihle $150 Deductible $10/$45/$60/25% $10/$45/$60/25% $4/$45/$60/15% PharmacV Dispense as Written Deductible/20% Dispense as Written Deductible/20% Dispense as Written Deductible/30% ' Added Added oluntan7 Maintenance Choice 2 for 3 at Retail 2 for 3 at Retail islon Hardware Notcovered Not covered Net covered Notcovered Notcovered Notcovered HSA $750 750 $750 Lifetime Maximum Unlimited Unlimited Unlimited I Unlimited Unlimited Unlimited Change ;.0% He said Option 1 included the following changes: (1) At the present time, an $80 co -pay happens when an employee visits a specialist. This will change to a deductible/30%, and once the deductible is met, the insurance will pay 70% with the employee paying 30%. Browder said a deductible change would also occur in the Health Savings Account. (There will be a change from $1500 to $2,000 to match the PPO plan, plus the co-insurance limit changes as well). Browder said the following plan would be implemented during the upcoming year using Iredell Memorial Hospital services. 1. Enrollment will occur in the spring for health improvement initiatives. 2. The incentive for employees to participate in the wellness program will continue with a discounted premium structure. 3. In order to receive free medical coverage, employees must participate in biometrics, and when recommended, health coaching. Mr. Browder said currently the employees who did not participate in the wellness program paid $30 a month ($15 a pay period), but this would change to $60. He said in FY 14- 15 it was recommended that a wellness fund be created for employees who met the health criteria, and it would be delivered in either a Health Reimbursement Account (HRA) or the Health Savings Account (HSA). Browder said the employees meeting four out of five control standards would receive the incentive ($250 in either the HRA or HSA). He said the five risk factors would be based on: (1) waist circumference (2) blood pressure (3) cholesterol ratio (4) Hemoglobin AIC and (5) being tobacco free. Browder said the incentive program did not penalize, rather it was reward based. County Manager Smith said under the current wellness program, the staff had done everything they could to improve the employees' health, but a diminishing return was now being seen and participants were dropping out. Human Resources Director Sandra Gregory and Wellness Program Manager Sarah Williams then reviewed medical claims and shared information about the wellness clinic. Gregory said the highest claims were originating from actual employees and not retirees or dependents. 6 Williams referred to the top five chronic conditions already mentioned. She emphasized that diet and exercise would continue to be encouraged as well as medication adherence. Additionally, she said seminars would be offered on various topics such as stress and mental health. Gregory said the sheriff's office, EMS, and Social Services were the top three non- participant departments in the wellness program. She said some non -participants completed a survey, and the following information was received as to why the noncompliance was occurring: 50% forgot to set up appointments; 25% were concerned about confidentiality; and 25% indicated there was no reason to see the nurse due to their health not improving. Gregory mentioned that the wellness clinic had been successful, and the employees were being immediately seen by Dr. Cash. She said this resulted in the employee spending less time away from work, plus not as much sick leave was being used. Mrs. Gregory gave the following goals for FY 13/14 and 14/15 FV 13-1d Announce biometric screening incentive -waist circumference -blood pressure -cholesterol ratio -hemoglobin A1C -tobacco Increase wellness non -participant cost from $30 to $60 a month Charge $150 per quarter when participant fails to see the nurse, if required Stronger focus on wellness program for five chronic conditions FY 14-15 Implement biometric screening incentive Add dependant wellness requirements Onsite wellness clinic Consensus by the board to approve Option 1 in the 2013-2014 renewal options which will include the incentive ($250 for HRA or HSA) for FY 14-15. Jail Update and Discussion County Manager Smith said in November there was agreement to move money ($4,000,000) to the jail capital project for potential jail construction, and at the last meeting, approval was given to appropriate $185,000 for outside inmate confinement. He said the staff had met with Statesville city officials on the type of text amendment that would be needed to construct a jail in the downtown area. Smith said the city, however, wanted to know more about the jail's appearance. He said David Montgomery could draw up a design when needed. Chairman Johnson said any drawing would need to be compatible with the City of Statesville's text amendment. Chief Deputy Rick Dowdle and Captain Bert Connolly then presented information about offsite innate confinement costs. Dowdle said the state would perform a jail inspection in March, and efforts were being made to eliminate a population cap. Connelly said, on average, 20 inmates were housed in Rowan County. He said the current population at Iredell County's jail was 283 inmates. The following written information was provided by Dowdle and Connolly in regards to offsite housing of inmates. FY 13-14 Budget Increases Due To Out -of -County Housing 1) Contracted services increase of $365,000 (25 inmates for FY 13-14) 2) Overtime and fuel will have to be increased VA Note: Medical has to be paid by Iredell County even though the inmate is housed in another county. (During this week alone, three subjects were placed in the local jail for murder.) Please note that we are budgeting for placement of 25 inmates, if we follow this year at the same pace as the last three recent years with overcrowding, that number could go as high as $729,000 per year for the average overcrowding o)"44 inmates at the $40 daily rate. If the rate changed to $60 a day for 44 inmates, and they were housed for one year, the cost would increase to $1,123,100. Present Jail Count: 283 at jai! and annex 18 ar Rowan County 4 pre-trial GPS 3 safe keeping (Dept. of Corrections- medical, etc.) Present jail bed space 201 + 76 (annex) = 277 beds Commissioner Boone said Rowan County's website allowed the public to find out the demographics of every inmate. Boone mentioned he would like to see this type of information on Iredell County's inmates, but it didn't have to be on-line. He asked the number of inmates awaiting trial versus the ones actually serving a sentence. Connolly said around 80%. Commissioner Boone said the Iredell County Court System was slow, and if the courts progressed faster the inmate population could be better controlled. He said current expense, in the long run, was actually more than constructing a new building. Boone said the court system should be encouraged to move faster. Connolly said the state would not let the county process too many inmates because this would flood the Department of Corrections. He noted the state had closed many prisons. Boone said there were single cells and general population levels of security. He asked if any other types existed. Dowdle said 90% of the inmates were dormitory housed. Boone asked about having a minimum security facility over the one being proposed for construction. He said the minimum security facility could house people in jail for nonsupport and lesser offenses. Boone mentioned that nonviolent offenders were placed in mobile units near the jail during the 1990s. He said a minimum security facility could be built near the present jail. Connolly said today's inmates were not like the ones housed 20-25 years ago. He said there wasn't enough isolation space, and seven people were "up top" now with three being there for murder and the others for suicide watch. Dowdle said there were only 17 single cells in the jail. Boone said his idea was to single out the less risky people. Connolly said this was attempted with the pre-trial GPS. He said unfortunately, these individuals started causing problems all over the county. Chairman Johnson said it was being understood that the county needed to have at least $550,000 in next year's budget for offsite housing of prisoners, and the staff might return for a budget amendment. County Manager Smith said there were three options: (1) do nothing on the planning of a new facility (2) pursue a text amendment which would include a jail drawing and (3) look more seriously at the site, such as, site analysis, programming and preliminary design, with all this costing $45,000. Chairman Johnson said his suggestion would be to authorize the $45,000 and pursue the text amendment. 8 OTION by Chairman Johnson to authorize David Montgomery and Joey Raczkowski to work with the City of Statesville on a text amendment and to spend $45,000 out of the capital reserve fund for an architectural review. VOTING: Ayes — 5; Nays — 0. Commissioner Robertson said if anyone had objections about building a new jail they needed to speak up. He said it was his belief the $45,000 shouldn't be spent, if someone objected to the construction of a new jail. Captain Connolly said the board should understand the sheriff's department would ask for at least $450,000+ (housing, increased medical, overtime & fuel) in next year's budget for outside confinement. He said Iredell had to pick up the medical costs even though the inmates were housed offsite. Connolly said an effort was made to send the healthier inmates to the offsite facilities. Johnson asked if the $450,000 was on top of the $185,000 for offsite housing. He asked if the offsite housing would be $635,000. Blumenstein said it would be $450,000. Boone said much of the expense would occur even if the inmates were housed here. Project Ordinance Update for 2012-2013 Recreation/Facility Services Director Robert Woody and Facility Services Office Manager Tanya Landis provided an update, as follows, on maintenance projects that had occurred or were in the process. 34 Projects with $1,664,000 appropriated Agricultural Center— Stove replacement: Cost: $6,238 Agricultural Center — New carpet: Cost $25,084 Social Services — Security Cameras: Cost $6,737 Government Center South — Fire Alarm Panel: Cost $12,600 Government Center South — Retaining Wall Replacement: Cost $11,755 Human Resources — Carpet and Interior Paint: Cost $22,015 Jail Annex — New Roof over Isolation Area: Cost $47,500 Meeting Street Service Center — Tree Removal and Fencing: Cost $13,550 Narcotics/Crime Lab — New Carpet: Cost $12,971 Probations (Davie Avenue) — New Carpet & Tile: Cost $13,696 Register of Deeds — HVAC Vault Up -fit: Cost $12,464 Tax Administration — Winterizing Maintenance: Cost $13,563 Veterans Services — Automated Doors for Veterans: Cost $6,523 Walnut Street Parking Lot— Retaining Wall Replacement: Cost $12,500 Facility Services has completed 14 projects (41% completion). Of the 14 projects, the budgeted amount was $295,850.00, but the actual cost was $217,196. Remaining projects: Parking Lots & Paving: Building Standards Center, Board of Elections, ICGC-S & Hall of Justice Exterior Paving: Building Standards Center, ICGC-S, Historic Old Jail Additional Projects: Stumpy Creek Paving Project, Scotts Rosenwald Park, Big Leaf Slopes Bike Trail, Animal Shelter Barn (scheduled for completion in spring 2013) Lunch The board had lunch from 12:05 PM until 1 PM. School Presentations 9 Iredell-Statesville School Svstem: The following individuals attended the meeting in regards to the Iredell-Statesville School System: Board of Education Chairman Dr. David Cash, School Board Members Chuck Gallyon and Anna Bonham, Superintendent Brady Johnson, Deputy Supt. of Operations Dr. Ron Hargrave, Finance Officer Melissa Wike, and Facilities Director Dr. Kenny Miller. Dr. Cash said the school system continued to perform well, especially with the allotted resources. Supt. Johnson said academically, the system had one of its best years in 2012. He also mentioned the following: • Parents are being given more choices; IB programs are over capacity. • Career Tech Center in Troutman has expanded (serves the entire county). • Early college programs are popular (waiting list for enrollment). • The system was awarded a Race to the Top technology grant ($21 million). Only 16 school systems across the nation won the award. • The system was awarded an I3 grant two years ago. As far as challenges, Supt. Johnson said federal funding was unknown, and information would not be available until mid -spring. He said if sequestration occurred, the system might lose 12% of its federal budget. In regards to state funding, Supt. Johnson said Iredell-Statesville, as well as most systems across the state, had requested for the discretionary money that was cut several years ago to be reinstated. Supt. Johnson said the Race to the Top technology grant did not include Lake Norman High School. He said before the grant application was completed, it was known that Lake Norman would not qualify due to the 40% ceiling for the poverty rate (free/reduced lunch program). Supt. Johnson said the system was trying to find other technology funding sources for Lake Norman, and $1.2 million was needed. Supt. Johnson said last year, fund balance was used to offset some of the personnel cuts. He said the fund balance had been built up to $11 million, but $3 million would have to be used in FY 13-14. Supt. Johnson said in North Carolina there was no statutory requirement for a school system to maintain a fund balance, but Iredell-Statesville did by choice. He said higher costs in the upcoming year were anticipated for employee benefits (insurance and retirement). Commissioner Robertson mentioned the problem that would occur if all high school students, with the exception of those at Lake Norman, received a laptop. He asked if the $1,281,200 (Lake Norman High School Blended Learning Program) was a "one-time hit." Supt. Johnson said the equipment ($1,150,000) and personnel costs (Blended Learning Coach and Technician) would be an on-going cost with a grant life of four years. Commissioner Norman asked if any changes would occur in school security. Supt. Johnson said school resource officers and student assistance program coordinators would be available, but 50% of the student assistance program budget had been cut. He said staff wise, a total of 287 positions had previously been cut, and this included six student assistance program coordinators. Supt. Johnson said that in reference to security, a safety audit had occurred. He said one goal was to have a multi -layer -entry system for all schools. Supt. Johnson said some schools had cameras while others did not, and the board of education had appropriated $280,000 to correct some of the security inadequacies. Commissioner Boone asked how the Race to the Top grant was broken down in terms of personnel and technology. Finance Director Wike said there would be 30 positions with 14 of them being blended learning coaches, along with a blended learning coordinator, an accountability coordinator, four technicians, and two others "to help capture Best Practices." Wike said the majority of the funding would supply the devices for the middle and high schools, plus there would be some funds for software and infrastructure. 10 Commissioner Robertson asked if Brawley and Lake Shore Middle were included in the grant. Supt. Johnson said yes. He said other foundations and private sources were being contacted to help fund Lake Norman High School. Commissioner Boone mentioned concerns about hiring new personnel. He asked what happened to the personnel when the grant expired. Supt. Johnson said the 30 positions would help make a "classroom paradigm shift," and the model would allow teachers to teach part of the day with the remaining instruction being through technology. Commissioner Boone said eventually, personnel costs should be less. Supt. Johnson agreed, but he said people had to be trained in the use of computers. Dr. Cash said that for 2012, the dropout rate for the students was 1.99%, and the system was attributing this to the availability of educational choices. He said many previous students who dropped out were performing at a high level, but they became bored due to not being challenged. Dr. Cash asked for a funding formula to aid the system in planning. Commissioner Griffith asked how much Iredell-Statesville would be requesting for the upcoming year. Supt. Johnson said $4.6 million was a gap that needed to be funded. Griffith said the $4.6 would be on top of the current expense (2012-13) of $31,254,418. Supt. Johnson said yes. Capital Needs: Dr. Kenny Miller said $550 million was the estimated value of Iredell-Statesville's buildings. Miller said the county had made a huge investment in education, especially since it also funded the local community college and the Mooresville Graded School System. He said there were concerns about deferred maintenance and energy costs continued to increase. Miller said some of the older facilities were constantly in need of upgrades, roofs, and repairs. He said improvements would have to be made to bring some campuses up to high tech 21" Century sites, and there was a high demand for some programs (IB). Miller said the IB programs were started in elementary schools that were renovated as middle school campuses, and some of the sites could not house any more students. He said the school personnel would continue to be good stewards of the county funding and try to maintain the schools as best as possible. Dr. Miller said an industry average, on the percentage needed to maintain the facilities, was two to four percent of the buildings' value, and this should be invested annually in maintenance. He said the two percent would offer operable/good condition, while the four percent would maintain the level at which the structure was built. Commissioner Robertson asked the current level. Dr. Miller said between 1.2 to 1.4%. He said this was a Little lower than it should be, but it was understood due to the economy. Miller requested the commissioners to exhaust all financial resources, and this included the additional quarter cent (1/4¢) sales and use tax. He said only one county in close proximity to Iredell continued to have the 6.75 sales tax rate. Miller said using the quarter cent sales tax option would eliminate the need for a property tax increase. Commissioner Griffith said the school system was requesting a 15% funding increase. She asked how much in funding the additional one quarter cent sales tax would bring. Blumenstein said the extra tax would not be on food. She estimated the revenue would be around $4.2 or $4.3 million. Blumenstein said typically, when referendums were held, the counties did not share the tax proceeds with the municipalities. Griffith said it appeared that if the quarter cent sales tax were approved, the entire amount would be absorbed by the schools to meet the 15% increase. Commissioner Robertson said that whatever was funded to Iredell-Statesville had to be proportionately given to Mooresville Graded. Supt. Johnson mentioned that he and Supt. Edwards desired to meet with the board of commissioners in the spring or summer to provide a long term capital needs presentation. Chairman Johnson mentioned that April might be a good month. Mooresville Graded School System: Board of Education Chairman Karen Hart and Finance Officer Terry Haas presented information about the Mooresville Graded School System. Mrs. Hart said enrollment had increased this year with 100 more students than the state had predicted. Haas said early predictions indicated the system might have a total of 6,000 students in the upcoming year. Hart then discussed school needs as follows: • The high school has capital needs. The building was constructed for 800 students and current enrollment is 1,600. (The gym has never been renovated.) The auditorium has safety issues (water leakage and foundation problems). These problems are not esthetic, rather they are structural and safety related. • In the future, a new elementary school will be needed. • In current expense, a continuation of the same level of funding will be requested, but an increase would be helpful. Haas said that in current expense for the upcoming year, there would be increases in employee benefits (health insurance and retirement). She said the teachers had gone four years without a raise until this past year, but the 1.2%n increase was negated in January when the Social Security rate went back up. Haas said it was difficult to prepare for next year due to uncertainty on the state's budget. Chairman Johnson recalled that $40 million was the repair estimate for the gym and auditorium. He said the $40 million for Mooresville along with the needs of Iredell-Statesville at $160 million totaled $200 million, and this would be a 20%n tax increase. Mr. Johnson said, "I think that when you vote for that you're really voting for two tax increases. The reason I think that is because if you look at the residential numbers, particularly east of I-77 in Mooresville --that's the area that looks like it will be the next hot spot --that if $40 million is spent for a Mooresville maintenance bond and the $160 million for Iredell-Statesville--that if you raise the taxes to service the debt, you're left nothing in the budget's existing flow of revenues to deal with growth. Taxes will have to be raised to build new schools for that. Seriously, 1 don't think I could support allowing a vote on half of that. When we heard the presentation this morning, we were told that sales tax revenues were anticipated to be down or below projections to the tune of almost $1.6 million on an annualized basis. I just don't think the money will be there." Chairman Johnson said that with present economy, the county would be doing well to maintain current expense at the current level. Mitchell Communitv College: College President Dr. Tim Brewer, Board of Trustees Chairman Dr. Ralph Bentley, Finance Director Dick Lefevre, and Facilities Director Gary Johnson discussed the needs of the community college. Dr. Bentley said 3,000 students had enrolled for the college's spring semester with 2,000 of them being in the technical training program. He said the college ranked in the top 10 of the 59 community colleges in the State system. Dr. Brewer mentioned the following three financial needs for the upcoming year. 12 1. Increased cost for benefits 2. Retirement costs will increase by 4% 3. Unemployment insurance costs In regards to maintenance needs, Brewer mentioned the following: 1. The D. Matt Thompson Building needs the installation of a new air conditioner. 2. The Science Building roof needs to be replaced. 3. The gym floor needs to be replaced. 4. The college owns an adjacent apartment building, and this space will be converted into office space. 5. The Science Building elevator needs repairs. 6. A vehicle (pick up) needs to be replaced. 7. A lawn mower needs to be replaced. Dr. Brewer said a comprehensive security study had been conducted, and it revealed that campus signage, a card swipe system, and a new intercom system were needed, along with safety training. Brewer said costs for the security measures had been broken down into two phases, and it would take $250,000 to start the process. Brewer said the building on Cherry Street needed to be demolished. Facilities Director Gary Johnson said the college planned to buy modular units ($10,000 per unit) from the Iredell -Statesville School System to house the CNA program. He estimated that $4,000 would be needed to move the modular units. Continuing, he said it was understood the City of Statesville might demolish the Davis Hospital buildings on West End Avenue. He said if this occurred, the college might be able to piggy -back the Cherry Street building demolition with the city. Dr. Brewer said the needs could be prioritized as follows: #1 Benefits for employees #2 Security measures #3 CNA space Dr. Brewer said advance planning had been completed on the new Allied Health Building. Additionally, he said (1) a new classroom building was needed for the main campus (2) the college officials were always on the lookout for possible land acquisitions to accommodate future growth and (3) a public safety training facility (driving pad and firing range) continued to be a future need. Rescue Squads and the Fire Service Fire Services and Emergency Coordinator David Saleeby said the commissioners had received a January 15, 2013, letter from the four rescue squad chiefs asking if rescue squad services were still needed. Saleeby said a review of fire and emergency services in Iredell County dating back to 1987 had occurred, and it appeared the county was trying to fit today's service into yesterday's mold. He said it also appeared that the fire departments were providing the same services as some of the other organizations. Saleeby then reviewed the following chart that shows the services being provided by each rescue squad, the various fire departments, and the EMS Department. 13 C Y t9 C Y 0 u '^ E — O N O w bA lf O u O N V C v c O > I J N C Q v 1A V C N Vt Y O N N (p �n N N Y U w > "' K v u 2 u V �bA u w u u -o s 'n n v in p` ut ut u N N �n v ;+— C — 2 row m v v in = v v aJ u 'o v of,o v o. of Co, of 0 12 of, rc v o v a o N m ti a v oro ul 4 ti U ti� uel Department �$ 60 Special In In In Central VFD Events Process Process Process County Line Special In NSC 15 Future VFD Events Process Cool Springs special NSC 20 VFD Events NSC 24 Special In Ebenezer VFD Events Process Football/ NSC 100 Special In Harmony VFD Events Process IC EMS 0 Lone Hickory NSC O Future VFD Lake Norman As In VFD requested Process In Process NSC 5 Special Monticello VFD Events Mooresville special 100 Fire Events Mt Mourne In 0 VFD Process 77 Sheffield VFD 0 Future 150 Special Shepherds VFD Events South Iredell In 0 Future VFD Process Stony Point ! In NSC 0 VFD Process NSC 20 Special In In Statesville Fire Events Process Process Football/ 26 Special n In Trinity VFD Events Process Process See 0 Troutman Troutman VFD Rescue Union Grove Special In In 80 VFD Events Process Process West Iredell NSC 0 In Process Wilkes Iredell NSC „ 0 VFD Wayside VFD NSC 0 In ProcessProcess In Football/ Troutman 50 Special Rescue Events Football/ In. 55 Special In Proc In Iredell Rescue Events Process ess Process Football/ Mooresville 108 Special Rescue Events Football/ In North Iredell 60 Special Proc in Rescue Events esu Process Total Special 873 Events Firs 14 Saleeby said initially, the volunteer fire departments ran their separate fire calls, the rescue squads ran their own calls, and then EMS assisted. He said now, in some areas, all three were providing the same service. Saleeby said most of the work was in light rescue, and there was much discussion and debate on which agency should bring the machine out, put it in the door, and retrieve the injured party. While discussing the various services, Saleeby asked the commissioners their views on whether or not every rescue squad and every fire department had to be heavy rescue, or even medium rescue. Commissioner Robertson asked how the county could financially maintain what each entity provided. He said at the current time, it seemed the fire departments and the rescue squads were trying to expand and provide additional services. Saleeby said the board of commissioners would have to answer some of the questions. He said that on the fire side, the VFDs had operated with close budgetary oversight (state oversight, fire tax district board oversight, and through the ISO ratings). Pertaining to the rescue squads, he said they operated under the North Carolina Rescue Association; the agency that certified them. He said the county funded the squads with not much oversight. Saleeby said the agencies were responding together, and direction was needed on what the county would fund. Chairman Johnson said most of the fire departments already had the trained personnel and equipment, but they were not certified. Saleeby said the fire departments were becoming certified. He said that when a person took Firefighter I & II, that rescue (light and medium) was included. Commissioner Griffith asked if the rescue squads were questioning why the fire departments were obtaining grants to perform, or duplicate, the services. Saleeby said based upon the January letter, this was a rescue squad concern. Chairman Johnson said the fire departments had obtained the grants, but the county was still operating with a 1980 type model, which had resulted in the duplication of services. County Manager Smith said the rescue squads had requested large funding increases. He said the Mooresville Fire Department handled its rescue calls (within the town limits), but the Mooresville Rescue Squad had asked for a funding increase. Commissioner Griffith said the industry had changed, and this had caused problems. Saleeby praised all of the emergency personnel. He said some individuals worked for a fire department as well as a rescue squad. Saleeby said the agencies were professional, and they had many standards and regulations. He said that if the commissioners wanted any changes, the southern end of the county would be a starting place. Chairman Johnson said at one time the rescue squads were the only agencies that had the rescue equipment. He said that as the apparatus to perform light and medium rescues became more affordable, the equipment became more widely acquired. Johnson said it was foolish to expect an injured party on Old Mountain Road to wait 15 minutes for Iredell Rescue when the West Iredell VFD could respond faster. Commissioner Griffith said, however, a rescue squad would cost about $85 to respond compared to a VFD expense of $845 based on the funding amount and the amount of calls they ran. Commissioner Boone asked if the $85 was based on county funding or total funding. Griffith said county. 15 Chairman Johnson said much of the cost was in fixed assets. Saleeby said the fixed asset cost was set when the county was trying to achieve an ISO rating of six. He said to achieve this rating, high dollar apparatus was needed. Commissioner Griffith said the fixed cost, as well as the expenses the rescue squads were looking at for equipment upgrades, was not factored into the costs. Saleeby said a survey had been sent to a few counties in regards to rescue squad services and various responses had been received. He said many counties had moved away from rescue squads for several reasons. squads: Mr. Saleeby said the following questions needed to be answered pertaining to the rescue 1. Do we stay the same (old mold in a new world)? 2. If we look for a new mold --new way of providing services --and we value all of experience across the county --how do we do it? What level of rescue will the county be willing to fund? How many of the specialty services are needed in the county? Commissioner Robertson asked if the inclination of the board was to move towards a more fire department oriented source for rescue services, and over time the rescue squads would be phased out. Chairman Johnson said even if the board didn't do anything, it was felt this would naturally occur. He said without some direction though, it would happen in a haphazard manner with the southern end occurring first. Johnson said also, that at some point annexation would occur in some areas. Commissioner Griffith mentioned there was a better working relationship between fire and rescue in the northern areas of the county. She said it was time to work towards a peaceful resolution, especially for the southern end. Commissioner Robertson said the redundancy of volunteer hours concerned him. He said many employers were not supportive of fire and rescue volunteers. Vice Chairman Norman asked Saleeby to meet with the rescue squads to discuss the matter and to share the results with the board. Fire Services Saleeby said most fire departments were built around 1966 with Monticello occurring in the late 1970s. He said the fire departments were suffering from growing pains and someday, it would be difficult to differentiate between a municipal unit and a VFD. Saleeby said there were 19 VFDs with several substations, and some of the departments had talked about merging. Commissioner Robertson noted that many of the VFD firemen were paid, and they were not supervised. Saleeby said the VFDs were contracted with for services, and as such, the firemen were not county employees. Robertson said this was understood, but the fact remained that they were being funded by county tax dollars. Commissioner Boone said the VFDs were independent contractors, and as such, they were not supervised like the county employees. Chairman Johnson said most citizens did not understand the contractual relationship. He said the public perception was that the county had control over the VFDs because of the funding. 16 Saleeby said the paid fire personnel were directly supervised by their chief. He said the supervisor was not with them all day, but the paid staff had a checklist of duties. Mr. Saleeby said the volunteer base had declined in the southern end, but not the northern area of the county. He said in the past, a request had been made to him to investigate how the Fire Tax District Board (FTDB) operated. Saleeby said the FTDB was created in 1987, and the only charge at that time from the board of commissioners was to negotiate fire services in Iredell County. He said the FTDB was doing a good job, but the issues the members were seeing today had changed. Saleeby said fortunately, the FTDB had a funding formula for trucks, insurance, and ISO. He said unfortunately, the FTDB was operating in 2013 out of the mold created in 1987. Pertaining to the Lake Norman VFD, Saleeby said the building contract with the county would expire in 2015. He said there was a "gentlemen's agreement" that the Lake Norman VFD (LNVFD) would not leave the countywide fire district until the building was paid off. Saleeby questioned what would happen if the LNVFD decided to have its own fire tax district. Commissioner Boone asked how many counties had a countywide fire district similar to Iredell. Saleeby said this was unknown, but the citizens in Yadkin County paid 8.5 cents for fire services compared to Iredell at 6.5. Mr. Saleeby said group purchasing was being discussed, and a facilities study (no cost) would be developed. Chairman Johnson provided the following instructions for Mr. Saleeby. 1. Get some long-term resolution regarding the Lake Norman VFD and find out what is needed for the department to make a long-time commitment. (How this is resolved will impact many decisions for the departments in the countywide fire district.) 2. On the construction of new fire stations, create two or three sets of plans to be used as templates. The VFDs will then be told to pick a design, and the county will assist with the funding. If the VFDs want something not depicted in the template, they will be responsible for the costs. (There should be set standards, no elaborate HVAC systems, etc.) 3. A good understanding of the insurance rating classifications should be obtained. (This includes water, training, personnel, equipment, building, distant traveling, response time, communications, etc. This understanding will aid Mr. Saleeby when making recommendations to the board of commissioners.) Commissioner Griffith said the county needed to determine what insurance rating was appropriate. Chairman Johnson said the insurance companies were rewriting the standards. Saleeby said new Insurance Services Office (ISO) rates would occur in the summer. Chairman Johnson said if the Lake Norman VFD matter could be resolved, and a predetermined plan on the buildings was created, savings could result. He said, too, that an equipment replacement schedule would be helpful. Saleeby said he understood the instructions for fire services, and that pertaining to rescue services, his charge was to work with the southern end. Commissioner Griffith said pertaining to rescue, the county needed to come up with a different model with dates. She said there was uncertainty amongst the squad members, and they were owed some answers. Vice Chairman Norman said Saleeby should meet with the squads for input and then the information could be shared with the commissioners. 17 Chairman Johnson said squad members should be told the situation had been a "progression of demographics over a period of time." He said there was admiration for the squad members. Saleeby said a meeting had been held with the four squads, and they knew what was coming. He said, however, there was discomfort. County Manager Smith said communication was needed along with education. He mentioned that Saleeby was the one that "should get out in front' to talk with the squad members. General Discussion & Budget Priorities Chairman Johnson asked about the fuel contingency amount. County Manager Smith said $150,000 had been budgeted and none had been used to date. Adjournment: The board adjourned the meeting at 4:35 PM. IREDELL COUNTY BOARD OF COMMISSIONERS WINTER BUDGET PLANNING SESSION MINUTES SATURDAY, FEBRUARY 16, 2013 The Iredell County Board of Commissioners met for a Winter Budget Planning Session on Saturday, February 16, 2013, at 9:30 AM, in the Agricultural Resource Center, 444 Bristol Drive, Statesville, NC. Board Members Present Chairman Stephen D. Johnson Vice Chairman Marvin Norman David Boone Renee Griffith Ken Robertson Staff present: County Manager Ron Smith, Fire and Emergency Services Coordinator David Saleeby, ECOM Director David Martin, EMS Director David Cloer, Finance Director Susan Blumenstein, 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 EMS County Manager Smith reminded the board members that 12 -hour shifts had been implemented for EMS in Statesville due to many night calls. He said there was previously an intention to implement this shift type for Mooresville, but the plans had changed. EMS Director David Cloer said the night call volume in Mooresville had dropped. He said to improve the response time in the southern end, it was determined that a "full truck" should be used for Lake Norman. Cloer said three staff members would be needed for a 24-hour base compared to five for 12 -hour shifts. He said also, that the number of actual transport units would have to be increased. Commissioner Robertson asked about the Lake Norman QRV. Cloer said the QRV would become inactive, but it might replace another vehicle. Robertson asked if ambulances were dispatched along with the QRV. Cloer said yes, but there was only one QRV. 18 Chairman Johnson asked the startup costs for Mooresville. Cloer said $150,000 was estimated for a truck; $50,000 for equipment; and $57,000 for personnel. He mentioned that many southern end citizens requested to receive their health care in Huntersville or in the Charlotte university area. Commissioner Robertson asked the percentage of EMS calls that actually had transports. Cloer said 65 to 66%. He said EMS responded to many wrecks with no one being transported, plus many calls were cancelled. Commissioner Griffith asked how the 12 -hour shifts were working Statesville. Cloer said the staff liked the 12 -hour cycle. Commissioner Griffith asked about workers comp claims. County Manager Smith said the injuries most recently occurring in EMS were primarily from "freak" accidents such as slipping and falling. Commissioner Robertson said that at a prior meeting, a discussion occurred about increasing the physical requirements for an EMS position. Cloer said the labor attorney was reviewing the criteria. Chairman Johnson asked how close the justification was for a 12 -hour shift in Mooresville. Cloer said it would be based on what the board wanted. He said the call volume numbers had declined, especially at night. Commissioner Griffith asked if the placement of a unit at Lake Norman would delay 12 - hour shifts even later into the future. Cloer said yes. County Manager Smith noted that the Statesville EMS building had structural problems. Commissioner Griffith inquired about the possibility of moving the main EMS base into the Cool Springs area (fire station). Cloer said a discussion had occurred with the Cool Springs chief about placing a unit there but not at the main station. He said a large portion of EMS calls originated from downtown Statesville. (A discussion then began on the EMS budget for this year, and Assistant Finance Director Deb Alford said there were three ambulance remounts budgeted at $290,000.) Cloer said there were three 6.0 ambulances remaining in the fleet, and two remounts had already occurred. He said for the upcoming year, two more remounts were budgeted and assuming the concept for Lake Norman received approval, it would have a truck. Cloer said $800,000 was in the enterprise fund. Alford said the enterprise fund had $500,000 at June 30. Commissioner Boone asked about the debt. Cloer said there was no debt, but the county's general fund was owed. Chairman Johnson said the payments needed to remain on schedule in order for the equipment to not wear out before being paid off. 19 Chairman Johnson asked the non -committed money amount in the enterprise fund. He said if fleet additions or replacements occurred, his original thought was that the funding source should be the enterprise fund. Johnson said that if any money remained, it should be placed in capital reserve. Commissioner Griffith asked about combining EMS with the dispatchers. Cloer said he had no problems combining with communications if a new center were built. He said the site at Eastside Drive would keep EMS near downtown Statesville. Commissioner Griffith asked how many acres were county owned at Eastside Drive. Chairman Johnson said several acres were owned south of DSS. Griffith asked if any thought had been given to some type of jail being built at the site, along with space for ECOM and EMS. County Manager Smith said discussions had occurred about ECOM being added to the jail building but not EMS. Chairman Johnson asked if a comfortable enterprise fund balance would remain if the board set aside $175,000 for a new building. Alford asked if the $175,000 was above the $110,000 already reserved for future capital. County Manager Smith said the $110,000 was a fixed cost for convalescent services. Johnson said the $110,000 would not be touched, rather the $175,000 would be added. Griffith asked if the last remount was absolutely needed. Cloer said it could wait another year, but the 6.0 ambulances had given problems. Griffith asked if the ambulances used by the rescue squads could be absorbed by EMS and repurposed. Cloer said in theory yes, but the squads owned the vehicles. Fire and Emergency Services Coordinator David Saleeby asked if some type of ambulance would be stationed at Lake Norman. budget. Chairman Johnson said yes. Griffith asked the timetable for Lake Norman. Cloer said his hiring time was around eight weeks. Chairman Johnson asked if the unit would be running in September if approved in the Cloer said yes. OTION by Commissioner Griffith to authorize Cloer to start the hiring process for the three positions at the Lake Norman Fire Department (positions to be included in the FY 13-14 budget). Commissioner Boone said he was reluctant to vote on this before seeing the budget. Smith said the board would have the budget in May. 20 Cloer said there was one downside about a truck at Lake Norman. He said that when the truck became a transport unit it might be out of the area more than the QRV due to actual transports occurring. VOTING: Ayes — 4; Nays — 1 (Boone) Chairman Johnson requested that Cloer review his fleet and determine if any ambulances would work. He said if none of the vehicles were appropriate, to make an ambulance justification and include it in the FY 13-14 budget. Cloer said the ambulance problems didn't occur in the winter. He asked if the work could begin on the two remounts now, and there was an extended quantities clause in the previous contract. Cloer said most remounts took two -and -a -half months a piece. Blumenstein said an appropriation would be needed and a purchase order couldn't be issued until this happened. Griffith asked if the payment had been made to the county this year. Blumenstein said it had not actually occurred, but the money was available. Griffith asked if this pot of money could be used and the money budgeted for the remounts could be used for the county's payment. Blumenstein said EMS revenues would be over budget in regular collections, plus there was the $364,000 windfall from Blue Cross Blue Shield. She said a budget amendment would be needed to recognize the revenue, and then it could be appropriated for the remounts. OTION by Chairman Johnson to approve a budget amendment to recognize additional revenue (excess budgeted this year for ambulance fees) and to appropriate it to EMS for two ambulance remounts. VOTING: Ayes — 5; Nays — 0. Chairman Johnson suggested that a protocol be developed on what items would be funded out of the enterprise fund. He said after the staff (Smith, Blumenstein and Cloer) developed a policy, it could be shared with the board members. ECOM Needs Study ECOM Director David Martin advised that RCC Consultants, out of Tallahassee, Florida, had conducted a space needs analysis of the existing dispatch and emergency operations center. He said the study offered a 20 -year remedy for ECOM needs. Mr. Martin distributed copies of the study, plus he provided the following summary. 21 RCC Consultants - Communications Study Summary Background The need for expansion and upgrading in both the communications center and the Emergency Operations Center (EOC) prompted the need for a professional study to be completed. RCC Consultants performed prior exemplary work for the county and was chosen to complete a thorough study including both current and future needs. Study Points RCC examined the current layout of the communications center and the EOC, conducted interviews with key staff and performed research on criteria including current call data, growth statistics, current equipment, NFPA and NENA standards and NC VIPER data. Conclusions ➢ Both the Communications Center and Emergency Operations Center are In need of expansion. ECOM is at capacity with seven functioning consoles. ➢ Formula shows the need for nine (9) telecommunicators plus a supervisor should be on duty during peak times to meet standards of NENA and NFPA. Y Equipment rooms are over capacity which will not allow for growth and makes repairs difficult. Y EOC should be expanded to accompany 50 people plus a 12 person conference room. Currently the EOC maximum capacity is 24 and has no additional conference room. Y ECOM consoles are outdated and are not ergonomic. Y RCC recommends the remodeling of the current local however including entire lower level of the Hall of Justice Annex. This allows for a 50 person EOC, breakout rooms, a communications center with 12 console positions, office space for ECOM, Emergency Management, Fire Marshal and EMS staff, storage, conference rooms and kitchen space. Y VIPER will have good coverage with the addition of Fox Mountain site (several coverage maps were generated and included). Y Estimated Building Remodeling Cost: $1,783,000 (breakdown included in study) Y Estimated Furniture Upgrade Cost: $ 419,561 (breakdown included in study) Y Estimated Total Remodeling 8 Furniture Cost: $2,622,122 County Manager Smith said that if ECOM expanded, the Register of Deeds' Office would need to be relocated. Martin said any conversations about moving ECOM to another location should take into consideration the need for tower(s), plus there were many technical aspects that would to be reviewed. He said the study used high estimates due to not knowing when the county might proceed with an expansion. Smith asked Martin when the space need situation would become serious. Martin said there were seven consoles now, but when the phone demand called for more, there would be a critical need. He said the study recommended for a change now. Martin conceded, however, that all seven consoles were not manned on a constant basis. He said call volume had increased during the last few years as had employee turnover. Martin attributed stress and the workload as reasons for the turnover. Smith said ECOM had the highest turnover rate with the exception of DSS. Boone said turnover was not really a problem with DSS, and it was less than 10% with some of this being retirements. Commissioner Robertson said the economy had much to do with turnover. Commissioner Boone asked the feasibility of constructing a facility for the Register of Deeds near the building that houses the probation officers. 22 Smith said this had been discussed, but the entire area was constrained. He said no action was requested on the study, but if the board members desired, the consultants could be asked for a presentation. Soil and Water Conservation Service County Manager Smith said Soil and Water had three employees and based on a salary study, their salaries were low when compared to others in comparable positions. Smith said the three positions were a Soil & Water Department Head, an Administrative Assistant/Education Coordinator, and a Conservationist. He said the agency originally planned to ask for a budget increase of 4.5%, and this would have been around $5,000. He asked if the board would be in favor of a salary increase, and if so, which budget year should it start. Commissioner Boone said the county's 900 employees would also want a raise. Chairman Johnson said it was understood that Soil & Water had no internal mechanism to accomplish salary evaluations or comparisons. He said it was understood that the local office was significantly under paying its employees compared to other Soil & Water agencies. Johnson said the Soil and Water agency's salaries were analyzed and compared to the compensation given to county employees working in the erosion field. He said the Soil & Water salaries were lower. OTIO by Chairman Johnson to approve a 4.5% increase in the FY 14 budget and a 4.5% increase in the FY 15 budget for the Soil & Water agency. VOTING: Ayes — 4; Nays — 1 (Boone) Salary Studies and Employee Compensation County Manager Smith said direction was needed on the employees' salaries for FY 13- 14. He said FY 12-13 was the first year that a standardized raise (merit) had been given, and it was allowable up to two percent. He said 1.39% of the employees received nothing; 11.9% received a 1% raise•, 42.7% received a 1.5% raise•, and 43%n received a 2% raise. Smith said the process was only about fifty percent accomplished due to evaluations being spread out through the year. Commissioner Robertson said the raise was a one time increase, and it didn't apply to the base. Smith said Cycles IV and I in the salary study were also funded and a compression study had been completed. He said unfortunately, the FICA change in January basically eliminated any raises the employees received. Smith gave the following four options pertaining to employee compensation for FY 13-14. 1. Allow the current merit to remain — Cost $609,000 with net cost actually being $358,400 due to $250,000 in FY 14-15 to complete the cycle studies 2. Fund 1 -step increase in Cycle II and a two-step increase in III and IV in the salary study — Cost $190,164 (Cycle II) and $155,459 (Cycle III & IV) 3. Up to 2% merit increase with a one-time payout — Cost $737,300 Total cost at $987,900 due to the previously mentioned $250,000 4. Fund results of compression study (not recommended due to needing to maintain it) — Cost $400,000 Smith said the options were prioritized in his order of recommendation. Robertson said Option 2 dealt with changing the salary ranges for positions to keep them correct. He said this would also include the county spending the $250,600 to complete what had already been committed. Smith said correct. He said the $250,000 was "basically there." 23 Robertson said he was not in favor of Option 1, and he was more inclined towards Option 2. Commissioner Robertson said Option 2 would complete what was started last year costing $250,600.00, plus there would be the start up of the other two cycles. Robertson said at this point in the budget, he could not agree to another 2% merit until all of the budgetary figures were provided. Chairman Johnson agreed. Consensus by the board to allow the staff to proceed with Option 2 Completion of FY13 Priorities Chairman Johnson emphasized that everything discussed during the retreat was contingent upon available revenues. Commissioner Robertson said the retreat was a planning session, and he didn't want the event to be the first budget session. Griffith said it might be appropriate to look at the costs of sending out prisoners and the related cost in salaries for additional staff, as well as the increased debt. She said this might not be the best solution. Commissioner Boone said that in the long run, the current expense for housing the inmates would cost more than the capital expense for building a facility. Chairman Johnson said, "Right now, you're renting someone's excess capacity." He said at some point, the cost to keep the inmates somewhere else exceeded the debt service and in- house cost of operations. Smith said one of the variables was the medical expense. He said fortunately, the jail staff was strategic in which inmates were transported offsite. Griffith asked if the increased number of jail staff could be provided. Smith said he would talk with the jail staff. Commissioner Boone said the board had basically discussed projected needs. He said, "We are basically assuming that everything we do now is justified. There hasn't been any discussion on how we can save money any where. We need to have some system --we need to change our paradigm where we look at the total budget --where we realize the government has gotten too big. We need to look at places where we can save money. I made an attempt in December when I tried to put a cap on the budget; however, the board did not go along. One thing I would like to see is an incentive program for department heads and others who save money in their departments. If someone can save taxpayer money and figure out how to do things more efficiently, they should get some kind of reward. Right now they don't. We have some big departments, and I'm sure there are efficiencies that could be achieved. If a department head can provide the same services with three or four fewer employees, a reward system should be implemented. With the current economy, we need to be as efficient as we can." ADJOURNMENT: There being no further business to conduct, the winter budget planning session adjourned at 12:10 P.M. Approval: 24 Clerk to the Board