June 15, 2009 - 6:00 PM - County Board of Commissioners Meeting Minutes (Special)

10 426 Meeting of the Johnston County Board of Commissioners June 15 , 2009 Special Meeting The Johnston County Board of Commissioners met in special session Monday , June 15 , 2009 at 6 00 pm in the Commissioners Meeting Room , Johnston County Courthouse Annex , Smithfield , North Carolina The following members were present Present Wade M Stewart , Chairman , Allen L Mims , Jr , Vice Chairman , Cookie Pope , Jeffrey P Carver , DeVan Barbour , and Tony Braswell Absent W Ray Woodall Also Present Rick J Hester , County Manager , Paula G Woodard , Clerk to the Board , J Mark Payne , County Attorney , J Chad McLamb , Finance Officer , and Melissa A Daughtry , Paralegal Deputy Clerk Chairman Wade M Stewart called the meeting to order and announced the purpose of the meeting is to consider the 2009 - 2010 County budget and related matters Chairman Stewart noted the large audience and stated it was good to see so people many in attendance that care about the County Chairman Stewart called to everyone’s attention that Commissioner W Ray Woodall was absent in order to represent the Board of Commissioners at the Johnston Health Board of Commissioners meeting 1 Johnston Community College Dr Donald Reichard , President of Johnston Community College , addressed the Board regarding the College’s budget request for Fiscal Year 2009 - 2010 He acknowledged audience members including the Johnston Community College Board of Trustees , staff , and faculty Dr Reichard called on Dr Pam Harrell , Vice President of Student Services to come forward At the request of Dr Harrell , students from the various allied health programs as well as the first generation college students , vocational technical students , and the adult high school students appeared before the Board in a show of support to the College Dr Harrell noted that the budget would directly impact the quality of education for the College’s students Dr Reichard outlined the following points of interest for the Board 1 Economic Recovery – The College is the means by which citizens are trained or retrained to leave unemployment , go to work , and pay taxes Job seekers are flooding our County’s Employment Security Commission offices and JobLink Centers Most of the jobs require training or retraining Dr Reichard noted that in the first five months of 2009 , the JobLink Centers in Johnston County experienced an 81 increase in people out of work seeking training and retraining opportunities He noted that companies such as Talecris and Novo Nordisk in Johnston County are hiring ; however , an individual cannot secure a job at those industries because they require some type of industrial certification or other credentials 2 Enrollment Growth – This past year , 2008 - 2009 , curriculum grew by 5 and Continuing Education Occupational Extension by 26 Applications for fall semester are up by 30 Students are choosing to attend community colleges because of the lower cost and the need for technical skills in the workforce Dr Reichard pointed out that enrollment has grown by 6 per year each year in the last ten years ; and has grown by 7 per year each year in the last five years He anticipates in the fall of 2009 , the College will see the highest enrollment in their 40 year history 3 Team Player – The College understands the fiscal crisis facing the County and the State And , we are willing to do our share in meeting those budgetary challenges The budget for JCC recommended by the County Manager represents a 5 reduction Dr Reichard explained that the College’s initial request to the County for FY 2009 - 2010 was for 42 million in Current Expense and 500,000 in Capital Outlay He stated that request was reduced by the College administration as well as the Board of Trustees in order to submit a “ barebones ” request to the County Page427 June 15 , 2009 – 6 00 pm Continued 4 County Appropriations History – The accompanying spreadsheet documents are our previous budgets The College sincerely thanks the Commissioners and County staff for their past support County Appropriations History Current Current of Capital Capital of Total of Use of Year Year Fund Expense Year Inc Change Outlay Inc Change Total Inc Change Bal Year 1,297,761 136,000 1,433,761 1994 - 1995 1,320,136 22,375 172 99,000 - 37,000 - 2721 1,419,136 - 14,625 - 102 1995 - 1996 1,415,937 95,801 726 124,000 25,000 2525 1,539,937 120,801 851 1996 - 1997 1,582,276 166,339 1175 374,000 250,000 20161 1,956,276 416,339 2704 1997 - 1998 1,582,276 0 000 124,000 - 250,000 - 6684 1,706,276 - 250,000 - 1278 1998 - 1999 1,681,390 99,114 626 330,200 206,200 16629 2,011,590 305,314 1789 1999 - 2000 1,800,000 118,610 705 356,000 25,800 781 2,156,000 144,410 718 2000 - 2001 1,967,400 167,400 930 365,000 9,000 253 2,332,400 176,400 818 2001 - 2002 1,940,400 - 27,000 - 137 75,000 - 290,000 - 7945 2,015,400 - 317,000 - 1359 338,255 2002 - 2003 2,143,670 203,270 1048 75,000 0 000 2,218,670 203,270 1009 2003 - 2004 2,635,562 491,892 2295 350,000 275,000 36667 2,985,562 766,892 3457 2004 - 2005 2,833,229 197,667 750 350,000 0 000 3,183,229 197,667 662 2005 - 2006 3,268,223 434,994 1535 350,000 0 000 3,618,223 434,994 1367 2006 - 2007 3,480,657 212,434 650 350,000 0 000 3,830,657 212,434 587 2007 - 2008 3,724,302 243,645 700 350,000 0 000 4,074,302 243,645 636 2008 - 2009 Special Allocation for Parking Lots 582,000 2007 - 2008 5 County Current Expense Budget Categories – The accompanying spreadsheet depicts how the County current budget was allocated for 2008 - 2009 As we can see , 86 of the budget is spent on personnel and maintenance costs of our main campus County Current Expense Budget Categories Fiscal Year 2008 - 2009 Percent of Category Amount Total Personnel Salary & Fringe 1,337,70200 3592 Utilities including Communications 1,270,85700 3412 Facility Maintenance Costs - Main Campus 596,43900 1601 Facility Maintenance Costs - Cleveland Campus , Kenly Center , Benson Center , Arboretum , Auditorium , Howell Woods , and Mobile Units 132,44200 356 Campus Security 171,50500 461 Insurance 120,19700 323 Legal , Environmental , and Safety Services 38,00000 102 Miscellaneous Expenses 37,16000 100 Public Relations 20,00000 054 Total Current Expense 3,724,30200 10000 Page428 June 15 , 2009 – 6 00 pm Continued 6 New Health Building Addition – This 25,000 square - foot facility is scheduled to open in July Under normal circumstances , the County would at minimum increase our budget for an additional housekeeper , increased utility and facility maintenance costs which would be approximately 150,000 7 2009 - 2010 Budget Situation – I want to thank our County Manager , Rick Hester because his recommended budget included an increase of 150,359 to accommodate the Health Building Addition costs The accompanying spreadsheet shows several budget reduction scenarios With increased enrollment expected and an additional building opening in July , the College cannot absorb any additional budget reductions beyond that proposed by the County Manager without serious ramifications 2009 - 2010 Budget Situation Current Expense Capital Outlay Total Reduction Percentage 2008 - 2009 Budget 3,724,30200 350,00000 4,074,30200 County Manager s 09 - 10 3,874,66100 - 3,874,66100 199,64100 - 490 Recommendation Maintain 08 - 09 Current Expense 3,724,30200 - 3,724,30200 350,00000 - 859 Use of 200,000 FUND 3,524,30200 - 3,524,30200 550,00000 - 1350 BALANCE see note Most Recent Communication 3,100,00000 - 3,100,00000 974,30200 - 2391 Note JCC currently has 209,63918 in Fund Balance Approximately 185,000 of these funds had been reserved for site preparation for the proposed Tactical Training Building , as a part of a cooperative project with the Johnston County Firemans Association 8 Further Reductions – Any further budget reductions will force the College to consider the following options a Health Building Addition – do not open This decision would have huge negative ramifications on our nursing and allied health programs b Virtual Hospital – stop further discussions since the County could not afford to support the College’s operating expenses c Howell Woods , Auditorium , Arboretum – eliminate or severely reduce programs and services These resources are used by over 400,000 people every year They support our horticulture , landscape gardening , forestry , fire , law enforcement and environmental education industries and services in Johnston County d Cleveland Campus , Benson Center , Kenly Center – closing these centers would severely curtail opportunities for many of our citizens in most need Most of the programs and courses offered are in basic skills and compensatory education The lack of transportation is a huge problem for both of these groups so they cannot attend class at another location e Campus Security – the top request from students in recent years has been for more security Even with the 171,505 , the College cannot provide for armed security which is most needed Dr Reichard reported on the above scenarios that would have to be considered if further reductions are proposed for the College’s budget in FY 2009 - 2010 Dr Reichard asked Ms Linda Smith to explain what would happen if the Health Building Addition does not open , as suggested in the points above Page429 June 15 , 2009 – 6 00 pm Continued Linda Smith , Department Chair for Health Sciences at Johnston Community College , informed the Board that if the Health Building Addition opening is delayed , it would have a devastating impact on meeting the current needs of the allied health programs She stated the College would be forced to uninvite students that have already been accepted into the various allied health programs Ms Smith stated the workforce needs to be educated and the students in the allied health programs need to train in order to take care of the citizens in the County Chairman Wade M Stewart noted the Board often hears complaints regarding the limited enrollment capacities in the health programs and asked if the Health Building Addition will allow more spots to become available Ms Smith stated the Health Building Addition will meet the current needs of the College She noted the College has added additional programs and will need even more space in the future Ms Smith spoke on the need for a virtual hospital in the County that would provide additional clinical space , allowing for expansion of the program enrollments At the inquiry of Commissioner Cookie Pope , Ms Smith stated because the nursing program is full , the College has counselors that try to direct students to other health sciences programs Dr Reichard agreed with Ms Smith that the virtual hospital is a way to create more space to allow for expanded health sciences programs ; however , he stated as noted in Item 8 b above , if the budget is cut beyond what the County Manager is recommending , then talks regarding the virtual hospital should be postponed Commissioner Allen L Mims , Jr reminded everyone that the Board of Commissioners has not said it would fund anything related to the virtual hospital as of yet , and has only given approval for the Health Care Partners group to seek grant funding opportunities Commissioner Mims added the Board believes the virtual hospital concept is good ; however , the budget situation currently will not allow funding Dr Reichard clarified that the College is not asking for funding for the virtual hospital concept for FY 2009 - 2010 Dr Reichard stated the College currently has 209,63918 in Fund Balance , and approximately 185,000 of those funds have been reserved for site preparation for the proposed Tactical Training Building through a partnership with the Johnston County Fireman’s Association , if the Association can raise the 1 million needed for the building He noted to date , the Association has been able to secure a donation from Talecris for 35,000 towards the cost of the building and efforts are underway to apply for grant funding Dr Reichard stated the College is already facing State budget cuts and he asked the Board to help them avoid turning students away At the request of Commissioner Jeffrey P Carver , County Manager Rick Hester reported the College received in FY 2008 - 2009 , 3,724,302 in Current Expense and 932,820 in Capital Outlay which included funds for the parking lot paving projects He stated the College has requested 5,002,564 for FY 2009 – 2010 and he has recommended a total of 3,874,661 Mr Hester explained that approximately 48 of the County’s general fund budget is tied to county government operations and the proposed budget is presented with expenditures reduced by 79 from the current fiscal year to FY 2009 - 2010 Approximately 33 of the County’s general fund budget is tied to local financial support to Johnston County Schools and Johnston Community College , with proposed reductions by 49 for next fiscal year Mr Hester stated debt service accounts for approximately 19 of the total County general fund budget and has a net increase of 26 million to the proposed FY 2009 - 2010 budget Chairman Stewart reminded everyone that the current budget discussions would not be an issue if more funds were available to allocate He spoke on the decrease in revenues the County has seen in the past year and the difficulties the Board faces in trying to fund all the requests Mr Hester stated the County’s budget for the current FY 2008 - 2009 was 180 million ; however , the revenues were down by 15 million He noted that approximately 5 million of that decrease is related to reimbursements from the Federal Government for the Department of Social Services , therefore the County saw a net decrease of 10 million in revenues PagePage pageNumber5430 June 15 , 2009 – 6 00 pm Continued Commissioner Tony Braswell expressed his appreciation to Johnston Community College , noting that they seem to do more with less each year Commissioner Braswell thanked the College for molding the lives of the youth and others in Johnston County Commissioner DeVan Barbour echoed comments by Commissioner Braswell and stated that although it is a lean year , the Board would do what it could to fund all the needs Commissioner Carver stated he believes the economy will turn around and next year will be better He noted that because of the excellent management by the County Manager and the Finance staff , the County has been able to realize 12 million in interest savings through various bond refundings over the past ten years Commissioner Pope expressed her appreciation to Dr Reichard , the students , and the College staff , noting she hears many wonderful things about the College Commissioner Barbour stated the Board would miss Dr Reichard when he retires later this month 2 Johnston County Board of Education Larry Strickland , Chairman of the Johnston County Board of Education , introduced his fellow Board of Education members , as follows Dorothy Johnson , Vice Chair , Donna White , Butler Hall , Mike Wooten , and Keith Branch He noted that Board Member Peggy Smith could not attend the meeting due to teaching commitments at Campbell University Mr Strickland also introduced Johnston County Schools Superintendent Dr Ed Croom and Finance Officer Art Stanley Mr Strickland read the following prepared statement Let me begin by saying that our Board appreciates the effort that the Board of Commissioners has made in the past to provide quality education to the children of our County Tremendous efforts have been made since the mid 1990 ’ s by both Boards to assure the new schools were built and the necessary renovations were done to provide safe and orderly schools for the young people of the County of Johnston Our Boards have worked together to assure that our community schools have highly qualified teachers in the classrooms with the resources necessary to prepare our children to become productive citizens This year’s budget is the eleventh one that I have been involved with and it is without a doubt the most challenging Our Board like your Board has felt the impact of money allocated in this current year being pulled back from Raleigh to address shortages We’ve seen two large reversions of money , frozen ADM money , a transportation fuel reversion , and the loss of lottery money to name a few Our Board realizes firsthand how difficult the economic times are and how all the decisions we have made and will make regarding this budget will have an impact on the citizens of this County in the coming year Our Board feels that the adopted FY 2009 - 2010 budget reflects only what was absolutely necessary to maintain and to preserve the services provided at the current level , given the hard economic times that our people here in Johnston County find themselves facing The School Board’s adopted budget reflects an increase of 2 million over last year’s allocation The increase breakdown represents anticipated increases in utilities of 45 , hospital insurance of 73 along with the necessary additional funding to open two new high schools and to prepare for the increased enrollment of approximately 700 new students Before I ask Dr Croom to join me at the podium , I would like to thank you Chairman Stewart , and your Board , for how this current budget process has evolved up to this point As you and I said several months ago , our Boards can work through this bump in the road if we and our people work together I believe that the ongoing informal conversations regarding issues that might jeopardize any funding source for this budget has been helpful As some of our Board members have previously mentioned , we too think that some of the out - of - the - box ideas being mentioned can work So , at this point , I’d like to call on Dr Croom to come forward and present a budget snapshot of our request Johnston County Schools Superintendant Dr Ed Croom reported that back in April 2009 , the Board of Education approved a budget request that was 2 million over the current fiscal year’s allocation from the County Dr Croom stated since that time , Johnston County Schools has experienced a number of issues with the current FY 2008 - 2009 budget He explained that in December 2008 , 1,236,915 had to be returned to the State that had already been appropriated to pay for various items In February 2009 , Average Daily Membership ADM funds were frozen in the amount of 230,000 and in May 2009 , a second reversion in the amount of 874,329 came from the State He noted there were also some unexpected expenses as well as a transportation fuel reversion and excesses in utility costs Dr Croom stated with all the issues , the JohnstonPagePage pageNumber6431 June 15 , 2009 – 6 00 pm Continued County Schools budget was impacted by approximately 37 million which has almost depleted their Fund Balance Dr Croom reported that in 2005 , Johnston County Schools was challenged with educating Pre - Kindergarten students Pre - K that either have some type of special need or are considered “ at - risk ” He stated most of the Pre - K children are served with local dollars , in that the State only allocates funding for 12 of the special needs students He noted in 2005 the Pre - K program began with 58 students and it has grown by an additional 200 students in the last three years Commissioner Jeffrey P Carver asked how the special needs students are identified Dr Croom responded Johnston County Schools works with the Department of Social Services as well as parents contact them directly He stated many of the children are autistic or have family situations that put them in the at - risk category At the inquiry of Chairman Wade M Stewart , Dr Croom stated the Pre - K students begin at age three Commissioner DeVan Barbour noted that many people are unaware the Pre - K program exists Dr Croom agreed with Commissioner Barbour and stated he has discussed with staff on how to pinpoint possible future enrollment numbers and they have determined it is simply a moving target Dr Croom stated Johnston County Schools is expecting an increase of 700 students next year and further , they must account for possible students that may be enrolling due to the closure of the Johnston Christian Academy Dr Croom reported on the following funding cuts made to date in their proposed budget He pointed out that the reduction of teacher positions by 133 is largely due to retirements or resignations ; however , he noted that when the next school year begins , Johnston County Schools will be short by these 133 positions 1 10 Departmental Cuts 100,000 – Contract Services – Travel – Staff Development 2 Increased Class Size by 125 Reduction in 133 Teachers 7,174,000 3 Reduction in Teacher Assistants 45 x 25,000 1,125,000 4 Central Office Position 570,000 Reorganization 5 Reduced Advertising 71,000 Total 9,040,000 Other Cuts Travel unless mandated by state and federal programs Printing Items , Staff Development Dr Croom reviewed with the Board the following summary of budget requests 2008 - 2009 2009 - 2010 Increase Fund Allocation Request Decrease Current Expense 53,192,957 54,533,582 1,340,625 Capital Outlay 2,048,273 2,708,273 660,000 TOTALS 55,241,230 57,241,855 2,000,625 362 Dr Croom noted the increase in the request for FY 2009 - 2010 accounts for the expected growth of the student population as well as the increases for utilities and hospitalization insurance He further reviewed with the Board the following proposed adjustments to the request for FY 2009 - 2010 1 Furniture Purchase for new high schools 60 165,207 2 Athletic Equipment Purchases Fall Sports Only 202,000 Except Track High Jump Wrestling Subtotal 367,207PagePage pageNumber7432 June 15 , 2009 – 6 00 pm Continued 3 2 Step Increase for Teachers 113,333 4 Supplement Increase Due to Step Increase 182,194 Total 662,734 GENERAL STATUTE 115C - 441 a Requires “ no obligation may be incurred by a local school administration unit unless the budget resolution includes an appropriation authorizing the obligation ” Items 1 and 2 – Would not be a savings to the 2009 - 10 Budget request yet simply a delay in the expenditure Dr Croom reminded the Board that they are constructing two new high schools and it is the intent of the Board of Education that those two schools should open on time He stated the Board of Education is still requesting from the Board of Commissioners the 2 million increase , with the hopes that funding from the State will be better than projected as well as possible assistance with stimulus funding Dr Croom stated that in trying to offset the 2 million request , if the two new high schools could be opened at approximately 60 capacity then furniture and equipment would only need to be purchased for that 60 as well as athletic equipment purchases could be made for the fall sports only resulting in a savings of 367,207 Further , he added that if the General Assembly does not pass the 2 step increase for teachers , it would result in further savings He stated at some point the purchases for the high school would need to be a part of the budget as well as activity buses need to be taken into account Dr Croom informed the Commissioners that the Board of Education feels like with all the reductions proposed , they could possibly decrease their budget request by 1 million than originally requested , as long as General Statutes could still be met Dr Croom reiterated that their original budget request was based on expected growth in enrollment and anticipated increases in utility costs with no additional funds for new programs At the inquiry of Commissioner Carver , Dr Croom stated the construction of the two new high schools is on schedule and they do not anticipate any cost overruns in the structure itself ; however , there does appear to be expected cost overruns for furniture and equipment He noted perhaps some of those purchases as well as purchases for additional activity buses could be deferred until the next fiscal year ; however , no one could be sure of the budget situation next fiscal year and at some point those funds would have to be allocated Chairman Stewart noted the ultimate decisions on the adoption of the final budget will be difficult when trying to balance all the needs and stay within the County’s Financial Policy guidelines He stated that while the County’s Financial Policies may not be important to some , they have contributed to higher bond ratings ; thereby saving taxpayer dollars on interest associated with the bond referendums County Manager Rick Hester stated the cost overruns in the furniture and equipment for the two new high schools will have to be addressed at some point Commissioner Allen L Mims , Jr stated that he has been involved with a number of informal meetings recently with representatives from Johnston County Schools and the meetings have been very educational He added that Johnston County Schools has been a joy to work with during this budget year Dr Croom stated it is his opinion that Johnston County has done as well as it has due to the quality school system Commissioner Cookie Pope commented that she appreciates the good working relationship with Johnston County Schools 3 Town of Selma – Selma Fire District Tax Rate Increase Request Mayor Charles Hester , Town of Selma , addressed the Board and spoke on the Town of Selma’s budget , the current economic situation , as well as some of the things that Selma would like to accomplish in the future Mayor Hester stated the Selma Fire Department has come a long way and now employs a fulltime paid Fire Chief as well as a fulltime paid engineer and consists of approximately 25 good volunteers that are there to protect the Town of Selma and the surrounding area Mayor Hester introduced Selma Fire Chief Phillip McDaniel to the Board Selma Fire Chief Phillip McDaniel explained that he had met with the Fire Tax Committee regarding a request for a two cent increase in the Selma rural fire tax rate He noted that the committee was open to the request and he appreciated the opportunity to present their case ; however , he was disappointed to learn that the committee did not recommend the increase Chief McDaniel stated the Town of Selma unanimously passed a resolution in support of the increase He stated Selma has never asked for a rural fire tax rate increase and would only ask if it is needed He reported the increase would help to replace Engine No 5 that is dedicated as the first truck to respond to the rural area needs Chief McDaniel reported Engine No 5 is in need of majorPagePage pageNumber8433 June 15 , 2009 – 6 00 pm Continued repairs and is quickly getting to a point where it is considered unsafe to operate He stated if the truck comes out of service with no replacement , their ISO rating could be jeopardized Chief McDaniel stated he recently met with representatives from USDA - Rural Development who has offered a loan opportunity to be amortized over 15 years along with a 100,000 grant Chief McDaniel noted the importance of the 100,000 grant and stated it would not be available next year He reported the two cent increase in the tax rate would directly cover the annual payment on the loan for the truck At the inquiry of Commissioner Allen L Mims , Jr , Chief McDaniel reported that based on their calculations , approximately 40 of their calls for assistance come from the rural area of the district Chief McDaniel reiterated that Engine No 5 is the first truck to respond to the rural area and it also responds to calls for assistance with in - town emergencies He clarified that when needed , the other trucks in the inventory also respond to calls in the rural area as well Commissioner Jeffrey P Carver asked about the terms of the USDA - Rural Development financing opportunity Chief McDaniel stated before they can apply for the loan , they must be assured that the money will be available to repay the loan He stated the total cost of the truck is approximately 375,000 , of which 100,000 could come in the form of a grant Commissioner Carver noted that by the time the truck is ordered and delivered , the first annual payment would be due during FY 10 - 11 Selma Town Manager Richard Douglass confirmed Commissioner Carver’s comment that the first payment would not be due until FY 10 - 11 ; however , he stated he did not feel comfortable with making a recommendation to the Town Council to go forward with the loan if they are not guaranteed that the funds to repay the loan are not in place Commissioner Carver stated the Selma representatives have made a good case and while he does not disagree with the request , now is not the time to pass on something that the citizens cannot afford He stated everyone needs to be thinking out - of - the - box in order to make the scenario work for next fiscal year He acknowledged that this is the first request for an increase from the Selma Rural Fire District since 1991 , which is admirable Commissioner Carver indicated that he believes there is a way for the Town to position themselves , next fiscal year , to set up the financing for FY 10 - 11 and take advantage of the 100,000 grant Chief McDaniel stated by taking advantage of the 15 year loan from USDA - Rural Development , it opens up other opportunities to be able to afford additional new equipment later on that also needs replacing Commissioner Tony Braswell noted he chairs the Fire Tax Committee and the Committee does not doubt the need by the Selma Fire Department ; however , in this fiscal year with all the budget cuts everyone is being asked to make , the Committee could not recommend to the full Board of Commissioners a burden to the rural district citizens of an increased fire tax Commissioner Braswell stated the Board is grateful that the district has gone as long as it has without asking for an increase and the recommendation to not grant the increase in no way reflects on the Selma Fire Department He commended the Selma Fire Department’s initiative to become a first responder franchise Mr Douglass stated the Town of Selma has assumed a greater financial burden over the past couple of years without an increase in the rural fire district tax rate to employ Chief McDaniel as well as costs associated with equipment and maintenance for the fire department Mr Douglass reiterated that the 100,000 grant is a one - time offer and for the Town to assume the liability of the loan , he asked the Board to consider approving a one cent increase in the rural fire tax rate as a good faith effort Chairman Wade M Stewart stated just as with all the other requests , the Board will give it serious consideration 4 Hopewell - Pisgah Water District Pipeline Additions Upon a motion by Commissioner DeVan Barbour , seconded by Commissioner Cookie Pope , and carried by unanimous vote , the Board recessed regular session to sit as the Hopewell - Pisgah Water District Board PagePage pageNumber9434 June 15 , 2009 – 6 00 pm Continued Tim Broome , PE , Director of Utilities & Engineering , explained that last year , the Hopewell - Pisgah Water District Board of Commissioners approved a project for water main additions to improve service pressures in the western portion of the District Funding for the improvements was arranged with a grant from the NC Rural Center and a loan and grant from USDA - Rural Development The Board reviewed the following bids , which were received on June 11 , 2009 for the approximately 28,000 lf of 6 ” through 12 ” diameter water mains LICENSE BID BASE ADD ALTERNATE BIDDER NO BOND BID BID Ellington Contractors , Inc 47822 657,35420 696,20420 X Wake Forest , NC 27587 EBG , Inc 44610 678,09405 714,84405 X Clayton , NC Atwell Construction Co , Inc 45324 700,16941 745,73941 X Greenville , NC 27834 Moffat Pipe , Inc 54906 703,68000 745,68000 X Raleigh , NC 27610 T A Loving Company 325 716,51500 758,51500 X Goldsboro , NC 27530 Hendrix - Barnhilll 4883 759,77320 801,77320 X Smithfield , NC 27577 Frank Horne Construction 6746 778,28850 816,50850 X Fair Bluff , NC 28439 Blackmon Contracting Co , Inc 37974 796,04100 835,94100 X Smithfield , NC 27577 Corbett Contracting , Inc 37318 808,10150 1,238,60150 X Selma , NC 27576 Sappah Brothers , Inc 36170 812,33315 854,33315 X Wake Forest , NC 27587 Cameron Development , Inc 45354 885,63200 942,33200 X Trinity , NC 27370 Sanford Contractors , Inc 6301 937,70571 976,55571 X Sanford , NC 27332 Vaughan Grading & Utilities , Inc 57398 1,088,16875 1,135,41875 X Wake Forest , NC 27587 RD Braswell Construction Co 25994 1,140,81200 1,208,01200 X Smithfield , NC 27577 Math error , corrected as indicated Mr Broome stated the bid advertisement and opening procedures were consistent with statutory requirements to the best of staff’s knowledge Add alternate bids were requested for a heavier rated 12 ” PVC pipe He reported staff recommends award of the bid to low bidder Ellington Contractors , Inc of Wake Forest , North Carolina on the basis of the alternate bid in the amount of 696,20420 , subject to NC Rural Center and USDA - Rural Development approval Mr Broome stated staff further recommends adoption of the amended capital project budget , adoption of the amended capital project budget ordinance , and approval of the associated budget revision Chairman Wade M Stewart asked if staff was comfortable with the low bidder Mr Broome stated staff has checked the references of Ellington Contractors , Inc and have found them to be excellent Upon a motion by Commissioner Cookie Pope , seconded by Commissioner Tony Braswell , and carried by unanimous vote , the Board took the following actions • Awarded the bid to low bidder Ellington Contractors , Inc of Wake Forest , North Carolina in the alternate bid amount of 696,20420 , subject to NC Rural Center and USDA - RD approval , for the Hopewell - Pisgah Water District Water Main Additions Project • Adopted the following amended capital project budget Page0435 June 15 , 2009 – 6 00 pm Continued Expenditures Construction 696,20420 Contingency 34,79580 Easements 19,00000 Capitalized Interest 32,00000 Technical Services 50,00000 Total 832,00000 Revenues NC Rural Center Grant 416,00000 USDA - Rural Development a Grant 156,00000 b Loan 260,00000 Total 832,00000 • Adopted the following amended capital project budget ordinance CAPITAL PROJECT ORDINANCE FOR HOPEWELL - PISGAH WATER MAIN ADDITIONS BE IT RESOLVED by the Board of Commissioners of the County of Johnston , North Carolina the “ County ” , acting as the Governing Body of the Hopewell - Pisgah Water District the “ Board ” , 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 construction of supplemental water mains in the District to alleviate low system pressure in the vicinity of NC 210 and Lassiter Road the “ Project ” , to be financed by a USDA - Rural Development loan , a USDA - Rural Development grant , and a North Carolina Rural Center Grant Section 2 The officers of the County are hereby directed to proceed with the capital project within the terms of the loan and grant offers and the budget contained herein Section 3 The following amounts are appropriated for the project Construction 696,20420 2084951800 Technical Services 50,00000 2084950406 Contingency 34,79580 2084957406 Capitalized Interest 32,00000 2084955597 Easement Acquisitions 19,00000 2084955599 Total 832,00000 Section 4 The following revenues are anticipated to be available to complete this project USDA - Rural Development Loan 260,00000 20849537933 USDA - Rural Development Grant 156,00000 20849537923 North Carolina Rural Center Grant 416,00000 20849537932 Total 832,00000 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 USDA - Rural Development and the North Carolina Rural Center and the terms of the respective loan and grants shall be met Section 6 Funds may be advanced from Fund 69 for the purpose of making payments as due Reimbursement requests should be made to USDA - Rural Development and the North Carolina Rural Center 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 , the Budget Officer and the Director of Finance for direction in carrying out this project Amended this 15th day of June 2009 • Approved the following corresponding budget revision Public Utilities BUDGET REQUESTED CHANGE FUND LINE ITEM CLASSIFICATION EXPENDITURE CODE INCREASE DECREASE 84951800 Construction 83,79580 20 20 84957406 Contingency 4,20420 BUDGET REQUESTED CHANGE FUND LINE ITEM CLASSIFICATION REVENUE CODE INCREASE DECREASE 20 849537932 NC Rural Center Grant 44,00000 20 849537933 USDA - Rural Development Loan 25,00000 20 849537923 USDA - Rural Development Grant 69,00000 Page1436 June 15 , 2009 – 6 00 pm Continued Upon a motion by Commissioner Cookie Pope , seconded by Commissioner Allen L Mims , Jr , and carried by unanimous vote , the Board adjourned as the Hopewell - Pisgah Water District Board , and regular session was resumed 5 Federal Stimulus Funding – Energy Efficiency Grant County Manager Rick Hester recalled that staff had hoped to utilize the Federal stimulus energy efficiency funding to pay for environmentally friendly school buses as well as “ green ” vehicles for the Sheriff’s Department ; however , staff has been informed that the project is not feasible He noted the deadline to apply for the funds is June 25 , 2009 and staff has come up with an alternate project Tim Broome , PE , Director of Utilities & Engineering , explained that there is a project whereby solar equipment can be installed at some of the County’s water and wastewater pump stations He noted that the equipment would reduce the electrical power consumption at the pump stations ; thereby saving an estimated 80,000 to 90,000 per year Mr Broome reported staff had evaluated using the stimulus funding on the Landfill Gas to Energy Project ; however , it has been determined that there is much work to be done and the project is not far enough along to utilize the funds Mr Hester asked if there was a consensus of the Board for staff to proceed with applying for the energy efficiency stimulus funding to be utilized for solar equipment at the water and wastewater pump stations Following brief discussion , it was the unanimous consensus of the Board for staff to proceed with applying for the Federal stimulus energy efficiency grant funding to be used to purchase the new equipment at the pump stations in an effort to reduce electrical power consumption 6 Resolution In Opposition of Draft 2009 - 2011 Biennium Budget Proposal To Charge Emergency Personnel for Continuing Education Courses The Chairman asked if the Commissioners had reviewed the draft resolution regarding charging emergency personnel for continuing education courses Upon a motion by Commissioner Allen L Mims , Jr , seconded by Commissioner Tony Braswell , and carried by unanimous vote , the Board adopted the following resolution RESOLUTION IN OPPOSITION OF DRAFT 2009 - 2011 BIENNIUM BUDGET PROPOSAL TO CHARGE EMERGENCY PERSONNEL FOR CONTINUING EDUCATION COURSES WHEREAS , all emergency personnel , including fire , law enforcement , and emergency medical service personnel , must maintain current training and education to perform their duties ; and WHEREAS , these emergency personnel currently attend tens of thousands of hours of training through our local community college ; and WHEREAS , these emergency personnel currently are fee exempt when taking required emergency - related courses through our local community college ; and , WHEREAS , the State of North Carolina is considering requiring that a fee be paid by these emergency personnel for these continuing education courses ; and , WHEREAS , our emergency service agencies do not have the necessary funding to pay the proposed fees ; and WHEREAS , our emergency service agencies would be forced to hire training officers to provide the required training ; NOW THEREFORE BE IT RESOLVED THAT , the Johnston County Board of Commissioners opposes the draft 2009 - 2011 biennium budget proposal from the State of North Carolina that would require emergency personnel to pay a fee for continuing education courses that allow them to provide essential services to Johnston County th Adopted this 15 day of June , 2009 7 Budget Revision Finance Director Chad McLamb requested the Board to approve a budget revision for FY 2008 - 2009 for the EMS Division in the amount of 397,10000 Upon a motion by Commissioner Allen L Mims , Jr , seconded by Commissioner Cookie Pope , and carried by unanimous vote , the Board approved the following budget revision for EMS Page2437 June 15 , 2009 – 6 00 pm Continued FUND BUDGET LINE ITEM CLASSIFICATION EXPENDITURE REQUESTED CHANGE CODE INCREASE DECREASE 10 53550200 Salaries and Wages 269,00000 10 53550310 Salaries - OT 54,00000 10 53550300 Salaries - PT 8,30000 10 53550501 Social Security 15,00000 10 53550600 Health Insurance 35,00000 10 53550610 Life Insurance 60000 10 53550620 125 Admin Fee 20000 10 53550700 Retirement 15,00000 397,10000 NET EXPENDITURES FUND BUDGET LINE ITEM CLASSIFICATION REVENUE REQUESTED CHANGE CODE INCREASE DECREASE 10 535536204 Rescue Squad Billings 397,10000 NET REVENUES 397,10000 There being no further business , Commissioner Cookie Pope moved the Board adjourn Commissioner Allen L Mims , Jr seconded the motion , which carried by unanimous vote The meeting adjourned at 8 30 pm Wade M Stewart , Chairman Paula G Woodard , Clerk to the BoardPage