September 30, 2014 - 1:00 PM - County Board of Commissioners Meeting Minutes (Special)

10 219 Meeting of the Johnston County Board of Commissioners September 30 , 2014 Special Meeting The Johnston County Board of Commissioners met in special session Tuesday , September 30 , 2014 at 1 00 pm in the Johnston County Manager’s Office , Johnston County Courthouse , Smithfield , North Carolina The following members were present Present Chairman Jeffrey P Carver , Vice Chairman Tony Braswell , Cookie Pope , Allen L Mims , Jr , DeVan Barbour , and Ted G Godwin Absent Chad M Stewart 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 David F Mills , and Paralegal Deputy Clerk to the Board Dana Cuddington Chairman Jeffrey P Carver called the special meeting to order at 1 00 pm and the following business was transacted 1 Public Utilities – East Clayton Industrial Area Wastewater Pump Station Improvements Central Johnston County Wastewater Treatment Plant Improvements Project Public Utilities Engineering Consultant Tim Broome explained the East Clayton Industrial Area Wastewater Pump Station Improvements and Central Johnston County Wastewater Treatment Plant Improvements project is necessary for the transmission and treatment of wastewater from the East Clayton Industrial Area in the County’s Central Regional Wastewater Treatment Plant He reported the project was advertised and bid in two separate contracts Contract No 1 includes civil and mechanical improvements , and Contract No 2 includes electrical improvements Mr Broome stated the bid advertisements and opening procedures were consistent with statutory requirements to the best of staff’s knowledge and deduct alternate bids for each contract were requested for deletion of certain process control equipment Mr Broome stated Contract No 1 bids were opened on September 18 , 2014 with less than 3 bids received Bids were not opened and Contract No 1 was re - advertised with bids received and opened on th September 29 , 2014 Four bids were received on the 29 , as follows BID Base Bid Deduct Alternate BIDDER BOND WWPS WWTP Total Alternate Bid RD Braswell Const Co Yes 442,45300 291,82100 734,27400 49,50000 684,77400 Smithfield , NC Dellinger , Inc Yes 502,12800 325,41200 827,54000 54,53100 773,00900 Monroe , NC TA Loving Company Yes 586,40000 466,10000 1,052,50000 50,00000 1,002,50000 Goldsboro , NC DeVere Construction Co Yes 623,00000 483,00000 1,106,00000 53,00000 1,053,00000 Alpena , MI The lowest responsive bid for Contract No 1 was submitted by R D Braswell Construction Company of Smithfield , NC in the amount of 734,27400 for the base bid and 684,77400 for the alternate bid Mr Broome stated Contract No 2 bids were received and opened on September 18 , 2014 with four bids received , as follows BID Base Bid Deduct Alternate BIDDER BOND WWPS WWTP Total Alternate Bid Pitt Electric Co Yes 449,00000 88,90000 537,90000 23,00000 514,90000 Greenville , NC JL Britt Electric Co Yes 492,80100 86,77200 579,57300 17,95000 561,62300 Mount Olive , NC McCarter Electric Co Yes 612,39100 100,99700 713,38800 23,16300 690,22500 Raleigh , NC Via Electric Co Yes 618,00000 140,00000 758,00000 30,00000 728,00000 Madison , NCPage220 September 30 , 2014 – 1 00 pm Continued The lowest responsive bid for Contract No 2 was submitted by Pitt Electric Company of Greenville , NC in the amounts of 537,90000 for the base bid and 514,90000 for the alternate bid Mr Broome stated RD Braswell Construction Company and Pitt Electric Company 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 projects within the stipulated contract completion time Given the bid values , staff recommends the project scope be based on the alternate bids Mr Broome presented the following proposed project budget Construction Contract No 1 684,77400 Contract No 2 514,90000 Contingency 60,32600 Grants Administration 35,00000 Construction Administration & Inspection 48,00000 Total Project Budget 1,343,00000 Funding for the project is proposed as follows Economic Development Administration Grant 520,00000 Golden LEAF Grant 150,00000 Dept of Commerce Rural Economic Development Grant 350,00000 Johnston County Fund 68 Reserve 323,00000 Total Project Funding 1,343,00000 Mr Broome stated staff recommends award of Contract No 1 to R D Braswell Construction Company on the basis of the alternate bid in the amount of 684,77400 and award of Contract No 2 to Pitt Electric Company on the basis of the alternate bid in the amount of 514,90000 contingent upon concurrence from the funding agencies and the Town of Clayton’s approval of the interlocal agreement scheduled for October 6 , 2014 Staff further recommends adoption of the revised Capital Project Budget Ordinance as well as approval of the interlocal agreement with the Town of Clayton Mr Broome noted the County’s Grant Consultant has reported that more grant funding may be achieved for this project ; however , staff is going on the assumption that no more grant funds will be made available Therefore , an appropriation from Fund 68 Reserve in the amount of 323,000 will be necessary for the project He stated under the interlocal agreement with the Town of Clayton , Grifols will make monthly capital payments for five years to Clayton who will then make payment to the County to recover the 323,000 as well as build a contingency fund if other unforeseen improvements are needed at the Wastewater Treatment Plant Upon a question by Commissioner Ted G Godwin , Mr Broome estimated there is approximately 5 million remaining in Fund 68 Reserve but again noted the capital payments will help to recover the 323,000 appropriation Mr Broome noted this project will not only benefit Grifols but also Novo Nordisk that is located in the East Clayton Industrial Area County Attorney David Mills advised the Board to adopt the revised Capital Project Budget Ordinance during the regular October 6 , 2014 meeting since language regarding the revised budget ordinance was not included in the special meeting notice He further advised the Board to authorize the County Manager to execute the associated contract award documents Commissioner DeVan Barbour moved the Board take the following actions , contingent upon concurrence from the funding agencies and the Town of Clayton’s approval of the interlocal agreement 1 Award Contract No 1 for the East Clayton Industrial Area Wastewater Pump Station Improvements Central Johnston County Wastewater Treatment Plant Improvements Project to RD Braswell Construction Company of Smithfield , North Carolina in the alternate bid amount of 684,77400 ; 2 Award Contract No 2 for the East Clayton Industrial Area Wastewater Pump Station Improvements Central Johnston County Wastewater Treatment Plant Improvements Project to Pitt Electric Company of Greenville , North Carolina in the alternate bid amount of 514,90000 ;Page221 September 30 , 2014 – 1 00 pm Continued 3 Authorize the County Manager to execute the contract award documents ; and 4 Approve the interlocal agreement with the Town of Clayton as listed below Commissioner Ted G Godwin seconded the motion which carried by unanimous vote INTERLOCAL AGREEMENT This INTERLOCAL AGREEMENT dated as of September ___ , 2014 the “ 2014 Interlocal Agreement ” between the TOWN OF CLAYTON , NORTH CAROLINA , a municipal corporation organized under the laws of the State of North Carolina the “ Town ” and the COUNTY OF JOHNSTON , NORTH CAROLINA , a political subdivision of the State of North Carolina the “ County ” , W I T N E S S E T H WHEREAS , under Article 20 of Chapter 160A of the North Carolina General Statutes , as amended the “ Interlocal Act ” , municipalities and counties are authorized to enter into Interlocal cooperation undertakings with other local governments for the joint exercise of any power , function , public enterprise , right , privilege , or immunity of local governments in North Carolina ; WHEREAS , the Town and County entered into an Interlocal agreement dated August 2 , 1993 the “ 1993 Interlocal Agreement ” for the purposes of allowing for the transfer of wastewater between the Town and the County ; WHEREAS , the Town and County have also previously entered a memorandum of understanding augmenting the 1993 Interlocal agreement on March 20 , 1998 ; WHEREAS , the Town has entered a Wastewater Supply Agreement with Grifols Therapeutics , Inc “ GTI ” the “ GTI Agreement ” dated January 6 , 2014 in which the Town has agreed to supply wastewater services to GTI and GTI has agreed to purchase wastewater services from the Town ; WHEREAS , the Town currently holds the right to 900,000 gpd of capacity at the County wastewater treatment plant ; WHEREAS , the Town plans to fulfill its obligations to GTI under the GTI Agreement through the receipt of wastewater treatment services from the County ; WHEREAS , the County is making infrastructure improvements to be able to transport and treat wastewater flow from the Town ; and WHEREAS , Town and County desire to set forth their agreement for such services herein NOW , THEREFORE , in consideration of the mutual covenants , conditions and terms contained herein , as well as other mutual consideration that both the Town and County agree is sufficient , the parties hereto , intending to be legally bound hereby , agree as follows RTICLE I A PURPOSE The purpose of the 2014 Interlocal agreement is to set forth the terms and conditions of agreement between the Town and the County regarding the County’s wastewater treatment services to the Town for wastewater flow from GTI and the fees for these services ARTICLE II MEASURING , SAMPLING , AND LIMITS OF FLOW The County does hereby agree to accept and treat wastewater flow generated by GTI from the Town The County will maintain a sampling station and flow measuring facility adjacent to the pump station within a utility easement located on GTI property The County agrees to have the measuring facility calibrated annually , by a third party , at the County’s expense The County agrees to allow the Town and GTI access to the measuring facility with reasonable notice The County has performed an appropriate headworks analysis and provided the analysis to the Town of Clayton The Town will perform initial sampling for compliance with regulated industrial discharge standards from the NC Department of Environment and Natural Resources and the US Environmental Protection Agency and will issue the revised Industrial User Permit IUP to GTI , unless the State requires otherwise The County will perform sampling and flow measurement for compliance with the wastewater limits listed hereafter for County wastewater treatment for process control and billing to the Town Sufficient portions of each samplePage222 September 30 , 2014 – 1 00 pm Continued will be provided to the Town , and if requested , GTI The Town will be responsible for any supplementary analyses beyond or in lieu of the analysis performed by the County that the Town requires for insuring compliance with the IUP Limits for wastewater quality are Maximum Surcharge Allowable Threshold Parameter Concentration Concentration Chemical Oxygen Demand COD 1,500 mg l 1,200 mg l Biochemical Oxygen Demand BOD 800 mg l 600 mg l Total Suspended Solids TSS 1,200 mg l 1,000 mg l Total Nitrogen TN 80 mg l 75 mg l Total Phosphorous TP 12 mg l 10 mg l pH 6 - 9 N A Compliance with limits shall be on a weekly average basis Wastewater flow shall be limited to a weekly average daily amount of 900,000 gallons , a peak daily amount of 1,100,000 gallons , and a maximum hour rate of 850 gpm If average wastewater flow exceeds 650,000 gpd over a period of 60 consecutive days , or if COD or TSS exceed 80 of the maximum limit for a period of 60 consecutive days , the Town shall require GTI to install an additional moving bed biological reactor MBBR unit and or other pretreatment process es to insure compliance with wastewater quality limits The Town shall require GTI’s pretreatment improvements to be completed and operational within 180 days from the date of written notice issued by the County to the Town RTICLE III A SERVICE CHARGES The County will assess charges to the Town of Clayton at a rate of 475 per 1000 gallons of wastewater flow from GTI The rate includes a charge of 092 for transmission , 193 for domestic strength flow and 190 for high strength flow The flow from GTI shall be counted in the 900,000 gpd of capacity the Town currently holds in the County wastewater treatment plant ; however , the base treatment charges in this 2014 Interlocal Agreement apply to any wastewater flow from GTI Any other agreements between the Town and County regarding treatment charges applicable to wastewater flow from the Town to the County are not applicable to the wastewater flow from GTI A surcharge for each parameter shall be assessed monthly for quantities of constituents exceeding the threshold limits specified herein Surcharge amounts are COD 025 lb BOD 005 lb TSS 025 lb TN 030 lb TP 200 lb The County shall asses a capital surcharge in the amount of 12,50000 per month for recovery of capital expenditures by the County that are required for transportation and treatment of the GTI wastewater The surcharge shall be assessed for 48 months After 48 months , the Town shall assess a surcharge to GTI in the amount of 5,000 per month The Town shall maintain these payments in a reserve account for expenditures related to the transmission and treatment of GIT wastewater , as agreed upon by the Town and County The County will invoice the Town monthly for base charges , any applicable surcharge , and the capital surcharge The Town shall pay the County the invoiced amounts within 20 days from the date the Town receives the invoice Charges shall be reviewed at least annually by the County and adjusted , if required , with 60 days written notice It is the County’s intent to adjust charges only on an annual basis ; however , changes in GTI’s wastewater quality or characteristics which result in process upsets in the County’s wastewater treatment plant or require higher energy , chemical , or labor cost , and or non - compliance with NPDES permit limits shall be justification for more frequent adjustments in charges This agreement does not terminate or supplant any other agreements related to wastewater between the Town and the County , except for the treatment charges as outlined in the paragraph above Nothing in this agreement requires the Town to send a minimum of wastewater flow to the County ; however , it is the intent of both parties that all GTI wastewater will be discharged to the County wastewater system for the term of this agreement The amount of the aggregate capital surcharge above the total amount of the County’s cost to plan , design , permit , and construct the improvements necessary for the County to transport and treat the GTI wastewater shall be maintained in aPagePage pageNumber5223 September 30 , 2014 – 1 00 pm Continued reserve account dedicated only for capital improvements in the County’s wastewater system to benefit transport and treatment of the GTI wastewater The reserve account shall be maintained until the end of the useful life of this agreement and any fund balance remaining thereafter shall be divided equally between the County and the Town Any difference between capital surcharges paid to the Town by GTI and the capital surcharge paid to the County by the Town , “ surplus funds ” hereafter , will be split between the Town and the County as follows The Town and County will split any surplus funds evenly until one party has recaptured 100 of its expenses related to professional services , which include legal , feasibility , planning , and design expenses and grant administration fees to which both parties agree Thereafter , the party with remaining unpaid expenses from professional services will receive 100 of any surplus funds until such time as that entity is 100 compensated for professional services expenses Thereafter , for the remainder of this Interlocal Agreement , the Town and County will split any surplus funds on a 50 50 basis for the purpose of generating maintenance and replacement reserve funds ARTICLE IV TERMS OF SERVICE Maintenance of GTI Facilities The Town agrees to require GTI to maintain in an operational condition GTI’s existing aeration basin and solids separation dissolved air flotation facilities for a minimum of 12 months from the date of diversion of GTI wastewater to the County system The Town agrees to require GTI to immediately return these pretreatment facilities to service at the request of the County Commencement of Service The Town will provide the County no less than 60 days notice from the date GTI plans to discontinue use of the aeration basin and solids separation dissolved air flotation pretreatment facilities , and deliver high strength , partially treated industrial wastewater Transportation and treatment of GTI’s pretreated wastewater by the County shall begin on or before January 5 , 2015 Commencement of Charges Capital surcharges from the County to the Town shall begin in the month following award of construction contracts by the County for improvements required for transport and treatment of GTI wastewater Service charges and surcharges from the County to the Town shall be applicable upon diversion of GTI wastewater to the County system , and invoicing shall begin in the month following wastewater diversion Term of Agreement This Interlocal Agreement shall be effective for five years following the effective date of the agreement or June 30 , 2020 , whichever is longer The agreement will automatically renew in one 1 year increments unless notice is given by either party prior to 60 days from the date of expiration Effective Date This Interlocal Agreement shall take effect on the date of its execution by the Town and County RTICLE 5 A MISCELLANEOUS Section 51 Amendment This Interlocal Agreement may be amended through a supplement approved in writing by the Town and the County Section 52 Severability If any section of this Interlocal Agreement is deemed to be illegal or otherwise unenforceable , it is the intent of the parties hereto that all other provisions of this Interlocal Agreement shall remain in full force and effect Section 53 Assignment Neither the Town nor the County may assign its rights or obligations under this Agreement , or sub - contract any part of this Agreement , without written approval from the other party Section 54 Governing Law This Interlocal Agreement is to be governed by and interpreted in accordance with the laws of the State of North Carolina Section 55 Time is of the Essence Time is of the essence in this Interlocal Agreement Section 56 Execution in Multiple Counterparts This Interlocal Agreement may be executed in multiple counterparts , each of which constitutes a completed document Section 59 Notice All notices or other communications required or permitted to be served under the 2014 Interlocal Agreement are to be addressed as follows Town Mr Steve Biggs Town Manager Town of Clayton PO Box 879 Clayton , NC 27520PagePage pageNumber6224 September 30 , 2014 – 1 00 pm Continued County Mr Rick Hester County Manager Johnston County PO Box 1049 Smithfield , NC 27577 IN WITNESS WHEREOF , the Mayor of the Town and the Chairman of the Board of Commissioners of the County have each executed this Interlocal Agreement to evidence the agreement of the parties hereto and the Town Clerk and the Clerk to the Board of County Commissioners have affixed the seal of the Town and the County , as applicable , this Interlocal Agreement There being no further business , Commissioner Cookie Pope moved the Board adjourn Commissioner Tony Braswell seconded the motion , which carried by unanimous vote The meeting adjourned at 1 15 pm ____________________________ Jeffrey P Carver , Chairman Paula G Woodard , Clerk to the BoardPage