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HomeMy WebLinkAboutAugust 19 2014 Regular MinutesAugust 19, 2014 IREDELL COUNTY BOARD OF COMMISSIONERS REGULAR MINUTES August 19, 2014 The Iredell County Board of Commissioners met Tuesday, August 19, 2014, 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 Renee Griffith Gene Houpe Absent: Ken Robertson Staff present: County Manager Ron Smith, County Attorney Bill Pope, Deputy County Manager Beth Dirks, Finance Director Susan Robertson, Fire and Emergency Services Coordinator David Saleeby, Planning Director Matthew Todd, Library Director Steve Messick, Emergency Management Assistant Director Brad Brawley, ECOM Director David Martin, Health Director Jane Murray, Solid Waste Director David Lambert and Clerk to the Board Retha Gaither. CALL TO ORDER by Chairman Steve Johnson INVOCATION by Chairman Steve Johnson PLEDGE OF ALLEGIANCE led by Chairman Johnson ADJUSTMENTS OF THE AGENDA: County Manager Ron Smith had the following adjustments to the agenda: Addition: Memo 12-A to Approve Budget Amendment #7 to Appropriate Fund Balance Reserved for Mitchell Community College for Purchase of Property OTIO by Commissioner Renee Griffith to adopt the agenda as amended. VOTING: Ayes — 4; Nays — 0 PRESENTATION OF SPECIAL RECOGNITIONS & AWARDS Proclamation to Recognize and Express Gratitude to Jacob Nastally for Heroism: Commissioner Renee Griffith expressed gratitude to Jacob Nastally for his heroic actions in saving the life of child. She stated Jacob is a longtime friend of the family and how proud she is to be honoring him. She thanked Jacob and said the child he saved is expected to make a full and complete recovery. Griffith read the following proclamation. PROCLAMATION RECOGNIZING HEROISM 1 August 19, 2014 On the part of Jacob Nastally WHEREAS, the Iredell County Board of Commissioners wish to express their gratitude to Jacob Nastally of the Cool Springs area, North Carolina, for his unselfish actions on Sunday, July 27, 2014; and, WHEREAS, Jacob Nastally was recreating at the Cooleemee River Park, Rowan County, North Carolina when he observed a four year old child floating head down in the water; and, WHEREAS, Mr. Nastally swam out to the child, pulled him from the water and began to perform CPR while a friend called 911; and, WHEREAS, Mr. Nastally performed CPR for 20 minutes, a skill he learned in the fifth grade yet had never actually utilized, until the child began to breathe on his own; and, WHEREAS, Jacob Nastally's quick and heroic actions saved the life of a small child. NOW THEREFORE BE IT RESOLVED that the Iredell County Board of Commissioners does hereby recognize Jacob Nastally for his heroism. APPOINTMENTS BEFORE THE BOARD (None) PUBLIC HEARINGS Chairman Steve Johnson declared the meeting in a Public Hearing. Request for the Consideration of an Economic Development Incentive for Project HIL: John Merrick with Statesville Regional Development stated they are requesting an industrial development grant for an advanced metal working company that is expanding manufacturing operations in Statesville. They will create 35 new jobs and will result in an additional $3.55 million in new taxable investment in the community. The request is that Project HIL be granted a performance based incentive. The company will invest $3.55 million in new capital equipment and 35 new jobs within the first year of operation. The total incentive will be $56,406.00. No one from the audience spoke Chairman Johnson closed the public hearing. MOTION by Commissioner Gene Houpe to approve an economic incentive of $56,406 over a five year period, based on the company's investment of $3.55 million and contingent upon a contract being executed within 180 days. VOTING: Ayes — 4; Nays — 0 Chairman Johnson declared the meeting into a Public Hearing. 2 August 19, 2014 Request for the Consideration of an Economic Development Incentive for Project Bickle: Rob Carney from Mooresville -South Iredell Economic Development stated that once these companies fully commit, details will be made public. He said this project is an existing industry that is considering an expansion of machinery and equipment. They have over 100 full-time employees and will bring an addition 16 full-time positions with an average starting wage of $35,538 per year plus full benefits. They plan to invest $5 million in equipment. They are requesting incentive assistance be granted to Project Bickle for 80% of increased tax value paid back for a period of five years. Based on a minimum of $3 million investment it would equate to an incentive of $58,200 paid over five years and a maximum investment of $5 million would equate to $97,000 paid over five years. No one from the public spoke. Chairman Johnson closed the public hearing. OTION by Vice Chairman Marvin Norman to approve an economic incentive of $97,000 over a five year period, based on the company's investment of $5 million and contingent upon a contract being executed within 180 days. VOTING: Ayes — 4; Nays — 0 Chairman Johnson declared the meeting into a public hearing Request for the Consideration of an Economic Development Incentive for Project Control: Rob Carney from Mooresville -South Iredell Economic Development stated this is a new business interested in locating in the Mooresville -South Iredell community. The company is based in North Dakota and is an environmentally friendly non-toxic pest control solutions company. Their customers include John Deere, TSC, Ace Hardware, Lowes, Target and Kroger. This company has received declaration of being in the top 30 most innovative US bio -based companies in the nation and Inc. 5000's fastest growing company. The company would lease 60,000 square feet to begin manufacturing and invest $5.8 million in new machinery and equipment. Starting with 14 full-time employees and plan to expand to 380 full-time employees over the next four years. The average starting salary will be $32,000 per year plus full benefits. The incentive assistance requested is 80% of increased tax value paid back for a period of five years based on a minimum of $3 million would equate to $58,200 paid over a period of five years to a maximum investment of $5.8 million would equate to a total incentive of $112,520 paid over five years. No one spoke from the public. Chairman Johnson closed the public hearing. OTIO by Commissioner Renee Griffith to approve an economic incentive of between $58,200 and $112,520 over a five year period, based on the company's investment ranging from $3 million to $5.8 million in Iredell County and contingent upon a contract being executed within 180 days. VOTING: Ayes — 4; Nays — 0 3 August 19, 2014 Chairman Johnson declared the meeting into a public hearing. Request for the Consideration of an Economic Development Incentive for Project Dallas: Rob Carney from Mooresville -South Iredell Economic Development stated this is a UK based aerospace company that manufactures seating, hinges and tray tables for the airline industry. The company is considering purchasing 20,000 square feet of manufacturing space in the community. This company would add five new full-time employees bringing the total employment to 15. Average starting salaries will begin at $40,000 per year plus full benefits. The request is incentive assistance for 80% of the increased tax value paid back for a period of five years. Based on a minimum investment of $3 million would equate to $58,200 per year over a five year period. No one from the public spoke. Chairman Johnson closed the public hearing. OTION by Commissioner Gene Houpe to approve an economic incentive of $58,200 over a period of five years based on the company's investment of $3 million and contingent upon a contract being executed within 180 days. VOTING: Ayes — 4; Nays — 0 Chairman Johnson declared the meeting into a public hearing. Request for the Consideration of an Economic Development Incentive for Project Golden: Rob Carney from Mooresville -South Iredell Economic Development stated this is an existing industry considering expanding in the Mooresville South Iredell community. This company has been in Mooresville for over 10 years and has over 90 full-time employees. The company has grown to over 150 facilities around the nation. The Mooresville -South Iredell company is competing for a machinery/equipment upgrade to their current processing lines. This expansion would insure this facility remains competitive nationally for years to come. Project Golden would invest $8 million over the next year in machinery, equipment and facility upgrades. The request is for incentive assistance for 80% of the increased tax value paid back for a period of five years. Based on a minimum of $3 million equates to $58,200 over five years and based on a maximum investment of $8 million equates to $155,200 over a period of five years. No one from the public spoke. Chairman Johnson closed the public hearing. MOTION by Vice Chairman Marvin Norman to approve an economic incentive of $155,200 over a period of five years based on the company's investment of $8 million and contingent upon a contract being executed within 180 days. VOTING: Ayes — 4, Nays — 0 4 August 19, 2014 ADMINISTRATIVE MATTERS Request from Emergency Management to Approve Budget Amendment #5 to Appropriate Fund Balance of the 911 Emergency Telephone System for a Software Upgrade and Custom Interface for Emergency Medical Dispatch: Emergency Management Assistant Director Brad Brawley stated the communications center added a software program called Pro - QA that assists the telecommunicators in performing Emergency Medical Dispatch instructions and logs their actions. This request will allow interfacing the Pro -QA software to the Computer Aided Dispatch (CAD), which enables the emergency medical dispatch data to be automatically transferred to computer aided dispatch records. Currently telecommunicators are entering data twice. MOTION by Commissioner Renee Griffith to approve budget amendment #5. VOTING: Ayes — 4; Nays — 0 Budget Amendment Fiscal Year 2014-15 BA#5 To appropriate fund balance of the 911 Emergency Telephone System fund for 8/19/2014 a software upgrade and custom interface for emergency medical dispatch. Current Amended Account # Budget Chane Budget Emergency Telephone System Fund 384880 499500 Appro. Fund Bal - 911 Fund (130,836) (36,000) (166,836) 385534 537514 Contracted Services - Software 217,586 36,000 253,586 Request from the Public Library to Approve Budget Amendment #6 for Scholarships for Two Library Staff to Attend the 2014 Association for Rural and Small Libraries: Library Director Steve Messick requested approval of a budget amendment for $2,400 from the State Library of North Carolina. The scholarships are for two employees to attend the Association of Small and Rural Libraries Convention in September in Tacoma, Washington. These grant funds were state -side competitive scholarships which makes this quite a distinction that two Iredell County employees won them. Each one is $1,200 and will cover travel, registration, meals, etc. Any funds not expended will be used to purchase books for the Library. The Small and Rural Libraries Association focuses on small towns and rural areas like Troutman. Julianne Moore and Jenneffer Sixkiller will be participating in developing literacy, maximizing limited resources/staff, and teaching digital literacy. Since Moore and Sixkiller have been with the Troutman Library, Library use has increased by 25% because of the development of programs and the engagement with the community. MOTION by Vice Chairman Marvin Norman to approve BA #6. VOTING: Ayes — 4; Nays — 0. Budget Amendment I August 19, 2014 Fiscal Year 2014-15 BA#6 To accept a Library Services and Technology Act grant for the purpose of 8/19/2014 travel and training for personnel in the Troutman library. $3,975 (5) Bag Set with Basic Control Package Current FireHooks Unlimited Hydra -Ram Forcible Entry Tool Amended Account # $1,530 Budget Chane Budget Emergency Telephone System Fund 104650 456120 651 State LSTA Grant - (2,400) (2,400) 105651 536000 651 Travel and Training - 2,400 2,400 Request from the Public Safety Director for Approval to Release Capital Equipment Funds to Mount Mourne VFD to Purchase Rescue Equipment: Public Safety Director David Saleeby stated as a result of the recent rescue contracts and newly adopted rescue funding formula, a capital equipment fund is available for county rescue squads to purchase needed equipment to maintain and improve rescue services within their assigned districts. In February of this year, the Board of Commissioners granted South Iredell VFD a portion of these funds to purchase needed equipment to improve their level of service as a light rescue provider within their service district. At that time, Mount Mourne VFD chose to wait until FYI 5, when additional funds were budgeted, before making a similar request. Through the rescue service agreements, rescue organizations are asked to follow the County's capital purchasing process. Mount Mourne VFD requested quotes on this equipment from different vendors. Chief Roger Hoover of Mount Mourne VFD will outline his department's needs and make the request. The action requested is to approve the release of $20,432.71 of capital equipment funds from Mount Mourne Volunteer Fire Department's capital equipment reserve fund. Currently there is $23,229 in the capital equipment budget. Chief Roger Hoover stated on behalf of Mount Mourne Volunteer Fire Department he is making a request to purchase the following equipment: Hurst S700E eDraulic Cutter Package $6,700 Hurst Quick Kick Ram Support $575 Paratech Maxiforce Model 50, $3,975 (5) Bag Set with Basic Control Package FireHooks Unlimited Hydra -Ram Forcible Entry Tool $1,596 RcsQ 42 Strut Jack (2 @ $765 ea) $1,530 ResQ 42 Truck Kit $4,190 Hoover said the purchase of this equipment will allow Mount Mourne VFD to be a more efficient service to citizens. They have not made any improvements to rescue equipment since 2007. They were granted rescue status in April of 2014 and have signed a contract to provide rescue services to the primary response district. Chairman Steve Johnson commented on behalf of the Board of Commissioners and staff. He thanked Mr. Hoover for the highly professional and respectful response to the County. Through every step volunteers from Mount Mourne have demonstrated great stewardship of everything that has been entrusted to them. He expressed his great respect for Mr. Hoover and the Mount Mourne Department and thanked them for answering the call when needed. 6 August 19, 2014 Hoover expressed his gratitude for hearing those words and will pass them onto the department. He ensured the Board they would continue to provide services along with working closely with other departments. MOTIO by Commissioner Gene Houpe to approve the release of $20,432.71 of capital equipment funds to Mount Mourne Volunteer Fire Department, Inc. Capital Reserve Fund. VOTING: Ayes — 4; Nays — 0. Request to Consider Calling for a Public Hearing on September 2 in Regard to a Request by Scott Thorson with BMCH to Release Zoning Jurisdiction to the Town of Mooresville: Planning Director Matthew Todd stated there is a request for a public hearing for property on Rocky River Road. Last year the adjacent track was released and since has been annexed by the Town of Mooresville. This tract is less than one-half acre. MOTION by Commissioner Renee Griffith to set a public hearing September 2, 2014, for a release of zoning and subdivision jurisdiction to the Town of Mooresville by BMCH North Carolina, LLC. VOTING: Ayes — 4; Nays — 0. County Manager Ron Smith feels the Board will be seeing more as activity in Mooresville is bringing more ETJ requests. There are 220+ acres in two separate projects on the radar. He suggested the Board consider some policies changes/standards in setting thresholds on when these types of requests could be released. Chairman Johnson said he agreed. He said legislature has limited municipalities with ETJs and annexation. He feels it would be a good idea to think about standards that would address the concerns of the Town of Mooresville to have some control over the extension of utilities to types of development in order to protect their investment. Also to relieve anxiety of citizens who think they would come under the zoning jurisdiction of someone they have no right to vote for or against, which has been a problem. He believes the Board should pursue working with Mooresville along commercial thorough -fares and corridors to design mutually agreed upon standards that both the County staff/board and their planning staff/board are comfortable with. Any zoning jurisdiction or any change in those standards would have to be mutually agreed upon by both parties. It would protect Mooresville in the extension of utilities and protect county citizens from what they may consider abuse by someone they can't vote for. He feels a mutually agreed upon standard/policy which could only be amended by mutual consent could be accomplished within the law and with the new restrictions on ETJ and annexation. Commissioner Gene Houpe asked about a time frame to bring this back to the board. Smith said a joint meeting with Mooresville is being planned and this is one of the items to be discussed. Smith suggested the Planning Director meet with the County Attorney to review the laws. Commissioner Gene Houpe suggested the Board talk about it before the joint meeting. August 19, 2014 Request from Administration for Approval of Proposed Legislative Goals to be Submitted to the North Carolina Association County Commissioners: County Manager Ron Smith stated staff was asked to submit legislative goals from the County to the Association in preparation of the 2015-16 biennium. The Association solicits and reviews these goals from each county in the state. After discussing this request with departmental directors, there were six items presented. He is requesting approval of the following goals along with any additions the Board may have. The deadline is September 19 to return the information to the Association. Emergency Management Emergency Management (EM) receives an Emergency Management Performance Grant (EMPG) each year. This grant provides funding that allows EM to perform many of the exercises and activities necessary to prepare for an emergency in this county. Iredell County has a population of over 165,000 people and even over the last three years has grown by 3.5%. The primary concern from EM is that the amount of funding we receive annually is $35,000. This is based on the following sliding scale of county populations: A County with a population less than or equal to 75,000 people $20,625 A County with a population more than 75, 000 but less than or equal to 200, 000 $35,000 A County with a population more than 200,000 $62,500 Counties with a population as high as Iredell's are much more in line with those above 200,000, and would have many of the same issues in the event of a disaster. Therefore, EM is proposing that a new funding formula be created by adding a new category. This would allow for EM to participate in more activities for preparedness. Proposed Goal: "Increase EMPGfunding to Counties with a population more than 125,000 but less than or equal to 175,000 from $35,000 to $48,000." Side note: There are ten counties that fall within that population range. 911 Communications North Carolina enacted Chapter 587, Senate bill 509 to establish statewide 911 services in 1989. The intent was to provide a toll free number through which an individual in North Carolina could gain direct and expedient access to public safety aid. A "911 charge" was to be paid to the local government for the 911 service which included a small list of approved expenditures. In 1998, Chapter 62B was added to include wireless telephone service and a 911 Board was created in 2007 to administer the 911 system. Since this time, various modifications have occurred in subsequent years yet to date, the 911 funds may not be used to pay for the lease or purchase of real estate, cosmetic remodeling of emergency dispatch centers, hiring or compensating telecommunicators or the purchase of mobile communications vehicles, ambulances, fire engines or other emergency vehicles. Operating an efficient and effective 911 Communication Center is an all-encompassing and extremely costly venture. The use of 911 funds for one time capital expenditures such as construction or renovation of the physical plant or purchase of a new CAD system would greatly enhance the service for all involved. 8 August 19, 2014 Proposed Goal: "Expand county governments' use of 911 funds or allow one-time flexibility for the use of those funds. " Public Health There are two mandates in the environmental health program that should be under the umbrella of other programs and services. 1. Environmental Health (Food and Lodging) enforces State Law 2009-27 (Smoke Free Restaurant & Bar Law) for all establishments, even those they do not permit. It makes sense for them to do this in establishments permitted by their department (ex. restaurants). However, in a bar that receives a license through the ABC Licensing Commission there is very little that can be done from an enforcement standpoint. An accrual of fines is about the best they can do. In a recent situation it was only when we the owner of a bar with illegal smoking was brought to court for serving food without a permit that action happened. It would seem that a tobacco regulatory authority would be better suited to handle these types of situations or possibly the ABC Commission could revoke a permit when the smoke free law is being violated. Proposed Goal: "Shift the enforcement of State Law 2009-27 (Smoke Free Restaurant & Bar LaK) from Environmental Health to an agency that has Direct permitting authority over the establishment violating the law." 2. Environmental Health (Food and Lodging) is enforcing Session Law 2013-413 (Installation of carbon monoxide detectors in lodging facilities). This law requires lodging establishments to install carbon monoxide detectors meeting ANSI/UL 2034 or ANSFUL 2075 in every enclosed space having a fossil fuel burning heater, appliance or fireplace and in any enclosed space, including a sleeping room, that shares a common wall, floor or ceiling with an enclosed space having a fossil fuel burning heater, appliance or fireplace by October 1, 2013. This new enforcement has added a significant amount of time to the required lodging inspection and environmental health specialists do not have expertise in this area. Environmental health has to determine where a carbon monoxide detector is needed and test all of those found in each lodging establishment. Expertise in this area lies with the Office of the Fire Marshal. Proposed Goal: "Shift the enforcement of Session Law 2013-413 (Installation of carbon monoxide detectors in lodging facilities) from Environmental Health to an agency that has the knowledge to properly enforce the Law, such as the Fire Marshal." Side note: In Iredell County, and likely most counties, most of the establishments that would fall under this law are located in municipalities. Solid Waste The Department of Solid Waste is concerned about the future of our White Goods and Scrap Tire Distributions. Based on information from NCDENR the sustainability of both are being threatened. Part of the problem is that though a disposal fee or tax is paid on both by the consumers it is not guaranteed to go to its intended purpose. 9 August 19, 2014 I . When a white good (ex. Washer, dryer, air conditioner, refrigerator, freezer, etc.) is bought in North Carolina there is a disposal fee added to the purchase of $3.00 per unit. Currently that money is distributed among the NC Counties based on per capita and for Iredell County it amounts to an average $40,000 per year. Solid Waste uses these funds to improve or build new infrastructure, purchase equipment, pay for employee's salaries, heavy vehicles to haul the white goods to market as well as containers to hold the material. Those funds recently constructed a much needed WG Facility at the Mooresville Transfer Station for a total cost of $345,000. Although we do market the scrap metal after the extraction of Freon is complete the revenue is not sufficient to run the program. The average $40,000 per year may seem minimal but is a benefit to the Solid Waste Department to continue to accept these materials at no charge to the homeowner. Losing this revenue will force Solid Waste to assess a tipping fee for the disposal of these items. White Goods may also end up in the hands of scrap metal dealers but there will be some thrown out where they don't belong causing an enforcement issue and the threat of Freon contamination into our environment. Proposed Goal: "Restore the collected white goods cf_,00sal fee to the original intent; funding local government white goods programs" 2. Scrap tires are also charged a disposal tax when purchased. Currently if the tire diameter is less than 20" the fee assessed is 2% of the purchase price and 1'1'o on tires over 20" in diameter. Iredell County receives those funds per capita for revenue of $170,000 - $200,000 per year. Iredell County is required by the State to accept any NC tires and to take them at no charge if they were generated in the course of business in the State. Solid Waste charges a tipping fee on tires that do not fall under this rule but that only equates to around $15,000 or 6% of the annual disposal cost of up to $250,000 per year. All funds received from this allocation are used towards the disposal cost and does cover the majority of that cost right now. In addition to the disposal cost NCDENR currently pays (when approved) for the clean-up of illegal dump sites. Losing this revenue will force Solid Waste to assess a tipping fee for the disposal of these items and as a result will likely be forced to deal with many illegal scrap tire dumps. Proposed Goal: "Restore the collected scrap tire disposal fee to the original intent; funding local government scrap tire programs" Chairman Johnson ask if any board member had anything they would like to add to the goals. Commissioner Gene Houpe said he has talked to Representative Rena Turner and asked if the other board members would join together with Representative Brawley to inquire if there is anything the Board, as a whole, could do to help move forward with the 1-77/I-40 project. To make sure Phase II has funding reallocated. He suggested the Board along with boards/councils from municipalities get together in support of this project. 10 August 19, 2014 Chairman Johnson said Senator Brock is of the opinion that it is still possible that it might be funded, but split. Johnson said immobilization costs are close to $1 million which are wasted if they move out and move back in. Brock is on the Senate Appropriations Committee and is working on this issue. He believes he can get the funding but it may be in two parts. It could be scheduled so that when one phase winds down, the next phase would blend in. Commissioner Gene Houpe asked if a letter from the County would help Senator Brock. Chairman Johnson felt it might help but Mr. Brock is working on it diligently, but a letter could reiterate the concerns. Smith said he could put something together. He doesn't believe this project should be listed in the goals unless it could be worded that the overall philosophy of the funding mechanism should allow projects that are already funded to continue. Commissioner Houpe said he was told at the national conference that counties were going to have think on a regional basis and collaborate with multi counties. He feels it could be mentioned in the goals because the interstate project benefits the region not just iredell County. He feels counties working together, regionally, have a stronger voice as this project benefits the entire state as well. Commissioner Johnson said more discussions are needed and return at the next meeting with more directions/intentions for the staff. He said the goals mentioned could be acted upon tonight or tabled until later. In terms of the regional aspect, he feels that is what happened with the project. It was one of, if not the most important of state projects. But then with the new evaluation system and modification of legislation as it relates to transportation, all of the sudden it is not a state project. It is a regional project and therefore doesn't meet the criteria to advance to Phase II. MOTION by Commissioner Gene Houpe to approve afore mentioned six goals. VOTING: Ayes — 4; Nays — 0. Request from the Finance Department to Consider the Adoption of a Bond Order for School Bonds titled "Order Authorizing $119,500,000 School Bonds," and Adoption of the Resolution Calling for a Bond Referendum: Finance Director Susan Robertson said based upon the request by Mooresville Graded School District to remove a new Mooresville middle school from its proposed project in the planned bond referendum for November, the bond counsel has prepared an amended bond order and a notice of bond referendum. This reduces the total authorization for schools bonds from $151.5 million to $119.5 million. Commissioner Renee Griffith asked if this remains the largest bond. Finance Director Robertson said it is the largest referendum. Commissioner Gene Houpe thanked Ms. Robertson and her staff for the work they have done on this in the short time frame. August 19, 2014 Finance Director Robertson said she had recently shared a worksheet with the Board based on four separate issues and assuming one tax increase rather than multi tax increases which would equal a 4.25 cent increase only once at the beginning of the projects rather than increasing it incrementally. It will reduce the total increase the Board will have to consider. Chairman Johnson asked the total increase. Finance Director Robertson said it would be 4.25 cents. Chairman Johnson apologized that he should have announced earlier that on August 5, 2014, the Board of Commissioners adopted the order entitled "Order Authorizing $151,500,000 School Bonds," and that the Board has been requested to amend and restate the order to reduce the principal amount of bonds. Commissioner Gene Houpe thanked both school systems for their cooperation, collaboration, and communication to meet common ground, which he feels addresses the cost and equity issues. He believes it is potentially more pliable and acceptable to the tax payers. This will allow, if passed, for the County to take care of facilities and safety issues. MOTION by Commissioner Gene Houpe to adopt the Order Authorizing $119,500,000 School Bonds for the purpose of providing funds together with any other available funds, for acquiring, constructing, improving, expanding and renovating school buildings and other school facilities in said County, including, without limitation, (a) the construction, expansion and renovation of Cool Springs Elementary School, North Iredell High School, South Iredell High School, Statesville Middle School and Brawley Middle School and the construction of two new middle schools, and the acquisition of related land, rights of way and equipment for the Iredell- Statesville Schools Board of Education and (b) the construction, expansion and renovation of Mooresville High School and the acquisition of related land, rights of way and equipment for the Mooresville Graded School District. That taxes shall be levied in an amount sufficient to pay the principal of and the interest on said bonds, and that this order shall take effect when approved by the voters of Iredell County at a referendum as provided in the Local Government Bond Act, as amended. Chainnan Johnson said, "1 intend to support these proceedings and think they address my biggest concern as it relates to equity. I do want to publicly commend someone. They took a pretty bad shellacking, but Martin Page, Cindy Haynes and Max James showed great political courage. I know I find myself at odds with the editor of the newspaper. You will seldom hear me quote Barrack Obama, but elections do have consequences. We need to be sure that we make people aware that property taxes will go up. While all tax payers are impacted by the proposal let me focus on one particular group of tax payers, that over the twenty years that I've been on this Board, I seldom hear spoken of. That is the small business owner in this county. A typical small business owner who is a C or S corporation withholds his own taxes or if he is a sole proprietorship and withholds his own taxes and pays self-employment tax. If he is only modestly successful by the time he pays his federal tax, state tax, and matches his own social security he is at nearly a 50% tax rate. Not many people are aware of that. Let me say that again ... at nearly a 50% tax rate. That is before he pays sales tax, excise tax, or property tax. In my opinion, and I think by anybody's opinion that is a confiscatory rate of taxation. These are the same people that politicians pay tribute to as the foundation or back bone of the economy, but the reality is they are taxed at confiscatory 12 August 19, 2014 rates. When local schools or charitable fund raisers look for contributions, the local small business people are among the first ones they approach. They are the people who hire young people and give them the first opportunity to learn personal and technical skills which will benefit them later in life and many of these same business owners continue to face challenges in a recovery that is the longest and weakest recovery since the great depression. Now, I'm going to keep saying this and I know some folks are getting tired of hearing it because they have told me so, but I'm not going to quit saying it. What we are experiencing, are the consequences of a text book classical candescence attempt to restore the economy to economic growth. It has resulted in an asset rich, income poor economic environment. Folks have seen their property values recover substantially although many have a long way to go. They have seen their 401, IRA and their equity investments rise considerably. These are due to the deficit spending and bond buying by the Federal Reserve and artificially low interest rates which distorts the flow of capital and causes people to seek higher rates of return. But their incomes have not gone up because the demands for labor remains low. The unemployment is down but so is the labor participation rate. Many of the jobs created are part- time and low paying. Also, capital investment in new machinery and equipment is anemic. Capital investment leads to increased productivity which leads to higher real wages without causing inflationary pressures. In the 28 years since the census bureau has provided state by state income data, in North Carolina the third quintile, which is the middle class, dead spot in the middle, in North Carolina since 2008 their real income has gone down 10.2%. Gone down 10.2%. So those folks continue to struggle. The new data will come out for 2013 next month and it will probably show some improvement. But that is a substantial hit these people have endured. We need to keep that in mind when we talk about taxes. This means that any real broad based economic growth is not foreseeable. Debt always limits your options in the future and this step will be borne by the existing tax payers and the existing tax base with no relief coming from the expanding tax base like we enjoyed in the 1990s and 2000s. The Mooresville project, I still have concerns, but my biggest concern has been dealt with as far as equity. And in a reasonable amount of time, with future appropriations, equity can be arrived at again. But the Mooresville project is a departure, and nobody can rebut this argument. It is a departure from the DPI and State Board of Education guidelines. This being the case, we need to think about going forward. What will be the objective standards that we will adhere to once we disconnect ourselves from those standards? I've already heard comments that if we're going to do that then why don't we expand the auditorium in the bond atNorth and South High School. It will be difficult to maintain discipline in the future without objective standards that we can point to in regards to such facilities. That is a concern that we need to deal. with. Given the circumstances and the decision made to this point this is probably the closest we will get to equity. I do not claim to know or even hope to know the collective minds of Iredell citizens. I will however, defer to their judgment and contribute to the faithful stewardship of this endeavor." Commissioner Gene Houpe said, "Again in communication with the different superintendents and different board members. Again I want to commend all who communicated and collaborated to come to this common ground. It is the first time in history that the two boards have come together on behalf of the kids and the tax payers of this county. They've reduced the bond, that took courage from Mooresville. I want to elaborate on that. I've had questions publicly on why did they ask for it if they didn't need it. It wasn't that they didn't need the project. The Commissioners asked both school systems to come forward with five of their critical projects. Both systems did. So after there was some public debate as to the equity issue, Mooresville, in my opinion, selflessly on behalf of the tax payers said their need was down the road potentially four to five years. They offset that to potentially six years to come back so both systems have skin in 13 August 19, 2014 the game potentially for the next bond. Having said that, I hope that changes the tone of politics in the entire county. It does not cost the tax payers in this county one cent to collaborate and communicate and sit down and have discussions. That took a lot of courage for the systems to come together to do that. The growth in this county, Chairman Johnson talks about the Mooresville project, in capital needs are based on a needs basis. The growth in the south end is tremendously more than north and south. I understand that argument. However, all agree that sometimes being proactive, and I'll use a quote again from him, sometimes the conservative thing to do is spend money. Sometimes the conservative thing to do is to be proactive. So I think, we as a board, sending it to the voters, I want to thank the Commissioners for doing that. We're not always going to agree, but I think that's what makes a democracy great. We have different ideas, different backgrounds, but together we are going to send it to the tax payers. They are going to make a decision for the schools and Mitchell College. I want to emphasize that the success of the schools directly impacts economic growth in this county. Every economic incentive request we've had, either expansion when they came here or the new companies that are coming, are coming here for one reason, is our schools are great. We are getting a great return on our dollar as the John Locke foundation says. I think we, as a community and a county, have to give credit where credit is due. We have to applaud our school systems when they are great, our parents in the county through all the other opportunities, Christian and private schools, they have a choice. But what makes a democracy great is that we are not always going to agree. Steve and I are friends and we go to church together, but that doesn't make us dislike each other because we disagree on the Mooresville project. I just think sometimes using Lake Norman as an example, sometimes the proactive thing to do is to spend money. Sometimes the proactive thing to do is to plan longer down the road so you are not, within four months of opening like Lake Norman, and I'm not criticizing anyone here with the systems. We have a prime example in the south end of the County where the growth is tremendous. That tells us we need to be proactive and plan for growth in the south end. The equity argument, in the whole county, we could look at in several ways. Almost 70% of the taxes are paid Troutman south. So Troutman south subsidizes all the other services for the entire county and have for years. Emergency services, fire rescue, Sheriffs department. We are in this together as a county. The south end of the county has subsidized the north end of the county but we have a diverse county. We are all in it together. What my main point is I hope this changes the tone of the elected bodies in this county to sit down, communicate so next time we are not trying to go backwards to reinvent the wheel. Through collaboration and cooperation, and I don't want to keep emphasizing that, but I commend Martin Page and those guys. I commend other school board members, Mooresville selflessly reduced the bond. Again 1 want to thank the commissioners for sending it to the voters and I want the voters to understand there is a positive economic impact to the success of the schools. It helps the property values in turn. The Commissioners will have oversight if the bonds pass. Thank you." Commissioner Renee Griffith called for a point of order that there is a motion on the floor. VOTING: Ayes — 4; Nays — 0 Chairman Johnson directed the Clerk to the Board to publish said orders together with the appended statement as required by the Local Government Bond Act, as Amended, once in the Statesville Record and Landmark. OTION by Commissioner Renee Griffith to adopt the Resolution calling for a Bond Referendum on November 4, 2014 at which there shall be submitted to the qualified voters of the 14 August 19, 2014 county the questions stated in the form of the ballot set forth in Section 4 of this resolution, and directing the Clerk to the Board to publish a notice of bond referendum in the Statesville Record and Landmark once at least fourteen days before October 10, 2014 and once again not less than 7 days before October 10, 2014, and to deliver a certified copy of this Resolution to the Iredell County Board of Elections within three days of its passage. SECOND by Commissioner Houpe VOTING: Ayes — 4; Nays — 0 The following resolutions were shared with the members of the Board: A RESOLUTION OF THE SCHOOL BOARD OF MOORESVILLE GRADED SCHOOL DISTRICT, IREDELL COUNTY, NORTH CAROLINA, REQUESTING THE ISSUANCE BY THE BOARD OF COMMISSIONERS OF IREDELL COUNTY OF NORTH CAROLINA FOR $40,000,000 IN GENERAL OBLIGATION BONDS TO BE SUBMITTED TO THE VOTERS OF IREDELL COUNTY FOR AND ON BEHALF OF SUCH BOARD FOR THE PURPOSE HEREINAFTER STATED The Mooresville Graded School District Board of Education amends its prior request that the Board of Commissioners of Iredell County adopt an order authorizing general obligation bonds of the County, and the calling of a referendum thereon, at which such order will be submitted to the qualified voters of Iredell County on Tuesday, November 4, 2014. WHEREAS, on June 6, 2014, this School Board of Mooresville Graded School District, Iredell County, North Carolina, submitted a resolution to the Board of Commissioners of Iredell County in the amount of $72,000,000; and WHEREAS, the original amount of $72,000,000 included $40,000,000 in renovations to Mooresville High School and $32,000,000 for a new Middle School; and WHEREAS, to increase the likelihood of approval of a bond referendum on November 4, 2014, this Board will defer the Middle School project until a later date and therefore remove it from the originally requested amount; and WHEREAS, this School Board of Mooresville Graded School District, Iredell County, North Carolina, deems it necessary and essential that $40,000,000 of such bonds be issued to provide funds for erecting additional school buildings, remodeling, enlarging, and reconstructing existing school buildings, as well as providing necessary utilities and acquiring necessary land. BE IT RESOLVED BY THE SCHOOL BOARD OF MOORESVILLE GRADED SCHOOL DISTRICT, IREDELL COUNTY, NORTH CAROLINA, on the EIGHTEENTH day of August 2014. I, the undersigned Chair of the School Board of Mooresville Graded School District, Iredell County, North, do hereby certify that the foregoing constitutes a true and correct copy of a resolution duly adopted and entered in the minutes of said Board at meeting held on the eighteenth day of August 2014. 15 August 19, 2014 (Larry Wilson) August 18, 2014 Chairman, Board of Education Date RESOLUTIONS OF THE IREDELL STATESVILLE BOARD OF EDUCATION REGARDING THE NEED FOR ADDITIONAL CAPITAL FUNDING AND SUPPORTING NEW SOURCES OF REVENUE FOR SUCH PURPOSES WHEREAS, the County Commissioners of Iredell County have identified a general obligation bond as a potential new source of funding for public school capital projects: WHEREAS, the Iredell-Statesville Board of Education supports all local, state, and federal initiatives to increase available funding for school and capital needs; and WHEREAS, additional capital funding allocated to the Iredell-Statesville Board of Education is needed for an addition and renovation to Cool Springs School, new auditoriums and additional classrooms at North Iredell and South Iredell High Schools, new middle schools to replace Statesville Middle School and Brawley Middle School, and renovations to Statesville Middle School and Brawley Middle School to accommodate the International Baccalaureate Middle Years programs. NOW THEREFORE, BE IT RESOLVED AS FOLLOWS: 1) It is the official position of the Iredell-Statesville Schools Board of Education that it supports all local, state, and federal initiatives, including but not limited to a general obligation bond to be voted on at the November election in 2014, to increase available capital funding for public school construction. 2) The Board hereby confirms and reiterates its commitment to use all public funds for school capital needs in the most efficient manner possible based upon the highest standards of academic excellence. I MOVED THE ADOPTION OF THE FOREGOING RESOLUTION: (Anna Bonham) Member Seconded by: (Charles Kelly) Member READ, APPROVED, AND ADOPTED THIS 18th DAY OF August, 2014. (David Cash) C airman (Brady Johnson) Superintendent 16 August 19, 2014 Request from the Finance Department to Approve Budget Amendment #7 to Appropriate Fund Balance Reserved for Mitchell Community College for Purchase of Property: Finance Director Susan Robertson stated Mitchell Community College officials have negotiated a land purchase close to its Mooresville campus. Several years ago, the Board appropriated funds as a reserve fund balance for Mitchell College. They are requesting $100,000 to be appropriated from that reserve fund balance in order to close on the land purchase. Currently there is $363,396 in the fund balance. OTION by Commissioner Renee Griffith to approve BA #7. VOTING: Ayes — 4; Nays — 0. Budget Amendment Fiscal Year 2014-15 BA#7 To appropriate Fund Balance Reserved for Mitchell Community College for the 8/19/2014 purchase of property on Moore Avenue for the Mooresville campus. Current Amended Account # Budget Chane Budget Emergency Telephone System Fund 104880 499302 Appro Fund Balance - MCC (100'000)(100,000) 105700 560403 MCC - Capital Outlay 731,315 100,000 831,315 Request from Tax Administration to Approve Refunds and Releases for July: OTIO by Vice Chairman Marvin Norman to approve. VOTING: Ayes — 4; Nays — 0. Releases for the month of July 2014 Breakdown of Releases: County $ 7,471.73 Solid Waste Fees $ - Davidson Solid Waste Fees $ F. Alex. Co. Fire #t $ 0.78 Shepherd's Fire #2 $ - Mt. Mourne Fire #3 $ - AIl County Fire #4 $ 951.01 B&F Fire #5 $ 18.00 Statesville City $ 31.38 Statesville Downtown $ 0.53 Mooresville Town $ 376.95 Mooresville Downtown $ - Mooresville School $ 97.21 Love Valley $ 1.85 Harmony $ - Troutman $ 15.84 17 Monthly S 8,965.28 Total August 19, 2014 Davidson $ Refunds for the month of July 2014 Breakdown of Refunds: County $ 1,653.93 Solid Waste Fees $ - Davidson Solid Waste Fees $ - E. Alex. Co. Fire #1 $ - Shepherd's Fire #2 $ - Mt. Mourne Fire #3 $ - All County Fire #4 $ - B&F Fire #5 $ - Statesville City $ 1,394.80 Statesville Downtown $ - Mooresville Town $ 4.76 Mooresville Downtown $ - Mooresville School $ - Love Valley $ - Harmony $ - Troutman $ - Davidson $ - Monthly S 3,053.49 Total Request for Approval of the July 29 and August 5, 2014, Minutes: MOTION by Commissioner Gene Houpe to approve. VOTING: Ayes — 4; Nays — 0. ANNOUNCEMENTS OF VACANCIES OCCURRING ON BOARD & COMMISSIONS (None) APPOINTMENTS TO BOARDS AND COMMISSIONS Troutman Planning Board (1 Appointment): MOTION by Commissioner Renee Griffith to table. VOTING: Ayes — 4; Nays — 0. Fire Tax District Board (3 Appointments): OTIO by Commissioner Renee Griffith to table. VOTING: Ayes — 4; Nays — 0. Mitchell Community College Board of Trustees (1 Appointment): Chairman Steve Johnson nominated Jonathan Byers 18 August 19, 2014 MOTION by Chairman Johnson to close the floor to nominations and appoint Jonathan Byers by acclamation. VOTING: Ayes — 4; Nays — 0 UNFINISHED BUSINESS Chairman Steve Johnson asked to make a comment. He said, "Recently, what originated as House Bill 201 in the NC Legislature was passed and I want to thank some people this evening. It's been probably at least three years since we started talking about tax deferral on property for economic development. It finally made it. There is one person that I would like to thank in this meeting tonight and that is Ms. Liza Valdez, who helped us wade through the legal language and kept us headed in the right direction. She will probably refuse to stand up and take a bow because she is an anomaly. She is a bashful attorney. Thank you very much. She did an excellent job and should be commended. There are a couple of other people that I want to thank. Rena Turner, who stayed on this day and night. We were on the phone for hours on end the last few days as she was bargaining with some folks. Even brought folks from the North Carolina association of County Commissioners here to meet and we persuaded them this was a good idea. What this means is, if you have a piece of property that you would like to develop commercially, the County and the Economic Development Corporation will be glad to discuss it with you. If you have a property with good egress and ingress, close proximity to utilities that would probably be favorable toward rezoning, we can take action to rezone the property and you will not pay the increased taxes between what you're paying now with its existing zoning and the upgrade in zoning until you actually sell the property. This removes a huge disincentive for people to participate. I think this is a good idea because it does not require the county to go and spend huge sums of money buying land. It will keep it on the tax books. It will keep it producing income and we will reap the benefit down the road. So everybody that is listening, the County is open for business. If you are interested in participating with us we would be glad to talk to you. I do want to make one comment. We can do, folks, what we can at the local level to create economic growth but we are battling for a piece of a smaller pie. Because overall in the aggregate of our economy is still not growing. The state, I think, contrary to thinking of some people, took the right step in cutting marginal and corporate tax rates because every time in my lifetime you have seen an economic expansion it has been preceded by cuts in corporate rate and marginal tax rate. I won't talk about a republican doing it, I'll talk a democrat doing it and that was John Kennedy. I was a young many in the 60s, coming of age in the 60s was a booming time and we can be there again. Let me tell you one thing, and I don't mean to lecture, but just to make you aware as you think about such things. Imagine that we did everything we did and the state did everything they could and we were highly competitive as far as someone wishing to locate in the United States, but the United States is not the world and the decisions of these magnitudes are made by clicking a mouse and capital moves at light speed. Now, I am going to issue a disclaimer, I am not advocating any lifestyle and I mean nothing detrimental to people who are unattractive so please abandon your neurotic sensitivities and let me make a valid point. Imagine for just a minute that you are a young man, out on the town for a night of revelry and fun making. You are walking down the street. On this side of the street there's a bar and there's a bar on the other side of the street. Let's imagine for a minute that the cover charge of that bar equals the corporate tax rate of respective countries. Let's imagine that the attractiveness, the physical attractiveness, of the people who are waiting tables in those bars equate to the regulatory burden of government. So the young man walks up to the first door of the first bar and 19 August 19, 2014 he asks the doorman, `What is the cover charge?' And the doorman says, `It is $35.' Thirty five dollars equals to the United States' corporate tax rate of 35%. Then he says, `Can I look inside?' And he says, `Yes.' So he looks inside and everybody is ugly because they represent the regulatory burdens. We're on pace for the last five years. Each year we have set a new record for regulatory burdens that have drained at least $100 million per regulation out of the economy each year. We're record to do that. So he looks in and the regulatory burden is heavy, the tax rate is heavy, and in the young man's mind, the cover charge is too high and there are no good looking people he would like to spend the night with, so he closes the door. He walks across the street. He asks the doorman at the second bar, `What is the coverage charge?' He says, `It is $12.50.' He says, `Can I look inside?' He says, `Sure' and he cracks the door and the place is full of beautiful people. Everybody is having a wonderful time and prosperity is everywhere. Imagine for yourself, for just one moment, that you are that young man and ask yourself one simple question. Which bar are you going to enter? It is apparent which one you are going to enter. But it is worse than that folks. You're going to hear this term more often in the coming days — inversion. What that is, is a corporate company in the United States allowing itself to be acquired by a foreign company that often times is smaller than it is and relocate their corporate headquarters to another country. Medtronic made that decision last week and you are going to continue to hear it. If you want people coming into your bar and having a good time and spending money and enjoying themselves you have to get your cover charge down or they are not coming. It is really that simple. As Milton Freeman says, `If you want to know how people are going to behave, look for the incentive.' It's really that simple. The problem is nobody running things today understands that simple truth. I appreciate your indulgence of the next episode of the world according to Johnson. I can see by the look on some of your faces you seem to be getting it. Thank you." PUBLIC COMMENT Frank Rader, Treasurer, of MIM: Mooresville, Iredell & Mitchell Schools First, which is a referendum committee, have filed the necessary paper work with the Board of Elections. He said they have a hard pledge of $40,000. They have taken in $2,500 and spent about $100. They expect to pick up other pledges in the coming week totaling $37,500. They anticipate $50,000 in the budget, possibility going higher. The campaign is a referendum campaign, not a politician or candidate campaign. They are able to solicit and receive dollars from businesses. They recently had a meeting to form committees. He said this will be a full-fledged campaign with door hangers, neighborhood groups, and advertisements in newspapers, radio, and high school sports programs. They are not using school servers, school phones or school time. They have an email address, mimschoolsfirst@myconnection.com. He will be attending each of the Board of Commissioners' meetings if there should be any questions. According to his resources, because the school boards passed affirmative votes in favor of referendum resolutions, their executive staff and superintendents, are allowed, not only to inform but to advocate for the bond. The superintendent level may, the school board may, but principals and staff may not. NEW BUSINESS (None) X11 11 0 1 61110 MONTH 31 0 7117411/1 Y 20 August 19, 2014 County Manager Ron Smith reminded the members of the fair dinner invitation for Tuesday, August 26, 6:00 p.m. at the Statesville Civic Center. This dinner is sponsored by the Kiwanis Club. Smith distributed a memo from the Planning Division about a recent court case. He is suggesting a change in policy when dealing with rezonings. He asked the Board to review the memo and contact him with questions or concerns. CLOSED SESSION (None) ADJOURNMENT: OTION by Commissioner Gene Houpe to adjourn at 8:15 p.m. (The next meeting is scheduled for Tuesday, September 2, 2014, 7:00 p.m. in the Commissioners' Room of the Iredell County Government Center, 200 South Center Street, Statesville, NC) VOTING: Ayes — 4; Nays — 0. Approval: 21 Clerk to the Board