HomeMy WebLinkAboutDecember 2 2014 Regular MinutesDecember 2. 2014
IREDELL COUNTY BOARD OF COMMISSIONERS
REGULAR MINUTES
December 2, 2014
The Iredell County Board of Commissioners met on Tuesday, December 2, 2014, at 7:00
PM, in the Iredell County Government Center (Commissioners' Meeting Room), 200 South Center
Street, Statesville, NC.
Board Members Present
Chairman James B. Mallory, III
Vice Chairman Marvin Norman
Tommy Bowles
Steve Johnson
Ken Robertson
Staff present: County Manager Ron Smith, County Attorney Bill Pope, Deputy County
Manager Beth Dirks, Finance Director Susan G. Robertson, Public Safety Coordinator David
Saleeby, and Clerk to the Board Retha Gaither.
CALL TO ORDER by Chairman Mallory
INVOCATION by Chairman Mallory
PLEDGE OF ALLEGIANCE by Chairman Mallory
ADJUSTMENTS OF THE AGENDA: MOTION by Commissioner Steve Johnson to
adopt the agenda with the following adjustment:
Delete: Item C, Memo #3 and Closed Session Item.
VOTING: Ayes — 5; Nays — 0.
PRESENTATION OF SPECIAL RECOGNITIONS & AWARDS
(None)
Presentation of the Annual Community Services Block Grant Anti -Poverty Plan for
Review: Brian Duncan of I -Care, addressed the Board and reviewed the annual application for
funding for the Community Services Block Grant. This is a federally funded program in Iredell
County and operates on a three year plan. A recent community forum was held to identify specific
needs to help families rise above poverty. Barriers focused on by this program are lack of money,
lack of education, unemployment/under employment, and lack of access to economic
opportunities. The three year plan is to move 42 families above poverty level by June 30 of 2018.
Recently one of the issues has been clients with criminal histories trying to gain employment,
which can be challenging. Therefore, a little more funding has been directed to education and
Mitchell Community College to steer clients toward entrepreneur opportunities. Last year the
December 2, 2014
average change in annual income per family was over $12,000. Eight families were moved above
poverty level, the average wage rate was $8.71, eighteen people completed education and training
programs, eight secured standard housing and seventeen received emergency assistance. Last
year's budget was $168,924 but next year's funding has increased to $265,522.00.
Chairman Mallory stated no action was required by the Board and thanked Mr. Brain for
the wealth of information presented and the work performed by this program.
Request from Iredell Statesville Schools for Approval of Transitional Funds: Iredell-
Statesville Board of Education Vice Chairman Charles Kelly thanked the Board for adding the
bond referendum to the ballot and thanked the citizens of Iredell County for the favorable vote. He
stated their presence this evening is to outline steps to move forward with construction plans.
Iredell Statesville Schools Superintendent Brady Johnson echoed Mr. Kelly's comments.
He thanked the Facilities Task Force for their work. He stated the Cool Spring community is very
excited to get started and ISS is excited to create a plan to expedite the work.
Kenny Miller stated they have a very tight time line for the Cool Springs' project. This
time line is driven by the safety and security of the children. They would like to have the transition
in place before summer. They would like to begin the demolition when children are not on campus,
therefore, the transition part must be done which includes site work, two mega units, relocation of
utilities, etc. This is the reason for the request for the $500,000. This will expedite those issues
before the demolition. The money will be refunded when the bonds are sold. They would like the
project done by August 2016.
Commissioner Ken Robertson clarified the request is basically a loan to begin. The bond
money isn't expected until late summer.
Miller said yes.
Commissioner Robertson questioned the amount of the request and the cost of the project.
Miller said they are trying to be strategic with the transitional plan. They must have a place
to temporarily house the students. Miller said they are ready to bid and could break ground as soon
as the bonds are sold.
Brady Johnson stated he understood the Board needs time to discuss and deliberate so
therefore, they are not expecting an answer tonight. This is just a snapshot of their timeline.
Commissioner Ken Robertson stated he was willing to move for approval.
Chairman Mallory asked if a ten-day delay would hinder the planning process.
Brady Johnson said it would not be problem.
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December 2, 2014
Chairman Mallory said the school superintendents, the County Manager and others will be
meeting soon to discuss the next steps in the bond. He suggested deferring this item to the fall
retreat on December 12.
MOTION by Commissioner Ken Robertson to amend his first statement and moved to add
this item to the agenda for approval on December 12.
VOTING: Ayes — 5; Nays — 0
PUBLIC HEARINGS
Chairman James Mallory called the meeting into a Public Hearing.
Request from Statesville Regional Development for Approval of an Economic
Development Incentive for Project Garlic: Statesville Regional Development Director Mike
Smith stated they are requesting an economic development grant to an existing industry known as
Project Garlic. They are considering an expansion at their facility in Statesville. Home Star of
North America proposes a minimum investment of $3.3 million and will create 120 new full-time
jobs averaging at least $18.15 per hour and paying at least 50% of all employees' health benefits.
The economic incentive is based on the county making an appropriation up to $24,328 over a two
year period based on this investment.
Commissioner Ken Robertson asked to clarify the length of time for the agreement.
Mike Smith said it is a unique agreement because they are only asking for two years of
support due to the nature of the project. Typically they would ask for five years but not for this
project.
OTION by Commissioner Steve Johnson to grant this request for an economic
development incentive in the amount not to exceed $24,328 over a two year period based on a $3.3
million investment in Iredell County.
VOTING: Ayes — 5; Nays — 0
F.11111\1.i_
Request from the Finance Department to Adopt a Resolution Declaring the Result of
the Bond Referendum: Finance Director Susan Robertson stated each Commissioner had
received a copy of the proceedings that were held by the Iredell County Board of Elections for the
November 4, 2014 election. The meeting was held on November 14. At that time the Board of
Elections received the returns for the bond referendum from the Chief Judge and Judges of
Elections for the precincts and voting places in the County. After the returns were canvased the
Iredell County Board of Elections introduced a resolution. (Robertson read the resolution.) From
the canvas made the Board determined and certified the number of voters and the votes cast for
and against. A majority of the votes were cast for the $119.5 million in school bonds and a majority
of votes were cast for the $12 million community college bonds. The Chairman of the Board of
December 2, 2014
Elections was directed to transmit a certified copy of the resolution to the Iredell County Board of
Commissioners, which they did. Based on those proceedings, the Board of Commissioners are
required to take further action.
RESOLUTION RELATING TO THE CANVASS OF THE RETURNS OF
THE BOND REFERENDUM HELD IN THE COUNTY OF IREDELL,
NORTH CAROLINA ON NOVEMBER 4, 2014 UPON THE QUESTIONS
OF APPROVING $119,500,000 SCHOOL BONDS AND $12,000,000
COMMUNITY COLLEGE BONDS AND DETERMINING THE RESULTS
THEREOF
BE IT RESOLVED by the Iredell County Board of Elections (the "Board"):
Section 1. The returns of the bond referendum held in the County of Iredell, North Carolina (the "County")
on November 4, 2014 upon the questions of approving $I 19,500,000 School Bonds and $12,000,000 Community
College Bonds of the County having been received from the proper election officers and having been canvassed, this
Board has found and determined and does hereby declare as follows:
(a) Each chief judge and judge for said referendum was duly qualified by law and had taken the
necessary oath.
(b) The election officers had incorporated in their returns not only the number of votes cast for and
against the questions submitted, but also the number of voters registered and qualified to vote in each precinct
in said referendum.
(c) At said referendum there was submitted to the qualified voters of the County the following
questions: Shalt the order adopted on August 5, 2014, as amended and restated on August 19, 2014,
authorizing not exceeding S 119,500,000 SCHOOL BONDS of the County of Iredell, North Carolina, plus
interest, 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, and providing that additional taxes may be levied in
an amount sufficient to pay the principal of and interest on said bonds, be approved? Shall the order adopted
on August 5, 2014, authorizing not exceeding $12,000,000 COMMUNITY COLLEGE BONDS of the
County of Iredell, North Carolina, plus interest, for the purpose of providing funds, together with any other
available funds, for acquiring, constructing, renovating, expanding, improving and equipping various
community college facilities for Mitchell Community College, including, without limitation, the construction
of a new Allied Health facility, and providing that additional taxes may be levied in an amount sufficient to
pay the principal of and interest on said bonds, be approved?
(d) No complaints have been made to the Board against the regularity of said referendum.
(e) Said referendum and the registration therefor were duly and properly held in
accordance with law.
Section 2. The attached schedule correctly shows the designation of the precincts at which said referendum
was held and, as to each precinct, the location of the voting place, the number of voters registered and qualified to
vote, the number of votes cast in favor of the questions submitted and the number of votes cast against such questions;
the number of absentee, transfer, provisional and one-stop voting ballots returned in favor of such questions and the
number of absentee, transfer, provisional and one-stop voting ballots returned against such
questions; and the totals of such numbers.
Section 3. From the canvass made, the Board does hereby determine and certify:
(a) That 111808 _ voters were registered and qualified to vote.
(b) At said referendum _27590 votes were cast for the order adopted on August 5, 2014, as amended
and restated on August 19, 2014, authorizing not exceeding $119,500,000 School Bonds of the County of
Iredell, North Carolina, plus interest, for the purpose of providing funds, together with any other available
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December 2, 2014
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, and providing that additional taxes may
be levied in an amount sufficient to pay the principal of and interest on said bonds, and 21831 votes were
cast against said order, and that a majority of the qualified voters of the County of Iredell, North Carolina
who voted thereon at said referendum voted in favor of said order.
(c) At said referendum 26193_ votes were cast for the order adopted on August 5, 2014, authorizing
not exceeding $12,000,000 Community College Bonds of the County of Iredell, North Carolina, plus interest,
for the purpose of providing funds, together with any other available funds, for acquiring, constructing,
renovating, expanding, improving and equipping various community college facilities for Mitchell
Community College, including, without limitation, the construction of a new Allied Health facility, and
providing that additional taxes may be levied in an amount sufficient to pay the principal of and interest on
said bonds, and 22338 votes were cast against said order, and that a majority of the qualified voters of the
County of Iredell, North Carolina who voted thereon at said referendum voted in favor of said order.
Section 4. The Chairman of the Iredell County Board of Elections is hereby directed to transmit immediately
a certified copy of this resolution to the Board of Commissioners for the County of Iredell, North Carolina. Upon
motion of Alan carpenter seconded by Charles Lyons, the foregoing resolution entitled: "RESOLUTION RELATING
TO THE CANVASS OF THE RETURNS OF THE BOND REFERENDUM HELD
IN THE COUNTY OF IREDELL, NORTH CAROLINA ON NOVEMBER 4, 2014 UPON THE QUESTIONS OF
APPROVING $119,500,000 SCHOOL BONDS AND $12,000,000 COMMUNITY COLLEGE BONDS AND
DETERMINING THE RESULTS THEREOF" was passed by the following vote:
Ayes: Charles Lyons, Alan Carpenter, Grey Mills
Noes:
Chairman Mallory formally introduced a resolution declaring the result of the bond
referendum held in the County of Iredell, North Carolina on November 4, 2014, upon the questions
of approving $119.5 million in school bonds and $12 million community college bonds and
declaring the official intent of the Board of Commissioners is to reimburse expenditures by the
County from the proceeds of such bonds.
Finance Director Susan Robertson continued. Having received the information from the
Board of Elections, the County Commissioners are charged with determining, declaring, and
certifying the result of the referendum as set forth in the following statements:
RESOLUTION DECLARING THE RESULT OF THE BOND REFERENDUM HELD IN THE COUNTY OF
IREDELL, NORTH CAROLINA ON NOVEMBER 4, 2014, UPON THE QUESTIONS OF APPROVING
$119,500,000 SCHOOL BONDS AND $12,000,000 COMMUNITY COLLEGE BONDS
BE IT RESOLVED by the Board of Commissioners for the County of Iredell, North Carolina: Section 1.
The Board of Commissioners, having received from the Iredell County Board of Elections a certified copy of the
proceedings of said Board of Elections taken on November 14, 2014, evidencing said Board of Elections'
determination of the result of the canvass of the returns of the bond referendum held in the County of Iredell, North
Carolina on November 4, 2014, upon the questions of approving $119,500,000 School Bonds and $12,000,000
Community College Bonds of said County, does hereby declare and certify the result of said referendum to be the
result which is set forth in the following statements of the result of said referendum, which statements have been
prepared by said Board:
STATEMENT OF THE RESULT
of the
December 2, 2014
BOND REFERENDUM
held in the
COUNTY OF IREDELL, NORTH CAROLINA
on NOVEMBER 4, 2014
UPON THE QUESTION OF APPROVING
$119,500,000 SCHOOL BONDS
At a bond referendum held in the County of Iredell, North Carolina on November 4, 2014, 111,808 voters
were registered and qualified to vote.
At said referendum 27,590 votes were cast for the order adopted on August 5, 2014, as amended and restated
on August 19, 2014, authorizing not exceeding $119,500,000 School Bonds of the County of Iredell, North Carolina,
plus interest, 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, and providing that additional
taxes may be levied in an amount sufficient to pay the principal of and interest on said bonds, and 21,831 votes were
cast against said order, and that a majority of the qualified voters of the County of Iredell, North Carolina who voted
thereon at said referendum voted in favor of said order, said order was thereby approved and is in force and effect.
Board of Commissioners for the
County of Iredell, North Carolina
STATEMENT OF THE RESULT
of the
BOND REFERENDUM
held in the
COUNTY OF IREDELL, NORTH CAROLINA
on NOVEMBER 4, 2014
UPON THE QUESTION OF APPROVING
$12,000,000 COMMUNITY COLLEGE BONDS
At a bond referendum held in the County of Iredell, North Carolina on November 4, 2014, 111,808 voters
were registered and qualified to vote.
At said referendum 26,193 votes were cast for the order adopted on August 5, 2014, authorizing not
exceeding $12,000,000 Community College Bonds of the County of Iredell, North Carolina, plus interest, for the
purpose of providing funds, together with any other available funds, for acquiring, constructing, renovating,
expanding, improving and equipping various community college facilities for Mitchell Community College,
including, without limitation, the construction of a new Allied Health facility, and providing that additional taxes may
be levied in an amount sufficient to pay the principal of and interest on said bonds, and 22,338 votes were cast against
said order, and that a majority of the qualified voters of the County of Iredell, North Carolina who voted thereon at
said referendum voted in favor of said order, said order was thereby approved and is in force and effect.
Board of Commissioners for the
County of Iredell, North Carolina
Section 2. The Clerk to the Board of Commissioners for the County of Iredell, North Carolina shall file
copies of the foregoing statements of the result of said referendum in her office and shall publish such statements once
in the Statesville Record & Landmark. A statement in substantially the following form shall be published with the
foregoing statements:
Any action or proceeding challenging the regularity or validity of this bond referendum must be begun within
30 days after [date of publication].
Section 3. This resolution shall take effect upon its passage.
Finance Director Susan Robertson stated this also includes a section regarding treasury
regulations which prescribes specific actions that have to be taken in order to reimburse the County
for cost incurred prior to the bonds being issued. This is necessary if the $500,000 is approved for
ISS or if they should incur any other cost prior to the bonds being issued.
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December 2, 2014
MOTIO by Vice Chairman Marvin Norman to adopt a resolution declaring the results
of the bond referendum held on November 4, 2014.
VOTING: Ayes — 5; Nays — 0
Request from the Finance Department to Adopt a Resolution and Bond Order to Issue
General Obligation Refunding Bonds: Finance Director Susan Robertson said that Iredell
County issued general obligation bonds in 1997 of $22,180,000 of which $2,980,000 is still
outstanding. Additional general obligations bonds were issued in 2006 totaling $45,330. The
balance remaining on the bond is $29,580,000. The average interest rates on the outstanding bonds
are 4.75% for the 1997 issue and 4.42% for the 2006 issue. Current market conditions are such
that the County can refinance the outstanding debt at interest rates estimated to be in the 2.3%
range which would result in 6.17 % net present value savings of about $1.9 million. The interest
rate is not set until the refunding bonds are sold so the savings could be more or less than quoted.
Commissioner Ken Robertson asked what typically happens with the savings.
Finance Director Susan Robertson said a funding mechanism was set up in 1992 for school
capital outlay and consider taxes that have been designated specifically for school capital plus
restricted sales taxes. When the debt is refunded the savings will go back into that fund and the
money will be available for additional school capital projects unless the Board takes a different
action.
Commissioner Tommy Bowles asked if that money could be used to reduce the other
school bond debt.
Susan Robertson said it could.
Chairman Mallory said this is a two part process. First, he introduced for consideration the
resolution making certain findings and determinations and authorizing the filing of an application
with the local government commission in connection with the proposed issuance of general
obligation refunding bonds by the County of Iredell, North Carolina.
Susan Robertson reviewed the sections of the resolution.
RESOLUTION MAKING CERTAIN FINDINGS AND DETERMINATIONS AND AUTHORIZING THE
FILING OF AN APPLICATION WITH THE LOCAL GOVERNMENT COMMISSION IN CONNECTION WITH
THE PROPOSED ISSUANCE OF GENERAL OBLIGATION REFUNDING BONDS BY THE COUNTY OF
IREDELL, NORTH CAROLINA
BE IT RESOLVED by the Board of Commissioners (the "Board") of the County of Iredell, North Carolina
(the "County"):
Section 1. The Board does hereby determine that:
(a) Preliminary analysis has been completed to demonstrate a benefit of refunding all or a portion
of the County's outstanding (i) General Obligation School Bonds, Series 1997, dated August 1, 1997 and
maturing February 1, 2016 and 2017, (ii) General Obligation School Bonds, Series 2006, dated February 1,
2006 and maturing February 1, 2017 through February 1, 2026, inclusive, and (iii) General Obligation Public
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December 2, 2014
Improvement Bonds, Series 2006, dated June 1, 2006 and maturing June 1, 2016 through 2026, inclusive
(collectively the "Bonds to be Refunded").
(b)The Board wishes to commence the procedures for the issuance of not to exceed $31,000,000
General Obligation Refunding Bonds of the County (the `Bonds") for the purpose of providing funds,
together with any other available funds, to refund all or a portion of the Bonds to be Refunded.
(c) The annual audits of the County show the County to be in strict compliance with debt
management policies and that the budgetary and fiscal management policies are in compliance with law.
Section 2. The filing by the County of an application with the North Carolina Local Government Commission
for approval of the issuance of the Bonds in an aggregate principal amount not to exceed $31,000,000 is hereby
authorized, ratified and approved.
Section 3. The law firm of Womble Carlyle Sandridge & Rice, LLP is hereby appointed to serve, but solely
at the pleasure of the Board, as bond counsel to the County in connection with the issuance of the Bonds.
Section 4. This resolution shall take effect immediately upon its passage.
OTIO by Commissioner Steve Johnson to approve.
VOTING: Ayes — 5; Nays — 0
Chairman James B. Mallory introduced for consideration the Order Authorizing $31
million General Obligation Refunding Bonds.
Susan Robertson reviewed the order.
ORDER AUTHORIZING
$31,000,000 GENERAL OBLIGATION REFUNDING BONDS
BE IT ORDERED by the Board of Commissioners of the County of Iredell, North Carolina:
1. That pursuant to The Local Government Bond Act, as amended, the County of Iredell, North Carolina, is
hereby authorized to contract a debt, in addition to any and all other debt which said County may now or hereafter
have power and authority to contract, and in evidence thereof to issue General Obligation Refunding Bonds in an
aggregate principal amount not exceeding $31,000,000 for the purpose of providing funds, together with any other
available funds, to (a) refund all or a portion of the County's outstanding (i) School Bonds, Series 1997, dated August
1, 1997 and maturing February 1, 2016 and 2017, (ii) General Obligation School Bonds, Series 2006, dated February
1, 2006 and maturing February 1, 2017 through February 1, 2026, inclusive, and (iii) General Obligation Public
Improvement Bonds, Series 2006, dated June 1, 2006 and maturing June 1, 2016 through 2026, inclusive and (b) pay
certain expenses related thereto.
2. That taxes shall be levied in an amount sufficient to pay the principal of and the interest on said bonds.
3. That a sworn statement of debt of said County has been filed with the Clerk to the Board and is open to
public inspection.
4. That this order shall take effect upon adoption.
The Board thereupon designated the Director of Finance and Administration of the County to make and file
with the Clerk the sworn statement of debt of the County which is required by The Local Government Bond Act, as
amended, to be filed after the bond order has been introduced. The Board also designated the Director of Finance and
Administration to file with the Clerk the statement of total estimated interest which is required by The Local
Government Bond Act, as amended, to be filed with the Clerk at the time the bond order is introduced and further
directed the Clerk to file a copy of such statement with the Local Government Commission.
December 2, 2014
Thereupon, the Director of Finance and Administration of the County caused to be filed with the Clerk, in
the presence of the Board, the sworn statement of debt and the statement of total estimated interest as so required.
OTIO by Commissioner Steve Johnson to approve the resolution as presented.
VOTING: Ayes — 5; Nays — 0
Request from the Finance Department to Adopt a Preliminary Resolution Making
Certain Findings and Determinations Regarding Refinancing Outstanding Certificates of
Participation: Finance Director Susan Robertson stated in 2006 the County issued Certificates of
Participation of $44.8 million of which $29,095,000 is unpaid. They issued $106.6 million in 2008
with $84.6 million unpaid. The average interest rate of the 2006 COPs is 4.88% and 5.04% on the
2008 COPS. Certificates of Participation are not secured by the full faith and credit of the County.
They are secured by the asset that was constructed when the funds were borrowed. Market
conditions are such that the County can refinance the 2006 outstanding debt at interest rates
estimated at 2.70% which will result in a 7.4% net present value savings or an estimated $1.8
million. Only $62.9 million of the 2008 COPS are callable at this time which reduces the amount
of the net present value savings to 3.2% or about $2 million. First Tryon advisors believe the
market will continue to improve for refunding the 2008 COPs. Robertson is recommending to hold
the 2008 until there is approximately 5.5% net present value savings. However, the resolution must
be in place to be ready when the market gets to that point. As with general obligation bonds, the
interest rate is not set until the date of the sale. A preliminary calendar has scheduled the sale for
the third week of February. Because MGSD will not be ready to bid until late summer, it may be
possible to include the new issue for Cool Springs at the same time the GO bonds are refunded in
February.
Commissioner Bowles clarified that the decision at the moment is just to set the framework
in place for when the market is ready.
Susan Robertson that is correct for the COPS.
Chairman Mallory introduced for consideration making certain findings and
determinations regarding the refinancing of certain installment contract obligations of the county.
Susan Robertson reviewed the resolution.
BE IT RESOLVED by the Board of Commissioners (the "Board of Commissioners") of the County of
Iredell, North Carolina (the "County") as follows:
Section L The Board of Commissioners does hereby find and determine as follows:
(a) The County has previously entered into an Installment Financing Agreement, dated as of May 1, 2006
(the "2006 Agreement'), between the County and Iredell County Public Facilities Corporation, a North Carolina
nonprofit corporation (the "Corporation'), pursuant to which the County has financed certain public school
improvements. Pursuant to a Trust Agreement, dated as of May 1, 2006, between the Corporation and the trustee
named therein, the Corporation assigned its rights to receive the installment payments from the County under the
2006 Agreement and the trustee executed and delivered $44,765,000 Certificates of Participation (Iredell County
School Projects), Series 2006 evidencing proportionate and undivided ownership interests in the installment
payments under the 2006 Agreement, which are currently outstanding in the aggregate principal amount of
$29,095,000 (the "2006 Certificates").
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December 2, 2014
(b) The County has previously entered into a second Installment Financing Agreement, dated as of March
I, 2008 (the "2008 Agreement"), between the County and the Corporation, pursuant to which the County has
financed certain other public school improvements. Pursuant to a Trust Agreement, dated as of March 1, 2008,
between the Corporation and the trustee named therein, the Corporation assigned its rights to receive the installment
payments from the County under the 2008 Agreement and the trustee executed and delivered S 111,375,000
Certificates of Participation (Iredell County School Projects), Series 2008 evidencing proportionate and undivided
ownership interests in the installment payments under the 2008 Agreement, which are currently outstanding in the
aggregate principal amount of $88,135,000 (the "2008 Certificates").
(c) Based upon an economic analysis by First Tryon Advisors, financial advisor to the County, under
current market conditions the County would be able to realize significant debt service savings by refinancing all or
some portion of its installment payment obligations under the 2006 Agreement and 2008 Agreement. The Board of
Commissioners has determined to consider a plan of finance to refinance all or a portion of the County's installment
financing obligations under the 2006 Agreement and 2008 Agreement. To carry out such refinancing, the County
would enter into a Trust Agreement between the County and a corporate trustee to be determined and issue its
Limited Obligation Bonds thereunder to provide funds to prepay its obligations under the 2006 Agreement and 2008
Agreement in accordance with the terms thereof, such refinancing resulting in the prepayment of the 2006
Certificates and 2008 Certificates.
Section 2. The Board of Commissioners hereby determines that it is in the County's best interest to
proceed at this time with the refinancing and hereby directs the County Manager and the Director of Finance and
Administration to proceed with arrangements for the development of appropriate financing documents, selection of
underwriters and a trustee and to take such other actions as shall facilitate the financing. Such arrangements may
include filing an application with the North Carolina Local Government Commission for approval of the refinancing
transaction.
Section 3. To the extent a public hearing is determined to be necessary in connection with carrying out the
refinancing, the County Manager is hereby authorized to schedule such a hearing on the agenda of the Board of
Commissioners and to cause notice of the public hearing to be published at the times and in the manner required by
law.
Section 4. This resolution shall take effect immediately upon its passage.
Chairman Mallory asked when the bonds are put out for bid if the savings projected will
retain the same current maturity dates with the savings spread out over the balance of the period
and reduce the payments or will the payments remain the same and the maturity date accelerated.
Susan Robertson said it would not change the maturity date but the payments will be
reduced. The local government commission requires level principal payments with government
debt.
MOTION by Vice Chairman Marvin Norman to approve the resolution.
VOTING: Ayes — 5; Nays — 0
Request from the Register of Deeds to refund $990 for Overpayment of Excise Tax to
Dan and Cynthia Carroll: Register of Deeds Matt McCall stated this request is to refund $990
to Dan and Cynthia Carroll for a deed recorded. The deed prepared by a Charlotte law firm on the
Carroll's behalf contained a typographical error. At first presentation the deed self-reported an
excise tax amount of $2,406.00. N.C.G.S. 105-228.32 says, "A person who presents an instrument
for registration must report to the Register of Deeds the amount of tax due. It is the duty of the
person presenting the instrument for registration to report the correct amount of tax due." The law
firm discovered their mistake several days after recording. Fortunately they made contact within
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December 2, 2014
the statutory timeframe requesting to correct the error. If this request is granted the firm must
record a new instrument reflecting the correct amount of tax due, the document must include the
names of the grantors/grantees and the Deed Book and page of the instrument being corrected.
They need to inform the Register of Deeds that the instrument being recorded is a corrective
instrument and they must give the Register of Deeds a copy of the decision made by the Board of
Commissioners. Upon the completion of the necessary steps the Register of Deeds will notify the
finance officer that a refund may be issued. There are no provisions for refunding the recording
fee of the first instrument and there are no provisions for waving the recording fee of the corrective
instrument.
Chairman Mallory stated the referenced G.S. 105-228.37 does lay out a process of putting
this kind of request before the Board of Commissioners. He asked the County Attorney if there
might be a method to meet the intent of the law by accelerating or perhaps delegating to have a
more comprehensive hearing in advance for refunds under a certain amount. He asked Bill Pope
to look into this.
County Attorney Bill Pope agreed to check into it and will contact the Department of
Revenue.
MOTION by Commissioner Thomas Bowles to approve this refund of 5990 to the
Carroll's.
VOTING: Ayes — 5; Nays — 0.
Request from Development Services to Approve a Revised Fee Schedule: Development
Services Director Lynn Niblock stated, as part of the budget process, the fee schedule was changed
in order to mesh with the new permitting software. It was designed to calculate fees based on
estimated construction value and to simplify the fee schedule. After several months it became
apparent that the estimated value for some construction types were not in line with current local
costs. The proposed schedule has addressed that by applying regional modifiers to bring the values
more in line with local conditions and it reduces fees to be more in line with the former fee
schedule. The proposal reduces some of the individual flat rate fees as well.
MOTION by Vice Chairman Marvin Norman to approve.
VOTING: Ayes — 5; Nays — 0
Request from Iredell Statesville Schools for Approval of an Application for Lottery
Proceeds and BA #18: Kenny Miller stated the school system has been fronting the project cost
of an expansion of the CATS facility, which is the Career and Technical School. They have a small
amount of capital fund balance to use which will pay for the project and then draw a refund from
the lottery proceeds. They built an additional seven classrooms at that site and is currently being
used as an overflow for South Iredell's growth. This enables the lottery proceeds to remain active
by using the proceeds in an appropriate manor plus keeping the balance low.
MOTION by Vice Chairman Marvin Norman to approve budget amendment #18.
December 2. 2014
VOTING: Ayes — 5; Nays — 0
ANNOUNCEMENTS OF VACANCIES OCCURRING ON BOARD & COMMISSIONS
Iredell County Board of Health — 2 vacancies
APPOINTMENTS TO BOARDS AND COMMISSIONS
Advisory Committee for Home and Community Care Block Grant (2 Appointments):
Vice Chairman Marvin Norman nominated Anna Rice and Lynda Sloan
Chairman Mallory closed the nominations and asked for a unanimous approval of the
appointment of Anna Rice and Lynda Sloan.
VOTING: Ayes — 5; Nays — 0
Recreation Advisory Committee (3 Appointments) — Commissioner Ken Robertson
nominated Pam Christopher, Melissa Jablonski and Kevin Smith.
Chairman Mallory closed the nominations and proceeded to voting.
VOTING: Ayes — 5; Nays — 0
Zoning Board of Adjustment (2 Appointments) — Commissioner Steve Johnson
nominated Robert Dellinger and Nick Carrington.
MOTION by Chairman Mallory to close the nominations and appoint Dellinger and
Carrington by acclamation.
VOTING: Ayes — 5; Nays — 0
Charlotte Regional Partnership (1 Appointment) — Commissioner Ken Robertson
nominated Jason Basinger.
MOTION by Chairman Mallory to close nominations and appoint Basinger by
acclamation.
VOTING: Ayes — 5; Nays — 0
Commissioner Steve Johnson asked if the County Manager could present, at the Planning
session on Friday, December 12, the top three capital projects that are the most pressing. In the
past there have been repeated conversations concerning the jail, expansion issues of ECOM, and
EMS quarters. As previously discussed, perhaps the EMS project could be phased to fit existing
revenue and revenue streams. He believes one thing to keep in mind is the amount of fund balance
and whether or not construction could begin on the jail and simultaneously pay whatever cost are
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December 2. 2014
associated with the financing along with the existing off -sight housing costs. After that phase,
review the existing revenue stream to see what level of debt service it would support and whether
the existing revenue stream would also support the operational cost once the facility is constructed.
He feels these are the main projects, outside of the schools, that have discussed for some time.
Vice Chairman Marvin Norman asked about the final report from the Inmate Reduction
Committee.
County Manager Ron Smith said the final report has been received and he was planning to
present it at the Planning Retreat along with the analysis from the staff.
Commissioner Steve Johnson said that could be incorporated with how it would impact the
timeframe for the jail.
Chairman Mallory asked to look beyond new construction or significant renovations, and
review deferred maintenance issues that have been accumulating. In order for the Board to do due
diligence, they must start now and develop the Metrix and courses of action to begin prior to the
budget process.
Commissioner Johnson said that in the past the Board annually set aside money for capital
projects. Perhaps when revenue numbers are presented maybe a number could be recommended
to rebuild the capital projects fund.
UNFINISHED BUSINESS
(None)
PUBLIC COMMENT
(None)
NEW BUSINESS
County Manager Ron Smith stated that Highway 150 is being considered for widening by
NCDOT. This project will span from Mooresville to Catawba County. Iredell County was
approached to consider a proposal from NCDOT to contribute to the construction of a multi -use
path along the Highway 150. There are significant costs associated with that project. Iredell
County's share would be $2.9 million as a base number and does not include right-of-way
acquisitions, engineering, etc. This could be a very expensive endeavor, over a five year period, if
the Board is interested. He asked if the Board would be willing to designate two members of the
Board to meet with Catawba County and the Town of Mooresville. Another option is not
participate at all.
Commissioner Ken Robertson said he would be willing to go to a meeting but cannot see
the County spending millions on a bike path.
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December 2. 2014
Commissioner Tommy Bowles said the Board needs to stick to what they are statutorily
bond to provide to the County and leave the other items alone. There are a lot of other needs right
now.
County Manager Smith said he has conveyed there has been no inclination by the Board to
further this project.
Chairman Mallory doesn't believe there is any point in a meeting.
Commissioner Bowles said he doesn't want to burn any bridges with any jurisdiction, but
the feelings of the Board need to be stated clearly. This does not contribute to any economic
development.
County Manager Ron Smith said he would convey the message.
COUNTY MANAGER'S REPORT
(None)
ADJOURNMENT: MOT10N by Chairman Mallory to recess the meeting at 8:10 PM
until Friday, December 12, 2014, at 8:00 AM at the Iredell County Agricultural Center, 444 Bristol
Drive, Statesville, NC.
VOTING: Ayes — 5; Nays — 0.
Approval:
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Clerk to the Board