February 21, 2014 - 8:30 AM - County Board of Commissioners Meeting Minutes (Special)

10 832 Meeting of the Johnston County Board of Commissioners February 21 , 2014 Special Meeting Annual Work Session The Johnston County Board of Commissioners met in special session Friday , February 21 , 2014 in the Pines Board Room located in the Wilson Building at Johnston Community College , 245 College Road , Smithfield , North Carolina The following members were present Present Chairman Jeffrey P Carver , Vice Chairman Tony Braswell , Cookie Pope , Allen L Mims , Jr , Ted G Godwin , and Chad M Stewart Absent DeVan Barbour Also Present Rick J Hester , County Manager , Paula G Woodard , Clerk to the Board , J Chad McLamb , Finance Director and Assistant County Manager , Tyson Radford , Assistant Finance Director , Martha Lasater , Debt and Grant Management Analyst , David F Mills , County Attorney , and Dana Cuddington , Paralegal Deputy Clerk to the Board Chairman Jeffrey P Carver called the meeting to order at 8 30 am Chairman Carver welcomed everyone to the meeting and introduced County Commissioner Candidates Keith Brinson and Patrick Harris who were in the audience Chairman Carver also noted that Commissioner DeVan Barbour would not be attending the work session because he is under the weather 1 Work Session Expectations Board Priorities for 2014 The Commissioners briefly discussed their expectations for the work session , as follows • Commissioner Ted G Godwin stated all the topics he wished to cover are contained within the agenda ; however , he asked if today would be a good time to discuss cell towers County Manager Rick Hester noted the Board would be holding a public hearing on amendments to the cell tower ordinance at the March 3 , 2014 6 00 pm meeting • Commissioner Tony Braswell stated he would like to discuss issues related to solid waste disposal and the Convenience Centers in the hopes of working towards some kind of resolution Commissioner Braswell commented there are still isolated areas in the County where citizens would like to have water service and he hopes to get an update on that situation Commissioner Braswell also stated the P - 25 Radio discussion will be very important • Commissioner Allen L Mims , Jr commented he is looking forward to Davenport’s financial update and he hopes to discuss some of the recommendations from the bond rating agencies • Commissioner Cookie Pope stated people in the County still need jobs and she is looking forward to the Economic Development update • Commissioner Chad M Stewart noted in addition to all the topics on the agenda , he is particularly interested in the P - 25 Radio discussion and how it will affect the County’s fire services , EMS agencies , and law enforcement 2 Financial Update – Davenport & Company , LLC Kyle Laux and Bob High , with Davenport & Company LLC , presented the annual financial update Mr Laux reviewed the following information with the Board Background • During the past several years Johnston County managed its finances through the Great Recession in a manner that allowed the County to – Maintain and or enhance its Credit Ratings ; – Refinance for significant debt savings including the Summer 2013 26 million refinancing for water and sewer utilities that saved the County 48 million ; – Maintain the County’s property tax rate • The County finished fiscal year 2013 with a surplus in the General Fund owing to strong management from the Board and staff as well as gradually improving economic conditions Page833 February 21 , 2014 – 2014 Work Session – Continued • It is hoped that fiscal year 2014 will be better than the original budget as a result of continued strategic management and improving economic conditions • A 64 million referendum for School and Community College projects was successfully approved by voters with over 70 approval in the Fall of 2013 • The first tranche of General Obligation Bonds for the Fall , 2013 Referendum was competitively sold on February 11 last week The results were highly favorable and will be discussed more herein • As part of the process of updating the County’s credit ratings for the 2013 bonds , Moody’s gave the County’s rating a “ Positive Outlook ” This will be discussed further herein Goals & Objectives • Review recent rating agency commentary and results with the Board • Discuss the results of the recent , successful sale of 19 million of General Obligation Bonds on February 11 • Review the impact of the successful bond sale on the County’s multi - year capital planning • Provide suggestions as to ways that are directly within the County’s control to further strengthen County’s standing with the rating agencies and the credit markets History of Johnston County’s Credit Ratings • The County’s general obligation credit ratings have been increasing steadily during the past decade • Moody’s recently gave the County’s rating a “ Positive Outlook ” • The positive outlook typically means that the rating agency sees the potential for an upgrade in the next several years if the currently positive trajectory in key rating criteria continues Page834 February 21 , 2014 – 2014 Work Session – Continued Moody’s Commentary • “ The Aa2 rating reflects the County’s diverse and growing local economic base part of a larger regional economy , a strengthened financial position , prudent management , and a somewhat elevated debt position due to rapid growth The assignment of the positive outlook is based future economic growth potential , expected adherence to sound policies and growth and maintenance of reserve levels ” • “ Strengths – Large , diverse and growing tax base – Favorable location adjacent to Research Triangle • Challenges – Resident income levels relatively low for rating category – Some reliance on unpredictable sales tax revenues – Slightly elevated debt ” Commissioner Tony Braswell asked if the State had distributed the lottery funds to the counties as was promised , would it have made a positive difference in the bond rating Mr Laux stated the lottery funds are one of a number of components that the bond rating agencies consider He stated the lottery funds by themselves would not have warranted an upgrade , but if the County had received all the lottery funds , it definitely would not have been viewed as a negative At the inquiry of Chairman Jeffrey P Carver , County Manager Rick Hester reported the County has lost approximately 2 million per year for the last five years in lottery funding Commissioner Ted G Godwin noted the challenge mentioned by the rating agencies concerning the “ reliance on unpredictable sales tax revenues ” and asked what actions could the County have taken to avoid this being one of the challenges Mr Laux stated in his opinion , there is nothing the County could have done to avoid this comment and he believes what the rating agencies were eluding to are that sales taxes are an economically sensitive revenue stream Upon a question by Commissioner Allen L Mims , Jr , Mr High stated Moody’s is in the process of changing their rating methodology He continued that in talking with them , Moody’s stated North Carolina local governments are rated very strongly because of diversified revenue sources and the existence of the Local Government Commission and their oversight Mr Laux continued with his presentation , as follows • “ What would make the rating change – UP – Achievement and maintenance of financial flexibility in line with higher rating categories – Strengthening of tax base and demographic profile to levels more consistent with higher rating categories ” • “ What would make the rating change – DOWN – Depletion of General Fund balance – Deterioration of the County’s tax base and demographic profile ” S & P Commentary • “ The AA + rating reflects our opinion of the County’s – Adequate economy that benefits from its participation in the Raleigh metropolitan statistical area MSA ; – Very strong budgetary flexibility , demonstrated by a very strong available fund balance ; – Strong budgetary performance , reflected by operating surpluses in fiscal year 2013 and projected near break - even operations for fiscal year 2014 ; – Very strong liquidity , providing very strong cash to cover debt service and expenditures ; – Strong management , reflected by “ good ” financial management practices and policies under our Financial Management Assessment methodology FMA ; and – Adequate debt and contingent liabilities , driven primarily by net direct debt of more than 100 of revenue ”Page835 February 21 , 2014 – 2014 Work Session – Continued • “ The stable outlook reflects Standard & Poor’s opinion of Johnston County’s growing employment base and strong budgetary flexibility Due to continued population growth , we believe it is important for management to address any budgetary pressure that could occur from this growth while maintaining , what we consider , sound operations and strong reserves ” • “ All other factors remaining equal , we could lower the rating if growth or any other pressure were to contribute to operating deficits that weaken available fund balance ” • “ Conversely , we do not expect to raise the rating within the two - year outlook period because we believe the adequate economic score limits the rating ” • Note S & P indicated that formalized multi - year financial planning that takes into account Operating Revenues and Expenditures , Debt Service , and Fund Balance levels will be an expectation for local governments with the County’s rating going forward – especially for a growing local government Moody’s also takes into account whether multi - year financial planning is formally completed Fund Balance Trends • After dropping below the policy level during the height of the recession , the County’s fund balance is back above the policy level Maintaining or enhancing this level will be important for future credit rating improvement Comparative Fund Balance • The graph below shows comparative data from Moody’s for available general fund balance versus revenues • The North Carolina Counties shown are all rated “ Aa1 ” ie , one notch higher than the County’s current rating Results of 2013 Bonds • On February 11 , 2014 the County successfully sold 19 million of General Obligation Bonds via a competitive public sale PagePage pageNumber5836 February 21 , 2014 – 2014 Work Session – Continued • The County received a highly favorable response from the marketplace as 12 bidders submitted a bid for the County’s bonds • The bidding for bonds was competitive as the first four bids were separated by less than 1 basis point one hundredth of one percent • The final all - in true interest cost for the bonds 333 was nearly 12 below the planning estimate of 45 • This positive result translated to total debt service that will be over 25 million less than the planning estimate over the life of the loan Cash - Flow Impact of 2013 Referendum • The positive result of the 2013 Bonds will translate to a lower projected cash - flow impact for the entire 64 million 2013 Referendum • The table below demonstrates the incremental annual cash - flow impact of the entire 2013 Referendum with the actual results of the 2013 Bonds incorporated Note assumes 18 million issued in FY 2015 and 27 million issued in FY 2016 at an estimated 5 interest rate PagePage pageNumber6837 February 21 , 2014 – 2014 Work Session – Continued Referendum Impact on Debt Policies • With the inclusion of the Fall , 2013 Referendum the County will remain in compliance with its debt related financial policy guidelines • The 10 year payout ratio never drops below 70 which is well above the County’s policy minimum of 50 Summary • Johnston County managed through the Great Recession and is poised to continue to grow and deepen its economy • This strategic management has been a major factor in the County’s recent trend of positive rating results • In order to continue the positive rating trajectory there are several areas within the County’s control that could influence future rating improvement – Maintaining or enhancing existing fund balance levels ; and – Formalized multi - year financial planning • Economic and demographic trends , which are not directly in the County’s control , will also be important to further rating improvement ie , income levels , unemployment levels The County’s Economic Development strategies will help in this area • The highly favorable results from the sale of the 2013 bonds will lessen the cash - flow impact of funding the 2013 referendum PagePage pageNumber7838 February 21 , 2014 – 2014 Work Session – Continued • Interest rates remain favorable Davenport will continue to monitor the County’s debt portfolio for refunding opportunities The Board thanked Davenport for the information Mr Laux stated Davenport would continue to monitor the finances and provide information as needed 3 Economic Development Update Economic Development Director Chris Johnson updated the Board on the activities of the Economic Development Office He stated the office has been busy and they currently have 12 active Requests for Information RFI’s in the works Mr Johnson stated with the exception of one , all the project submittals have been for properties either in the city limits of a municipality or their ETJ He stated the office has four active projects ongoing with existing industries in the County with those ranging in size from approximately 10 additional hires to 50 additional hires Mr Johnson reported the office is working with Grants Consultant Skip Green on ways to get funding for infrastructure improvements Mr Johnson also spoke on the strategic plan development with Mr Ted Abernathy for Johnston County and stated he would like to have direction from the Board of Commissioners as to the committee for the plan Mr Johnson stated he envisions there will be a period of two days where a series of meetings will be scheduled with the municipal elected officials and their individual economic development committees or staff , the Economic Development Advisory Board , the Chambers of Commerce , Johnston Community College , Johnston County Schools , Johnston Health , the Visitors Bureau , and the Johnston County Airport He stated the existing industries , developers , and corporate partners will also play an important role in the strategic plan Mr Johnson stated after those initial meetings , sub - committees could be established to meet and from that , Mr Abernathy could begin a first look at the findings He stated once the initial findings are determined , Mr Abernathy could meet with the Board of Commissioners before presenting to all others Mr Johnson stated he is open to suggestions from the Commissioners Commissioner Ted G Godwin asked that when talking to Mr Abernathy about the plan , should it also include a section about the structure of the County’s Economic Development organization Commissioner Godwin noted the plan is to get a roadmap for the County’s Economic Development Office and he asked if that should include studying the vehicle or method for carrying out the roadmap Commissioner Godwin spoke on the organization of the Johnston County Airport and how the Airport has an Airport Authority and should something of that nature be investigated as part of the plan He stated an Authority may not be the best method , but he believes all options should be reviewed during the analysis Commissioner Tony Braswell stated he is open to discussing all ideas , but he is unsure why the County would want to include the structure of the Economic Development organization in the plan , noting the County has an Economic Development Advisory Board Commissioner Braswell stated the Board of Commissioners is responsible to the taxpayers and are held accountable directly by the taxpayers and he would not be willing to hand over the leadership of the Economic Development Office to an Authority Commissioner Allen L Mims , Jr commented that having a roadmap for Economic Development is good and as to what type of vehicle should drive the program will depend on the findings of the strategic plan Commissioner Godwin expressed his support for Mr Johnson’s efforts with the Economic Development Office ; however , he stated he would just like to look at all options in the strategic plan process Mr Johnson stated he and the County Manager would discuss Commissioner Godwin’s remarks with Mr Abernathy Mr Johnson asked the Board to consider revisiting options for assisting the existing industries in the County He pointed out that when existing industries in the County are looking to expand , many times they are also being pursued by other counties to move there Mr Johnson also stated the County needs to address options for empty buildings and he hopes there will be some suggestions in the strategic plan Mr Johnson stated he has visited with or spoken to every municipality as well as joined and participated with the Chambers of Commerce in the County and he will continue this outreach He spoke on the importance of working together to keep an updated database to have an available marketable product Mr Johnson stated the office has had two major projects over the last ten years , one being the construction of the Workforce Development Center and the other assisting with the creation of the Four Oaks Business Park He stated the County needs to identify the next big project and he is hopeful the strategic plan will provide some guidance PagePage pageNumber8839 February 21 , 2014 – 2014 Work Session – Continued The Board briefly discussed the County’s current incentive policy and the tier system used by the Department of Commerce Mr Johnson informed the Board that he has set aside funds in the Economic Development budget to perform a second phase study on the natural gas needs in the County The Board took a ten minute recess 4 P - 25 Radio Update Director of 911 - Communications Jason Barbour updated the Board on the P - 25 Radio conversion project Mr Barbour stated the current radio system used in the County operates for all the fire departments , EMS units , police departments , Sheriff’s Department , JCATS , Johnston County school buses , and the Department of Social Services He stated there are approximately 1,500 users on the system Mr Barbour explained P - 25 technology is known as “ open architecture ” whereas the County’s current technology is considered proprietary which means it only works with a specific type of radio He stated when the County upgrades to the P - 25 technology , the County can then use any company’s radio system that meets the P - 25 standard and is not limited to one manufacturer Mr Barbour continued the upgrade is not a Federal mandate , but the time to begin discussions on the upgrade is now because the County’s current radio manufacturer Harris reports the current system will be at the end of its life by 2020 or possibly 2022 He stated the County has been keeping the radio users on the current system informed of the timeline Mr Barbour stated he would like for everyone to be prepared to migrate over to the new P - 25 system by October 2016 which means a lot of the radios for the fire departments , EMS , and the Sheriff’s Department will have to be completely replaced Mr Barbour stressed the radios will be a major purchase He reported on the infrastructure side , the County was awarded a 3 million grant last year from the 911 Board to update as much of the infrastructure as possible and the courthouse is already upgraded to P - 25 technology However , he stated more work is needed at the five tower sites that will cost anywhere from 500,000 to 750,000 which cannot be funded with 911 revenue County Manager Rick Hester stated the bottom line is that the P - 25 upgrade is going to cost about 45 million He stated the County will have to purchase radios for the Sheriff’s Department and the County EMS agencies , but the fire departments will need some assistance Mr Hester continued staff is proposing to the Board for the County to assist the fire departments with purchasing their mobile radios and then look at hardship cases for portable radios Mr Hester stressed this proposal is subject to the Board’s review and approval He stated the Fire Budget Workgroup could meet with the fire departments for hardship cases to evaluate the need Commissioner Chad M Stewart stated he along with Commissioner Tony Braswell , Sheriff Steve Bizzell , and the 911 and Emergency Services staff has held many meetings on the P - 25 upgrade Commissioner Stewart stated the Board owes it to the citizens to spend their tax money wisely but with that said , he believes public safety is what the citizens are counting on the most Commissioner Stewart stated the radios are important to all the agencies and the upgrade has unfortunately been forced on the fire departments He stated it will be a touch and go situation dealing with the fairness of how much money is available to be spent and where Commissioner Stewart noted some fire departments are better off than others and can afford to buy all their radios while some fire departments cannot even afford to buy one Commissioner Stewart stated it is his understanding that some have applied for grants ; however , the County needs to plan cautiously as if the grants do not exist Mr Hester stated staff plans on budgeting funds for the upgrade in the next three budget cycles ; however , the County may need to look at borrowing some of the money , depending on the cash flow situation at the time Mr Barbour confirmed that grants have been applied for by the fire services and if awarded they will have twelve months from the time of award to purchase the radios Mr Barbour stated he and Mr Hester have assured the municipalities that they will also have time to budget for the radios , but he would like to give everyone a firm timeline on when the upgrade will take place and will soon be asking the Board for direction on that timeline Mr Barbour stated the fire departments are asking him for a firm timeline on the upgrade Mr Barbour stated he and Mr Hester plan to host a P - 25 informational meeting on March 10 , 2014 at 3 30 pm at the Johnston Community College Public Safety Services Complex Auditorium for town officials PagePage pageNumber9840 February 21 , 2014 – 2014 Work Session – Continued Commissioner Tony Braswell stated he and Chairman Jeffrey P Carver met with Senator Kay Hagan as well as Congressman Mike McIntyre on the grant funding and he felt positive after those meetings that Senator Hagan and Congressman McIntyre will be working to support the grant opportunity 5 Public Utilities – Updates for Water and Wastewater Chandra Coats , PE , Director of Utilities presented an update to the Board regarding the Water and Wastewater Funds Operations Water Ms Coats informed the Board that presently there are approximately 30,200 retail water customers with an additional 4,000 customers that have purchased taps but are not yet connected She stated there are eight municipalities and two private utilities that receive bulk service from the County Ms Coats reviewed the following supply and growth information with the Board Capacity MGD County WTP – Neuse River at Wilson’s Mills 129 Purchase Agreements Town of Smithfield 20 Town of Benson 05 Harnett County 25 City of Wilson 15 Wayne Sanitary Districts 06 Total 200 These sources have “ sunset ” provisions Water Services Growth • Over the last 12 months , an average of 73 new customers per month have been added This is up from 50 per month for the previous 12 months • Current demand is tracking very close to the moderate growth scenario projections completed in 2010 • Under the moderate growth scenario , Johnston County’s current supplies should meet peak daily demands through 2024 Ms Coats outlined the following current water rates for the Board as well as reviewed points on the budget • Retail – 1500 per month min – 310 per 1,000 gallons • Bulk – 200 per 1,000 gallonsPage0841 February 21 , 2014 – 2014 Work Session – Continued • Current Capacity Fees – 54000 per unit residential – 325 per gpd commercial industrial 3 4 ” water service • FY 13 - 14 Annual Water System Budget 20 M • Current Fund Balance 12 M after debt payments • The Capital Improvements Plan CIP adopted in June of 2013 indicates that a rate increase is necessary for FY 14 - 15 • Fees will continue to require adjustment to o Accommodate increases in operation and maintenance costs o Generate reserves for funding future water supplies Ms Coats continued the presentation by reviewing the near term and long term challenges Near Term Challenges • Update Johnston County’s “ Water Conservation and Shortage Response Plan ” to comply with State requirements including a water conservation rate structure • Comply with US EPA regulations disinfection by - product levels while maintaining quality delivered at each tap • Ensure bulk water supplies meet contract requirements , particularly related to water quality terms • Complete timely water main extensions to serve citizens with private well supply issues • Implement an Asset Management Plan Long Term Challenges • Secure additional water supply sources or proceed with Lower Neuse Intake and Water Treatment Plant by 2024 • Develop an alternate plan for a 14 MGD water supply assuming the operating quarry will not be available by 2038 - 2040 • Comply with ever changing federal quality regulations Wastewater Ms Coats stated the County has approximately 3,400 retail wastewater customers that are mostly located in the Cleveland , McGee’s , and Flowers areas She stated the County provides bulk service for five municipalities and one private utility Ms Coats noted the customer base growth is relatively flat due to the economy The current treatment capacity is 95 mgd and the current surplus treatment capacity is 27 mgd Ms Coats stated the County’s wastewater treatment capacity should be adequate for 10 – 12 years under a moderate growth scenario Ms Coats stated the FY 2013 - 2014 annual wastewater system budget is 63 million with a current fund balance of 23 million after debt payments She reported the wastewater fund continues to be financially stressed due to debt incurred for infrastructure improvements to serve residential and commercial growth planned during 2000 – 2008 that did not materialize However , Ms Coats stated she is pleased to report that they are now seeing some of the developers coming back and starting to build again She reported the assessment fees received to date exceed 200 of the budget projected fees for the year Ms Coats reviewed the following rate information as well as near term and long term challenges • Retail – 2000 per month min – 480 per 1,000 gallons • Bulk – 285 per 1,000 gallons to 440 per 1,000 gallons varies based on transmission infrastructure and method of capacity purchase • Capacity Fees – 2,70000 per unit residential – 1125 per gpd commercial industrial 3 4 ” water servicePage1842 February 21 , 2014 – 2014 Work Session – Continued Near Term Challenges • Keep wastewater fund 68 financially solvent • Finalize terms and execute contract with Clayton for treatment of high strength industrial wastewater beginning July 1 , 2014 • Complete the necessary construction to receive and treat high strength industrial wastewater • Receive and treat high strength industrial wastewater • REHABILITATE OR REPLACE OLDER SEWER LINES • Implement an Asset Management Plan Long Term Challenges • Keep wastewater fund 68 financially solvent • Comply with changes in state and federal regulations Ms Coats spoke on the importance of rehabilitating and or replacing the older sewer lines She noted just over the last weekend , the County experienced two problems with a force main on Buffalo Road due to the age of the material Ms Coats stated staff will continue to monitor this situation and hopes the development of an Asset Management Plan will help with funding for future rehab projects Commissioner Cookie Pope asked if there are any plans to expand the reclaimed water system Ms Coats stated expanding the reclaimed water system is a function of money She stated grants are hard to come by for expanding reclaimed water systems and staff hopes that once the wastewater fund is more financially solvent , perhaps loan opportunities can be pursued 6 Solid Waste Division Fund Update and Discussion Solid Waste Services Rick Proctor , Director of the Solid Waste Division , reported on the Solid Waste Services for the County Mr Proctor presented the following overview of services to the Board as well as information on the budget and current fees • Operate municipal solid waste and C & D LCID landfills • Receive vegetative debris and debris from natural disasters • Operate 13 convenience sites for household waste collection and materials recycling • Recycle 14 categories of household and consumer wastes • Transport convenience site waste and recycling materials • Host a Household Hazardous Waste Collection Day • Educate through school presentations and public outreach programs Budget • Total Annual 510 million • Current Fund Balance 788 million • Revenue Sources - Tipping Fees 3,320,000 - Decal Sales 930,000 - Recycle Material Sales 90,000 - Other 760,000 Rates • MSW 35 per ton 33 tip + 2 SW Tax • C & D 27 per ton 25 tip + 2 SW Tax • Vegetative Debris 16 per ton • Decals 65 per year Mr Proctor reviewed with the Board the following current solid waste trends Page2843 February 21 , 2014 – 2014 Work Session – Continued Following a review of the County’s Waste Disposal Report , Mr Proctor reported on the challenges facing the Solid Waste Division dealing with subsidizing recycling , subsidizing convenience site operations , reductions in waste flow , budget impacts erosion of fund balance and funding future landfill construction He asked the Board to consider offering recommendations on how to make the convenience sites and recycling function self supporting as well as negotiating to receive more in - County wastes as well as out - of - County wastes on a limited and controlled basis Mr Proctor stated the Solid Waste Division is looking at approximately 25 million a year needed to pay for future debt on construction and equipment He stated staff has looked at financing options with purchasing equipment but there are limitations on borrowing funds for construction and closing out landfill cells Commissioner Chad M Stewart stated he has been a part of the meetings regarding the convenience center sites and how to make them self supporting Commissioner Stewart asked since the landfill is working at a lower capacity than other years , have there been any layoffs or is the County using less equipment to help offset costs Mr Proctor stated there is a minimum threshold the landfill must operate under He stated the landfill has been able to adjust the budget by not working as much overtime and putting off equipment purchases and landfill construction projects He cautioned that the postponement of landfill construction projects cannot last forever because at some point the existing landfill cells will begin to run out of room Mr Proctor stated there are a lot of options that can be considered to reduce the budget with one of those being the reduction of hours and or adjusting the fees Mr Proctor stated staff recently met with the commercial haulers and some of them shared good information Mr Proctor stated staff shared with the haulers the landfill budget issues and mentioned the possibility of a flow control ordinance He stated the haulers are against a flow control ordinance and said they would fight the ordinance in court Chairman Jeffrey P Carver asked for an update on the methane energy revenue Mr Proctor stated the County is scheduled to receive approximately 110,000 a year in the methane energy revenue under one generator He stated research is ongoing to see if a second generator can be added , but it is most likely the second generator will not be added until three to five years from now Commissioner Ted G Godwin stated he would like to see the County discontinue the decal program for the convenience center sites and implement a surcharge on the tax bills , giving a break to those people in towns Commissioner Godwin stated he knows there are downsides to a surcharge on the tax bill but he feels it would be easier as well as encourage people not to litter Commissioner Godwin stated he realizes there are those that have private haulers , but that is their choice and under this scenario they would have the option to then visit the convenience center sites Page3844 February 21 , 2014 – 2014 Work Session – Continued Commissioner Stewart stated he understands the decal program is a hot topic across the County He continued that people have enough fees already , and he wants to eliminate all other options before implementing another fee on the tax bills Mr Hester stated the County has tried to stay away from reducing the hours at the landfill and convenience center sites because staff felt that would result in more complaints He stated staff can come back with options showing reduced hours at the landfill and convenience center sites along with increasing the out - of - County waste flow and how that could lessen a possible surcharge on the tax bills Commissioner Tony Braswell expressed his concerns with adding a surcharge on the tax bill and the fairness of the program for those that choose to have a private hauler or live in town where the trash is collected Mr Hester stated if a surcharge were added to the tax bill , staff would propose to lower the tipping fees in the hopes the private haulers would pass that savings on to the homeowners they contract with At the inquiry of Commissioner Godwin , Mr Proctor stated there are approximately three counties left in the State of North Carolina that use the decal system Mr Proctor reiterated the Solid Waste Division has a shortfall in funding with construction needs on the horizon He asked the Commissioners to continue discussions about how to make the program self supporting 7 Adjournment Upon the conclusion that there was no further business , the Chairman declared the meeting adjourned The meeting adjourned at 11 35 am Jeffrey P Carver , Chairman Paula G Woodard , Clerk to the BoardPage