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HomeMy WebLinkAboutMay_7_2013_Regular_MinutesIREDELL COUNTY BOARD OF COMMISSIONERS REGULAR MINUTES MAY 7, 2013 The Iredell County Board of Commissioners met on Tuesday, May 7, 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 Absent: Ken Robertson Staff present: County Manager Ron Smith, County Attorney Bill Pope, Deputy County Manager Tracy Jackson, Finance Director Susan Blumenstein, Planning, Transportation and Development Director Joey Raczkowski, Planner Matthew Todd, Parks/Recreation & Facility Services Director Robert Woody, Purchasing Agent Dean Lail, and Clerk to the Board Jean Moore. CALL TO ORDER by Chairman Johnson INVOCATION by Chairman Johnson PLEDGE OF ALLEGIANCE ADJUSTMENTS OF THE AGENDA: approve the agenda as presented. VOTING: Ayes — 4; Nays — 0. MOTTO by Commissioner Griffith to PRESENTATION OF SPECIAL RECOGNITIONS & AWARDS Recognition of the 2013 Iredell County Citizen's Academy Graduates: Deputy County Manager Tracy Jackson said the 2013 Citizen's Academy provided an opportunity for individuals to find out how the county worked and the roles of the county's departments and partner agencies. He said the academy consisted of ten sessions spread out over an eight-week period. Jackson recognized the following academy participants who were present at the meeting: Denise Blair, Ted Bednarek, Irene Blackburn, Bill Booker, Marsha Branch, Susan Cartner, Tom Connolly, Stephen Byrd, Eugene Cheek, Jimmy Dagenhart, Chuck Harris, James Hatfield, Karen Keaton, Carl Lombardo, Eric Pope, Wanda Rushton, Carol Shuffler, Eugene Shuffler, Fern Wilcox, Tony Wilcox, and Nicholas Yount. Jackson said others who participated but could not attend the board meeting were Bill Brower, Deryn Cass, Michael Cole, and Jacob Wilcox. APPOINTMENTS BEFORE THE BOARD Mr. Burgess Bailey Addressed the Board about Veterans Day Celebrations Occurring in November 2013 Along with a Request for the Adoption of a Proclamation Regarding the "Purple Heart Trail": Mr. Bailey said on Veterans Day this year, there would be ceremonies to honor, acknowledge, and remember the fallen individuals who had provided military service. He the Rowan County Board of Commissioners, the City of Salisbury Mayor, and the Mayor of Statesville had issued proclamations in recognition of the event. Bailey said the next step, after the Iredell County Board adopted the proclamation, was to seek recognition from General Assembly Member Rena Turner. Commissioner Griffith presented the following proclamation that describes the Veterans Day events to Mr. Bailey. Proclamation for Veterans Day Weekend Celebrations WHEREAS, the Purple Heart Trail is the temporary name given to a parade route that has been established in association with a special motorcycle tribute to honor our veterans. This tribute is part of a Veterans Day Weekend Celebration; and WHEREAS, the Purple Heart Parade route extends from the Iredell/Rowan County border at US Highway 70 traveling west to the City of Statesville to the intersection of Morland Drive and US Highway 70, now becoming Garner Bagnal Boulevard, until intersecting with Shelton Avenue/Highway 115. Next, the route travels north on Shelton Avenue/South Center Street to the square in downtown Statesville, continuing north on North Center Street/Highway 115 and passing under the I-40 underpass. Then, continuing north for seven miles on Highway 115/Wilkesboro Highway and turning right onto Bailey Farm Road into the Bailey Hills community of Iredell County, Statesville, NC; and WHEREAS, a celebration will occur from 8:00 AM, Friday, November 8, 2013, through 8:00 AM, Tuesday, November 12, 2013. A special motorcycle tribute, called a "Rumble Quake" will occur on Saturday, November 9, 2013, at 11:00 AM from the Salisbury National Cemetery Annex traveling along the Purple Heart Trail and arriving at approximately 12 Noon. The approach of the "Rumble Quake" will the opening act for an Uncle Sam's USO Show and celebration at the Bailey Open Air Theater for veterans and their families and friends; and WHEREAS, these events have been created to acknowledge, honor, and remember all those who have taken an oath and served our country in the US Military. NOW THEREFORE BE IT PROCLAIMED, that the Iredell County Board of Commissioners, in keeping with the time honored tradition of recognizing and honoring our veterans, hereby calls upon the citizenry of Iredell County to participate in and support the Veterans Day Weekend Celebrations with expressions of gratitude to all veterans known to them and to the families of deceased veterans and to solemnly remember the sacrifices of all those who fought so valiantly, on the seas, in the air, and on foreign shores, to preserve our heritage of freedom. Chairman Johnson declared the meeting to be in a public hearing. PUBLIC HEARING Consideration of a Rezoning Request from Many Doors, LLC from M-1, Light Industrial District to M-2, Heavy Industrial District: Planner Mathew Todd described this request and a copy of the staff report is as follows: EXPLANATION OF THE REQUEST This is a request to rezone 3.09 acres at 126 Orbit Drive in Statesville from M-1, Light Industrial District to M-2, Heavy Industrial District. Previously the property was used for manufacturing. This is a straight rezoning request and therefore, all uses as described in the Table of Permitted and Special Uses (Section 2.21) in the Land Development Code will be allowed. No conditions are proposed in the request. OWNER/APPLICANT OWNER/APPLICANT: Many Doors, LLC, P.O. Box 951, Statesville, NC 28687 PROPERTY INFORMATION LOCATION: 126 Orbit Drive, in Statesville; more specifically identified as PIN 4704816839.000. DIRECTIONS: 1-40 West to Old Mountain Road; South on Old Mountain then left on Orbit Drive and site is on the right. SURROUNDING LAND USE: This property has industrial and commercial uses on all adjacent properties. SIZE: The property is 3.09 acres. EXISTING LAND USE: The property is currently developed and was previously used as a manufacturing space since the late 70's. ZONING HISTORY: This parcel was zoned M-1 with county wide zoning in 1990. The surrounding properties were also zoned M-1 in 1990 with county wide zoning. OTHER JURISDICTIONAL INFORMATION: This property is located within Statesville's short range USA boundary. The City of Statesville stated that industrial uses are exempt from architectural standards in their zoning industrial zoning district. They stated that they do have some standards in place to protect residential uses adjacent to industrial uses but with the location of this facility those standards should not be an issue. Based on the surrounding area they did not have any concerns. OTHER SITE CHARACTERISTICS: This property is not located within a Water Supply Watershed IMPACTS ON LOCAL INFRASTRUCTURE AND/OR FACILITES TRAFFIC: Orbit Drive is a State maintained dead end road and runs approximately 2,000 feet in length. Orbit Drive is off Old Mountain Road and provides access for several industrial sites. The closest traffic count is on Old Mountain Road just south of the intersection with Orbit Road and had a 2010 count of 8,800 vehicle trips per day. The capacity for this section of Old Mountain Road is 13,800 vehicles per day. SCHOOLS: Because this is an industrial rezoning, there should be no implications on local schools. FIRE MARSHAL: This proposal has been reviewed by the Iredell County Fire Marshal's Office. The Fire Marshal's Office has no issues with the proposal. EMS: This proposal has been reviewed by the EMS Department. They have no issues with the proposal. REQUIRED REVIEWS BY OTHER AGENCIES LOCAL: Depending on changes the applicant may have to provide a site plan to the Planning & Development Department for review to change the use or develop the property. Zoning requirements such as parking, landscaping and buffering would be reviewed at such time. Plans will be reviewed by the Planning & Development Department for compliance with Erosion & Sedimentation Control standards. STATE/FEDERAL: Other than the building code, there should be no formal state agency review at this time. STAFF AND BOARD COMMENTS STAFF COMMENTS: The 2030 Horizon Plan calls for this area to be Employment Center - Industrial/Flex/Office. This property is currently zoned light industrial and surrounded by properties already zoned industrial. The closest residential zoning is over 600 feet away, while the closest house is over 500 feet away and is zoned commercially. This property is adjacent to other industries, an electrical substation and on two sides of this site there are high tension power lines. Other information to consider is that the property has been zoned and used industrially since 1990. This general area has a strong industrial base that will continue to be the predominate use of the land on the south side of this interchange. There are several industrial type uses that due to the particulars of this site or the special requirements will limit the M-2 uses. While animal rendering, asphalt plants, meat processing, and mining are allowed uses in the M-2 district they could not meet the other requirements within the Ordinance. The Planning staff can support the proposed rezoning request based on the following: The 2030 Horizon Plan calls for this area to be an employment center-industrial/flex/office area. The proposed district fits into the existing development pattern and neighboring uses. Based on size of property and limiting factors from the Land Development Code the potential M-2 uses are consistent with surrounding industrial zoning. Potential traffic impacts should not come close to the road capacity. SITE REVIEW COMMITTEE: Kristie Neuter visited the site with the staff on March 13, 2013. PLANNING BOARD ACTION: On March 6, 2013, the Planning Board held a public meeting to hear this request. No one spoke in opposition. The Planning Board voted 5-0 to recommend approval of this request based on the consistency with the 2030 Horizon Plan. Harry Tsumas, a co-owner of the property, said a local entrepreneur (Dallas Norman) was interested in starting a manufacturing operation. Tsumas said there was a lack of M-2 sites north of Mooresville. Dane Campbell, another owner of the property, said the prospective buyer needed M-2 zoning in order to manufacture landscaping products (retaining wall blocks). He said M-2 zoning was appropriate for industrial/flex/office uses. site. Dallas Norman, the prospective buyer, said a concrete block plant would be built at the Commissioner Griffith asked how many people would be employed. Dallas Norman said 6 would be hired for this particular site and 8 would be added to the 20 employees who already worked for him. He said the product was now being purchased in Mecklenburg County, but if manufactured here, revenue could be generated in Iredell County. No one else desired to speak, and Chairman Johnson adjourned the hearing. OTIO by Commissioner Griffith to approve the zoning map amendment and to make a finding that approval was consistent with the adopted 2030 Horizon Plan and said approval was reasonable and in the public's interest due to its consistency with the 2030 Horizon Plan; as a result, said approval furthers the goals and objectives of the 2030 Horizon Plan. The approval allows all uses as described in the Table of Permitted and Special Uses (Section 2.21) in the Land Development Code. VOTING: Ayes — 4; Nays — 0. ADMINISTRATIVE MATTERS Request for the following: (1) Acceptance of the 2012 Scattered Site Housing Community Development Block Grant (#12-C-2434) (2) Execution of the Grant Agreement and Funding Approval Documents (3) Adoption of a Grant Project Ordinance and (4) Authorization for Staff Members to Certify and Sign Grant Expenditure Reimbursement Requisitions: Planning, Transportation and Development Director Joey Raczkowski said that in October 2012, the board authorized the staff to submit a grant application for $225,000 to the Department of Commerce for the 2012 cycle of the Scattered Site Housing Program. He said the funding would rehabilitate four homes and provide emergency repair to four additional units. Raczkowski said four actions were now needed, and after accomplishment of these, the county would select a consultant. He said the commissioners would also be asked to appoint a housing selection committee to review the applications. Commissioner Boone asked if a staff member could supply the consultant's work rather than hiring someone. Raczkowski said the State required a consultant, and in other jurisdictions where he had been employed, the work had been supplied in-house. He said, however, there was no one on his staff at the present time who could administer the grant. Commissioner Griffith asked the consultant's cost. 4 Raczkowski said ten percent ($22,500) of the grant could be applied towards administrative costs, and the consultant's fee could be paid out of this money. He said the county could also be reimbursed for the staff s time. Chairman Johnson asked if the consultant's work was let out for bids. Raczkowski said yes --through a request for proposal process. Commissioner Griffith said, "Just because we can apply for grant money, it does not mean that we should. The money stream from the federal government that is collected from the taxpayers is ever shrinking. I think good responsible leadership requires that just because you can do something, it doesn't necessarily mean that you should." Commissioner Boone said the $225,000 grant was almost a dollar per person in Iredell County. He said, "1 realize this is `free' money. It is federal money which also comes from the American taxpayers, or it's the money the government has borrowed, or the Federal Reserve Board has borrowed, which is worth less when they borrow it. It ultimately costs money. If these grants are administered nationwide, like they are in Iredell County at a dollar and a half per person, this would be approximately $4.5 million in the United States. If anyone doesn't think the federal government spends too much money --this would be enough to hire air traffic controllers. We've heard about them being laid off, and it would pay the salaries of several hundred air traffic controllers. It would be enough to conduct White House tours long past any of our lifetimes. It could do all kinds of other things. What this one grant could do and almost no one is aware of it. This is something that needs to be kept in mind. I'm sure there are some deserving people who would benefit from this. A lot of consultants benefit too." Chairman Johnson said the money would be spent somewhere even if the county did not apply for it. OTION by Vice Chairman Norman to approve the four requests. VOTING: Ayes — 2 (Johnson/Norman); Nays — 2 (Boone/Griffith) (The motion failed.) Request for Authorization to Demolish the Former Youth Home Structure as well as a Storage Shed at 231 Twin Oaks Road, Statesville, NC, and the Request of a Waiver for the Debris Tipping Fees: Parks, Recreation and Facility Services Director Robert Woody described the former youth home structure that was initially built in 1957 and purchased by the county in 1974 for $10. He said several additions had been made to the structure over the years, and the staff was requesting permission to demolish the building to provide additional parking for Facility Services and to create an open storage area. Woody said the structure had not been used in several months and it had fallen into an unsightly state. He said discussions had occurred with an auctioneer about auctioning off the property with the buyer relocating it. Woody said, however, the following concerns had been voiced about this arrangement: (1) it would be costly to move the house due to its location (2) the house is located on multiple foundations (3) the auctioneer's cost would be $900 to $1,200 regardless of whether the house sold or didn't (4) the house could remain on the market for several months which would result in further deterioration and (5) any buyer would have a timeline for removal and the county might still be left with clean up and future maintenance. Woody said the Solid Waste Director was agreeable to the tipping fee waiver provided the brick was removed for recycling purposes. Commissioner Boone, who previously suggested the possibility of moving the house, said the additions were obvious due to the brick not matching. He said that if someone only paid a $1 for the house and agreed to relocate it, this arrangement would be more advantageous to the county. Boone asked if an auctioneer was necessary. He mentioned the house might be rented until there was a use for it, and he was in favor of recycling. Boone voiced concerns about demolishing the structure and placing the debris in the landfill. Chairman Johnson voiced concern about anyone trying to move the structure due to damage that might occur to the core when the ends were dislodged. 5 Commissioner Griffith asked how much of the waived fees would be recovered by recycling the bricks. Woody said the tipping fee was an estimate based on total weight. Boone asked if copper or anything else would be recycled from the house. Woody said it was possible, if the items could be removed. Boone asked who would receive the recyclable items. Woody said the buyer. Vice Chairman Norman asked if giving the property away had been discussed. Woody said no. Boone said allowing someone to pay $1 would be more advantageous than the demolishment. Purchasing Agent Dean Lail said there were two actions the board could take with one being the demolishment. He said next, the house could either be marketed or given away with the surplus property process being used. Lail said most of the time, when houses were given away, they were located in inner cities and relocated only a short distance. He said the former youth home could not be economically moved more than six miles. Commissioner Boone asked if the fire department could use the structure for practice. Lail said this could be done. Boone said the person buying the house would have to figure out how to move it --not the county. Boone asked if the property had to be auctioned. He mentioned the possibility of advertising for bids. Lail said there was a process for real estate where bids were accepted. He said a house without land was personal property, and a surplus property procedure had to be followed with a public sale. OTIO by Vice Chairman Norman to approve the demolishment of the property and to award the contract to Terry Linn at $4,710. VOTING: Ayes — 4; Nays — 0. Request for Approval of Budget Amendment #32 in Association with a Request to Demolish Four Unoccupied Structures (formerly rental houses) on Tradd and Harrill Streets, Statesville, NC, Along with a Request to Waive the Debris Tipping Fees: Parks, Recreation and Facility Services Director Robert Woody described four former rental homes located at 334 Tradd Street, and 321, 333, and 337 Harrill Street. He said the structures were unfit for County purposes and were in an unsightly state. Woody recommended demolishment. Commissioner Boone said a visit was made to look at the structures on Harrill Street. He said a private landlord might be able to rehabilitate a couple of them. Boone said the houses were small, and it would be easy to move them. OTIO by Commissioner Boone to postpone any action and to investigate the possibility of someone relocating the Harrill Street houses. Chairman Johnson asked if there was a timeline. Boone said no. 6 Chairman Johnson asked that more specific directions be given to the staff. He asked if the staff should advertise that someone could move the houses. Boone said someone might want to move two of them on Harrill Street, but it was less likely that anyone would want to move the bricked house. He said the house on Tradd Street was older, and it was unknown if it could be moved. Chairman Johnson asked if the staff could advertise for proposals from individuals who were willing to move the houses within 90 days. Boone said yes. AMENDMENT TO THE MOTION: The county staff will advertise for proposals from individuals willing to move the houses within 90 days. VOTING: Ayes — 4; Nays — 0. Request from the Health Department for Approval of Revisions to the Clinical Services Fee Schedule: Interim Health Director Susan Johnson said in October 2011 the clinical services division implemented significant fee increases following approval by the board of health and the board of commissioners. She said the increases were based on directions from the State Division of Public Health. Ms. Johnson said that with the higher fees there had been a significant decrease in clients, and for this reason, fee revisions were requested. She said the board of health had approved the revised fee structure. Chairman Johnson said the health department staff had decided, based on historical data, that a revenue neutral budget would exist once the volume of patients picked back up. Ms. Johnson said this was correct. Commissioner Griffith asked if the State and Federal funding dollars were based on the number of people served. Ms. Johnson said no --not directly. She said that in some clinics the health department had been receiving the same amount of State money for years and the client numbers had fluctuated. She said the Women, Infants and Children's (WIC) Program, however, was contingent upon the number of client visits. Commissioner Griffith said in past discussions it had been stipulated the fee should be enough to cover the service. She asked if the recommended fees covered the cost to supply the services. Ms. Johnson said not 100%. Griffith asked if the current fees covered the cost to provide the service. Ms. Johnson said not 100%. Griffith said the gap would be getting larger if the fees were reduced. Ms. Johnson said it was felt the situation would be equalized due to an anticipated higher caseload. Griffith said the situation would never equalize if the fee didn't cover the entire service. Ms. Johnson said the reason the charge was not covering the complete cost was due to having three different funding streams. She said there was grant money from the State, and it was used to help subsidize private pay patients. Johnson said there was generated revenue and then there was the county funding. She said this year in the budget, with the exception of environmental health, there were no increases in the "county share." Ms. Johnson said the Medicaid reimbursement would not be affected due to all of the fees being set at, or above, the 7 reimbursement rate. She said the only fees that would be affected were the ones that were 20% to 100% on the sliding fee scale. Chairman Johnson said Ms. Johnson had agreed to monitor the fees and to provide periodic updates. He said the fees would be adjusted again if needed. Ms. Johnson said this was correct. MOTION by Commissioner Boone to adopt the revised fee schedule as presented. VOTING: Ayes - 4; Nays - 0. Proposed Revisions to 2012-2013 Fee Schedule [44:11[dil7�111#UTJr47:111[7*11410[211[97,I New Patient Preventive Health Visits 99381 Age under year 99382 Age 1-4 years 99383 Age 5-11 years 99384 Age 12-17 years 99385 Age 18-39 years 99386 Age 40-64 years 99387 Age 65 years & over Established Patient Preventive Health Visits 99391 Age under 1 year 99392 Age 1-4 years 99393 Age 5-11 years 99394 Age 12-17 years 99395 Age 18-39 years 99396 Age 40-64 years 99397 Age 65 years & over New Patient Evaluation and Management Visits Fees Approved In June for FY 2011 2012 $125.00 $135.00 $144.00 $154.00 $208.00 $228.00 $257.00 $103.00 $109.00 $119.00 $128.00 $173.00 $189.00 $215.00 Revised Fees Approved & Effective Since October 2011 $333.00 $359.00 $357.00 $314.00 $314.00 $367.00 $257.00 $291.00 $317.00 $316.00 $273.00 $274.00 $300.00 $215.00 Proposed Fees $132.00 $143.00 $154.00 $169.00 $221.00 $241.00 $271.00 $109.00 $115.00 $146.00 $146.00 $183.00 $200.00 $227.00 99201 Minimal $95.00 $56.00 $114.00 99212 $113.00 $72.00 99202 Limited $119.00 Expanded $197.00 $192.00 $140.00 99214 99203 Expanded $155.00 $156.00 $285.00 Comprehensive $183.00 $389.00 99204 Detailed $221.00 $442.00 $261.00 99205 Comprehensive $298.00 $298.00 $353.00 Established Patient Evaluation and Management Visits 99211 Minimal $51.00 $56.00 $59.00 99212 Limited $72.00 $114.00 $84.00 99213 Expanded $92.00 $192.00 $108.00 99214 Detailed $134.00 $288.00 $156.00 99215 Comprehensive $214.00 $389.00 $250.00 Request from Social Services for Approval of a 36 -Month Subscription for an On-line Legal Research System from Westlaw: Purchasing Agent Dean Lail said Social Services currently provided Westlaw products for staff attorneys at a monthly cost of $187.20 for a one- year subscription. He said the attorneys had requested an additional training module that would provide additional support, and it would be more cost effective to have a 36 -month subscription. Lail said the new cost would be $218.40 a month, and the subscription included a non - appropriations statement for government entities in the event the money was not appropriated. Commissioner Griffith asked if the service was needed. Social Services Attorney Chris Main said the current subscription with WestLaw was frequently used. He said the added service would include form templates plus citations to General Statute regulations and case law. Main said laws changed, and the product would be beneficial. Griffith asked if Mr. Main was employed by the county or if his services were on a contractual basis. Main said he was a county employee. Griffith asked if it would be cheaper to buy the books. Main said the books were expensive and the Family Law series alone was several hundred dollars plus periodic updates would have to be purchased. Chairman Johnson asked, assuming the county did not subscribe, how much it would cost for the attorneys to provide the research. He asked if the costs would exceed $218.40 a month. Attorney Main said it was unknown if there would be enough manpower (two attorneys) to supply the necessary research. Commissioner Boone asked what services would be provided. Main said social services currently received the North Carolina and Federal Civil Procedure books every year and juvenile law books. He said the Westlaw series would have access to most all legal books. MOTION by Commissioner Griffith to approve the 36 -month subscription to WESTLAW Legal Research. VOTING: Ayes — 4; Nays — 0. Request for the Appointment of a Jail Development Review Committee: County Manager Ron Smith requested the appointment of a jail review committee to investigate the possibility of building a new facility. He said the Moseley Architectural firm had recommended for the committee to consist of all parties with an interest in the facility. Smith suggested that the following offices/positions be included: two members from the board of commissioners, an individual from the Statesville City Council (from a design/approval perspective), a local judge, a representative from the sheriff's office/jail, a representative from the district attorney's office, the clerk of court, and someone from the neighborhood. He said the staff would assist as needed. Commissioner Boone suggested two changes to the committee. He said a bail bondsman would be helpful, and a neighborhood representative could probably be deleted due to the proposed location not being a residential area. Chairman Johnson said a discussion had occurred with Commissioner Boone, and the two of them had agreed to serve on the committee. Mr. Johnson said he and Mr. Boone could contact the sheriff/jail's office to determine which individual from that department would serve. MOTIO by Commissioner Griffith to approve committee, as amended, with the following offices/positions: Two commissioners (Chairman Johnson and Commissioner Boone) Bail bondsman Statesville City Council representative Localjudge District Attorney Clerk of Court 9 Sheriff's/Jail Representative (Chairman Johnson and Commissioner Boone will nominate a candidate to represent this department.) VOTING: Ayes — 4; Nays — 0. Call for a Public Hearing on Tuesday, June 4, 2013 at 7:00 PM Regarding the Fiscal Year 2013-2014 Iredell County Budget: IMOTION by Vice Chairman Norman to call for a public hearing on June 4, 2013, at 7 PM, regarding the FY 2013-14 budget. Commissioner Griffith said she would be out of town on June 4. She requested that the board not vote on the budget that evening. Commissioner Boone said typically the board did not approve the budget on the same night of the public hearing. VOTING: Ayes — 4; Nays — 0. Request for Approval of Budget Amendment #33 to Appropriate $100,000 from Fund Balance to a New Line Item, Statesville Economic Development Project, as a Contribution to an Industrial Project at the Statesville Industrial Park: County Manager Smith requested approval of a budget amendment to appropriate $100,000 to a new line item associated with a Statesville economic development project. He said the funds would go towards an industrial project at the Statesville Industrial Park, and the board had previously discussed the matter. Smith said there was a requirement in the agreement that Iredell County would be reimbursed the $100,000 upon the sale of property. Commissioner Griffith asked if the zoning would be M-2. Chairman Johnson said the site would fall under Statesville's zoning. Smith said the zoning would be M-1 or light manufacturing, but there could be a rezoning request, if needed. Commissioner Boone said he was philosophically opposed to any incentives. He said, "I realize that in the world we live in, it is probably a necessary evil. I said when I ran for this office that the county had a generous incentive policy. I said if a request came up that conformed to our policy 1 would support it. I've done that and I will continue. This is something that is in addition to our policy. It is asking for more money than what would normally be given under our policy. I have a little trouble extending this generosity even further. If we need to change our incentive policy, then we need to look at it and change it. I have problems with making grants on an ad hoc basis to one particular individual or one particular group. As a practical matter, I'm not sure how much this would aid in recruiting industry. We are supposed to be helping to finance the building of a shell building or basically the industrial equivalent of a spec house. The last shell building the City built took five years to sell so I'm not sure if they are a hot commodity or not. That makes me very dubious about this. This was discussed in closed session, and I think at least two commissioners had a lot of the same concerns that I did. I think ultimately they said, `Well, we'll not support this unless a condition is placed that the county will be reimbursed at the time the building is sold.' Apparently that condition has been put in, and it does improve things. It still does not make it 100% of something that I support. This is similar to the request from the Mooresville economic developer that two of us voted against earlier this year, or late last year. The only difference is that it is a smaller sum of money, but it is a request for money upfront. Maybe eventually, we'll get paid back in the future. One concern that I have is that at such time as the building is sold, there might be a request to have us release the commitment for repayment to the county. All of these things trouble me. At some point we will have to say enough is enough as far as what we do to provide incentives for people to come here. We should compete on a low tax rate and a good business climate. Like I said, we have other jurisdictions that we have to compete with. I'm aware of that. I've been willing to bend quite a bit, but this request is kind of troubling to me. If we grant this, I'm sure the same organization will be back asking for something even more generous from us. If we grant that, they'll come back asking for something else. At some point we have to put a stop to it, but 1 don't know where." 10 Chairman Johnson said, "I share some of the same concerns that Mr. Boone has. I do know there were four clients who looked at this building. One of them actually located in the building, the other three located somewhere else in the county. Now, you can attribute that to the fact that we had a display building or not. That's anybody's guess. I do think it is necessary that you have a marketable asset on the ground that you can show to people when they come here and for us to get a three or three and a half million dollar building --a marketable asset for a hundred thousand dollars --which I'm going to be totally honest with you may be refundable or may be not refundable. This board has had lengthy discussions about incentives over the years, and this is one of those areas where my political philosophy has been honed by pragmatism because of what goes on in the economic recruitment climate. I'll tell you as chairman, I have learned this: Somewhere between where we are now and the incentive package that we have, and the inventory of sites that we have now, along with other counties giving away buildings, is where the sweet spot of the economic development market is. I would maintain that it is far closer to where we are than it is to giving away property. I do believe that in terms of the inventory of potential sites in this county, we are not competitive. We had a firm here a few months ago that looked at the only site we had to offer them, and it was going to cost about $2 million to mitigate problems with the site as far as relocating roads to homes and as far as stream mitigation. It finally got to the point where 1 told them in good faith I could not come back to this board above a certain amount of money and no more. These folks went to Salisbury where they had a site prepared for them. The firm has since signed an agreement with Salisbury for a $100 million deal and 450 jobs. Now folks, whether you like incentives or not, we have got to do abetter job in being competitive. I support a plan, and Mr. Raezkowski and his staff members are working on it in conjunction with the City planning staff. After a meeting with site consultants some time back, I impressed upon them the need to go out and get suitable sites where the topo was good, the ingress and egress were good, and where there would not be severe mitigation problems as far as streams and so forth. We could approach the property owners with some front-end money to do Phase 1 environmental work, soil surveys, compaction tests, or whatever was needed to satisfy a potential client. In exchange for that, we would market their property. Upon the sale of the property, because of the price of their property depreciating due to the work done on the front end, the county would reimburse those monies. I'm satisfied with a process like that where you could turn that money over in time. The only thing you would be out of would be the initial investment, but you'd have a marketable asset on the ground. If you sit down with an industrial client today, it is far different than it was ten years ago when they sat down and said we need a site in a year. Consistently, you'll sit down and they'll say, `I'm under contract to present a site to a client within 120 days.' If you have not done significant due diligence on the front end, you're not in the game folks. Now, those aren't my rules. That is the world as it exists. If we don't get serious about this, we'll continue to miss deals like that. I'm a big advocate for us getting competitive, and we're not going to have to spend a whole lot of money to do it. For $30,000 to $50,000 you can have a thirty -acre site ready for someone to survey, and they have a relative assurance that there are no environmental issues. We have got to get serious about doing that. That has nothing to do with this issue, but I'm going to tell you I'm not going to shut up until I make this happen. 1 believe this is where we need to be. I'm in favor of the $100,000." OTION by Vice Chairman Norman to approve Budget Amendment #33 to transfer $100,000 from fund balance to the Statesville Economic Development Project as a contribution to an industrial project at the Statesville Industrial Park. VOTING: Ayes — 3; Nays —1 (Boone) Request for Approval of the April 16, 2013 Minutes: MOTION by Commissioner Griffith to approve the April 16 minutes. VOTING: Ayes — 4; Nays — 0. 11 To appropriate $100,000 from Fund Balance for an economic development project with the City of Statesville. BA#33 5/7/2013 Account # Current Chane Amended 104880 499500 Appropriate Fund Balance (4,394,700) (100,000) (4,494,700) 105475 5650.10 Statesville Economic Dev Project 100,000 100,000 Request for Approval of the April 16, 2013 Minutes: MOTION by Commissioner Griffith to approve the April 16 minutes. VOTING: Ayes — 4; Nays — 0. 11 ANNOUNCEMENT OF VACANCIES OCCURRING ON BOARDS & COMMISSIONS Industrial Facilities & Pollution Control Financing Authority (3 announcements) Region F Aging Advisory Committee (1 announcement) Troutman Planning Board (ETJ — 1 alternate position announcement) Statesville Airport Commission (1 announcement) Mitchell Community College (1 announcement) Farmland Preservation Advisory Board (2 announcements) Statesville Board of Adjustment (ETJ — 1 announcement) Jury Commission (1 announcement) I -CARE Board of Directors (2 announcements) APPOINTMENTS TO BOARDS AND COMMISSIONS Personnel Advisory Committee (1 appointment): MOTION by Commissioner Griffith to postpone this appointment. VOTING: Ayes — 4; Nays — 0. Recreation Advisory Committee (1 appointment): Commissioner Griffith nominated Daryl Tilley. OTION by Chairman Johnson to close the nominations and to appoint Daryl Tilley by acclamation. VOTING: Ayes — 4; Nays — 0. COUNTY MANAGER'S REPORT Presentation of the Proposed Iredell County FY 2013-14 Budget: County Manager Ron Smith presented his budget message as follows: Iredell County FY 2014 Budget Message May 7, 2013 Introduction The development of the proposed FY2014 County Budget has shown preliminary indications of a transition in County growth and operations. After several years of slow to no growth we are seeing signs of an increase in the local building industry. Over the last year development activity has been steadily increasing, especially in the southern end of the County where dormant residential projects have been revived, numerous apartment developments have been constructed, and commercial development is at its highest rate in several years. In return, development revenues are up significantly and a resulting increase in service demand has already occurred. I expect that if the County continues to grow it will be a challenge to gauge and maintain a high level of service to meet those needs. Revenues The County has experienced an increase in the value of the tax base this year and we expect that the County will see a 3.14% increase in its total taxable value in FY2014. Although we have seen an increase in the overall base this year there has been less than a I% increase in real property valuation. It is probably safe to assume that we will continue to see slower growth until development gains a firm and sustainable foothold. Personal property on the other hand has increased by over 15% and accounts for most of the overall increase, which is a good indicator of local spending. Over the last year there has been continued volatility in sales tax revenues and we do not expect to meet our projections. At this point we anticipate sales taxes will come in over $1.6m under our projected total. Based on this we are projecting less than a 1.5% increase next year over projected current year collections. Revenues generated by development fees are projected to come in over 30% higher than expected this year. This increase shows a rise in overall activity, which we have not seen in several years. Hopefully this will be a lasting trend although we still consider this relatively a volatile revenue source. Because of that we are projecting a stable continuation of this trend in FY2014, in order to approach this newfound activity in a relatively cautious manner. Expenditures The proposed budget focuses on three major themes when it comes to spending; first, limit growth in department budgets in order to offset additional uncontrolled costs; second, maintain level education funding; and third, begin planning for future growth and related facility needs. 12 The proposed FY2014 budget is 2.2% higher than the current year. At least half of this increase is due to costs that are uncontrollable, unavoidable, or unforeseen. We compensated for these costs largely by leveraging other expenses in the department budgets and relying on anticipated increases in revenues. As directed by the Board the recommended budget maintains the current per pupil allocation for both Iredell-Statesville Schools and the Mooresville Graded School District at $1378 and accommodates predicted new student enrollment in FY2014, while Mitchell Community College is proposed to see a nominal increase over their current year's budget allocation. Overall education funding will remain very close to this year's amount, with less than a I% total increase proposed, although it will continue to remain at over 52% of the total County budget. The County has had a reprieve of sorts over the last several years from a facilities standpoint. Last year the Board wisely allocated money to fund deferred maintenance for existing buildings and grounds that had been shelved since the onset of the recession. That action set the stage for an ongoing project plan that should eliminate that problem in the future if funding continues. I am recommending that we continue to fund this course of action in the proposed budget. I have also recommended that the County begin preparing for future growth and the resulting service demands by contributing to a future capital facilities fund, a practice that was all but ceased during the recession. Personnel I have attempted to limit the number of recommended new personnel for the upcoming year. However there are needs that cannot be met with existing staff. The positions that are being endorsed would allow the County to strengthen our Emergency Medical Services and fully staff an additional ambulance in the southern end of the County, shore up our 911 telecommunication services, decrease Environmental Health backlogs, more adequately address the physical maintenance of our buildings and grounds, and add to the capacity of our Tax Administration Department. These proposed staff additions are either safety related or will bring staffing closer to the level of their facility or department requirements. I am also recommending fully funding the last two pay study cycles and providing up to 2% in performance pay to employees, following the same approach as was approved in the current year's budget. These efforts will hopefully help to limit the possibility of losing valued and experienced personnel to other jobs and bearing the costs of replacing those individuals. Recommendation Based on the information presented in the preceding message and to complete my obligation under G.S. 195-11 I recommend that the Board of Commissioners approve the proposed FY2014 budget of $164,108,385. This will keep the current tax rate at 48.5¢ per $100 in valuation and is based on a tax base of $21,106,500,000 with a collection rate of 97%. The fund balance on June 30, 2013 is estimated to be $31,382,250, which is 19.12% of the recommended budget. Respectfully Submitted, Ron Smith ADJOURNMENT: There being no further business to conduct, Chairman Johnson made a motion to adjourn the meeting at 8:40 PM. (Next meeting: Budget Review Session on May 16, 2013, in the South Wing Conference Room, of the Iredell County Government Center, 200 South Center Street, Statesville, NC.) VOTING: Ayes — 4; Nays — 0. Approval: 13 Clerk to the Board