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HomeMy WebLinkAboutFeb 21-22 2014 Winter Planning Session MinutesFebruary 21-22 2014 IREDELL COUNTY BOARD OF COMMISSIONERS Special Meeting Minutes February 21-22, 2014 The Iredell County Board of Commissioners met on Friday & Saturday, February 21-22, 2014, at 8:30 AM, at Lowe's Aviation, 116 Lowe's Aviation Drive, Statesville, NC. Board Members Present Chairman Steve Johnson Vice Chairman Marvin Norman Renee Griffith David Boone Ken Robertson Staff present: County Manager Ron Smith, Deputy County Manager Beth Dirks, Finance Director Susan Robertson, Assistant Finance Director Deb Alford and Clerk to the Board Retha Gaither. Others present: John Hamlin with the Statesville Record & Landmark CALL TO ORDER by Chairman Johnson. FINANCE UPDATE & PROJECTIONS: Finance Director Susan Robertson gave a financial update of FY14 and projections for FYI 5. Robertson explained each line item but said they will not know the final sales taxes for this fiscal year until September 2014. Building and Land Development revenues are up about 3.2% but is not growing as fast as last year. On-site Water Protection and Planning have the largest percentage of revenues. EMS revenues are down due to a decrease in call volume and delays in Medicaid reimbursements (which is state-wide). Health Department fees overall are up 11 %. Department of Social Services has declined 9% but their costs are down as well. Most of their decline is in foster care and adoption assistance. The Sheriffs Department is down about 27% due to the decline in officer's fees. However, revenues from pistol permits, concealed weapon permits, fingerprinting, etc. are maintaining or slightly greater than the prior year. The jail decrease is due to the commissary which is an out -side contract. The Crime Lab's revenues are up about 43%, which is not in pace with the business plan, but has increased from the prior year. Chairman Johnson stated the Crime Lab is working toward a potential state contract. Robertson continued with reviewing the expenditures. General Governmental includes administration, elections, finance, tax offices, ITS, 35% of Register of Deeds, facility services, economic development, courts, and special appropriations. The increase is due to economic incentives. The Sheriffs Office is up about 12% from the prior year. The Crime Lab costs are up 27%. The jail is up 11% compared to last year which includes out -side confinement and pump -n - haul. ECOM is up about 8% because of additional positions. Emergency Management is up but it is not reflective of their true cost because of a pass-through grant. Commissioner Renee Griffith questioned the cost of pump -n -haul. Robertson said the cost is $420 each time the sewage is pumped from the jail annex, which is daily and there have been as many as three times in a day. Robertson stated Cooperative Extension is down due to lack of personnel. Horticulture, 4- H Director, and Administrative Assistant are not filled at the present time. Chairman Johnson stated revenues from the Health Department should continue to increase because of additional lab services and fees. Also, new hires for on-site waste water must now sign an agreement to stay with Iredell County for five years. Robertson continued by reviewing the projection worksheet. Ad valorem taxes will come in about $1.5 million over budget. Other taxes and licenses will be down slightly. Robertson believes sales taxes will come in over budget as well. The formula used to determine projections is to review three year comparisons for every department, figure the average of spending -to -budget 1 February 21-22 2014 and factor in anything special about the specific year. Robertson feels there will be almost $1.2 million added to the fund balance. There was discussion of whether or not to transfer money to capital projects. Chairman Johnson asked County Manager Ron Smith to make a list, from staff, of all expected capital projects excluding the jail and ECOM. Growth and Activity Update: County Manager Ron Smith gave a brief intro into the growth and development update. Planning Director Matthew Todd and Development Services Director Lynn Niblock were present. Smith stated that most of the development activity is in/around Mooresville. The total units, subdivision lots and apartments, is approximately 3,000. Commissioner Ken Robertson stated that adds approximately 800-900 students. Chairman Johnson expressed his concern about protecting areas for commercial development. He would like to see this Board meet and talk to municipalities about a joint land use plan to protect potential areas. Todd said municipalities have reported an increase in calls asking about commercial property. Chairman Johnson recently talked with Elbert Richardson, who mentioned property on Murdock Road. Richardson is interested in meeting with this Board to discuss joint participation on this property. Health Care Issues: County Manager Ron Smith introduced Mark Browder from Mark III and stated the County received information that health care costs could potentially increase by 29%. At that time, Smith asked Browder to research options. Smith said the increase is an 18% increase in overall health costs. Smith is proposing the following five actions in FY2015: a. Increase the overall county contribution to the Healthcare Benefits Fund by 18% from $600 to $708/month. b. Increase the employee and retiree contributions by 18% from: i. Employee/Spouse - $225/month to $266/month ii. Employee/Child - $200/month to $236/month iii. Employee/Children - $286/month to $337/month iv. Employee/Family - $368/month to $434/month c. Require that all employees (and retirees) who carry their spouse under employee/spouse or family remove them from our policy if they have health insurance available through their employer. d. Require that all spouses and dependents over age 18 participate in the County Wellness Program. e. Change our policy of providing health insurance after retirement (typically the County provides until Medicare becomes effective for the individual). This would affect employees hired after July 1, 2014. Commissioner Ken Robertson asked about the savings if spouses were removed as in option three. Browder said it wouldn't be much. The high claims are not coming from working spouses, they are from non -working spouses. Commissioner Renee Griffith asked if all five options were adopted would it remove the 18% increase. Browder said no. Browder stated at the end of FY12/13 the County was in negative numbers because of several high claims in one month. The current year, FY 13/14, is presently about even. The numbers presented prove the reason to have the Wellness Program. High claims, between FYI 1/12 to FY 12/13, jumped to $500,000. Presently there are 241 spouses on the plan with claims slightly under $1,700,000.00. Commissioner Ken Robertson asked the cost results of health care reform. 2 February 21-22 2014 Browder said it is due to a variety of enhancements to the plan, such as preventive measures paid at 100%, coverage for children up to age 26, etc. All of which costs money in the range of 5- 10%. Browder continued to explain the results of requested quotes from different companies. Only two companies responded. Commissioner Robertson asked why some companies declined a quote. Browder said companies look at claimant traffic and claimant history. Commissioner Robertson asked if the high claims are relative to other counties or to other entities. Browder said other entities. He said typically counties have a less healthy population than a private sector work force. Typically employees are older, sedentary, and majority female. Commissioner David Boone pointed out, from the chart, the total claims for last year was $8.3 million. With over 900 employees, this calculates out to $9,000 per employee per year. Browder said that is correct but the number includes dependent and retiree claims as well. He said Cigna's response was 19.5% increase to the RFP and Blue Cross was 33%. He stated benefits have to be improved for out of pocket maximum, for family coverage, to be compliant with ACA. The Cigna renewal will have a $1.4 million change over FY 13/14. The individual rates will increase as well. The funding from the County for FYI 3/14 is $6.9 million but will be $8.1 million for FY 14/15. Commissioner Griffith stated the County absorbing the increase cost of insurance is a non- taxable direct benefit for the employee. Smith said if this proposal is agreed upon he plans to stress to employees, even with individual increases, that the County is funding the vast majority of the costs. Commissioners Robertson expressed that employees need to understand this is part of the employee compensation package. Human Resources Director Sandra Gregory stated each new hire is given a benefit statement that explains all of the benefits paid and contributions made by the County. Gregory said the open enrollment videos that each employee is required to view contained a portion on the rising costs of health care. The purpose was to convey the big picture, to help them understand why claims are going up plus try to encourage them to focus on and/or improve their own health as well as the health of their family. She said the increase for dependents will only impact about 10% of the workforce. Commissioner Griffith stated the importance of how the information is presented without pointing fingers at any particular group. She feels it is important to present all sides, give the truth, the good, the bad, the indifferent and then answer questions or concerns. Smith said he asked Browder to explore what could be done to make the benefits better over time. Browder stated he believes you should `give more for more action.' One way to get people more involved is to give money into a health reimbursement account to take care of reimbursements for those in a PPO plan and/or give more money in HSA dollars in the HSA plan or just give cash for performance. The performance is measured in the accountability standards, such as waist circumference, diabetes, AIC, cholesterol, blood pressure, etc. If employees step up and meet or improve the standards, by demonstrating their own personal action of taking care of themselves, then potentially there could be funds available to help improve benefits. Employees' view of benefits is to lower the deductible or co -pays but the fund based strategies should have the same effect. Employees should earn it. The County may be able to make it better but the employee February 21-22 2014 must be part of the team with their performance. Taking care of oneself means feeling better and less interaction with the healthcare community. Chairman Johnson asked if all were in favor of the recommendations. Commissioner Robertson is agreeable to the recommendations with the caveat that if the gap between what people pay for non -participation versus participation needs to be widened it is ok to do so. Vice Chairman Marvin Norman expressed the importance of explaining to the new hires that when they retire the insurance is not available. Susan Robertson said that was changed in 2006. Employees must have 30 years with Iredell County to retire with paid insurance. Mooresville Rescue Squad: County Manager Ron Smith gave an update on Mooresville Rescue Squad. Questions asked by the Board on November 8, 2013: 1) Are they willing and how could they provide ambulance service in the south end without being a rescue squad provider? 2) How are they going to distribute/dispense of their equipment? On November 21, David Saleeby and Ron Smith met with the majority of MRS's board and asked those questions. Answers were expected by the first of January 2014, but, to date, no response has been received. Smith said they were acting in good faith toward information for the Board. However, after several discussions with the Chairman of the MRS Board, they have been operating as an ambulance service since December, by default. When the other districts were created they were taking a "back-up" role which has been working fairly well. Therefore, the answer to the first question is yes, but would like to keep their dive team and land search. However, when asked about the equipment there was no definitive answer. Smith said he asked for an asset list and where each item would be going, but has never received that information. Smith said they mentioned they were willing to give up the crash truck but with no recommendation of where it should go. Commissioner Ken Robertson asked about smaller equipment such as axes, chainsaws, etc. Smith said he asked for an inventory list of all equipment and recommendations on where it would go, but never received one. He stated David Saleeby gave a funding formula for operations to stay in the present range from a lump sum prospective, but allocate it differently. However, the amount in mind from the County and the amount in mind from Mooresville was nowhere close. Mooresville Rescue has had conversations with Mooresville Fire who is interested in accommodating them on some level but have not finalized an agreement. Smith stated he believes the best option is to stop funding now until the requested asset list, with recommendations for each item, is provided. Chairman Johnson agreed. Commissioner Robertson asked who owns the equipment. County Attorney Bill Pope stated that legally they cannot just give away their assets to the members. He feels their charter will state the disposition of assets. Susan Robertson said the rescue squad owns it but believes the bylaws state it must be distributed to another 501C3 organization. Chairman Johnson stated he believes the fire departments in the south end went above and beyond to reach out to Mooresville Rescue without any response in return. MOTION by Commissioner Renee Griffith to cut funding. Commissioner Ken Robertson amended the motion to cut funding until all staff requests are met. Chairman Johnson stated that going forward some of the money should be allocated to fire departments in the south end because of the increased demands and not just automatically roll the money to other rescue squads. 4 February 21-22 2014 Smith stated North Iredell Rescue Squad is in need of a crash truck. Commissioner Griffith said she spoke to the Chief of North Iredell and he said they are saving money and would like to request $11,000 more on this year's budget to help offset the cost of the crash truck. Griffith said their intention is not to ask for a crash truck but to help offset the cost and she would be in favor of helping them. Chairman Johnson said he was not opposed to that but it is important to meet obligations toward others that have been asked to get into the rescue business. South Iredell needs approximately $22,000 to get the organization up to light/medium rescue. Commissioner Griffith asked the amount going to Mooresville Rescue. Smith said $140,000 per year. There was no further discussion on the motion. VOTING: Ayes — 5; Nays — 0 Iredell County Jail Project Update: Dan Mosely and Todd Davis from Mosely Architects presented an update on the jail project. This update is a result of requests made at the Board of Commissioners' Planning Retreat on November 5, 2013. Moseley gave a quick recap of previous information shared in November. He stated if the present facility is in good condition, he recommends to keep what is functional. Then add the necessary beds in order to house inmates that are being exported to other counties and address long-term growth needs. Todd said they reviewed population projections, provided by the NC Office of State Budget & Management data through 2033, which is predicted to be over 200,000. The total admissions for 2012 was 6,170 and the estimated total for 2013 was 6,300. The average admission rate, per 10,000 county population, between 2006 and 2012 was 438.95. Commissioner Renee Griffith asked when they began exporting prisoners to other counties/facilities and if it corresponds with the data. Bert Connolly said because some inmates are staying longer, they have been taking prisoners to Asheville and other facilities over the last couple of years. One prisoner has been in the jail for six years and has cost the County approximately $160,000.00. Commissioner David Boone stated he believes admissions have remained fairly even because the courts have been working to keep people out that really don't belong there. He feels if the capacity is increased too much at once it will get filled. He feels the courts will cease their efforts to keep the population down and if there are 590 beds they will be filled. Not only will there be construction costs but huge operating costs. He said the majority of people in the jail are awaiting trial because of a dysfunctional court system. If the courts were more efficient, then trials and sentencing would be timely which would take care of jail overcrowding issues. Todd said there have been some changes in the sentencing and probation laws which will affect the jail. He said the implementation of the "Quick -Dip" which is a three-day admission and the "Dunk" which is a ninety -day admission will have an impact on the jail population. Todd said another law change will affect the population as well. This law states if a person commits a crime while out of jail on a bond from a previous crime, then the person will be incarcerated for both crimes and the first bond amount doubles in addition to the bond for the second crime. This means the higher the bond the less chance of being released. Moseley Architects projected admissions for 2015 at 8,523. This number includes the change in length of stay for misdemeanors. Before, everyone with 91 -days or above went to the Department of Corrections, now it is 181 days. He said each jail can be a sending or receiving agent. If considered a receiving agent the State will pay $40 a day. February 21-22 2014 Todd continued showing the average length of stay is 15.2 days from 2006 through 2013. However, he said this is the lowest number he has seen from other counties and does not feel this is sustainable. Commissioner Ken Robertson questioned that number with information just talked about concerning the misdemeanor law. Commissioner Boone said this number includes everyone who has been admitted with most of them not even spending the night. Boone said he checked the analysis of the inmate count in April and the average length of stay was 130+ days and the median length of stay was 53 days. If you assume that the people have served half of their sentence on the average you could double that for the time they actually stay which would mean the median length of stay would be over 100 days. He feels it would be fair to say the median length of stay is three months. The chart number includes everyone who was brought in with the majority not even spending the night. Moseley said the numbers are compared to other counties. At the present time, in comparison, Iredell County does not have the bottle neck that other counties are experiencing. Even with the inefficiencies, it seems to be running fairly smooth. Commissioner Griffith said that is not what is being told to the commissioners. Boone said he checked Rowan and Catawba County several months ago. He said they were roughly equivalent to Iredell in the per capita length of stay. Moseley said the goal is to keep this as low as possible, the more efficient the better. In comparison to the state it is pretty good. It is hard to explain but does not feel it is long-term sustainable. The slightest change is staff, etc. could make a big difference. Todd continued and said Moseley is forecasting by 2015 Iredell County will need 461 beds to be able to house all inmates, properly classified and allowing for peak times. Moseley reviewed a potential site plan, using the existing core, with a three-story addition. He reminded them this is a very early draft design just to get an idea of the possibilities. He explained the housing units consist of one control room to supervise two housing units. Each housing unit can house up to 48. The cells are standard size with double occupancy. However, one or two of the units should be allocated for single occupancy for safety for the more severe inmate. Connolly stated at the present time they cannot meet the classification that the law requires. Commissioner Griffith asked if this jail is built will it eliminate the annex and the pump - n -haul issues. Connolly said yes. All inmates would be house in this one area. Commissioner Boone questioned the operational cost difference between the dorm style pods of the old jail and the cells of the proposed new addition. Moseley said it would be essentially the same to operate. Commissioner Griffith asked if they truly need two floors with that many cells. Connolly said yes, in his opinion. County Manager Ron Smith said to remember that inmates from the annex and those housed in other counties will be brought here which will fill a large number of those cells. Commissioner Robertson stated he wanted to ask a question that he is asked repeatedly by the public. Citizens ask why the County is doing this. In Arizona they can put up a fence, put up some tents, feed them bologna sandwiches and make the inmates wear pink underwear. Why can't the County put up a metal building with a port -a -john, give sandwiches to eat and put all inmates in together? 6 February 21-22 2014 Todd said the inmates that are shown on television volunteer to go to the tents and wear the pink underwear. The custody level is considered and most are on work detail. Also, the same Sheriff has a downtown high rise mega jail with hard cells. In comparison, the same type of inmate in Iredell County is in not even in a facility. Commissioner Robertson ask if it could be done. Todd said you would end up housing inmates that are not being housed right now. Connolly said there is a mandated state standard which is different in North Carolina than in Arizona. Commissioner Robertson said most citizens want to vote for a Sheriff that will lock up criminals and vote for a District Attorney that will prosecute criminals. However, they do not want to consider the expense of housing those criminals. Moseley reviewed the cost estimates of $25.8 million. He reminded the Board it would be a 12 -month process before receiving bids. This cost estimate is capital costs, not operational. Moseley reviewed a former question about putting just the shell of one floor and actually finishing it at a later date. The cost would be approximately $650,000 (with today's construction dollars) to upfit the floor at a later date. Commissioner Boone stated if the floor was just roughed -in it would save $1.3 million plus the staffing cost. He stated if this is constructed, there will be a new public area, new visitation, kitchen, laundry, and magistrate offices. All core functions will be new in the new addition. Boone asked what is proposed for the space in the old jail that is presently being used for those same functions. Mosely said it could be a medical area which is not proposed in the new addition. Connolly said some of the space would be used for offices and storage. Moseley said that space would not be abandoned but would be utilized. Todd explained the proposed staffing report which identifies staff for the new addition only but encompasses the whole system. One new position that will be required is a PREA Compliance Officer (Prison Rape Elimination Act). In the fall of 2014, an audit will be required to confirm PREA compliance with all standards. Commissioner Robertson asked the downside if someone inspects and there is no PREA Compliance Officer. Todd said they could cut federal funding up to 5%. Connolly said it could affect some of the grants that the Sheriff's Office can apply for. He said the ACLU has already made contact asking for copies of the policy, etc. Chairman Johnson asked the total dollar figure, the "high water mark," for operations in addition to the current expense and not including debt service. Connolly said approximately $3 million on top of the current budget. He said as the new project gets closer to reality, there could be some changes to the total number of personnel. Commissioner Griffith asked the cost to start the process. Chairman Johnson said he was not ready to transfer funds to the jail project, but needs to make a decision about an amount to set aside for the architect and engineering to begin the process. Commissioner Griffith asked for the amount of that cost. Smith said it would be 8% of the construction cost. February 21-22 2014 Moseley said 8% is the total service, but to do the design and get it ready for bid is about 75% of the 8%. Smith said about $1.3 million. Commissioner Robertson asked for clarification on not finishing the third floor. The total cost would be $22 million instead of $25 million. Which means losing %2 of the beds to save 10% of the money. Chairman Johnson asked the process for upfitting the third floor later. Moseley said they would design a removal wall panel so that equipment could be hoisted into the third floor area. But it could be bid as an add -alternate. Smith said $1.5 is the cost of architect and engineer to begin the process. otion by Chairman Johnson to appropriate S 1.5 million for architectural and engineering work on the new jail. The money will come from capital projects. VOTING: Ayes — 5; Nays — 0 School Presentations: Iredell-Statesville Schools: Dr. David Cash from the Iredell Statesville Schools Board of Education addressed the Board and thanked the Board for the opportunity to meet with them again. ISS Superintendent Brady Johnson distributed and reviewed information about performance records from their students. He also shared a snap shot of how local money is being spent. For the last two years they used some fund balance to supplement their budget and explained some preliminary budget reductions for the next school year. However, that leaves a gap of $1.3 million for next year. Johnson said they will need addition revenue or help to identify additional cuts and/or eliminations to balance the budget for next year. If the rumor of State raises becomes a reality that will add an additional $350,000 to the gap. He said ISS has given school staff supplements but with the recession the supplements were cut 2% and ISS would like to work toward rebuilding that by '/4% at a time to the original percentage. Another program that was cut 50% is the SAP (Student Assistance Program) with the remaining 50% being paid by grants for three years. However, after three years the SAP program will disappear without help. He stated ISS will only have one social worker next year. They will partner with DSS to pick up some of those services. ISS Kenny Miller reported they have put a lot of investment into new schools or wings on older schools due to population growth. Therefore the issues facing them now is deferred maintenance and deferred work on the older structures. He explained the current capital needs identified are $18.3 million for facilities improvement, major renovations, mechanical/electrical systems, roofs, etc. Along with Phase 4, identified by Facilities' Task Force, of construction requests at $78.4 million. The total capital needs are $96.7 million. The annual recurring capital revenue is $3 million with $1.5 million from lottery and $50,000 in miscellaneous revenue, which brings the total to $4.5 million of estimated revenue. Miller said this is used, but it is not enough to reach everything. Therefore there is a back log of projects. He said staff cuts have contributed to this back log as well. Miller is suggesting to use the %4 sales tax and ask for a bond referendum for some of the bigger issues. Commissioner Ken Robertson asked for the top five projects. Miller said two new middle schools. Two IB Programs are now using two renovated middle schools. The IB Program would move to the current Statesville Middle School and Brawley. Mt. Mourne could be sold or used for other choice programs. However, Cool Spring is number one on the construction list. Commissioner Robertson asked the estimated cost of Cool Spring. Miller said $13.5 million. The next projects are major renovations at South and North Iredell High Schools. 8 February 21-22 2014 Mooresville Graded School District: Roger Hyatt, representative from the Mooresville Graded School District Board of Education, addressed the Board and thanked the Board for the opportunity to meet. MGSD Superintendent Dr. Mark Edwards stated they are currently rank 2nd in the state for graduation rate and 3rd in the state for academic achievement. He stated they are seeing an increase in growth and forecasting the need to add additional schools. They cut 10% of their work force a few years ago even though the class size has risen. For next year they would like to see compensation increases for all employees. He said the number one priority on capital is Mooresville High School. He has met with Lowe's, Town of Mooresville, and Mitchell Community to try to leverage some type of auditorium similar to Statesville High School's Performing Arts Center. For projected growth they have looked at options on two pieces of property for a middle school and an elementary school. Commissioner Robertson asked an estimated count of students expected in the district. Edwards said the state is projecting 200-300 students. Commissioner Robertson asked MGSD capacity. Edwards said they are projecting to hit 2,000 at the high school within two years. They presently have 1,780. The 7`b 8`", and 9`" grade classes are all well over 500. Commissioner Robertson asked for an update on safety concerns mentioned last year. Edwards said the band area was built for 50-75 members but the band now has over 200 members. Also the masonry design from the 1950s has become saturated and is an issue because there is a separation in the balcony and part of the wall is pulling out. Inspectors have said it is not immediate but needs to be corrected. This has affected the allowable number of students and guests attending events due to safety. Mitchell Community College: Dr. Ralph Bentley, representing Mitchell Community College, addressed the Board and presented a letter of thank you and a resolution recognizing the Board of Commissioners' support in a recent property acquisition. Chairman Johnson accepted the resolution and expressed appreciation on behalf of the Board. Mitchell Community College President Tim Brewer stated he would like to share with the Board of Commissioners a five year capital project and potential property purchase plan. Gary Johnson explained current needs with HVAC, upgrading elevators and roofs at the top of the list. They are also planning to renovate the entrance to the Continuing Education main building and construct a 10,000 square foot metal -type building on the Front Street campus for Cosmetology and Nursing Assistant Programs. Chairman Johnson asked about zoning issues for the metal building. Gary Johnson said that wouldn't be a problem. Commissioner Ken Robertson asked the amount of this year's budget. Ron Smith said the County has been using the formula -base to transfer funds from capital to current over the last couple of years because of heavy needs. Chairman Johnson asked, if possible, to re-initiate $50,000/year for land acquisition back in the budget as previously practiced which would be held until needed. Finance Director Susan Robertson said the 2003 COPS issued for Work Force Development were retired last October. That means about $120,000-$130,000 will now go to Mitchell for capital. 9 February 21-22 2014 Brewer said they are anticipating two pieces of property coming available, within the next year, near the Mooresville Campus. Chairman Johnson said if the piece of property, that was been recently discussed near the Mooresville Campus, becomes available, he would not commit to putting aside the $50,000 for future purchases. He would agree to one but not both. Vice Chairman Marvin Norman and Chairman Johnson expressed their appreciation for the impression Mitchell Community College has made on the citizens of Iredell County. General Discussion: County Manager Ron Smith said he set this time aside to further discuss some of the topics from earlier. He also wanted to fill in some of the blanks about other capital needs. He said the capital needs are not huge over the next five years other than ECOM. The present center does not have any possible expansion. Smith said ECOM has expressed the need for another console within a year or two. Smith asked Susan Robertson to estimate the cost of ECOM needs along with the jail project. He said, if ECOM is considered then a CAD would have to be included. Chairman Johnson cautioned that if a CAD system is considered, then make sure all factions are involved. pitfalls. Commissioner Griffith said Davie County has a great center and could be a help in avoiding Commissioner David Boone asked about possible areas for ECOM. Smith said it would make sense to keep it in the present building because of the tower. He has talked with the Register of Deeds who would be easier to move than ECOM. Chairman Johnson asked if the County could meet all the obligations mentioned. Smith said yes, but flexibility will be limited. The tax rate will probably need to remain where it is. Discussion continued about whether or not to finish the top floor of the jail along with the possible future increase in construction cost and code enforcement changes. Commissioner Griffith asked the possibility of restructuring the Sheriff's budget. Smith said this year's budget will include several vehicles which had been pushed back for a couple of years. Chairman Johnson asked if John Williams from Vehicle Services recommends vehicle purchases. Smith said yes, he must sign off on all vehicle requests. Commissioner Griffith said the opportunity will come with this year's election to begin conversations with new leadership and forge new relationships. James Mallory, local attorney and observer of the meeting, asked to comment. He suggested the Board of Commissioners discuss with Superior Court Judge Crosswhite and put together a commission of all stakeholders of the local judicial system, to work together to streamline the entire court system. Chairman Johnson asked if the jail project was approved, what would the budget look like after the next revaluation with subpar economic growth. Smith said, in his opinion, using this year as an example, activity is growing which brings the need for more people but it is not hitting the books and does not give a good sense of security. 10 February 21-22 2014 Revenue is being generated which will allow handling small issues but not allow a major project. The jail could probably be handled. The revenue will probably be there but may need some creative ways to fill in gaps. Smith suggested to look at an overview of the budget forecast at the first budget work session. At that time, they will have a better idea and believes they could make a better estimate of what it would look like over the next couple of years. Commissioner Robertson said he would be in favor of an incremental amount for an employee incentive along with paying the increase for insurance and the pension obligation, which is not optional. He stated he would like to give the schools more than last year but it may be an incremental amount as well. Smith said any decisions on benefits would be if the revenues support it. The full picture is still unknown. He added that the percentage of turn -over of employees is beginning to cost more money. Chairman Johnson stated he would like to see money moved into the capital projects fund. Commissioner Griffith ask for comfortable amount. Smith said he would be comfortable with $6 million which would leave the fund balance at 20.35%. Commissioner Griffith asked to confirm from earlier that $500,000-$600,000 may be added at the end of the fiscal year. Commissioner Robertson said he is not ready to move money. Chairman Johnson adjourned the meeting until 9:00 a.m. Saturday, February 22, 2014. The Board resumed the retreat at 9:00 a.m. on Saturday, February 22, 2014. Chairman Johnson called the meeting to order and turned it over to County Manager Ron Smith. Capital Projects: Smith said a few years ago the Board voted to put $1.6 million in a maintenance fund. Facility Services has been working diligently to complete a three-year list of projects. Facility Services Director Robert Woody stated Facility Services is in the second year of the three-year list of projects. He said due to the age of some of the buildings, they have actually discovered 36 new needs in county buildings. These needs have been broken down into priorities one through four. Today's presentation will show the most pressing needs. Woody explained why additional money is requested for the projects. An example is the Building Standards Building. It was scheduled to be painted, but after closer inspection, the present paint only has a 3 to 5 -year life span, the mortar needs repointing because of deterioration, and there is a moisture barrier which means moisture has entered through the brick and needs to be sealed. Woody said the next project is storage for Elections. There were several things to consider about this project. Originally it was thought to be a free standing building behind Elections, but there were issues with access and security. Therefore, attaching something to the present structure these issues could be solved. Also, drive through voting had to be considered. Therefore, an additional $50,000 is needed for a total of $85,000. Due to safety, the parking lot resurfacing will require an additional $20,000 for a new entry way and repaving. Woody continued and said the Government Center roof will require a specialist for the slate and therefore will need an additional $40,000. Smith said some projects have run low so far and therefore, some money has been moved within the fund. 11 February 21-22, 2014 Woody said the Hall of Justice parking lot is a phase two of an existing project and will need an additional $95,000. Chairman Johnson asked about resurfacing where the new jail may be built. Woody said this project could be put on hold until a decision is made about the jail. Woody said replacing the carpet at the Register of Deeds has a special kind of issue. The cost of replacing the carpet is astronomical because of the labor. A lift will must brought in to lift the cubicles up to replace the carpet. An additional $33,000 will be needed for labor. Commissioner Griffith asked if the Register of Deeds is going to remain there for another 10-12 years. Smith said this project is another one that could be put on hold until decisions are made about ECOM. Woody said the last part of the number one priorities are new roofs for Building Standards, EMS at Harmony, Government Center File Building, Tax, and Vehicle Services. Commissioner Ken Robertson asked if there was a system to predict when roofs need to be replaced. Woody said they are creating a system. They are inspecting every building and creating an electronic and hard copy of dates when roofs, HVAC, etc. are installed. Chairman Johnson asked about putting a line item back in the budget for small capital repairs. Smith said yes, that could be done. He said Facility Services has done a great job with $1.6 million worth of projects. Chairman Johnson said, when crafting the budget, he feels something needs to be added for future years. Once the prioritized list is made, there could be money to begin work before issues worsen. Commissioner Griffith asked if the repairs at the EMS building could be put on hold with the possibility of moving that base. Smith said that is correct. Those repairs may not be needed. Chairman Johnson asked the total of new money requested. Smith said $500,000 is a high number, but they are looking at what they can reasonably complete in this coming year. Chairman Johnson asked that a prioritized list with amounts be presented at the budget sessions. Public Safety Departments: Smith asked each department to make a five year plan which has been combined into one spreadsheet because these departments are intertwined. Commissioner Robertson asked if the Sheriffs Department was invited to participate. Smith said yes they were, but they are not on the list for today. The Board expressed to the County Manager the importance of forming a closer relationship with the new Sheriff. 12 February 21-22 2014 Smith said the two largest projects over the next several years are ECOM Expansion and an EMS Headquarters/Training/Facility Base. ECOM Director David Martin said the ECOM Department is running out of room. He said a recent study suggested expanding ECOM and Emergency Management out into the Register of Deeds. He said the present consoles are over 25 years old. There are currently seven positions and the study suggested twelve. The equipment room is so tight that techs can't even get around or behind them for repairs. Chairman Johnson asked what constitutes the $3 million for expenses. Smith said it is an expansion of the current facility with an expansion of the EOC, add space and expansion to the ECOM, consoles, furniture, etc. They would basically take over the entire floor where the Register of Deeds is now. Martin added it is just renovations and furniture. This estimate does not include the CAD. The study mentioned bringing the Fire Marshall and administrative offices for EMS into the same complex. Commissioner Robertson asked if relocation of the Register of Deeds is included in the estimate. Smith said no, it is not included. Commissioner Griffith asked if it was the general consensus to stay in the same location due to the cost of moving equipment and towers. Martin said yes. He reminded them that if another location was built, it would have to be ready to operate when they moved in, because 911 can't be turned off. Commissioner Griffith asked if the space could accommodate EMS. Smith said it could house some offices but not as a base. Commissioner Griffith asked if there would be room for both ECOM and Register of Deeds. Smith said he doesn't believe that would work. The rolling files take a lot of space. He said this is a future project which will probably need to be started by FY2016. Chairman Johnson asked for a more detailed report concerning the cost of renovating ECOM and Emergency Management. EMS Director David Cloer said the current Statesville EMS Base was originally designed for two crews, but over the years more trucks and staff have been added. Presently there are 136 full time employees and trucks are being parked outside in the weather. The building is functional but not HIPAA compliant. The kitchen, bathroom and living spaces area are very small. He would like to have a training room large enough for 50t people. They are presently using Mitchell Community College facilities for training, but can't guarantee that will continue. Cloer said he plans to pay back the original loan this year for Specialty Services but would like to borrow against the General Fund again to purchase a building. A preliminary, rough estimate is $2.25 million, but put in $3 million to cover all. Commissioner Griffith asked about the property adjacent to DSS. Smith said it is a consideration, but wants to make absolutely sure it is the right spot. Chairman Johnson asked the outstanding balance that is owed by EMS. Assistant Finance Director Deb Alford said $275,000.00. She said EMS has the fund balance to pay it off. 13 February 21-22 2014 Commissioner Griffith is in favor of loaning the money. She feels they have been wise, good stewards and repaid the first loan in a timely manner. Chairman Johnson agrees but is concerned about the timing and the present fund balance. He also asked how much of the revenue came from Medicare reimbursement. Cloer said since July 1, 2014, 48.8% of patients were Medicare related. Commissioner Griffith would like to see improvements in the EMS facility soon or at least make a plan within the next year or two. Chairman Johnson said he agrees a facility is needed. He reminded them of a conversation when Specialty Services was started that if it went well and generated revenue, it could be used as an enterprise fund. He said he is still committed to that, but not at the present time. Chairman Johnson asked for more information on what the facility would cost with a 15 year payback and review the annualized debt service. He suggested to include, in the plan, replacement of the ambulances. the jail. Commissioner Griffith asked when to expect Moseley to return with the design draft on Smith said probably 10 months. Commissioner Griffith stated that length of time would be an opportunity for the Chairman of the Board to meet with the DA, Judge Crosswhite and an attorney to identify some of the issues that are increasing the cost of the jail and court system. Employee Compensation: County Manager Ron Smith stated employee compensation is a difficult issue and is based on what the revenues can support. Today's issues are: employees have been five years without an increase added to the base, deteriorating health benefits, climbing turnover rate, decreasing morale, higher cost of replacement vs. retention, elevated CPI over a five year period and salary proposal. Smith said 2009 was the last time anything was added to the base salary. In 2013, up to 2% performance increase was given, but was spread out over 12 months. This year, 2014, the bonus was paid on the anniversary date. Commissioner David Boone said that over half of the employees have been reclassified by the salary studies and therefore have received some increase. He said the majority received the 2% bonus and some received I%. Smith said HR is reviewing the evaluations as they come in to check for anomalies. Smith said the turnover rate is very important to an employer. In 2009 the turnover rate was 9.21 % and in 2010 the rate was 11.56%, but these two years included full-time, part-time, and temporary. However, the rate in 2011 was 9.74%, in 2012 was 9.37% and in 2013 was 11.67% all of which were full-time employees. In some departments, especially in EMS, replacing employees can be costly. Smith said HR sends out a survey when a person leaves to learn why they are leaving. If the employee doesn't return the survey, HR calls and talks with them personally. Vice -Chairman Marvin Norman said, in his experience, surveys were not as effective as exit interviews. Smith said the overall reasons for employees leaving were fairly even between personal reasons, pay/benefits, and management/work environment. He continued with the training cost per employee for hiring and training. For example, in ECOM the total to replace/train an employee is $4,153.00; for EMS it is $11,888.00; for Animal Services $8,096.00. He said two years ago, a compression study was initiated, which shows that today it is difficult to hire someone at the bottom range. Someone today may be hired and paid at a rate very close to someone who has worked for five years. Smith is recommending up to 3% performance based increase, added to the 14 February 21-22 2014 base, if the revenues support it, which would be approximately $1.3 million. He asked HR to hold the next round of the cycle study. This would save $210,500.00. The cost of the 2% bonus in FYI 3/14 was $578,545. Commissioner Boone asked if there is an option for a lower percentage. Deputy County Manager Beth Dirks said yes, it is performance based. Commissioner Robertson said he understands the issues and believes employees should receive something in order not to lose qualified employees. Chairman Johnson said the original reason for the bonus was to allow something for the employee without adding to the bottom line on operational costs. He feels 3% is not sustainable, maybe 2% this year would be a little more sustainable. Smith said he understands and 2% would give approximately four steps on the grade which would help. Commissioner Boone said it may be more logical, in some departments where there training costs are higher, to give more of an increase to employees that require more training. Rescue Squads: Chairman Steve Johnson said all the fire departments on the south end are in good shape with equipment for light -medium rescue, except for South Iredell who needs about $28,400.00. He suggested diverting the money from Mooresville Rescue to South Iredell for equipment. David Saleeby said South Iredell has some equipment and they have been certified light rescue. Most of the equipment they want to buy is demo which is considered new but less expensive. Commissioner Ken Robertson said he understood there would be no more converting to rescue. Saleeby said this should be the last and the message has been delivered throughout the County. Saleeby reported, after a year of talking with the rescue departments, that they want a contract. The County initiated and reviewed a contract/agreement. Some things included in the contract state that if a rescue squad ceases or stops business then any equipment that is wholly or partially funded by tax dollars will come back to the County. Commissioner Robertson asked if there was a requirement to inventory their assets. Saleeby said 2b of the contract states the County, at its discretion, can inspect/inventory annually. This inspection can be done free by the North Carolina Association of Rescue. The contract says they are accountable to Finance for an audit and review. However, the agreement has not been discussed with any rescue squad yet. Vice Chairman Norman asked how much additional work would be involved in getting a list of assets from the rescue squads and turned in to David Saleeby. Lisa Valdez said the contract, under 1I states they must provide a record of equipment annually to the County. Saleeby said they plan to set down with all 8 departments and tell them this contract is the only way to get funding. Commissioner Griffith stated that David Saleeby has done a phenomenal job working with the Fire Tax Board. Commissioner Robertson feels that volunteers will eventually give way to paid staff but expressed the importance for accountability and consistency. 15 February 21-22 2014 Saleeby said this contract will give accountability and hopefully bring this same accountability next year with the fire departments. Commissioner Griffith feels that process will be simpler with the fire departments because of the rapport of the fire chiefs. Chairman Johnson asked if the definition of Light, Medium and Heavy Rescue has ever been formulated in order to give everyone a clear understanding. Saleeby said the state gives those guidelines. Chairman Johnson said he understood that but wanted to know if a policy had ever been adopted by Iredell County. Saleeby said the state defines that list but this policy can be brought before the Board for official adoption. Chairman Johnson said at some point David Saleeby's authority should be extended to include vehicle purchases. When a department makes a request, David will inspect and then make a recommendation to the Fire Tax Board. Commissioner Griffith said with the direction things are moving, it may come a time when the Fire Tax Board is not needed. This will streamline everything because it will be driven by formula and state statutes. Fire Marshall Garland Cloer asked about specialty certification, such as structural collapse, which would cost another $20,000 for equipment. Commissioner Robertson said it has been allowed for some, for instance Troutman is certified for trench rescue. Saleeby said the contract includes a statement that the County will dictate which of the specialties are needed and where the funding will go. Incentive for Savings: Deputy County Manager Beth Dirks explained the Employee Suggestion Program which provides employees an opportunity to submit and be recognized for innovative and creative ideas for improving county government's ability to serve the public. She said they researched policies and programs from many different companies and agencies throughout the US. This is a volunteer program and should be done on the employee's own time. All employees are eligible except for short-term and contract workers. Suggestions are not eligible if they are within the employee's individual authority or responsibility to implement, they concern matters already under consideration, they concern personal grievances, personnel issues or whistleblower complaints and if they concern existing policies or procedures that are not being followed or applied properly. Dirks said there are three categories for awards: cost savings, quality/process improvement, and morale enhancement. The awards will be paid at the beginning of the fiscal year following the year of implementation, if the savings have been fully realized. She said funding for this program will be minimal due to the fact that most financial awards will be paid in the cost savings category and those funds will be generated from the savings of the prior year's budget, which can be re -directed into the employee cost savings award line item in subsequent years. However, it is recommended to set aside $10,000 per year to cover a maximum of 10 county -wide impact awards or any combination thereof. Commissioner Robertson said the first year would be time consuming for the committee. Dirks said there would be a separate email account for suggestions and the committee will meet quarterly to review. Commissioner Boone said he mentioned this idea in November, 2013 and believes this could improve employee morale. 16 February 21-22, 2014 Chairman Johnson asked if the Board wanted to take action on this policy. OTiON by Commissioner Renee Griffith to adopt this policy. VOTING: Ayes — 5; Nays — 0 Chairman Johnson asked to revisit the suggestion of moving money to capital outlay. He asked County Manager Ron Smith again if he was comfortable with moving $6 million from the fund balance. Smith said yes but may have to revisit at some point. Chairman Johnson stated that moving $6 million would leave the fund balance at 20.35%. Commissioner Boone stated he personally would be in favor but would like to see a consensus from the entire Board. He would rather not have a 3-2 vote. Commissioner Ken Robertson said he is not comfortable with moving money now. He is concerned about Obama-care effects over the next couple of years. Chairman Johnson said he would not press the issue. Commissioner Griffith commented this was her last retreat as a Commissioner and expressed her appreciation to the other board members and staff. Chairman Johnson expressed appreciation for her service. There being no further discussion, the meeting was adjourned. Approval: 17 Clerk to the Board