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HomeMy WebLinkAboutMay_2_2017_Regular_MinutesIREDELL COUNTY BOARD OF COMMISSIONERS PRE -AGENDA MINUTES May 2, 2017 The Iredell County Board of Commissioners met in pre -agenda session on Tuesday, May 2, 2017 at 5:00 PM, in the Iredell County Government Center (South Wing Conference Room), 200 South Center Street, Statesville, NC. Board Members Present Chairman James B. Mallory III Vice Chairman Tommy Bowles Gene Houpe Jeff McNeely Marvin Norman Staff present: County Manager Ron Smith, County Attorney Lisa Valdez, Deputy County Manager Beth Jones, Finance Director Susan Robertson, and Clerk to the Board Retha Gaither. CALL TO ORDER: Chairman James Mallory called the meeting to order. ADJUSTMENTS TO THE AGENDA: County Manager Ron Smith made the following adjustments: Add: Closed Session — Economic Development G.S. 143-318.11 (a) (4) ADMINISTRATIVE MATTERS Request from the Board of Elections for approval of a 5 -year maintenance contract with Election Systems &c Software, LLC for voting machines as per NC G.S. 163-165.9: Purchasing and Contracts Manager Dean Lail and Board of Elections Director Becky Galliher addressed the Board. Lail said in 2012 the Board approved an agreement to service the software and hardware for the elections equipment that had been purchased. That agreement is about to expire and the General Statutes require the Board of Elections to maintain maintenance/service. It is recommended to make it a five-year commitment to save on any anticipated increases in cost over that period of time. Currently the cost is $16,601.70 per year. Commissioner Houpe asked if there were any additional discounts or savings for a five- year agreement. Galliher said yes, they offer 10% off for the coding of each election which could be very expensive. This item was placed on the consent agenda. Request from the Planning Division to consider calling for a public hearing on May 16 to release zoning and subdivision jurisdiction of the John Clontz Family LLC property to the Town of Mooresville: Planning Director Matthew Todd said this request is to call for the public hearing for this release. This item has been brought before the Board in the past. It is 36.4 acres proposed to be used for residential with around 90 lots which is 42 additional homes than what is allowed under the County's zoning ordinance. May 2, 2017 Commissioner Bowles asked if this property is on the agenda for the Town of Mooresville to annex. Todd said that when the paperwork first appeared there was a letter from the Mooresville Clerk stating the property was slated to be annexed in June. However, last week Mooresville said the letter was mistaken and the annexation would be in December. Commissioner Houpe understood that Mooresville has had this on their radar since February. Todd said it was February when the Council made the motion to extend the sewer/utilities to the site. Vice Chairman Bowles understood that this Board releases the ETJ, then there would be a traffic study and a rezoning in order to have everything ready to annex in December. He asked if Mooresville was obligated to annex after the ETJ is released. Todd said no, they are not obligated. They have 60 days to assign zoning but that is the only obligation. This item was placed on the consent agenda. Chairman Mallory asked if there had been a meeting with neighbors. Todd did not know but Planning staff has not been invited to any outside meetings. Vice Chairman Bowles believes such a meeting took place at the fire department. He feels there will be many concerned citizens on May 16. Chairman Mallory asked Planning staff to prepare a handout for concerned citizens addressing some of the usual questions such as traffic, water/sewer, buffering, etc. Commissioner Houpe asked Todd to include information that Mooresville has the option to authorize their staff to go forward with the traffic study and other processes if Mooresville has already tentatively agreed to annex in June and now in December. It needs to be in their jurisdiction for development. It would solve a lot of problems if they would go ahead with annexation in June. Vice Chairman Bowles asked the timeframe of the traffic analysis. Todd said approximately 2 months for a large scale study. However, it could be a lengthy process. Vice Chairman Bowles understands that the traffic study should be done while school is in session. Todd said they will not review anything until it is in their jurisdiction. Commissioner McNeely said Mooresville will not authorize a traffic study until the County has released the property. This item was placed on the consent agenda. Request from the Special Projects Manager for approval of the Guaranteed Maximum Price #1 for the steel cell installation for the jail project: President of Bordeaux Construction Blair Bordeaux said this is a request for approval of GMP #1 for the prefabricated May 2, 2017 steel cells. It takes about eight weeks of engineering and ten to twelve weeks of fabrication time. The remaining bids are scheduled to be received on May 25. Chairman Mallory asked about storage until installation. Bordeaux said they are fabricated in Georgia. They will be shipped in by truck and there is storage off-site. At this point it is necessary to pull bonds and insurance to execute the GMP. Chairman Mallory asked if this process was accelerated in order to lock in pricing. Bordeaux said yes, industry is very busy and lead times are crunched. This will get a head start on fabrication, engineering and coordination. This item was placed on the consent agenda. Request from the Clerk to the Board for approval of minutes from the meeting on April 18, 2017: There were no corrections. This item was placed on the consent agenda. PUBLIC HEARINGS Request from James Miller to rezone approximately .69 acres at 933 and 937 Brawley School Road from Residential Office (RO) to Neighborhood Business (NB): Planning Director Matthew Todd said this request received a favorable recommendation from the Planning Board. Currently, there is a commercial use on the property. It was rezoned RO in 1984. There are very minimal, low intensity commercial uses in RO and they want to upgrade slightly in order to open other potential uses for the property. There was no public opposition at the Planning Board meeting. Request from Chad Swim and Richard Essick to rezone approximately 9.28 acres at 839 Brawley School Road from Highway Business Conditional Use District (HB -CUD) to General Business Conditional Use District (GB -CD): Planning Director Matthew Todd said this property is currently zoned HB -CUD which was done in 1998 for a landscaping and nursery business only. The current owners purchased it and are requesting the change to expand uses. They plan to continue the landscaping business but they want to add some storage to the back portion. The back portion is surrounded by residential and some citizens came to the Planning Board with questions. The Planning Board made some additional conditions including the installation of a berm along the north side and rear of the property, a gate to the storage area, and to show the area for propane storage. After those last conditions were added the Planning Board voted 9-0 to approve the request with the conditions. The extra conditions are reflected on the site plan. Commissioner McNeely asked if they were under the watershed rule originally. Todd said 24% impervious is what they are allowed to develop. There are some areas grandfathered in but based on their calculations they are in compliance. ANNOUNCEMENT OF VACANCIES OCCURRING ON BOARD & COMMISSIONS Vice Chairman Bowles expressed concerns and urged other commissioners to work hard to recruit volunteers for the adult care committees. All of these committees struggle under minimum membership. The elderly population is going to grow and there are many residents in May 2, 2017 nursing homes that don't have anyone to advocate for them. Bowles asked if there was any reason why he personally could not serve of this committee. Commissioner Norman expressed concerns of volunteers driving to Charlotte for training. The Clerk to the Board will research the possibility of training being conducted in Iredell County or even on-line and the possibility of Vice Chairman Bowles serving on the committee. NEW BUSINESS County Manager Ron Smith asked the Board's thoughts on a recent email containing a list of proposed legislation that are good and bad for counties. This list was created as an example of a potential hand out while attending County Assembly Day. The document would have information specific to Iredell County on one side and then the other side would have a list of legislation that the County supports and oppose. Chairman Mallory expressed his concerns of one particular bill that is very complex and detailed about consolidating and regionalizing the Department of Social Services. Any time something is regionalized it becomes more difficult to find the right person to help solve issues. It creates another layer of bureaucracy. Commissioner McNeely said that many of the bills that are favorable to Iredell County are bills that the NCACC chose to support. He said the North Carolina Association of County Commissioners is very critical to the success of all counties. COUNTY MANAGER'S REPORT County Manager Ron Smith distributed the agenda for the budget review sessions scheduled for Monday, May 8 and 15. If another meeting date is necessary it may be possible to take care of it during the pre -agenda on Tuesday, May 16. The budget message will be read tonight during the 7:00 regular session. A copy of the message is included in the budget notebooks which each member will receive after adjournment. The Board went into Closed Session at 5:45 PM. The Board recessed at 6:38 until the 7:00 regular meeting. IREDELL COUNTY BOARD OF COMMISSIONERS REGULAR MINUTES May 2, 2017 The Iredell County Board of Commissioners met in regular session on Tuesday, May 2, 2017, at 7:00 PM, in the Iredell County Government Center (Commissioners' Meeting Room), 200 South Center Street, Statesville, NC. Board Members Present Chairman James B. Mallory III Vice Chairman Tommy Bowles Gene Houpe Jeff McNeely Marvin Norman May 2, 2017 4 Staff present: County Manager Ron Smith, County Attorney Lisa Valdez, Deputy County Manager Beth Jones, Finance Director Susan Robertson, and Clerk to the Board Retha Gaither. CALL TO ORDER by Chairman Mallory. INVOCATION: Chairman James Mallory asked everyone to bow their heads for a moment of silence. PLEDGE OF ALLEGIANCE led by Chairman Mallory. ADJUSTMENTS TO THE AGENDA County Manager Ron Smith made the following adjustments: Remove: Closed Session—Personnel G.S. 143-318.11 (a) (6) MOTION by Commissioner Houpe to adopt the agenda as adjusted. VOTING: Ayes — 5; Nays — 0 APPOINTMENTS BEFORE THE BOARD (None) PUBLIC HEARINGS Request from James Miller to rezone approximately .69 acres at 933 and 937 Brawley School Road from Residential Office (RO) to Neighborhood Business (NB): Planning Director Matthew Todd said this property was zoned RO in 1984. Planning Staff supports this request based on the following: the 2030 Horizon Plan calls for this area to be corridor commercial, the lot is adjacent to commercially zoned property, and traffic impact should not exceed road capacity. The Planning Board voted 9-0 in favor of this request. There have been no questions or concerns voiced from the public. Chairman Mallory open the public hearing. James Miller of 939 Brawley School Road was present to answer questions if needed. No other citizens wished to speak. Chairman Mallory closed the public hearing. MOTION by Vice Chairman Bowles to approve this zoning map amendment and to make a finding that the approval is consistent with the adopted 2030 Horizon Plan and that said approval is reasonable and in the public interest and furthers the goals of the 2030 Horizon Plan because it is in harmony with the area and is adjacent to other commercially zoned property. VOTING: Ayes — 5; Nays — 0 PLANNING STAFF REPORT REZONING CASE # 1704-1 STAFF PROJECT CONTACT: Jake Lowman EXPLANATION OF THE REQUEST May 2, 2017 This is a request to rezone approximately .69 acres at 933 & 937 Brawley School Road from Residential Office (RO) to Neighborhood Business (NB). This is a straight rezoning and no conditions are proposed at this time.`,'.'- OWNER/APPLICANT OWNER/APPLICANT: James Miller, KAMCO, Inc. PROPERTY INFORMATION LOCATION: 933 & 937 Brawley School Road; more specifically PINS 4636781963.000 & 4636780808.000. DIRECTIONS: West on Brawley School Rd from 1-77; Property is on the leftjust before Mallard Way. SURROUNDING LAND USE: There is residential and commercial property in Mooresville's planning jurisdiction to the north. There is vacant property surrounding the rest of the properties. SIZE: The acreage to be rezoned is approximately .69 acres. EXISTING LAND USE: One parcel is vacant and one holds an existing business. ZONING HISTORY: The property was rezoned in 1984 from Residential Agricultural (RA) to (RO), Residential Office. OTHER JURISDICTIONAL INFORMATION: This property is Located in Mooresville's Urban Service Area. The town did not comment on the rezoning. OTHER SITE CHARACTERISTICS: The property is located in the WS -IV Critical Area of the Catawba/Lake Norman Watershed and will be limited to 24% built -upon area for new development. The property is not located in a flood zone. IMPACTS ON LOCAL INFRASTRUCTURE AND/OR FACILITES TRAFFIC: The closest traffic count was on Brawley School Road near the intersection of Williamson Road and had a traffic count of 30,000 vehicles per day in 2015. The capacity for this section of Brawley School Rd is approximately 36,600 vehicles per day. SCHOOLS: This is a commercial rezoning and should have no implications on local schools. FIRE MARSHAL: This proposal has been reviewed by the Iredell County Fire Marshal's Office. The Fire Marshal's Office did not address any concerns on the request. EMS: This proposal has been reviewed by the EMS Department. EMS did not address any concerns on the request. UTILITIES: This site would be served by well and septic. REQUIRED REVIEWS BY OTHER AGENCIES May 2, 2017 LOCAL: The applicant must provide a site plan to the Planning Division for review to develop the property. Zoning requirements such as parking, landscaping, and buffering will be reviewed at such time. Erosion & sedimentation control standards will also be reviewed for compliance. STATE: Other than building code, there should be no formal state agency review at this time. FEDERAL: None at this time. STAFF AND BOARD COMMENTS STAFF COMMENTS: The 2030 Horizon Plan calls for this area to be Corridor Commercial, which includes existing commercial, office, and/or retail uses that exist along major thoroughfares and highways or areas that will include commercial development in the future. These areas are both within and outside the Iredell County Urban Service Areas. According to the plan, uses within this area generally should include retail, restaurants, entertainment centers, automobile services, personal services, other commercial uses, and office developments. The Planning staff can support the proposed rezoning request based on the following: The 2030 Horizon Plan calls for this area to be Corridor Commercial, which allows for neighborhood scale business uses. There is an existing business on the current site and the site is near past approved Neighborhood Business districts. Traffic impacts should not exceed road capacity. SITE REVIEW COMMITTEE: David Aman, Dennis Hutchens, Jerry Santoni and Vickie Sawyer visited the site with staff on March 22, 2017. PLANNING BOARD ACTION: On April 5th 2017, the Planning Board held a public meeting to hear the rezoning request. No one spoke in opposition to the request. The board voted 9-0 to recommend in favor of the rezoning with the following motion: Motion to recommend in favor of the zoning map amendment and to make a finding that the approval is consistent with the adopted 2030 Horizon Plan and that said approval is reasonable and in the public interest and furthers the goals of the 2030 Horizon Plan because it is in harmony with the area and is adjacent to other commercially zoned property. Request from Chad Swim and Richard Essick to rezone approximately 9.28 acres at 839 Brawley School Road from Highway Business Conditional Use District (HB -CUD) to General Business Conditional Use District (GB -CD): Planning Director Matthew Todd said this property was zoned HB -CUD in 1998 specifically for a landscaping and nursery only business. Staff supports this request which is conditional, site plan specific, and limited to uses in the application. The parcel is partially in the corridor commercial node. The lot is adjacent to commercially zoning property and, again, it is a conditional site plan specific rezoning with limited uses. The Planning Board voted 9-0 in favor of this request after they heard some concerns from the neighbors and added a few conditions onto the rezoning. Those conditions include showing where the propane storage would be on the site, a berm along the property line with landscaping on top of the berm, and provide a gate to access the storage on the rear of the property. Commissioner McNeely said it is important to remember that it is conditional to the site plan being specific and they cannot vary from that plan. Todd said the must stay within the site plan and the uses listed in the application. Chairman Mallory opened the public hearing. Chad Swim of 839 Brawley School Road was available to answer questions. May 2, 2017 Linda Martinson of 142 Regency Road and representing the Regency Pond & Dam HOA spoke about concerns of run-off from the property into the small creeks after clearing trees and land. All of the heavy sediment is now appearing in Regency Pond which feeds into Lake Norman. Just two years ago the pond was clear and fish could be seen but now all of the creatures are gone because there is no oxygen in the water. Iredell County staff has reviewed this issue but there seems to be no solution. Swim said the land was cleared with an erosion control plan that was approved by Iredell County staff. He does not believe any run-off is coming from this property. Commissioner Houpe asked about the berm and if it would help with this issue. Todd said the berm is a condition added by the Planning Board and will be along the fence. The `retention pond" is not required but there is an erosion control pian on file for this site. As for storm water, there are no direct storm water guidelines so the only thing the County can address is erosion. pond. Swim said the pond was used to pump water for David's Gardens but is not a retention Chairman Mallory asked the location of the Regency Pond. Martinson said the Regency Pond does not show on the map but all of the small creeks through the property runs into the Regency Pond because of the way the land drops off. Commissioner Houpe asked if Todd could speak to someone with the State to address Martinson's concerns. Kevin Miller of 128 Farmstead Lane is an adjacent property owner and asked for clarification on the berm, agreements, and timeframe. Todd said the berm would be along one side of the property line and across the back with landscaping on top. There is not set distance on the berm itself but there must be a 90% opaque screening on top of it. If the zoning is approved then the applicant submits for a zoning permit and then the applicant will begin the construction of the berm. Chairman Mallory closed the public hearing. Chairman Mallory believes the proposed site plan for this property doesn't seem to be the issue with the run-off into Regency Pond which probably already existed. It may be best to engage the Department of Environmental Resources to review the area and sediment build-up. Commissioner McNeely said there was a drought in 2015 and 2016. Rainfall usually causes silt and sediment. This year the rainfall is about eight inches ahead and there will probably be more issues with sediment which is the way Mother Nature works. OTION by Commissioner McNeely to approve in favor of the zoning map amendment and to make a finding that the approval is consistent with the adopted 2030 Horizon Plan and that said approval is reasonable and in the public interest and furthers the goals of the 2030 Horizon Plan because the parcel contains an existing commercial use, it is adjacent to other commercially zoned property, it is conditional per the submitted site plan, and traffic impacts should not exceed road capacity. May 2, 2017 VOTING: Ayes — 5; Nays — 0 PLANNING STAFF REPORT REZONING CASE # 1704-3 STAFF PROJECT CONTACT: Jake Lowman EXPLANATION OF THE REQUEST This is a request to rezone approximately 9.28 acres at 839 Brawley School Road from Highway Business Conditional Use District (HB -CUD) to General Business Conditional District (GB -CD). This request is conditional per the submitted site plan and is proposed to exclude residential uses, adult oriented businesses, automobile and truck dealerships, bus stations, and all manufacturing uses except for warehousing and storage. OWNER/APPLICANT OWNER/APPLICANT: Chad Swim (Swim Lawn & Landscape) & Richard Essick (Xtra Properties, LLC) PROPERTY INFORMATION LOCATION: 839 Brawley School Road; more specifically PINS 4636992705.000, 4636897802.000 & 4636896740.000. DIRECTIONS: West on Brawley School Rd from 1-77; Property is on the left between Farmstead Rd and Canvasback Rd. SURROUNDING LAND USE: There are commercial uses across Brawley School Rd and to the north of the property along Brawley School Road. The remainder of surrounding properties are residential in nature. SIZE: The acreage to be rezoned is approximately 9.28 acres. EXIS'T'ING LAND USE: The current use of the property is a landscaping business ZONING HISTORY: In 1998, the property was rezoned from RA to Highway Business Conditional Use District, with the main condition being that the property be used for nursery and landscaping business only. OTHER JURISDICTIONAL INFORMATION: This property is located in Mooresville's Urban Service Area. The town did not voice any concerns. OTHER SITE CHARACTERISTICS: The property is located in the WS -IV Critical Area of the Catawba/Lake Norman Watershed and will be limited to 24% built -upon area for new development. The property is not located in a flood zone. IMPACTS ON LOCAL INFRASTRUCTURE AND/OR FACILITES TRAFFIC: The closest traffic count was on Brawley School Road near the intersection of Williamson Road and had a traffic count of 30,000 vehicles per day in 2015. The capacity for this section of Brawley School Rd is approximately 36,600 vehicles per day. May 2, 2017 SCHOOLS: This is a commercial rezoning and should have no implications on local schools. FIRE MARSHAL: This proposal has been reviewed by the Iredell County Fire Marshal's Office. The Fire Marshal's Office did not address any concerns on the request. EMS: This proposal has been reviewed by the EMS Department. EMS did not address any concerns on the request. UTILITIES: This site would be served by well and septic. REQUIRED REVIEWS BY OTHER AGENCIES LOCAL: The applicant must provide a site plan to the Planning Division for review to develop the property. Zoning requirements such as parking, landscaping, and buffering will be reviewed at such time. Erosion & sedimentation control standards will also be reviewed for compliance. STATE: Other than building code, there should be no formal state agency review at this time. FEDERAL: None at this time. STAFF AND BOARD COMMENTS STAFF COMMENTS: The 2030 Horizon Plan calls for this area to be Corridor Commercial, which includes existing commercial, office, and/or retail uses that exist along major thoroughfares and highways or areas that will include commercial development in the future. These areas are both within and outside the Iredell County Urban Service Areas. According to the plan, uses within this area generally should include retail, restaurants, entertainment centers, automobile services, personal services, other commercial uses, and office developments. The Planning staff can support the proposed rezoning request based on the following: This is a conditional rezoning and the uses of the property will be limited. The 2030 Horizon Plan calls for this area along Brawley School Road to be Corridor Commercial. There is an existing conditional commercial business on the parcel, it is adjacent to other commercially zoned property, it is conditional per the submitted site plan, and traffic impacts should not exceed road capacity. SITE REVIEW COMMITTEE: David Aman, Dennis Hutchens, Jerry Santoni, and Vickie Sawyer visited the site with staff on March 22, 2017. PLANNING BOARD ACTION: On April 5th 2017, the Planning Board held a public meeting to hear the rezoning request. There were multiple members from the community present to speak out of concern for the request. Concerns were associated with the lack of buffering and screening of the new uses, security, lighting, and storm water control. The board recommended multiple site plan additions and the applicants agreed to address the concerns via an updated site plan. The new additions included adding a berm and vegetative screening along the northern and eastern boundaries of the property, identifying a locked gate, and designating approximate propane storage areas on the site plan. The board voted 9-0 to recommend in favor of the rezoning with the following motion: Motion to recommend in favor of the zoning map amendment and to make a finding that the approval is consistent with the adopted 2030 Horizon Plan and that said approval is reasonable and in the public interest and furthers the goals of the 2030 Horizon Plan because the parcel contains an existing commercial use, it is admeent to other commercially zoned property, it is conditional per the submitted site plan, and traffic impacts should not exceed road capacity. The approval is contingent on the following adfustments to the site plan: add a berm along the northern and eastern boundaries, add a vegetative .screen to the top of the berm, add a locked gate to the facility, and designate propane storage areas on the .site plan. * * r r + ADMINISTRATIVE MATTERS May 2, 2017 10 County Manager Ron Smith summarized the following items that were placed on the consent agenda: • Request from the Board of Elections for approval of a 5 -year maintenance contract with Election Systems & Software, LLC for voting machines as per NC G.S. 163-165.9. • Request from the Planning Division to call for a public hearing on May 16 to release zoning and subdivision jurisdiction of the John Clontz Family LLC property to the Town of Mooresville. • Request from the Special Projects Manager for approval of the Guaranteed Maximum Price #1 in the amount of $3,181,882 for the steel cell installation for the Jail Project. • Request from the Clerk to the Board for approval of minutes from the meeting on April 18, 2017. MOTION by Commissioner Norman to approve the consent agenda. VOTING: Ayes — 5; Nays — 0 ANNOUNCEMENT OF VACANCIES OCCURING ON BOARDS & COMMISSIONS Chairman Mallory encouraged citizens to review the vacancies and apply through the County's web site. Adult Care Home Community Advisory Committee — 9 vacancies Animal Grievance Committee — 3 vacancies. Sandra Gregory, D. J. Fuller, and Keith Loudermih have all volunteered to serve again. Centralina Economic Development Commission Board of Directors — I vacancy and 1 reappointment. Beth Jones is the public official representative and Russ Rogerson has volunteered to fill the vacancy of Robby Carney. Centralina Workforce Development Board — 2 vacancies. Brenda Speece and Mary Ann Mauldwin are the current members but have not respond to date. Farmland Preservation Advisory Board — 3 vacancies and I reappointment. D. J. Fuller has volunteered and Bill Pope is willing to serve. again. Historic Properties Commission — 1 vacancy. Industrial Facilities and Pollution Control — 2 vacancies. I -CARE Board of Directors — I reappointment. Carolyn Gary has volunteered to serve JCPC — 2 vacancies. Jury Commission — I reappointment. Irene Blackburn has volunteered to serve again. MCC Board of Trustees — I reappointment. Sara Tice has volunteered to serve again. Iredell County Planning Board — 3 reappointments. Doug Holland, David Aman, and Jerry Santom have volunteered to serve again. Region F Aging Advisory Council — 1 vacancy. May 2, 2017 I 1 Vice Chairman Bowles said, "The Adult Care Community Advisory Board has, over the years, been really really tough to get enough qualified people and those people that have the commitment for our aging population. As we heard at our Winter Planning Retreat our again population to 2025 is scheduled to increase by 39%. That is staggering statistics. We are going to be a retirement community soon. With that comes aging parents and we as a board and as a community have got to do a better job at looking after our folks in nursing homes. I've worked with this particular committee several times over my tenure here on the Iredell County Board of Commissioners and it seems like while we are working on it, it gets better and then it gets back again. It is something we need to shine a spot light on and we need to work on and try to make this better for our aging population as they enter these kinds of facilities. Thank you letting me bring this to attention." Chairman Mallory strongly encouraged citizens to apply and bring their expertise to these boards.. APPOINTMENTS TO BOARD AND COMMISSIONS (None) UNFINISHED BUSINESS (None) PUBLIC COMMENT (None) NEW BUSINESS (None) COUNTY MANAGER'S REPORT County Manager Ron Smith read the following FY2017-2018 budget message: The budget development process for FY2018 began in January of this year. At the Board of Commissioners' Budget Planning Retreat in February, the Board reviewed staff proposals and set forth priorities for the upcoming year. This became the framework for what is recommended in the proposed FY2018 budget, and are as follows: • Fund the employee pay and classification study that was completed this fiscal year, • Prioritize capital needs and fund them through the Capital Improvements Plan, • Address staffing needs for public safety and development departments, and • Continue funding for future economic development To gain understanding about what we hope to achieve in the coming budget, it is important to focus on some of the accomplishments that have taken place over the last year, as those actions directly relate to requests in the proposed budget. 1. Previous Efforts and Accomplishments Employee turnover has been high over the last several years. Although there are many factors and reasons for this, compensation is one, in which we have direct control. In FY2017, the Board agreed to undertake a pay and classification study to address recruitment, retention and compression. The study would take place in FY2017 and if funds were available, the results would be funded in FY2018. The Human Resources Department has led the development of the study and funding the results is proposed in the recommended budget. Due to leadership vacancies in the two Iredell County Economic Development Corporations, an effort was undertaken to align the two organizations, which was ultimately successful. The primary benefit ofthis alignment is a more global vision and ability to market the right sites to the right clients. As a joint agency, in any form, we are stronger together May 2, 2017 12 than we are apart and we are working closely with the new Executive Director to strategically use money allocated for economic development. I hope this alignment pays long-term dividends to the residents of the entire County. In FY2016, we began the process of designing an expansion to the Detention Center. The Board partially funded this project, with the assumption that the remaining funding be fulfilled in the FY2017 and 2018 budgets. This budget will fulfill the funding gap that remains for this project. The Board also approved the construction of a Consolidated Public Safety Complex that will be located on Bristol Drive in Statesville. Construction of both projects will begin in the late summer or early fall of 2017. During the last year, we have undertaken significant pre -construction efforts to insure the transition to the new Detention Center is seamless. Throughout the year we have met often with the three educational systems; Iredell Statesville Schools, Mooresville Graded School District, and Mitchell Community College. This paid dividends through the budget process, as we have gained a greater understanding of their needs, how to help address those needs and I believe they have a better understanding of the County's funding confines. 2. Economic Stability Iredell County continues to grow at a relatively high rate. State projections for 2017 show Iredell County with a population over 176,000 residents (Graph 1), making it the 15"' largest county in the State. Between 2010 and 2015 (the last year of certified population numbers) the County grew by 6.8%, with 5.7% being due to in -migration. By 2020, it is estimated that our population will rise to over 185,000 residents, another 5% increase over a three-year period. Within the top thirteen largest counties in North Carolina, not including Mecklenburg and Wake, Iredell has the lowest tax rate, and has a higher tax base than six of those counties (Graph 2). Continued focus on economic development will allow us to keep this favorable ratio and thus keep the tax rate low. 200000 180000 160000 140000 120000 100000 $600,000 mph 1. 1arLest ( ounLwi with Tac [mate (outside PVo klenb(.arg and Wakfn) iG., s -.0000o $400,000 Graph 1, Iredell Count, 0 0 0 0 0 .-i ti ti ti .-i ry 0 0 0 0 0 0 0 0 0 0 0 N N N N N N N N N N N $200,000 $0 10 03' moo. 0 p: a.• ��t.• ��� oar ��e d• or O. baa (a5 Jc 0� �� ��F of �� Q May 2, 2017 13 Residential building permit activity has continued to grow over the last five years and is beginning to move north within the County. Graph 3 shows the yearly increases in the number of permits since 2010. Calendar year 2016 saw a strong increase in residential permits, 12% higher than 2015, and over 60% higher than 2010. Likewise, commercial permits are up almost 30% between 2015 and 2016. This trend does not seem to be in jeopardy in the near future as subdivision activity, which is a precursor to building, is at a high level in the municipalities and is always a good indicator of builder and developer confidence in the market. Over the last three years, housing prices have also been increasing across the County, another symbol of economic stability. Mooresville has seen an increase, which is expected. However, prices in Statesville have also gone up. In March of 2014, the average home sales price was just over $101,000, compared to $151,000 in March of 2017 (Graph 4). The aligned economic development corporation continues to be successful, adding 405 new jobs in calendar year 2016, with an investment of over $104,600,000 (Graphs 5 & 6). Through this positive job growth, we have seen the unemployment rate continue to drop (Graph 7). Although job creation is down from last year, investment is higher and the current development pipeline is as full as it has been in years. 3. Revenues Revenue continues to grow at a steady pace. Advalorem tax revenues are expected to increase by 3%. We predict that sales tax revenues will rise by approximately 6%. Although we budgeted for a modest gain in sales tax revenues between FY2016 and FY2017, we anticipate that our year-end increase will be around 5%. Graph 3, Building, Permits 2500 2000 1510 1669 1401 1359 1448 2255 2013 1500 1000792 418 608 414 508 451 620 Soo 0 2010 2011 2012 2013 2014 2015 2016 iii': Commercial Units Residential Units Graph A. Average Nome Sales Price 450000 250000 .� 50000 N � ti ti ti ti ti� N Statesville —Mooresville Iredell County Graph S. Net Neter Jobs Cre<ate.cl 1,750 750 -250 2010 2011. 2012 2013 2014. 2015 2016 New Jobs —Job Loss -- NetNewJobs Our final major revenue source is through fees and permits associated with development. Fees have consistently risen Graph 3. New Investment over the last several years and we hope to see an increase of $1,000,000,000 over 5% again this coming fiscal year. $800,000,000 4. Expenditures $600,000,000 1 am proposing an overall 2.62% increase over last year's budget. We made every effort to satisfy the priorities of the $400,000,000 Board of Commissioners while working within the confines of our available revenues. To this point, there are over $200,000,000 $9,000,000 in recommended cuts made from the original $o requests received. The majority of the requests are needs but must be prioritized, delayed and in some cases 2010201120122013201420152016 eliminated due to limits in revenues. May 2, 2017 14 Graph 8 shows the breakdown of expenditures by category. These percentages are very similar to years past, with the top three areas being in education (48%), public safety (19%), and human services (16%). 15.0 a. Education Contributions to the three education systems comprise 48% of the proposed budget, which is an increase of 3.88% over FY2017. In FY2018, there is a total increase to public education of $3,473,020 (Graph 9). This will increase the per pupil amount to $1,593, up from $1,547 in FY2017, and will be uniform between Iredell-Statesville Schools (FSS) and Mooresville Graded School District (MGSD). I -SS will see an increase of 3.76%, or $1,309,825, in current expense and 63%, or $3,274,840, in capital outlay. Based on our funding formula, debt service will increase by just over 2%. MGSD will see an increase of 4.1%, or 5404,990, in current expense and an increase of 340%, or $965,970 in capital outlay. Debt will be reduced by almost 6%, which directly correlates with the increase in capital outlay funding the schools will receive. Mitchell Community College (MCC) will receive 10.0 5.0 0.0 Graph 7. Local Unemployment Rate NN N N N N N N N N N 0 0 0 0 0 0 0 0 0 0 0 Yearly Avg. Graph 8. f i cal Year 2018 Proposed 1% Expenditures 0% General Government x Public Safety Development Services ++ Human Services 4'%, or $127,505, more in current expense in the ® upcoming year, while capital outlay will increase Cultural & by 16%, or $157,070. Debt will decrease by 3.5%. Recreation b. Public Safety As mentioned previously, the construction of the Detention Center and the Public Safety Complex are the dominant forces in our public safety arena. These will both begin the actual construction process in late summer. In FY2018, we will open a new EMS base in the new Cool Springs Volunteer Fire Department. This is the first step in a new model of co -located public safety services, including fire, EMS, Sheriff, and rescue. We plan to use this model, when appropriate, in the construction of future buildings such as the Trinity Volunteer Fire Department. c. Capital Projects ay, Graph 9, I -SS &. MGSD funding $40,000,000 $20,000,000 So 3% 20112012201320142015201620172018 ISS Current Expense —MGSD Current Expense ---------ISS Capital & Debt MGSD Captial & Debt Within this budget, there is $1,982,300 to fund the Capital Improvement Plan (CIP). This number does not include the Jail expansion or the Public Safety Complex construction projects, which have their own project ordinances. May 2, 2017 15 We have included funds for a new EMS base, law enforcement office, and rescue bay at the proposed Trinity Volunteer Fire Department on Wilkesboro Highway. Trinity has requested to build a new station, generally following the model of Cool Springs VFD. EMS is currently housed in their station and would need a new home when the new station is built. This arrangement should continue a successful partnership with Trinity and provide quality public safety services to residents in that part of the County. We plan to fund the final phase of 800 MHz capable radios to county departments and volunteer agencies. This is the third year of this radio replacement process and will complete the transition to the VIPER 800 MHz system. EMS is experiencing a heavy ambulance replacement year. EMS has several 2012 models that cannot be remounted, as is our policy. This will be a relatively Targe cost over the next two years until we move through the 2012 and 2013 models. This does have a positive aspect in that these trucks will move to the "spare" fleet, as it is very low. We have also proposed $440,000 for the extension of fiber to several of our remote buildings. Part of this cost is attributed to the new Public Safety Complex, but the extension will also serve the Animal Services and Control and Agricultural Extension buildings. d. Economic Development I am proposing an additional $300,000 be allocated for economic development. We have been building this development fund for the last three years. This fund allows the County to work with local municipalities and the economic development corporation in their efforts to develop new industrial product. e. Human Capital This fiscal year the County underwent a pay and classification study. This study analyzed every county position for market competitiveness and compression. The Board agreed during last year's budget process to fund the results if funds were available in FY2018. 1 have made every attempt to keep this agreement in mind through the development of this budget. The intent, and results, of the study are twofold. First, we analyzed market competitiveness to address recruitment and retention. The study recommends a number of position grade changes and a new pay scale. Second, to address compression the study has applied a longevity factor, on a sliding scale, for employees that have been with the County for more than three years. Dealing with compression is a necessity, as the majority of our workforce is within the bottom 10% of their grade scale. This is not sustainable, as we are hiring new employees in at virtually the same level as those with years of service with the County. Funding this part of the study will give the County a more equitable distribution of positions throughout the pay scale. This year we incorporated a 2% salary scale adjustment for all employees, and a merit based performance increase of up to 3% to employees. i recommend we combine the two into a 5% merit based adjustment for all employees. This will allow employees to move up the pay scale based on their performance, and will help to address compression in the future. Fiscal year 2018 will be the first where we have seen a Targe scale need for expanded services due to demand. The cumulative increase in population, activity, and development has caused the need for new employees. This year we received requests for 40 new positions. Although not all of the requested positions are recommended, 1 believe there is strong justification for those that have been. May 2, 2017 16 Seventeen positions are included for public safety departments, the majority of these being in EMS to staff an ambulance at the new Cool Springs base. These public safety requests are due to increasing demand for service, as is shown in Graph 10. Graph 10. ECOM and EMS Activity 215000 115000 15000 Development departments such as Building 2012 2013 2014 2015 2016 Standards, Environmental Health and the Register of Deeds are all requesting staff. I am recommending one new Building Inspector, an Environmental Health Technician, and one EMS (Total Calls) Deputy Register of Deeds in this budget. These —ECOM (Total Incidents) positions are all necessary to insure our work is done in a timely manner and the public does not feel delays. The building permit graph at the beginning of this message is a good indicator of the growth pressure these departments are experiencing. General Governmental Departments are recommended to receive two positions, and ICATS and Solid Waste will both add to their staff, although these are not from county dollars. 5. Keeping an Eye on the Horizon As our population grows, we are anticipating a shift in Graph 11. School Age v. the type of growth we are experiencing. Although Elderly Population Iredell County continues to be a top-notch place to raise 45000 39.8% a family, we are seeing that an increase in the older population will begin to contribute heavily to our 35000 overall growth (Graph 11). Preparing for a shift in 3.7% service provision, namely to EMS, ECOM, and public 25000 safety overall, will be a necessity in the upcoming years, 15000 if it has not already started to happen. 2016201720182019202020212022202320242025 The primary influences on the upcoming fiscal year, like School Age —Elderly the current year are two major capital projects, which will begin construction this summer. These are both partially funded, with plans to complete that funding in this year's budget. As construction costs continue to rise, I feel we should finance a portion of the Public Safety Complex. This will allow us to fully fund both projects in the upcoming fiscal year, while allowing for funding to be available for other needs. It will also limit the amount we will draw down from fund balance. I am hesitant to go too low in fund balance, which would limit the County's options in the event of an emergency, or an opportunity. I expect that FY2019 will be similar to FY2018 in that we have anticipated capital projects already built into the Capital Improvement Plan, development and population growth will continue to tax our public safety and development departments, and needs deferred from this year will come again next. By freeing up funds to apply to these needs, without pulling from fund balance, we will be on a better long-term trajectory to handle future growth. 6. Recommendation This message fulfills my obligation under G.S. 195-11 to present the recommended FY2018 budget of $195,362,595. This will maintain the tax rate at 52.75 cents per $100 valuation, based on a tax base of $22,671,600,000 with a collection rate of 98.54%. The fund balance on June 30, 2017 is estimated to be $42,498,000, which is 21.75% of the recommended budget. Respectfully Submitted, Ron Smith County Manager May 2, 2017 17 County Manager Ron Smith expressed his appreciation to the staff for countless hours developing this budget. Finance Director Susan Robertson has been crucial to the project. Deputy County Manager Beth Jones, Assistant Finance Director Deb Alford and Budget Analyst Susan Cornell were major contributors to this project with many months of hard work. Commissioner McNeely asked about the financing for the Public Safety Complex. Smith said there is a plan in place if the Board approves. Chairman Mallory expressed his appreciation to staff for the diligent effort and countless hours on this budget. The presentations and outlining the needs at the Winter Retreat were most informative. There was $9 million worth of savings found by the staff along with department directors balancing out the needs for future growth to make this budget process successful. CLOSED SESSIONS There was a Closed Session item discussed after pre -agenda meeting but there were other items to discuss. Chairman Mallory moved the Board into Closed Session at 8:05 PM. The Board returned to open session at 8:544 PM. There were no action items to report as a result of the closed session. ADJOURNMENT OTION by Commissioner Houpe to adjourn at 8:55 PM. (The next meeting will be Monday, May 8 2017, 5:00 PM, in the South Wing Conference Room, Government Center, 200 South Center Street, Statesville, NC) VOTING: Ayes — 5; Nays — 0 Date Approved Retha C. Gaither, Clerk May 2, 2017 18