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HomeMy WebLinkAboutJanuary_21_2014_Regular_MinutesJanuary 21, 2014 IREDELL COUNTY BOARD OF COMMISSIONERS REGULAR MINUTES January21,2014 The Iredell County Board of Commissioners met on Tuesday, January 21, 2014, at 7:00 PM, in the Iredell County Government Center (Commissioners' Meeting Room), 200 South Center Street, Statesville, NC. Board Members Present Chairman Steve Johnson Vice Chairman Marvin Norman Renee Griffith David Boone Ken Robertson Staff present: County Manager Ron Smith, County Attorney Bill Pope, Finance Director Susan G. Robertson, Planning Director Matthew Todd, Solid Waste Director David Lambert, Recycling Coordinator Teddy Boller, Emergency Services Coordinator David Saleeby, Facilities Director Robert Woody, Purchasing and Contracts Manager Dean Lail, Register of Deeds Matt McCall and Clerk to the Board Retha Gaither. CALL TO ORDER by Chairman Johnson INVOCATION by Chairman Johnson PLEDGE OF ALLEGIANCE ADJUSTMENTS OF THE AGENDA: MOTIO by Commissioner Renee Griffith to approve the agenda with the following adjustment: Deletion: Closed Session Pursuant to G.S. 143-318.11 (a) (4) Economic Development Addition: Closed Session Pursuant to G.S. 143-318.11 (a) (6) Personnel VOTING: Ayes — 5; Nays — 0. Victor Crosby Appeared Before the Board to Request Surrounding Counties to Join Services: Mr. Victor Crosby addressed the Board to ask for their consideration in joining surrounding counties to participate in sharing water, sewer, transportation, communication, health services, power sources, flood control, recreation and wildlife habitat. Also to join together and ask Soil Conservation Service to design impoundments to use for highways, railroad and bridges and reactivate Hunting Creek flood control project and Corps of Engineers study on Hunting Creek and South Yadkin River. Chairman Johnson thanked Mr. Crosby for sharing his thoughts and stated the Board would take these things under advisement. Iredell-Statesville Schools Requests Approval of Resolution to Enter into an Installment Purchase Agreement with Apple Financial Services for $10,725,602.00: Dr. David Cash, member of Iredell-Statesville Board of Education, stated ISS had received a $20 million grant approximately one year ago which allows them the opportunity to supply much needed technology for middle school and high school students. Cash said the proposal presented tonight will allow Iredell County to partner with ISS to help transform the school district to a student/curriculum/academic focus. Brady Johnson, Superintendent of Iredell Statesville Schools, stated ISS was one of 17 school systems in the nation to be awarded this grant. When this grant was written all schools were included except Lake Norman High School. The grant required 40% or higher in free or reduced lunch and with Lake Norman included the percentage was only 38%. However with the cost overrun, Lake Norman will be included in the project. This project is being paid, the first two years, by the grant. The third year will be paid out of current expense and fund balance. 1 January 21, 2014 Patrick Abele, IMPACT Grant Director, stated this Innovative Methods for Personalized Academics Complimented by Technology Grant is a reform effort to change the instruction of and interactions with students in the class room. He said this is a comprehensive reform to help students advance, to be prepared for college, careers and beyond. The goals set by ISS are: 1) Individualize student -driven learning to build learning environments that improve learning and teaching through personalization strategies, structures and supports for students and educators. 2) Revolutionize instruction by accelerating achievement and deepening student learning by addressing the academic needs of each student while decreasing achievement gaps across student subgroups. 3) Cultivate high-quality educators by elevating teacher and leader effectiveness while expanding student access to excellent teachers. 4) Infuse cross -cutting data -driven decision making at all levels to support instruction and continuous program improvement. Abele stated this is year two of the grant. This past year has been spent preparing teachers and staff for the change in instruction with professional development. Year two brings implementation of the technology. He said the device selection process included extensive planning, pilot program with teachers, staff and students, comprehensive survey for feedback, and then a device selection process by a committee. All of this information was combined to make a recommendation to the local Board of Education. The final recommendation made to the Board of Education was Apple MacBook Air laptops for students and teachers. Abele stated the resolution for consideration is the three year lease agreement that goes with the recommendation. Brady Johnson asked the Board to look at the provided work sheet for fund balance roll forward. The grant allows funding for two of the three years. Johnson stated they have been searching the community for private funding and other grants. He stated the proposal tonight is a worst case scenario if funding is not secured. At the beginning of the 2013/14 school year the fund balance was $8.7 million. However, ISS will be using $2 million out of the fund balance to supplement the local budget. Another $571,257.42 will be used out of the fund balance to support Lake Norman High School. He said in the 2014/15 school another $335,838.15 will used again to support Lake Norman. This will bring the fund balance down to $5.8 million. In the 2015/16 school year the grant funds will be gone and ISS plans to use $3.2 million to support the work. Johnson said there will be some cost savings that year, when other leases expire. The 2016/17 school will require another discussion about sustainability for this project in the years four, five and six. At the end of the third year there will be options, such as continuing if funding is available, stop the program totally, look at a bring your own device plan, or look at a different type of device. Johnson stated there are two major assumptions: 1) from this year forward ISS cannot use fund balance to sustain positions. The Board of Education decided, several years ago, to use fund balance for two years to sustain some of the support positions which has been done, but beyond that there would be a balanced budget. Therefore, unless additional funding is secured from the state or locally, additional sacrifices from staff will be required. 2) The current expenditures nether increases or decreases. ISS is operating under the assumption that the funding they have now is sustainable from the County Commissioners. Chairman Johnson asked for clarification about the assumption of not using any fund balance after FY 2014/15. Brady Johnson said they would be using fund balance each year. Chairman Johnson asked if it was their intent to not use any fund balance unrelated to the devices. Brady Johnson said that is correct. Chairman Johnson stated he was concerned about the assumptions because just a few months ago ISS stated adamantly that fund balance could not be used for staff and lay-offs would be necessary which leads to the understanding that ISS is willing to sacrifice staff for equipment. Brady Johnson said there was another assumption, if they don't ever secure addition funding from the state or county commissioners. They have always operated with the assumption that funders want to restore them to their pre -recession level of funding. Chairman Johnson said this is true but there is still an economic environment that is slow recovering. He said if sales tax continue to hold, perhaps there could be some modest increase in current expense funding. However, property tax continues to be stagnate which means there would 2 January 21, 2014 not be any type of increase that would be near the historical average over the last 15-20 years. Chairman Johnson asked for clarification concerning the disposal of old devices in FY 2016-17. He asked how they arrived at $3,690,000.00. Brady Johnson said this is the historical average. He said they had worked with Apple before and the residual value of the machines holds pretty steady. He said they had researched other districts who had gone through this process and, historically, Apple had been able to retain that value. He stated the model shows, at the end of the three year lease, they will sell the devices at $350 per machine. The plan is to put that money back into the fund balance to restore the fund balance. Commissioner Renee Griffith asked the purchase price of one device. Abele said $872.00 is the breakdown price per device. Griffith asked the price of a Windows based pe. Abele said he did not have that information. He said that Apple products were about 30% higher, therefore he is estimating Windows to be $550-$650. Griffith asked how much fund balance would be needed if purchasing Windows instead of Mac. Abele said he did not have Windows information with him. He added that the Apple numbers included laptops for teachers. Commissioner David Boone stated that adding extra devices for teachers would greatly increase the Apple proposal. Abele agreed and added that Lake Norman High School would be included as well. Griffith asked the proposed number of devices desired. Brady Johnson said 12,300 devices, with a breakdown of 11,474 for students, 649 for teachers and 177 spares on reserve in case of damage. Commissioner Ken Robertson asked if the structured selection process was mandated as part of the grant. Brady Johnson said no. Teachers, students, staff and parents had an input into what was bought. Robertson asked if ISS reviewed the process that Mooresville Graded School District went through. Brady Johnson introduced Dr. David Blamer, Tech Director, who worked closely with Mooresville over the last several years. David Blamer stated he worked with Mooresville, who was very helpful in providing information. Mooresville hosted a round -table session with technicians. He said Mooresville did not give how-to instructions, but instead Mooresville assisted by pointing out specific things they saw. He said this collaboration will continue. Robertson asked the similarities of the two systems, hardware and software. Blamer said they have been making changes over the years and the systems are very close even with some different products in place. The basic structures, mostly hardware, are very similar. He said ISS is trying to utilize services from the state so as to align with other states and lower the cost. Robertson asked what happens if the Board does nothing. 3 January 21, 2014 Brady Johnson said it will become increasingly difficult to meet all of the regulatory requirements by the State without adequate technology in place. He said when the states decrees that students will be tested on devices they don't tell the schools how to furnish the device. He said ISS does have a back-up plan. Last year they put mobile lap -top carts in place. If this request was not approved they could do the testing, but it would not be easy nor would it be efficient. He stated, after research, other school systems have indicated there would be a cost savings in reducing the need for more textbooks, supplies and materials. For instance, in the Biology lab, they would not need the formaldehyde specimen, the student would do a virtual dissection. Robertson asked if Mooresville Graded School District used Apple products. Brady Johnson said yes. Griffith asked if the state testing could be accessed by Windows based products. Brady Johnson said yes. Blamer said he has talked with schools that have experienced both Windows and Apples. He said that with Apple the school will deal with the sole source. The hard ware, operating system and everything is coming from one manufacturer, which reduces issues. He said he also learned from the other school systems that they needed more technicians with Windows, along with a higher number in reserve for break/fix with Windows. ISS has 14 technicians, 4 came from the Blended -Learning Grant, who are now supporting 18,000 devices, soon to be 20,000 devices. Griffith asked if a fee was charged to use the device and the purpose of the fee. Brady Johnson said there is a $50 fee, which is an insurance policy for loss and/or damage. He said they have a plan in place for families who cannot afford the fee. Boone stated approximately 40% are on free or reduced lunches and this fee may be a hardship. Brady Johnson said the majority of parental feedback stated the $50 is a small fee for such technology in the hands of their child. Dr. Cash stated the Apple system is poised to do great things. He said he believes ISS is the only public school in the country to have received this IMPACT grant and a Race -to -the -Top Grant. He said sometimes it is difficult for citizens to realize the achievement the local school as had. He said staff, students and parents have been well prepared and the Board of Education has had many conversations reviewing this information and stated they really were not prepared to go into all the details during the small time frame of the Commissioners' meeting. He said in trying to choose between Windows and Apple, the School Board has done that. He stated this request comes from a lot of research, work, review and discussions regarding the work by committees. Cash said he feels the bigger question, by receiving and accepting this grant, is to put this technology in place to have the blended learning program. Plus use this technology, as well as traditional education methods to help each student be successful in their learning. Cash said if this program can proceed it will show that the school system is using local funds, as well as federal funds, with continued progress and will put ISS in the position to receive other grants. ISS has been successful and will continue to look for future grants. He said if this grant is dropped, he feels it would be the end to other opportunities that may come. Chairman Johnson stated this presentation does not address the budgetary impact of the school system in the outlying years. He said there is no information, if the program continues after 2016-17, how the fund balance will be impacted. He asked the annual cost of this program, devices aside, when the grant is gone. Brady Johnson said this program is $3.5 million per year and when the grant goes away, the cost will be $3.5 million annually. Chairman Johnson asked if devices were included in that cost. Brady Johnson said yes. 4 January 21, 2014 Chairman Johnson stated he wasn't talking about the devices. He stated his information shows the $20 million from the grant with $7.5 million for personnel benefits and travel expenses for 29 full time employees. He asked if this was for a 3 year period. Brady Johnson said yes and after 3 years those positions go away. He said they do not have a plan to come back and ask the Commissioners for funding for those positions. Chairman Johnson stated these programs do not just go away which means that if the Board does not give another $3.5 million per year, then they will appear to be the "bad guys." He said the $7.5 million for 29 positions, works out to $86,000 per person per year. The $6.3 million over three years, he assumes, includes supplies and $5.4 million for devices. He questioned the $4.9 million for contracted services for professional development, technical assistance, digital platforms and on-line materials. He asked if any consideration was given toward any type of device that the existing school IT staff would be compatible with their level of expertise that would not require hiring extra people and contracting services. Brady Johnson replied the bulk of the grant has not been spent on devices. It has been used to train teachers and students how to effectively use this product in the classroom. He said they do not anticipate the training to be needed forever. At the end of the grant the positions will not be continued. Robertson asked if the initial training is only for the students coming into the system the first year. He asked the implementation range. Brady Johnson said it is grade six through twelve. He said it will roll out in phases, immediately beginning with the schools that are most ready. The training is already taking place in every school that is being impacted. Chairman Johnson stated he finds it difficult to think the system is willing to walk away from this program in three years. He also stated they may be able to find a cheaper device, but the cost of delivery of this particular service is too expensive for the Board of Commissioners to sustain. Brady Johnson reiterated that the personnel piece was never meant to sustain. Boone expressed his concerns about 29 full-time, plus one part-time, personnel to implement this program and then be voluntarily eliminated at the end of three years. He asked if there was a fund balance projection beyond the three years if the program was continued. Brady Johnson said the Board of Education configured the cost for six years which would bring the fund balance down to $3.6 million unless additional funding, by federal, state or local, was obtained. Boone asked if the survey sent to teachers contained information about the cost of the two systems. Abele said it did not. The survey addressed the type of operating system and type of device. Boone stated teachers have not had a pay increase in several years and felt the survey was not accurate. If teachers were given to true cost figures between the two devices he felt there would have been a different outcome. Griffith stated she called Western Carolina University to ask the type of devices they allowed their students to lease or rent. Western Carolina does not allow any Mac, they use low end PCs, because they are aware students damage or loose the equipment. She also called Royal Melbourne Institute of Technology who has the same policy, because they look at cost as well. Griffith stated she did not understand how a Mac product is going to better prepare students for college when colleges do not have Mac access through the university. Griffith also stated the disapproval of the Board of Education's assumption that the Commissioners would approve spending $10 million without asking questions. She stated the Commissioners were elected to ask questions in order to make clear decisions for the citizens. I January 21, 2014 Boone said the Board of Commissioners is not usually asked to micromanage the school system, especially about the type of equipment or devices it should use. However, because of the significant amount of money to be spent in future years, state statutes require the Board of Commissioners' approval. He said he was pleased when he first heard about the grant and thought the only expense would be to implement the program at Lake Norman High School. The grant is a good thing but several aspects are troubling. First only $5.4 million is earmarked for purchasing the laptops, $7.5 million on salaries, $4.9 million on contracted services. The bottom line is most of the money will be spent on items other than the actual purchase of computers. Boone stated he was concerned with the choice of Apple over a Windows product, even if the cost is the same, most people will use Windows rather than Apple. Therefore, he feels the students should be trained on the same type of device they would be using in the future. Another concern is the re -sale price which is speculative in three years. He said the Board is being asked to approve $3,157,000 more, over a three year period, to purchase an Apple product over a competing product, which will come from county tax payer dollars and not from the grant. Boone stated some alternatives should be researched for the $3.1 million. For instance, teachers' salaries and supplements. He said if a Windows system was purchased, the savings of $3.1 million would be enough to pay every ISS teacher a one-time bonus of over $2,300.00. There are other things that could be done with the money, such as teacher assistant positions that were lost. The $3.1 million would be enough to restore 30-40 assistants over the next 10 years. Also, the $3.1 million would be enough to spend $50 per pupil, per year, on instructional supplies for the next three years. He feels the alternative is not whether to approve this purchase or do nothing. The alternative is between this purchase agreement and purchasing a less expensive Windows device. Boone feels he would not be a good steward of tax payer dollars if he voted in favor of this installment purchase plan. If ISS returns with a proposal to use the money for less expensive devices, he would be more inclined to vote in favor. Chairman Johnson stated he shared in Commissioner Boone's concern. However he is still concerned about the on-going cost of the out years and the cost of delivery of services. He believes ISS needs to come back with a business plan where the cost of delivery services is substantially less than the present proposal, where by, if the program continues they could be merged into the current expense program without requiring an over 8% increase in funding. That will be a substantial increase on top of any increase that could be given for current expense fund that is going to keep the operations up to par, which will be difficult. Johnson continued by using an example from a former professor, about the Good Intentions Paving Company. This type of company always begins well, but problems arise. The intentions are good and sometimes really help people in the short term, but it is the law of unintentional consequences. When the out years' cost shift back to local government, then come the consequences, which are not pleasant. Electorally, for the last several years, it has been demonstrated, collectively, the value of economic equality over economic growth. There is no growth in revenue because businesses are not making any money, so they are not hiring people and those people are not paying taxes. Dr. Cash addressed to Board to apologize if any of his comments were interpreted as contentious. He shares and respects the differences in the Board of Commissioners and the Board of Education. The school board discussed, along with recommendations from administration, to bring this proposal to the Commissioners. The primary question was not for the Board of Commissioners to decide how the money was being spent but if the Board of Commissioners were willing to sustain the present level of funding over the next three years. ISS and the school Board will continue to be responsible for how the money is being spent. Cash continued by asking for due respect to the Board of Education that they have done their role in terms of discussion and bringing the recommendation to the Commissioners. The Board is aware of the much needed teacher compensation, but there is very little they can do, locally, to change that. They do, however, respect teachers' judgments and decisions. Cash continued to say that when salaries can't be increased they do take into consideration teachers recommendations as a way to recognize them. He said tonight's intention was to be brief but the school board would be willing to set down with the Commissioners, if necessary, to further explain this program. Chairman Johnson stated he felt ISS deserved some immediate decision, even if it is a no. They could return with another plan, but he does not support the present proposal. MOTION by Commissioner Boone to not accept the proposal presented tonight. 6 January 21, 2014 Commissioner Ken Robertson asked if Commissioner Boone's inhibition is the cost of the devices, then he would rather not vote but tell ISS to reconsider and return with another proposal. However, he doesn't want to do that if the real problem is the funding in the outlying years where $3.5 million will be added to current expense in order to sustain this program. Robertson ask Brady Johnson if that was a correct statement. Brady Johnson said they have money now in technology and that money will roll over as years progress. He said the state is expecting ISS to spend more money on technology which means there will always be a technology budget that will support this type of work. Robertson stated he would rather, instead of voting it down, ask ISS to come back and submit two proposals. One proposal with the Apple based system and extensive breakdown of numbers. Second proposal would be with the Windows system. He added the proposals should include, in FY 2016/17, how much additional money and current expenses would be needed to sustain the program. Robertson ask if this directive could be given instead of voting. Boone said there is a motion on the floor. However, he reiterated his earlier statement that if this were not approved tonight and the school board returned with a lease/purchase proposal for a Windows system he would be favorably inclined to support it. He added he wanted to see projections on sustaining after three years. Chairman Johnson stated he felt the motion to reject this proposal would accomplish to same thing. His directive for an alternative is for ISS to pursue a path to a less expensive device and develop a method of delivery that is substantially less. He stated ISS must drive down the cost of the device and not use the fund balance. Therefore, Johnson said he is in support of the motion. VOTING: Ayes — 5; Nays — 0 PUBLIC HEARINGS (None) ADMINISTRATIVE MATTERS Request from Solid Waste for Approval to Submit a Grant Application to Continue the Abandoned Manufactured Home Program: Recycling Coordinator Teddy Boller stated the Solid Waste Department is seeking approval to submit a grant application to continue their Abandoned Manufactured Home Program. To date they have removed 32 dilapidated mobile homes. He said there is still interest in this program. The funds for this grant comes from a $2 tax that everyone already pays, so in theory, the grant is that money being returned to Iredell County. Chairman Johnson asked if any requirements have changed. Boller said no. Commissioner David Boone asked the estimated amount of the waived tipping fee. Boller said to date they have landfilled approximately 464 tons which equates to $16,250 in waived tipping fees. This is from 32 dilapidated mobile homes. Chairman Johnson stated that before this program began he would receive numerous complaints about abandoned homes but could do nothing to help. He believes this is a good program that has helped a lot of neighborhoods without a lot of money. County Manager Ron Smith asked to clarify that when the program began one of the initial decisions was to waive the tipping fees. Boller said that is correct. By waiving the fees, the cost has remained low. He added the applicants have obligations to make sure the taxes are paid, pay for the permit fees and anything else that is over the $1,000 granted toward a single wide mobile home. January 21, 2014 OTION by Commissioner Griffith to approve. VOTING: Ayes — 5; Nays — 0 Request from Solid Waste for Approval to Submit a Grant Application to Expand the Shingle Recycling Collection Area: Recycling Coordinator Teddy Boller stated this request is to submit a grant application to expand the shingle collection site. Presently, the site holds about 100 tons of shingles until Maymead removes them. He said it has been difficult to keep the shingles separated and interest in the program has increased. To date, 627 tons of shingles has been collected. In landfill space that equates to approximately $22,000. He said even though the tipping fees to recycle shingles has been reduced, they have collected $9,400 in fees. Commissioner David Boone asked if most shingles qualify for recycling. Boller said as long as they are asphalt shingles, however they are checking for the asbestos level. Therefore not all shingles qualify but most do. Boone asked if most roofing contractors recycle shingles or do they just pay the tipping fee and put them in the landfill. Boller said it has been about 50%. He stated it is a process of educating the contractors because the shingles have to been clear of tar paper, etc. People are becoming aware and recognize the dollar savings with $15 per ton versus $35 per ton. OTION by Vice Chairman Norman to approve. VOTING: Ayes — 5; Nays — 0 Request from the Finance Department for Adoption of a Resolution and Financing (REDLG) Documents for HVAC Improvements at West Iredell High School: Finance Director Susan Robertson stated there are two resolutions that were drafted by County Attorney Bill Pope that are required as part of the financing. In addition the request includes approval of the draft documents presented. She said there could be a few minor changes but do not expect any. Biff McGilvray from the Local Government Commission has reviewed and approved the application and documents. Robertson reminded the Board this is a $1.3 million USDA loan to EnergyUnited who will loan the money to Iredell County for a HVAC improvement project at West Iredell High School. It is interest free with approximately $8,000 in closing costs. It is to be repaid over a ten year period. Engineers estimate about $39,000 in savings in utility cost at the school. Chairman Johnson asked if both resolutions could be adopted with one motion. County Attorney Bill Pope stated two separate motions would be best. OTION by Commissioner Roberts to approve the first resolution. VOTING: Ayes — 5; Nays — 0. MOTION by Vice Chairman Norman to approve the second resolution VOTING: Ayes — 5; Nays — 0 RESOLUTION ACCEPTING THE PROPOSAL OF ENERGYUNITED ELECTRIC MEMBERSHIP CORPORATION TO LOAN FUNDS TO IREDELL COUNTY TO BE USED FOR THE FINANCING OF IMPROVEMENTS TO HVAC SYSTEM AT WEST IREDELL HIGH SCHOOL (THE "IMPROVEMENTS") PURSUANT TO LOAN AGREEMENT AND RELATED DOCUMENTS WHEREAS, the County of Iredell, North Carolina (the "County") intends to enter into a loan agreement pursuant to Section 160A-20 of the General Statutes of North Carolina for the January 21, 2014 purpose of memorializing the terms of the loan from EnergyUnited Electric Membership Corporation and the obligations of the parties with respect thereto. WHEREAS, the County desires to accept the proposal of EnergyUnited Electric Membership Corporation (the "Lender"); NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners (the "Board") for the County as follows: 1. The proposal of the Lender to advance funds to the County pursuant to an installment financing arrangement in the aggregate principal amount of $1,300,000 for the purpose of providing funds to finance the Improvements is hereby accepted, subject to further approval of the particular documentation related thereto by the Board. 2. The Director of Finance and Administrative Services of the County is hereby authorized and directed to execute and deliver such documentation as may be necessary to accept the proposal of the Lender. 3. This resolution shall take effect immediately upon its passage. RESOLUTION AUTHORIZING THE EXECUTION AND DELIVERY OF A LOAN AGREEMENT, A PROMISSORY NOTE, AND A DEED OF TRUST AND RELATED DOCUMENTS (COLLECTIVELY, THE "LOAN DOCUMENTS") IN CONNECTION WITH THE FINANCING OF CERTAIN OUTSTANDING INDEBTEDNESS OF THE COUNTY BE IT RESOLVED by the Board of Commissioners (the `Board") for the County of Iredell, North Carolina (the "County"): Section 1. The Board does hereby find and determine as follows: (a) The County has determined that it is in the best interest of the County to enter into an agreement with Lender memorializing the terms of the loan from Lender and the obligations of the parties with respect thereto. (b) After a public hearing and due consideration, the Board has determined that the most efficient manner of financing will be through the entering into of the Loan Documents with Lender, pursuant to which the Lender will advance to the County amounts sufficient to pay the cost of financing the Improvements, and the County will repay the advancement in installments, (the "Installment Payments"). (c) In order to secure such Installment Payments, the County will execute and deliver a Deed of Trust, to be dated the date of delivery thereof (the "Deed of Trust"), from the County to the deed of trust trustee named therein for the benefit of the Lender, granting a first lien of record on the site of West Iredell High School, together with all improvements and fixtures located thereon (collectively, the "Mortgaged Property"). (d) In connection with the financing contemplated hereby, it is determined that it is in the best interests of the County to enter into a Lease Agreement and a Construction and Acquisition Agreement (the "Board of Education Documents"), to be entered into by the County and the Iredell-Statesville Schools Board of Education. (e) There has been presented to the Board at this meeting drafts of the Loan Documents and the Board of Education Documents. Section 2. In order to provide for the financing of the Improvements, the County is hereby authorized to enter into the Loan Agreement and receive an advancement pursuant thereto in the principal amount of $1,300,000.00. The County shall repay the advancement in installments due in the amounts and at the times set forth in the Loan Documents. 9 January 21, 2014 Section 3. The Board hereby approves the Loan Documents and the Board of Education Documents in substantially the forms presented at this meeting. The Chairman of the Board and the County Manager of the County are each hereby authorized to execute and deliver on behalf of the County said documents in substantially the forms presented at this meeting, containing such insertions, deletions and filling in of blanks as the person executing such documents shall approve, such execution to be conclusive evidence of approval by the Board of any such changes. The Clerk to the Board or any Deputy or Assistant Clerk to the Board is hereby authorized and directed to affix the corporate seal of the County to each of said documents and to attest the same. Section 4. No deficiency judgment may be rendered against the County in any action for breach of any contractual obligation authorized pursuant to this resolution and the taxing power of the County is not and may not be pledged directly or indirectly to secure any moneys due under any contract herein authorized. Section 5. The Chairman of the Board, the County Manager, the Director of Finance and Administrative Services and the Clerk to the Board for the County, and any other officers, agents and employees of the County, are hereby authorized and directed to execute and deliver such closing certificates, opinions and other items of evidence as shall be deemed necessary to consummate the transactions described above. Section 6. This resolution shall take effect immediately upon its passage. Request from Planning Department to Call for a Public Hearing to Consider a Release of Zoning and Subdivision Jurisdiction to the Town of Mooresville: Planning Director Matthew Todd asked to call for a public hearing for an ETJ release. The Board rezoned this Schumacher site, on Alcove, to Highway Business in 2012. The reason this is being taken in to accommodate the impervious restrictions on the property. It should have been taken into calculation with the remainder of the property but since that time the property has been taken into Mooresville'sjurisdiction. MOTION by Commissioner Griffith to call for a public hearing. VOTING: Ayes — 5; Nays — 0. Chairman Johnson stated he needed to rest his throat for a few minutes and asked if Vice Chairman Norman would preside over the meeting. Chairman Johnson remained in the room. Vice Chainman Norman agreed. Request from the Contracts and Purchasing Manager for Approval of a Three Year Agreement with Thyssenkrupp Elevator to Consolidate Maintenance Contracts: Purchasing Manager Dean Lail presented a consolidation contract to pull all elevator contracts under one three year agreement. Presently each elevator is maintained under separate agreements which makes it difficult to maintain plus expensive for the company to continue the maintenance. This three year contract will have one year automatic extensions to allow for continuation if the contract is successful. Lail said an 18% reduction in rates was negotiated with the consolidation contract plus a freeze on any future contract rate increases to 3%. Currently rate changes can range from 3-5% with some as high as 8% in the past. Commissioner David Boone asked the purpose of the dumb waiter at the Department of Social Services. Lail stated the dumb waiter is used to transport records from the basement record room up to the top floor. Boone asked for clarification that there would be a 30 day notice for a price increase and that the three year lease would be renewed each year unless cancelled with a 90 day notice. Lail said yes. 10 January 21, 2014 Boone expressed his concerns that the renewal of the yearly contract would be required without knowledge of a possible price increase. Lail said that is correct but the contract states the maximum increase would be 3%. OTIO by Commissioner Robertson to approve. VOTING: Ayes — 5; Nays — 0. Request from the Contracts and Purchasing Manager for Consideration and Approval of a Disposal Plan and Surplus Declaration of Four County -Owned Houses: Contracts and Purchasing Manager Dean Lail addressed the Board and reminded them the Board asked staff to review items and methods in order to remove the buildings without being taken to the landfill. Lail said they have researched each possible removal method and discussed them with the County Attorney. The plan before the Board is a potential disposal plan for the buildings located at 321 Harrill Street, 333 Harrill Street, 337 Harrill Street and 334 Tradd Street in Statesville. Each step will cost the county less money, with #1 being the least expensive and #6 demolition cost coming from the County's pocket: 1) Advertise for contract proposals to remove houses for the structure or materials. 2) Advertise for sealed names with public opening and award. First sealed name drawn for each structure wins. 3) Donate to local Fire Department for training. 4) Attempt sale by auction using GovDeals. 5) Local public auction. 6) Demolish and remove the structures. Lail stated, however, if the Board approved the plan it would allow staff to move freely within the plan to remove the buildings. All of this is contingent on the Board declaring the buildings surplus. Any portion of the plan can be considered if the Board desires. Commissioner David Boone stated he was the one who asked the staff to research options and appreciates the staff work. He asked if the houses were for sale, would they actually sell for the tax value. Lail said absolutely not. Chairman Johnson asked if it was the intention of this recommendation to be specific to one application or is it a recommendation to follow in subsequent cases after this. Lail stated the recommendation is for the entire plan, however, the Board can approve any portion. Chairman Johnson rephrased the question. He wanted to know if the Board is being asked to adopt a plan of action as it relates to these particular properties or is the Board being asked to adopt a policy for any subsequent disposal of properties of this type. Lail said it is specific to these particular properties and any properties in the future would have to be taken on their own merits. Chairman Johnson resumed presiding over the meeting. OTION by Commissioner Boone to declare these properties surplus and approve the disposal plan. VOTING: Ayes — 5; Nays — 0. Request for Approval of December Refunds and Releases: MOTION by Vice Chairman Norman to approve. VOTING: Ayes — 5; Nays — 0. 11 January 21, 2014 Releases for the month of December 2013 Breakdown of Releases: County $ 18,824.43 Solid Waste Fees $ 78.00 Mrvl Solid Waste Fees $ Davidson Solid Waste Fees $ E. Alex. Co. Fire #1 $ 1.00 Shepherd's Fire #2 $ 71.72 Mt Mourne Fire #3 $ 58.72 All County Fire #4 $ 676.04 B&F Fire #5 $ 364.71 Statesville City $ 2,586.63 Statesville Downtown $ 24.90 Mooresville Town $ 8,374.99 Mooresville Downtown $ Mooresville School $ 1,305.98 Love Valley $ Harmony $ 2.69 Troutman $ 107.34 Davidson $ 44.21. Refunds for the month of December 2013 Breakdown of Refunds: County $ 1,866.34 Solid Waste Fees $ 52.00 Mrvl Solid Waste Fees $ Davidson Solid Waste Fees $ E. Alex. Co. Fire #1 $ Shepherd's Fire #2 $ Mt Mourne Fire #3 $ All County Fire #4 $ - B&F Fire #5 $ 12.31 Statesville City $ 1,342.24 Statesville Downtown $ Mooresville Town $ 21.4.1.9 Mooresville Downtown $ Mooresville School $ 32.45 Love Valley $ Harmony $ Troutman $ Davidson S Monthly $ 32,521.36 Total Monthly $ 3,519.53 Total Request for Approval of the January 7, 2014 Minutes: MOTION by Commissioner Boone to approve the minutes as presented. VOTING: Ayes — 5; Nays — 0. 12 January 21, 2014 ANNOUNCEMENTS OF VACANCIES OCCURRING ON BOARD & COMMISSIONS Animal Grievance Committee (1 Announcement) APPOINTMENTS TO BOARDS AND COMMISSIONS (None) UNFINISHED BUSINESS (None) PUBLIC COMMENT Bill Booker asked to comment on the computer situation. His past experience is over 10 years as IT professional and educator with Duke Power. In that time frame they had to change the operating system at least three times to 27,000 people. He believes everything said by ISS is false. Booker said he had taken Microbiology and Biotechnology training and believes students need to know UNIX. He believes Windows and Apple are of no use. He believes there needs to be a redirection for the educators. Also, Duke Power solely uses Windows. NEW BUSINESS (None) COUNTY MANAGER'S REPORT County Manager Ron Smith distributed an update from Emergency Coordinator David Saleeby. This is an update on Mooresville Rescue Squad in response to the Board's request to determine the squad's role with moving forward and the dispensation of existing equipment and funding. The process has taken a little longer than expected. They met on November 21 and talks have been positive but there is nothing definitive at the present time. The emergency calls have dropped drastically since the districts have changed. Chairman Johnson asked David Saleeby if he had spoken to South Iredell Fire Department about their rescue district and any equipment they may need. David Saleeby said he had not, but there is a need for a crash truck at North Iredell Rescue. Salceby stated he has talked to them about smaller items and they do need some small hand held devices to outfit one of their trucks. CLOSED SESSION: MOTION by Chairman Johnson at 8:51 PM, to enter into closed session pursuant to G.S. 143-318.11 (a) (6) — Personnel. VOTING: Ayes — 5; Nays — 0. (RETURN TO OPEN SESSION AT 9:00 PM) ADJOURNMENT: MOTION by Chairman Johnson to adjourn the meeting at 9:00 p.m. (NEXT MEETING: Tuesday, February 4, 2014 at 7:00 p.m. in the Iredell County Government Center, 300 South Center Street, Statesville, NC.) VOTING: Ayes — 5; Nays — 0. Approval: 13 Clerk to the Board