June 15, 2020 - 6:00 PM - County Board of Commissioners Meeting Minutes (Special)

10 425 Meeting of the Johnston County Board of Commissioners June 15 , 2020 Special Meeting The Johnston County Board of Commissioners met in special session Monday , June 15 , 2020 at 6 00 pm in the Second Floor Meeting Room of the Public Library of Johnston County and Smithfield located at 305 E Market Street in Smithfield , North Carolina The following members were present Present Chairman Ted G Godwin , Vice Chairman Chad M Stewart , Jeffrey P Carver , Larry Wood , Tony Braswell , Patrick E Harris , and RS “ Butch ” Lawter , Jr Absent None Also Present County Manager Rick J Hester , Clerk to the Board Paula G Woodard , Finance Officer and Assistant County Manager J Chad McLamb , County Attorney Jennifer J Slusser , and Paralegal Deputy Clerk to the Board Dana Cuddington Chairman Ted G Godwin called the meeting to order to consider the adoption of the FY 2020 - 2021 County budget and other matters 1 Budget Revisions At the request of Finance Director and Assistant County Manager Chad McLamb , Commissioner Chad M Stewart moved the Board approve the following budget revisions , seconded by Commissioner Patrick E Harris , and carried by unanimous vote Finance REQUESTED CHANGE FUND BUDGET CODE LINE ITEM CLASSIFICATION EXPENDITURE INCREASE DECREASE 10 40193300 COVID - Departmental Supplies 776,00000 10 40194425 COVID - Telework Expense 1,260,00000 40194500 COVID - Contract Services 500,00000 10 10 40197050 COVID - Non - Major Capital Assets 200,00000 10 40197400 COVID - Capital Outlay 100,00000 10 40190200 COVID - Salaries & Wages 500,00000 10 40190210 COVID - Overtime 140,00000 40190501 COVID - Social Security 62,61400 10 40190600 COVID - Health Insurance 40,00000 10 10 40190610 COVID - Life Insurance 1,40000 10 40190620 COVID - 125 Administration Fee 1,00000 10 40190700 COVID - Retirement 50,00000 10 40190701 COVID - 401K 25,00000 TOTAL NET EXPENDITURES 3,656,01400 REQUESTED CHANGE FUND BUDGET CODE LINE ITEM CLASSIFICATION REVENUE INCREASE DECREASE 10 401934019 Coronavirus Relief Funds - CARES Act 3,656,01400 TOTAL NET REVENUE 3,656,01400 Moccasin Creek Service District REQUESTED CHANGE FUND BUDGET CODE LINE ITEM CLASSIFICATION EXPENDITURE INCREASE DECREASE 57 66757325 NC Dept of Agriculture & Consumer Sciences 119,30000 Grant Expenses TOTAL NET EXPENDITURES 119,30000 REQUESTED CHANGE FUND BUDGET CODE LINE ITEM CLASSIFICATION REVENUE INCREASE DECREASE 57 667537948 NC Dept of Agriculture & Consumer Sciences 119,30000 Grant TOTAL NET REVENUE 119,30000Page426 June 15 , 2020 – 6 00 pm Continued Register of Deeds REQUESTED CHANGE FUND BUDGET CODE LINE ITEM CLASSIFICATION EXPENDITURE INCREASE DECREASE 10 48009083 Conveyance Tax 750,00000 TOTAL NET EXPENDITURES 750,00000 REQUESTED CHANGE FUND BUDGET CODE LINE ITEM CLASSIFICATION REVENUE INCREASE DECREASE 10 480035113 Register of Deeds 750,00000 TOTAL NET REVENUE 750,00000 Special Appropriations REQUESTED CHANGE FUND BUDGET CODE LINE ITEM CLASSIFICATION EXPENDITURE INCREASE DECREASE 10 58556358 JCATS ROAP Grant 347,14000 TOTAL NET EXPENDITURES 347,14000 REQUESTED CHANGE FUND BUDGET CODE LINE ITEM CLASSIFICATION REVENUE INCREASE DECREASE 10 585534177 DOT ROAP Grant 347,14000 TOTAL NET REVENUE 347,14000 2 Adoption of the Fiscal Year 2020 - 2021 County Budget Chairman Ted G Godwin thanked the staff for their work on the budget this year , stating it has been a long and arduous process given all the unknowns the County is facing due to the COVID - 19 Pandemic Chairman Godwin stated there are many uncertainties as to how the pandemic will affect the budget and cash flows as it relates to sales tax revenues among other things Chairman Godwin stated the staff has done an outstanding job and he thinks the numbers will reflect a prudent and conservative approach to the budget Motion to adopt the Fiscal Year 2020 - 2021 County Budget Commissioner Jeffrey P Carver echoed the comments of the Chairman and thanked County Manager Rick Hester as well as Finance Director Chad McLamb for assembling a good proposed budget for the Board to work with this year Commissioner Carver also thanked his fellow Commissioners for having faith in him as he th worked on his 19 and final budget as a County Commissioner Commissioner Carver moved the Board adopt the County Manager’s proposed Fiscal Year 2020 - 2021 Budget with the following revisions ? Add 2 million to current expense for Johnston County Public Schools That , along with the reserves they had planned to use for their 76 million local current expense budget should position them well for next school year ; ? Add 200,000 to capital outlay for Johnston Community College ; ? Approve an 8 cent tax rate for the Research Training Zone ; ? Approve the following fire district tax rate increases as requested by the respective fire departments ? Strickland’s Crossroads Fire District - 8 to 10 cents ? 50 - 210 Fire District - 6 to 8 cents ? Allocate 10,000 for Special Olympics ; ? Allocate 75,000 for My Kids Club ; ? Allocate an additional 25,000 for the Partnership for Children for a total allocation of 50,000 ; ? Allocate 1,000 for the Kenly Tobacco Museum ; ? Allocate an additional 50,000 for Harbor for a total allocation of 75,000 ;Page427 June 15 , 2020 – 6 00 pm Continued ? Allocate 21,000 for the Smithfield Rescue Mission ; ? Add 20,000 to the First Responder call volume allocation ; ? Increase the open space fee - in - lieu from 400 per lot to 800 per lot ; ? Add 25 million in additional revenue from the recent bond premium ; ? Transition the construction & demolition debris to the Municipal Solid Waste landfill cell at the regular landfill tipping fee with a starting date to be determined by the Director of Solid Waste Services ; and ? Amend the water system development fees to the System Development Fees SDF study maximum allowable amounts Commissioner Patrick E Harris seconded the motion Discussion At the inquiry of Chairman Ted G Godwin , Commissioner Carver stated the 8 cent tax rate for the Research Training Zone was recommended by the Research Training Zone Advisory Board and it is unchanged from previous years Commissioner Tony Braswell thanked Commissioner Carver and the staff for their time and work on the budget Commissioner Braswell stated each and every year , the Board studies the tax rate and this year was no different Commissioner Braswell stated the Board looked at the tax rate for the upcoming fiscal year and given all the uncertainties due to the COVID - 19 Pandemic , the Board felt the need to retain the same tax rate with a promise to evaluate it again next year and every year thereafter for the citizens There being no further comments by the Board , the Chairman called for a vote Vote The motion to adopt the Fiscal Year 2020 - 2021 County Budget carried by unanimous vote The following budget ordinance for the Fiscal Year 2020 - 2021 was adopted BUDGET ORDINANCE FY 2020 - 2021 JOHNSTON COUNTY , NORTH CAROLINA BE IT ORDAINED by the Board of Commissioners of Johnston County , North Carolina SECTION I BUDGET ADOPTION There is hereby adopted the following Operating Budget for the County of Johnston for the Fiscal Year beginning July 1 , 2020 and ending June 30 , 2021 ; the same being adopted by fund and activity within each fund as listed GENERAL FUND EXPENDITURES GENERAL GOVERNMENT 22,192,066 PUBLIC SAFETY 49,093,781 PHYSICAL DEVELOPMENT 12,257,334 HUMAN SERVICES 51,594,562 EDUCATION 78,050,000 DEBT SERVICE 39,888,242 TOTAL 253,075,985 REVENUES CURRENT YEAR AD VALOREM TAX 157,931,000 SALES TAX 37,858,508 OTHER TAX REVENUES 2,120,000 STATE & FEDERAL 28,039,386Page428 June 15 , 2020 – 6 00 pm Continued LICENSE , FEES , ETC 8,602,880 INVESTMENT INCOME 900,000 FUND BALANCE APPROPRIATED 4,101,301 NC EDUCATION LOTTERY 2,300,000 SALES AND SERVICE 11,222,910 TOTAL 253,075,985 TOURISM AUTHORITY EXPENDITURES 1,180,520 REVENUES OCCUPANCY TAX 1,143,510 INTEREST INCOME 700 MISCELLANEOUS INCOME 3,260 FUND BALANCE APPROPRIATED 30,050 REIMBURSEMENTS 3,000 TOTAL 1,180,520 REVALUATION FUND EXPENDITURES RESERVE FOR REVALUATION 507,500 REVENUES TRANSFER FROM GENERAL FUND 150,000 FUND BALANCE 357,500 TOTAL 507,500 INDUSTRIAL INFRASTRUCTURE FUND EXPENDITURES INDUSTRIAL DEVELOPMENT 7,429,804 REVENUES TRANSFER FROM GENERAL FUND 5,866,500 FUND BALANCE 1,563,304 TOTAL 7,429,804 LEO SEPARATION FUND EXPENDITURES PROGRAM COST 214,000 REVENUES TRANSFER FROM GENERAL FUND 210,000 FUND BALANCE 4,000 TOTAL 214,000 HERITAGE COMMISSION FUND EXPENDITURES OPERATING EXPENSE 369,474 REVENUES TRANSFER FROM GENERAL FUND 170,624 OTHER REVENUES 147,000 FUND BALANCE 51,850 TOTAL 369,474 SOCIAL SERVICE TRUST FUND EXPENDITURES PROGRAM COST 430,302 REVENUES TRUST RECEIPTS 430,302PagePage pageNumber5429 June 15 , 2020 – 6 00 pm Continued COMMUNICATION FUND EXPENDITURES E - 911 OPERATIONS 1,184,000 REVENUES ENHANCED 9 - 1 - 1 1,184,000 OTHER COLLECTIONS EXPENDITURES SPECIAL DISTRICT TAX 10,631,000 MOTOR VEHICLE TAX 18,124,825 MOCCASIN CREEK DISTRICT TAX 35,000 TOTAL 28,790,825 REVENUES SPECIAL DISTRICT TAX 10,631,000 MOTOR VEHICLE TAX 18,124,825 MOCCASIN CREEK DISTRICT TAX 35,000 TOTAL 28,790,825 RESEARCH TRAINING ZONE EXPENDITURES OPERATIONS 1,100,000 REVENUES SPECIAL DISTRICT TAX 815,000 TRANSFER FROM GENERAL FUND 285,000 TOTAL 1,100,000 AIRPORT AUTHORITY FUND EXPENDITURES OPERATIONS 1,892,542 CAPITAL COST 7,903,680 TOTAL 9,796,222 REVENUES FEDERAL GRANTS 7,593,428 FEES AND SERVICES 1,935,954 INVESTMENT INCOME 200 TRANSFER FROM GENERAL FUND 0 FUND BALANCE 266,640 TOTAL 9,796,222 HOUSING ASSISTANCE PAYMENT PROGRAM FUND EXPENDITURES PROGRAM COST 4,069,533 REVENUES FEDERAL GOVERNMENT HUD 4,069,233 INVESTMENT INCOME 300 TOTAL 4,069,533 WATER DISTRICTS EXPENDITURES DEBT SERVICE 8,934,619 OPERATIONS 10,248,681 TRANSFER TO OTHER FUNDS 2,134,566PagePage pageNumber6430 June 15 , 2020 – 6 00 pm Continued TOTAL 21,317,866 REVENUES RETAIL WATER 5,905,200 MONTHLY BASE FEE 11,107,950 OTHER REVENUE 3,807,250 FUND BALANCE APPROPRIATED 497,466 TOTAL 21,317,866 PUBLIC UTILITIES EXPENDITURES ADMINISTRATION 1,289,275 SOLID WASTE 8,709,000 WATER 16,212,469 WASTE WATER 8,694,325 TRANSFER TO OTHER FUNDS 3,200,000 DEBT SERVICE - WATER 5,735,341 DEBT SERVICE - WASTEWATER 3,494,190 TOTAL 47,334,600 REVENUES ADMINISTRATION FEES 1,289,275 SOLID WASTE FEES 8,204,000 WATER FEES 20,128,244 WASTE WATER FEES 15,388,515 DISPOSAL TAX 105,000 FUND BALANCE - ADMINISTRATION 0 FUND BALANCE – SOLID WASTE 0 FUND BALANCE - WATER 0 FUND BALANCE - WASTEWATER 0 TRANSFER FROM GENERAL FUND – SOLID WASTE 400,000 TRANSFER - WATER 1,819,566 TOTAL 47,334,600 SECTION II There is hereby levied a Tax Rate of seventy - six 76 cents per one hundred dollars valuation of property listed for taxes as of January 1 , 2020 This rate shall be levied entirely in the General Fund The Tax Rate is based on an estimated total valuation of property for the purposes of taxation of 19,366,536,364 and an estimated collection rate of 9900 SECTION III All fees , including Inspection Fees , Fire Code Fees , and Environmental Sanitarian Fees shall be collected as per schedule in the Clerks Office Planning and Zoning Fees and Public Utility Fees are adopted as recommended and are on file in the Clerks Office GIS fees are approved to recognize cost and may be amended as needed SECTION IV Landfill Tipping Fees shall be levied at a rate of 45 per ton including State surcharges for asbestos waste Landfill Tipping Fees shall be levied at a rate of 37 per ton for municipal solid waste generated in Johnston County The minimum fee for any vehicle shall be 5 A rate of four times the inside rate shall be levied for all solid waste generated outside of Johnston County Solid Waste assigned to the Sheriffs Department and Planning Department to enforce Solid Waste Laws , Rules and Regulations in Johnston County to ensure compliance with Senate Bill 111 The Landfill tipping fee for construction and demolition waste shall be 30 per ton The Landfill tipping fee for non - commercial yard wastes shall be 18 per ton or 8 per pickup size load An ineligible illegal tire disposal fee of 65 per ton shall be levied The corrugated cardboard disposal penalty shall be four times the tipping fee surcharge to a maximum amount of 300 SECTION V A fee of 100 per household shall be levied to all citizens in the county using the manned compaction sites and the landfill A vehicle identification sticker must be purchased prior to use of the sites in the County The vehicle identification sticker shall be valid for a twelve month period from the date of purchase PagePage pageNumber7431 June 15 , 2020 – 6 00 pm Continued SECTION VI The following fee adjustments for water and wastewater are adopted , effective as noted Adopted Water and Sewer Rates for FY 20 21 Table 1 Water Rates - Effective Date October 1 , 2020 Item FY 20 21 Retail Commodity Charge Residential up to 4,000 gal mo & Other 390 1,000 gallons Residential 5,000 – 9,000 gal mo 480 1,000 gallons Residential 10,000 – 14,000 gal mo 570 1,000 gallons Residential 15,000 gallons or more mo 630 1,000 gallons Metered Irrigation Usage 510 1,000 gallons Hydrant Meter Base Charge 7000 month Commodity Charge per 1,000 gallons 780 1,000 gallons Bulk Commodity Charge 285 1,000 gallons Bulk Capacity Fee 625 gpd of avg capacity Table 2 Sewer Rates - Effective Date July 1 , 2020 Item FY 20 21 Retail Monthly Service Base Charge ¾ ” – 1 ” Meter 3000 month Devil’s Racetrack 3 4 ” - 1 ” 3500 month 1 ½ ” Meter 4900 month Devil’s Racetrack 1 ½ ” 5200 month 2 ” Meter 7000 month 3 ” Meter 11000 month 4 ” Meter 18700 month 6 ” Meter 29000 month 8 ” Meter 43000 month Retail Commodity Charge 655 1,000 gallons Bulk Commodity Charge Transmission Town of Smithfield 065 1,000 gallons Town of Selma 106 1,000 gallons Town of Pine Level Four Oaks Clayton 124 1,000 gallons Bulk Commodity Charge Treatment Smithfield Selma Pine Level Four Oaks 300 1,000 gallons Clayton Aqua 300 1,000 gallons Carolina Water Service 615 1,000 gallons High Strength Surcharge Town of Clayton 255 1,000 gallons 1100 gpd plus costs for any necessary Bulk Capacity Fee transmission infrastructure not included in the 2019 SDF CIP Residential Septage Disposal 3000 ton Biosolids Processing 1,03500 ton Table 3 Water and Sewer System Development Fees - Effective Date July 1 , 2020 System Development Fee FY 20 21 WATER Residential 2,75000 servicePagePage pageNumber8432 June 15 , 2020 – 6 00 pm Continued Non - residential ¾ ” meter 2,75000 1 ” meter 6,87500 1 ½ ” Meter 13,75000 2 ” Meter 22,00000 3 ” Meter 44,00000 4 ” Meter 68,75000 6 ” Meter 137,50000 8 ” Meter 220,00000 SEWER Residential 4,09000 service Non - residential ¾ ” meter 4,09000 1 ” meter 10,22500 1 ½ ” Meter 20,45000 2 ” Meter 32,72000 3 ” Meter 65,44000 4 ” Meter 102,25000 6 ” Meter 204,50000 8 ” Meter 327,20000 In situations where the application of the meter - based fees will result in the collection of fees significantly different than the potential requirement of a new customer requesting service , the Director of Public Utilities shall have the discretion to calculate system development fees based on 922 gpd for water and 1462 gpd for sewer , with a minimum SDF based on the residential SDFs The System Development Fee shall be 920 per residential dwelling unit for an existing home with an active well that requests to connect to County water Table 4 Plan Review and Permitting Fees - Effective Date July 1 , 2020 Item FY 20 21 Water Plan Review Residential 7000 lot Non - Residential 11000 acre Sewer Plan Review Residential 7000 lot Non - Residential 11000 acre Stormwater Plan Review Residential 935 for up to 10 acres of total site ; 90 ac for each additional acre Non - Residential 935 for up to 5 acres of total site ; 125 ac for each additional acre Sedimentation Erosion Control 330 disturbed acre up to 10 acres ; 110 for each Plan Review additional acre 400 1 – 2 calls on the site Buffer Determination 110 for each additional call SECTION VII Salaries The following shall govern salary and wage compensation for Fiscal Year 2020 - 2021 A Pay Plan There is hereby adopted a pay plan which includes no cost - of - living or performance pay adjustments for FY 2020 - 2021 as of the date of this ordinance adoption However , staff may re - evaluate the pay plan with the Board during the fall of the year SECTION VIII The Budget Officer is hereby authorized to transfer appropriations within a fund as contained herein under the following conditions as specified in North Carolina General Statute 159 A The Budget Officer may transfer amounts between objects of expenditure within departments listed in this Ordinance without a report PagePage pageNumber9433 June 15 , 2020 – 6 00 pm Continued B The Budget Officer may transfer amounts up to 5,000 between departments of the same fund and reported as part of the monthly financial statements C The Budget Officer may not transfer amounts between funds nor from the Contingency Fund without prior Board Action SECTION IX Restricted Revenues The Finance Officer is hereby directed to fund appropriations which have specified revenues prior to funding with General Fund monies This is to include but not limited to Fines and Forfeitures , ABC profits , Sales Tax , State and Federal Grants , and Forestry Revenues That a non - profit corporation be continued to issue obligations to finance the purchase and or construction of fixed assets to include but not limited to utility lines and buildings SECTION X State designated Sales and Use Tax is hereby designated for the payment of debt for new and renovated schools School Debt Service is to be paid from the General Fund as directed by the independent auditors Fines and Forfeitures are deposited directly with the Board of Education by the Clerk of Court SECTION XI Encumbrances All outstanding encumbrances from Prior Fiscal Years are to be carried forward to Fiscal Year 2020 - 2021 All Project Ordinance appropriations are continued Operating and Capital Funds for Johnston County Community College not expended at the end of the fiscal year shall be placed by JCCC in their Special Capital Outlay Account and used as match for State funds SECTION XII Budget Control The Board of Commissioners in approving the Budget , have utilized to the fullest extent possible its revenue sources Over collections of revenue or unanticipated revenue sources cannot be expected to materialize during the year It is therefore , of utmost importance , and the County Manager is hereby directed , to initiate steps to insure that the budget as fixed herein is complied with The County Manager is further directed where it appears that costs may possibly exceed budget appropriations , to first take steps to contain costs by any necessary methods including reductions in services , prior to requesting budget amendment action by the Board of Commissioners SECTION XIII The Board of Commissioners hereby authorizes the Johnston County Tax Administrator to collect taxes for the Towns of Clayton , Smithfield , Four Oaks , Pine Level , Micro , Princeton , Wilson’s Mills , Whitley Heights Sanitary District , Moccasin Creek Service District and Smithfield Downtown Development District in compliance with the contracts adopted by the various governing boards A charge of two percent 2 of all taxes collected for the governmental units will be payable to Johnston County for said billing and collection services Taxes for the Towns of Archer Lodge , Selma , Kenly , and Benson are collected by the Johnston County Tax Administrator also The charge of two and one half percent 2 ½ of all taxes collected will be payable to Johnston County for said billing and collection services SECTION XIV The Board of Commissioners hereby authorizes the Tax Administrator to bill and collect taxes for the Whitley Heights Sanitary District and for the Fire Departments listed below and to charge a uniform fee of two percent 2 of all taxes collected on their behalf Archer Lodge Fire District 9 cents Banner Fire District 10 cents Bentonville Fire District 8 cents Beulah Kenly Fire District 8 cents Boon Hill Princeton Fire District 5 cents Blackmons Crossroads Fire District 8 cents Brogden Fire District 8 cents Claytex 1175 cents Corinth Holder Fire District 10 cents Elevation Fire District 10 cents McLemore - Cleveland Fire District 725 cents Meadow Fire District 7 cents Micro Fire District 10 cents Nahunta Fire District 6 cents Newton Grove Fire District 75 cents Oakland Fire District 7 cents ONeals - Antioch Fire District 8 cents PI - LE 10 cents Selma 12 cents Shoeheel 10 cents Smithfield 12 centsPage0434 June 15 , 2020 – 6 00 pm Continued Strickland Crossroads Fire District 10 cents Thanksgiving 9 cents West Johnston Fire District 7 cents Wilsons Mills Fire District 6 cents Wynn Four Oaks Fire District 8 cents 50 - 210 Fire District 8 cents The above amounts are per one hundred dollar valuation of property listed for taxes as of January 1 , 2020 , located within these Special Fire Districts The Board of Commissioners hereby appropriates to the Special Fire Districts , sums collected for the use by the Special Fire Districts in such manner and for such expenditures as is permitted by law from the proceeds of the tax levy SECTION XV The Board of Commissioners hereby authorizes the Tax Administrator to bill and collect taxes for the Research Training Zone District at a rate of eight cents per one hundred dollar valuation of property listed for taxes as of January 1 , 2020 , located within the district SECTION XVI The Board of Commissioners hereby authorizes the Tax Administrator to bill and collect taxes for the Moccasin Creek Service District at a rate of one and one - half cents per one hundred dollar valuation of property listed for taxes as of January 1 , 2020 , located within the district th The ORDINANCE being duly passed and adopted this 15 day of June , 2020 JOHNSTON COUNTY BOARD OF COMMISSIONERS ______________________________________________ Ted G Godwin , Chairman ________________________________________________ Paula G Woodard , Clerk to the Board 3 McGee’s Crossroads Sewer Upgrade Project Utilities Director Chandra Farmer , PE , reported the County received bids on May 21 , 2020 for the McGee’s Crossroads Sewer Upgrade project , which was bid in two separate contracts Ms Farmer explained that Phase 1 and 2A includes approximately 21,000 LF of 8 ” force main , a 1,250 gpm 150 hp wastewater pump station and approximately 7,100 LF of 16 ” force main Phase 2B includes approximately 8,400 LF of 27 ” gravity sewer main She stated the project is included in the adopted 2017 Capital Improvements Plan and will allow for capacity to provide wastewater service to previously approved as well as future development in the McGee’s Crossroads area Ms Farmer stated this includes commercial and residential development in the previously expanded Interstate Highway Interchange area as well as commercial and industrial development in the surrounding areas Ms Farmer reported the County received seven 7 bids for Phase 1 and 2A , and five 5 bids for Phase 2B , as follows Page1435 June 15 , 2020 – 6 00 pm Continued Ms Farmer stated Sanford Contractors , Inc of Sanford , North Carolina submitted the lowest responsive bid for Phase 1 and 2A in the amount of 4,569,19040 , and JF Wilkerson Contracting of Morrisville , NC submitted the lowest responsive bid for Phase 2B in the amount of 3,331,53100 She stated Sanford Contractors , Inc and JF Wilkerson Contracting are properly licensed and experienced in the type of construction involved and appear to have the financial , labor and equipment resources required to complete the construction within the stipulated contract completion time Ms Farmer presented the following previously approved and proposed project budget Existing Proposed Construction 5,110,00000 Phase 1 and 2A - Sanford Contractors 000 4,569,19100 Phase 2B – JF Wilkerson Contracting 000 3,331,53100 Contingency 497,22000 395,27800 Technical Services Construction Administration 34,66500 93,00000 Easements 79,11500 141,00000 Loan Closing 112,66000 166,92000 Total Project Cost 5,833,66000 8,696,92000 Funding for the proposed project is as follows Clean Water State Revolving Loan 5,633,00000 8,346,00000 Fund 68 Appropriation 200,66000 350,92000 Total Project Funds 5,833,66000 8,696,92000 Ms Farmer stated the County previously accepted the original loan offer of 5,633,000 at 183 for 20 years , and expects to receive a loan offer for the additional 2,713,000 in mid - July She noted staff has received the Notice of Intent to fund for this additional amount Ms Farmer stated it is important to note that staff completed the original project application for funding in 2015 , prior to any project design She explained the design process revealed the necessity for a larger wastewater pump station and gravity sewer main The final wastewater pump station wwps design will allow the station to serve as a “ regional ” station , which will receive flow from the McGee’s and Cleveland service areas Ms Farmer stated the regional station would operate similar to the County’s existing Josephine Road wwps The proposed station will not only accept flow from future commercial , industrial , institutional and residential development within the County’s Outlying Residential Sewer Service Area , but will allow for a portion of the existing and future flow that would otherwise flow through the Josephine wwps to flow through this station She stated two regional stations allow for more system redundancy and improved system operation in the event of a major failure at either station or the downstream force mains Ms Farmer noted this would minimize the potential for sanitary sewer overflows due to these types of unpredictable emergencies Ms Farmer stated staff recommends award of the McGee’s Crossroads Sewer Upgrade Project Phase 1 and 2A to Sanford Contractors , Inc in the amount of 4,569,19040 and Phase 2B to JF Wilkerson Contracting in the amount of 3,331,53100 , contingent upon approval by the funding agency NC DEQ DWI In addition , staff recommends approval of the revised project budget and the amended capital project ordinance She offered to answer any questions Page2436 June 15 , 2020 – 6 00 pm Continued Upon a question by Commissioner Butch Lawter , Ms Farmer explained the County has three wastewater pump stations that currently pump into the existing 6 ” force main that transmits wastewater from the McGee’s area to the County’s Landfill Equalization wwps She stated although these stations are not currently at capacity , as flow continues to increase to these stations , the operating pressure will increase in the 6 ” force main causing pump rates to decline and increase the risk of potential pipe failure Ms Farmer stated staff began this project to get additional capacity and rather than paralleling the force main all the way back to Smithfield , staff saw the opportunity to create a new regional station Commissioner Lawter stated he can see the reasons for this project from an engineering standpoint which is to improve the infrastructure conditions and be more efficient with operations ; however , he does have concerns because he does not believe the Board wants to continue providing residential sewer service in unincorporated areas Commissioner Lawter stated it gets back to the Board looking at the Residential Sewer Service Policy to make the necessary changes Commissioner Lawter stated he is willing to approve this project today , but it is important that the Board really examine the direction of the County as it relates to sewer service in unincorporated areas Upon questions by Commissioner Chad M Stewart , Ms Farmer stated this project will serve some residential ; however , capacity is needed in that area for commercial , industrial , and institutional needs as well Ms Farmer noted the current Capital Improvements Plan was developed in accordance with the current Residential Sewer Service Policy She stated if the Board modifies the Residential Sewer Service Policy then the Board would also need to re - evaluate the Capital Improvements Plan Chairman Ted G Godwin instructed the Clerk to add a discussion regarding the Residential Sewer Service Policy to the July agenda Commissioner Tony Braswell noted the Planning Board would be looking at some of these issues at their next meeting Commissioner Jeffrey P Carver stated the Planning Board will also be looking at some high density subdivisions at their next meeting Commissioner Carver spoke on the importance of looking at the issues because he believes that wastewater capacity needs to be for commercial and industrial Commissioner Butch Lawter moved the Board award the McGee’s Crossroads Sewer Upgrade Project Phase 1 and 2A to Sanford Contractors , Inc in the amount of 4,569,19040 and Phase 2B to JF Wilkerson Contracting in the amount of 3,331,53100 , contingent upon approval by the funding agency NC DEQ DWI ; approve the revised project budget as recommended by staff ; and adopt the amended capital project ordinance Commissioner Chad M Stewart seconded the motion which carried by the following vote Ayes Commissioners Ted G Godwin , Chad M Stewart , Jeffrey P Carver , Tony Braswell , Patrick E Harris , and Butch Lawter Nays Commissioner Larry Wood CAPITAL PROJECT ORDINANCE FOR THE MCGEE’S CROSSROADS SEWER UPGRADE PROJECT BE IT RESOLVED by the Board of Commissioners the “ Board ” of the County of Johnston , North Carolina the “ County ” , that pursuant to Section 132 of Chapter 159 of the General Statutes of North Carolina , the following capital project ordinance is hereby adopted Section 1 The project authorized is the McGee’s Crossroads Sewer Upgrade Project the “ Project ” Phase 1 and 2A of the Project includes approximately 21,000 linear feet of 8 - inch force main , a 1,250 gallon per minute 150 horse power wastewater pump station and approximately 7,100 linear feet of 16 - inch force main Phase 2B includes approximately 8,400 linear feet of 27 - inch gravity sewer main The Project will be financed by a Clean Water State Revolving Loan and an appropriation from the County Sewer Fund “ Fund 68 ” Section 2 The officers of the County are hereby directed to proceed with the capital Project within the terms of the Clean Water State Revolving Loan offer and the budget contained herein Section 3 The following amounts are appropriated for the Project Technical Services 93,000Page3437 June 15 , 2020 – 6 00 pm Continued Construction Phase 1 and 2A 4,569,191 Phase 2B 3,331,531 Contingency 395,278 Easements 141,000 Loan Closing Fee 166,920 Total 8,696,920 Section 4 The following revenues are anticipated to be available to complete this Project Clean Water State Revolving Loan 8,346,000 Transfer from Fund 68 350,920 Total 8,696,920 Section 5 The Director of Finance is hereby directed to maintain within the Capital Project Fund sufficient specific detailed accounting records to satisfy the requirements of the North Carolina Department of Environmental Quality “ NC DEQ ” and the terms of the Clean Water State Revolving Loan shall be met Section 6 Funds may be advanced from Fund 68 for the purpose of making payments as due Reimbursement requests should be made to the NC DEQ in an orderly and timely manner Section 7 The Director of Finance is hereby directed to report annually on the financial status of each Project element in Section 3 and the total revenue received Section 8 Copies of this capital project ordinance shall be furnished to the Clerk to the Board of Commissioners , the Budget Officer and the Director of Finance for direction in carrying out this Project Amended this 15th day of June 2020 4 Wastewater Treatment Plant Flood Mitigation Project Utilities Director Chandra Farmer , PE , reported the County received bids on June 25 , 2019 for the Johnston County Wastewater Treatment Plant Flood Mitigation project ; however , three bids were not received Ms Farmer stated the County did not open the bids received and re - advertised the project to receive bids on July 11 , 2019 Ms Farmer explained the project included raising the flood protection elevation at the existing wastewater treatment plant with sheet piling , concrete parapet walls , drainage improvements and electrical equipment improvements She stated two 2 bids were received , as follows Ms Farmer stated the lowest responsive bid was submitted by TA Loving Company of Goldsboro , NC in the amount of 2,620,000 She noted the bid price exceeds the allowable project budget Ms Farmer stated in order to comply with FEMA mitigation program requirements , the mitigation project budget cannot exceed the original cost incurred for plant recovery after Hurricane Matthew Therefore , staff negotiated with TA Loving Company to modify the project as follows ? Reduce the flood protection level from 1295 ’ to 1290 ’ msl ? Replace the originally designed passive floodgate at the plant entrance with deployable stop logs ? Replace proposed sheet piles with concrete parapet walls ? Modify storm drain and electrical improvementsPage4438 June 15 , 2020 – 6 00 pm Continued Ms Farmer stated TA Loving Company is properly licensed and experienced in the type of construction involved and appears to have the financial , labor and equipment resources required to complete the construction within the stipulated contract completion time She presented the following proposed project budget Construction 2,030,00000 Contingency 101,50000 Technical Services 12 , 00000 Total Project Cost 2,143,50000 Funding for the proposed project is as follows FEMA Mitigation Funding 2,143,50000 Total Project Funds 2,143,50000 Ms Farmer stated staff recommends award of the Johnston County Wastewater Treatment Plant Flood Mitigation Project to TA Loving Company based on the Memorandum of Contract Negotiation amount of 2,030,000 In addition , staff recommends approval of the project budget and the capital project ordinance Ms Farmer pointed out that the entire project will be funded with FEMA mitigation funding Upon a motion by Commissioner Chad M Stewart , seconded by Commissioner Butch Lawter , and carried unanimously , the Board awarded the Johnston County Wastewater Treatment Plant Flood Mitigation Project to TA Loving Company based on the Memorandum of Contract Negotiation amount of 2,030,000 ; approved the project budget as submitted by staff ; and adopted the following capital project ordinance CAPITAL PROJECT ORDINANCE FOR THE WASTEWATER TREATMENT PLANT FLOOD MITIGATION PROJECT BE IT RESOLVED by the Board of Commissioners the “ Board ” of the County of Johnston , North Carolina the “ County ” , that pursuant to Section 132 of Chapter 159 of the General Statutes of North Carolina , the following capital project ordinance is hereby adopted Section 1 The project authorized is the Wastewater Treatment Plant Flood Mitigation Project the “ Project ” , which includes raising the flood protection elevation at the existing wastewater treatment plant with concrete parapet walls , drainage improvements and electrical equipment improvements The Project will be financed by Federal Emergency Management Agency mitigation funding through the North Carolina Department of Public Safety the “ FEMA Grant ” Section 2 The officers of the County are hereby directed to proceed with the capital Project within the terms of the FEMA Grant and the budget contained herein Section 3 The following amounts are appropriated for the Project Technical Services 12,000 Construction 2,030,000 Contingency 101,500 Total 2,143,500 Section 4 The following revenues are anticipated to be available to complete this Project FEMA Grant 2,143,500 Section 5 The Director of Finance is hereby directed to maintain within the Capital Project Fund sufficient specific detailed accounting records to satisfy the requirements of the Federal Emergency Management Agency and the North Carolina Department of Public Safety and the terms of the FEMA Grant shall be met Section 6 Funds may be advanced from Fund 68 for the purpose of making payments as due Reimbursement requests should be made to the Federal Emergency Management Agency and the North Carolina Department of Public Safety in an orderly and timely manner Section 7 The Director of Finance is hereby directed to report annually on the financial status of each Project element in Section 3 and the total revenue received Page5439 June 15 , 2020 – 6 00 pm Continued Section 8 Copies of this capital project ordinance shall be furnished to the Clerk to the Board of Commissioners , the Budget Officer and the Director of Finance for direction in carrying out this Project th Adopted this 15 day of June , 2020 5 Final Comments by Commissioners Commissioner Butch Lawter expressed his appreciation to Johnston County Schools for putting together a budget and bringing more transparency to the process Commissioner Lawter stated he thinks everyone worked closer together this year and he looks forward to continuing that relationship Commissioner Lawter also stated he would like to see Johnston County Schools bring some kind of funding formula to the Board that would help with the budget process each year Chairman Ted G Godwin agreed with Commissioner Lawter that this year’s budget process with Johnston County Schools has gone a lot smoother and he appreciates County Finance Director Chad McLamb working with the Finance Department from Johnston County Schools throughout the budget discussions There being no further business , Commissioner Chad M Stewart moved the Board adjourn Commissioner Tony Braswell seconded the motion , which carried by unanimous vote The meeting adjourned at 6 25 pm Ted G Godwin , Chairman Paula G Woodard , Clerk to the BoardPage