June 9, 2008 - 6:00 PM - County Board of Commissioners Meeting Minutes (Special)

10 802 Meeting of the Johnston County Board of Commissioners June 9 , 2008 Special Meeting The Johnston County Board of Commissioners met in special session Monday , June 9 , 2008 at 6 00 pm in the Commissioners Meeting Room , Johnston County Courthouse Annex , Smithfield , North Carolina The following members were present Present Cookie Pope , Chairman , Wade M Stewart , Vice Chairman , Allen L Mims , Jr , Jeffrey P Carver , W Ray Woodall , DeVan Barbour and Tony Braswell Absent None Also Present Rick J Hester , County Manager , Paula G Woodard , Clerk to the Board , John R Massey , Finance Officer , and Deva C Holt , Deputy Clerk The Chairman called the meeting to order , and announced the purpose of the meeting is to consider the 2008 - 2009 County budget and related matters 1 Comments by Chairman Cookie Pope Concerning the Current Economy The Chairman opened the meeting with the following comments I would like to preface our meeting tonight by talking about the economy All of you read the newspapers and stay abreast of what is happening and you realize the status of our economic situation , not only in the nation , but North Carolina and in Johnston County Just last week I counted five or six articles in one newspaper that dealt with either foreclosures , business closings , or the suffering of those dealing with such issues Johnston County has been fortunate and we still are fortunate , but I want us to be mindful as we go into this budget discussion as we have never been mindful before , because there are people who are suffering There are employers who are calling us for assistance , there are counties who are eliminating positions , the building industry and housing are down and auto manufacturing is also down I don’t mean to be preaching gloom , but I want us to be mindful of that going on around us as it does have a trickle - down effect I hear the farmers who are telling me that the price of chemicals are killing them and the cost of buying fuel is to the extent that they need a loan before they even start their crop year I want you to remember that it is these employers who pay and support local government for the good citizens of Johnston County I want us to be mindful of that as we look at our budget at this time 2 Johnston County Schools – Request for Reimbursement of ADM Funds Ann Williams , Associate Superintendent of Facility Services for Johnston County Schools , recalled the Board’s June 2 , 2008 meeting whereby she informed the Board that at the end of the last General Assembly session , a bill was passed which ordered Average Daily Membership ADM funds from January 2008 through June 2008 to be withheld in order to pay county Medicaid payments The bill also required the counties to nd reimburse the school systems for these funds Ms Williams also recalled that at the June 2 meeting , the Board of Commissioners approved the reimbursement of 602,776 in previously withheld funds Ms Williams stated an additional 305,223 has been withheld and the Board of Education formally requests the Board of Commissioners to reimburse funds in the amount of 305,223 for ADM funds from the County’s Medicaid line item She further asked the Board to designate the funds for the Princeton Elementary School construction project to be used to purchase furniture and equipment County Finance Officer John Massey reported there are sufficient funds in the Medicaid line item to accommodate the reimbursement Commissioner W Ray Woodall moved the Board approve the request to transfer funds from the Medicaid line item to reimburse funds to Johnston County Schools for Average Daily Membership funds in the amount of 305,22300 to be designated for the Princeton Elementary School construction project , as indicated by the following budget amendment Commissioner Jeffrey P Carver seconded the motion , which carried by unanimous vote Page803 June 9 , 2008 – 6 00 pm Continued Education FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION EXPENDITURE INCREASE DECREASE 10 63008166 ADM Reimbursement by Johnston County 305,22300 10 61401907 Medicaid 305,22300 FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION REVENUE INCREASE DECREASE 3 Johnston County Schools Kay Carroll , Chairman of the Johnston County Board of Education , addressed the Commissioners and stated the Board of Education has been in the process of prioritizing their projects Mr Carroll indicated one priority of the Board of Education is to construct two new high schools on a concurrent basis as well as move up the completion date of the new Cleveland High School Mr Carroll stated another priority is to increase the teacher supplement in an effort to attract and retain the most qualified staff He thanked the Commissioners for working with the Board of Education to help speed up the Cleveland High School construction project Mr Carroll reported the student population in Johnston County is expected to increase by 1,500 students next year He noted Johnston County Schools is planning to open the Powhatan Elementary School , the Princeton Elementary School , and the new Johnston County Early College Academy which is directed to help improve the dropout rate Mr Carroll stated in an effort to reduce costs , Johnston County Schools will be implementing a new bus routing system next year which will delay the purchase of new buses for the next two years , allowing for a cost savings of 13 million per year Mr Carroll stated the new bus routing system should not impact school starting times by more than 15 minutes and will allow a safer atmosphere by avoiding the wide discrepancy in ages on buses Mr Carroll informed the Commissioners that the Board of Education instructed the Superintendent to hold every line item in the requested budget for Johnston County Schools , at the current fiscal year’s numbers , except for those items associated with growth issues and those that are State impacted Mr Carroll stated Johnston County Schools is requesting 56,980,71600 for fiscal year 2008 - 2009 which includes a 1 increase in the teacher supplement , a 2 increase in the assistant principal supplement , a 1 increase in the principal supplement , and a classified pay adjustment for related work experience Mr Carroll noted a classified employee is defined as any employee that does not hold a teacher’s certificate Mr Carroll pointed out the utilities cost increases in the amount of 22 million are based on actual numbers and taking into account a percentage increase for growth associated with opening two new schools Mr Carroll reported the utilities and fuel costs are an estimate at best Mr Carroll stated the Board of Education appreciates what the County has done in the past for Johnston County Schools and he offered to answer any questions by the Board In response to questions from Commissioner DeVan Barbour , Johnston County Schools Superintendent Dr Anthony Parker reported Johnston County Schools spent approximately 300,000 in local funds last year for transportation fuel costs and they anticipate the amount to be much higher in the upcoming fiscal year Dr Parker stated he has contacted the Department of Public Instruction in an effort to try and obtain additional financial assistance to help offset the increase in fuel costs He noted the Department of Public Instruction , through the General Assembly , is trying to secure an adjustment in the funding formula for transportation costs Commissioner Barbour inquired as to the amount of local funds used to offset the shortfall in State funding for the exceptional children’s program Dr Parker reported approximately 3 million dollars in local funds are used to offset the shortfall in State funding for the exceptional children’s programs At the inquiry of Commissioner Barbour , Dr Parker confirmed Johnston County Schools has included in their budget request an 8 salary increase for teachers Dr Parker pointed out that the North Carolina Senate is still reviewing the State budget and he is being told that the salary increase for teachers may be reduced to 5 He noted there will most likely be a different percentage increase for all other employees Page804 June 9 , 2008 – 6 00 pm Continued Johnston County Schools Finance Officer Dan Jones reported if the salary increase for teachers is set at 5 rather than 8 , the cost savings would total approximately 12 million Commissioner Tony Braswell asked Mr Carroll to comment on the additional five clerical positions needed by Johnston County Schools Mr Carroll reported the five new clerical positions are needed for three new schools Mr Carroll informed the Board that the State partially funds clerical and custodian positions Mr Carroll clarified that the clerical positions needed should total nine rather than five Commissioner Jeffrey P Carver asked how the 1,500 projected new students compared with past years estimates Mr Carroll reported the Operations Research and Education Laboratory OR ED Lab returned this year with a growth percentage of 32 He stated based on historical data , the OR ED Lab has traditionally been accurate Commissioner Carver asked what kind of parent reactions had been received in response to the new bus routing system Mr Carroll stated overall Johnston County Schools have not had the negative reaction experienced in previous years He noted he felt parents this year would have more time to adjust to the new system Dr Parker informed the Commissioners that Johnston County Schools did not raised the fees associated with the before and after school care program He noted staff is currently reviewing the program in an effort to ensure the costs are uniform across the County Commissioner Carver thanked the Board of Education for not raising the before and after school care fees , noting many of Johnston County’s families are struggling enough as it is Dr Parker stated regarding the school buses , Johnston County Schools believes the ridership will increase 10 next year Mr Carroll commented even though they anticipate a 10 increased ridership , they do not believe new buses will have to be purchased for a minimum of two years Commissioner Allen L Mims , Jr stated many of the existing schools are getting older and may begin to show signs of wear and tear Commissioner Mims noted Johnston County Schools reduced the capital outlay funding request and asked if 2 million will be sufficient for capital outlay needs in the next fiscal year Mr Carroll stated as long as the County can continue to issue bonds , Johnston County Schools can continue maintenance on the existing schools Commissioner Mims asked for more information on the amount proposed for the classified pay adjustment for related work experience Dr Parker reported Johnston County Schools projected 410,000 for the classified pay adjustment based on current staff as well as projected future staffing needs Commissioner Wade M Stewart stated he calculated a 125 increase in the funding request from Johnston County Schools for this fiscal year Commissioner Stewart indicated the original formula established for funding increases was based on 3 and he questioned the 125 increase Mr Carroll noted the 3 formula was established approximately 12 years ago and has not been revisited since that time Mr Carroll stated the Board of Education must address unfunded State mandates and noted the bulk of increased expenses involve employee salaries , hospitalization , and other student costs Mr Carroll stated while the 3 formula was a good starting point , it has not allowed Johnston County Schools to address the actual growth they have experienced Commissioner Stewart asked if Johnston County Schools had any suggestions on how to address the salary increase for teachers , noting the Senate is still in the process of working through the State budget Page805 June 9 , 2008 – 6 00 pm Continued Mr Carroll stated based on information Johnston County Schools has received , they believe a 5 salary increase is a good estimate ; however , he cautioned the estimate is still uncertain at this time Commissioner Carver requested a revised funding request from Johnston County Schools that would indicate the 5 salary increase for teachers , versus the 8 increase Commissioner Stewart noted his concerns regarding the projected transportation costs and the new bus routing schedule Mr Carroll reiterated that based on the new bus routing schedule along with the projected new students , Johnston County Schools believes they will not have to purchase new buses for at least two years Mr Carroll reported Johnston County Schools does have existing buses in reserve , if needed Mr Carroll stated he appreciated the assistance from the Board of Commissioners 4 Johnston County Industries Vickie Shore with Johnston County Industries approached the Board County Manager Rick Hester reported 100,000 has been recommended for Johnston County Industries for fiscal year 2008 - 2009 Ms Shore confirmed that Johnston County Industries has requested 100,000 and appreciates all the support from Johnston County over the years Ms Shore reported Johnston County Industries will be relocating to their new facility in July and she feels the move will allow for future expansions and overall will be a great asset to the program Chairman Cookie Pope inquired as to the current number of people who are placed into employment by Johnston County Industries Ms Shore reported at any given time , approximately 250 to 300 people are placed into employment , and many of those are employed within the community Upon a question by Commissioner Wade M Stewart , Ms Shore reported Johnston County Industries is relocating to the former Eaton Corporation building in Selma She noted Johnston County Industries plans to market their existing structure for sale and use the proceeds from the sale to offset the cost of the Eaton building Ms Shore recognized John Shallcross , Jr , Johnston County Industries Board Chairman 5 Council on Aging and JCATS Donna Creech , Executive Director for the Council on Aging , addressed the Board and stated when the funding request for fiscal year 2008 - 2009 was made to the County Manager , the Council on Aging was unsure as to how much in Home Community Care Block Grant funds would be awarded Ms Creech reported the Council on Aging will be receiving approximately 18,000 in additional grant funds and noted there will be a 10 match for those funds Further , Ms Creech stated JCATS has not been advised of the amount of Rural Operating Assistance Program ROAP grant funds that will be awarded She noted some of the supplemental funding on the ROAP grant may not be received Ms Creech reported in the year ending June 2007 , the Council on Aging increased the number of participants in the home delivered meals program , general medical transportation program , in - home aids program , information assistance and individuals riding JCATS However , the number of people participating in the senior centers , without lunches , has decreased slightly Ms Creech further reported the number of volunteers have decreased which greatly impacts the programs offered by the Council on Aging Ms Creech stated fuel costs are rising and she anticipates the JCATS rates to increase approximately 12 to 18 The State is continuing to push the Council on Aging to develop a strategic plan Ms Creech noted a 3 flat salary increase has been proposed for employees Ms Creech reiterated that the volunteer help is decreasing and some of the senior centers may experience decreased hours of operation and may have to merge Ms Creech informed the Board that she will be retiring in November 2008 and she hopes to find a replacement by October PagePage pageNumber5806 June 9 , 2008 – 6 00 pm Continued In response to questions from Commissioner Jeffrey P Carver , Ms Creech reported the in - home healthcare provider is currently with Interim Health Care ; however , they will be contracting with Action Health Staffing in the future She stated Food Runners of Raleigh provides the in - home meals Ms Creech noted the 3 salary increase is a flat cost - of - living increase for all staff Commissioner Allen L Mims , Jr inquired as to the total budget of the Council on Aging and JCATS Ms Creech reported the Council on Aging and JCATS has a total budget of approximately 4 million Commissioner Wade M Stewart asked Ms Creech if she expected to serve more , less , or about the same participants in the upcoming fiscal year Ms Creech reported they anticipate serving approximately the same number of participants in the upcoming fiscal year ; however , she anticipates the budget to increase slightly She noted they will continue to be able to serve everyone due to cost savings in other areas At the inquiry of Commissioner Stewart , Ms Creech confirmed some of the senior centers may have to either close or consolidate if funding is limited Ms Creech reiterated volunteers are an important factor for the home delivered meals Ms Creech stated attendance at the senior centers is decreasing ; however , with rising fuel costs , the Council on Aging can look at opening the centers three or four days per week instead of five Ms Creech stated the total number of people served by the Council on Aging is approximately 5,000 to 8,000 for the various services She noted 393 people were served home delivered meals in 2007 for a total of 52,807 meals and approximately 405 people were served congregate meals at the senior centers in 2007 The Board took a five minute recess 6 Special Olympics Carolyn Stafford , Volunteer Coordinator for the Johnston County Special Olympics , thanked the Board for the past support from the County Ms Stafford provided the Board with an update of the ongoing athletic activities , noting the athletes have recently brought home medals in various competitions Ms Stafford informed the Board that the number of athletes has grown and volunteer help has increased with 70 new volunteers Five new sports have been implemented as well as new play activities have begun for age groups five to seven At the request of Chairman Cookie Pope , Ms Stafford introduced Special Olympics Athlete Matt Carpenter and noted he has been chosen to participate in the Idaho World Special Olympic Games in February 2009 competing in Alpine Skiing Mr Carpenter is one of four athletes chosen from North Carolina to participate in the games Ms Stafford also recognized her son Robby Stafford , and several Special Olympics volunteers in the audience Commissioner Wade M Stewart thanked Ms Stafford and all the Special Olympics volunteers for their efforts 7 Johnston Memorial Hospital Foundation – Johnston Hospice House April Culver , representing the Johnston Memorial Hospital Foundation , addressed the Board regarding the Johnston Hospice House project Ms Culver reported in 2006 , the State of North Carolina identified there was a need for a hospice facility in Johnston County , and the Foundation is committed to raising funds for the Johnston Hospice House Ms Culver informed the Board that the State has approved a permit for a 12 - bed facility to be located on the Bingham Park Property recently purchased by Johnston Memorial Hospital She noted the State has already identified the need for six additional beds at the facility for a total of 18 beds Ms Culver presented a rendering and proposed floor plan to the Board The Foundation is currently in the process of securing grant funding as well as funding through the community by offering naming opportunities and multi - year pledges Ms Culver stated the facility , once completed , will be very similar to the Kitty Askins facility located in Goldsboro , North Carolina Ms Culver noted in - home hospice care is currently available in Johnston County ; however , when a patient’s condition worsens , Johnston County has to refer patients to out - of - county facilities for assistance In response to a question from Commissioner Jeffrey P Carver , Ms Culver stated the facility will be constructed to allow for expansion ; however , she noted typically the facilities do not exceed 24 beds PagePage pageNumber6807 June 9 , 2008 – 6 00 pm Continued At the inquiry of Chairman Cookie Pope , Ms Culver reported a large percentage of the patients served in a hospice facility are cancer patients and are housed in the facility approximately 12 days before the end of their life She noted any patient with a terminal diagnosis can be housed at a facility upon the approval of their physician Ms Culver stated the center will offer a home type atmosphere and will place an emphasis on family Ms Culver stated the Foundation would like to request 250,000 from Johnston County , which could be a multi - year pledge at 50,000 per year for a period of five years Commissioner Allen L Mims , Jr inquired as to the Foundation’s plan for funding after the facility has been constructed Ms Culver reported Johnston Memorial Hospital has agreed to fund all operation expenses of the facility once it is constructed 8 Harbor , Inc Keri Christenson , Executive Director of Harbor , Inc , informed the Board that she had failed to submit Harbor’s non - profit grant application to the County by the deadline Ms Christenson stated she had been under the impression that Harbor had a three year commitment from Johnston County for non - profit grant funds ; however , she has since realized she misunderstood the original grant award from the County two years ago Ms Christenson expressed her appreciation for the past support from the County and asked the Commissioners to consider accepting Harbor’s application Ms Christenson submitted Harbor’s application to the Board for their review , which contained financial and updated statistical information Ms Christenson noted Harbor is requesting 12,500 in grant funds for fiscal year 2008 - 2009 and offered to answer any questions by the Board Commissioner Wade M Stewart stated he appreciated the work by Harbor Commissioner Jeffrey P Carver questioned the financial data submitted by Ms Christenson in the application Ms Christenson stated Harbor is still waiting for final word on other grant awards and she will begin to finalize their budget in the next week Ms Christenson reported she would provide a revised financial statement to the Board once it is completed Commissioner Allen L Mims , Jr stated the recreation non - profit grant committee would review the application by Harbor and return a recommendation to the Board 9 Beaver Management Assistance Program BMAP Greg Ellis , USDA Wildlife Services Specialist , addressed the Board regarding the Beaver Management Assistance Program BMAP Mr Ellis provided the following updated statistics to the Board , from July 1 , 2007 to the present Projects completed – 42 Total man hours worked – 66775 Beaver dams removed or destroyed – 81 Target species taken – 150 Value of resource losses – 18,018 Value of resource savings - 454,12418 Mr Ellis reported Johnston County has now exceeded the number of allowed BMAP work hours for the current Federal fiscal year , which ends in October 2008 Mr Ellis presented the following three options to the Board in order for BMAP work to continue in the County 1 Continuance of BMAP membership 4,000 annual fee of which begins on October 1 , 2008 This will mean a discontinuance of BMAP activities until October 1 , 2008 2 The County pays an additional 25,000 to cover additional BMAP man hours for the remaining Federal fiscal year 2008 Any funds not used in fiscal year 2008 will carry over into fiscal year 2009 PagePage pageNumber7808 June 9 , 2008 – 6 00 pm Continued 3 The County could pay for a full time BMAP position 54,000 equivalent to a full cost position for one year determined by Wildlife Services to be approximately 75,000 This would begin July 1 , 2008 Mr Ellis stated with the rate of growth in Johnston County , wildlife issues will continue to worsen and landowners will continue to see damage to their property from wildlife At the inquiry of Commissioner Wade M Stewart , Mr Ellis noted in the past , when the BMAP work has exceeded the allowed 450 hours of service in Johnston County , there had been other sufficient funding sources to cover the additional hours Mr Ellis explained that due to funding cuts , the additional funding is needed from Johnston County to continue services Mr Ellis reported the Federal program has cut the North Carolina Wildlife Services budget by 50,000 each year for the past three years for BMAP services After further discussion regarding the issue , it was the unanimous consensus of the Board to take the three options under consideration 10 Public Utilities – Proposed Process for the Water Treatment Plant – Orica Agreements Director of Utilities and Engineering , Tim Broome , PE , recalled that he had addressed the Board at the June 2 , 2008 regular meeting regarding a new magnetic ion exchange Miex process for the water treatment plant As stated at the June 2 , 2008 meeting staff has been negotiating with Orica Watercare , the manufacturer of the new process equipment and ion exchange resin Mr Broome stated staff has finalized the two contracts with Orica , one for provision of equipment contactor “ internals ” and resin makeup and regeneration systems , and the other for resin supply Mr Broome stated the equipment contract is for a lump sum amount of 2,170,000 The five 5 year resin supply contract is based on an initial charge of 1300 per liter for the first year with annual adjustments based on the US Department of Labor Consumer Price Index for all Urban Consumers CPI - U Mr Broome requested the Board to consider approving the two contracts with Orica , as presented , as well as allowing the Utilities Department to transfer 900,000 from Fund 69 – Reserves from this fiscal year’s budget , with the expectation that the County will be obtaining State Revolving Loan funds and or USDA loan and grant funds Upon a motion by Commissioner W Ray Woodall , seconded by Commissioner Tony Braswell , and carried by unanimous vote , the Board approved the County entering into the two contracts with Orica Watercare for the provision of equipment and resin supply for the Miex process at the Water Treatment Plant and further , to allow the transfer of funds from Fund 69 – Reserves in the amount of 900,000 to be applied towards the cost of the process , as indicated by the following budget revision Water District Funds FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION EXPENDITURE INCREASE DECREASE 69 69009023 Transfer to Other Funds 900,00000 TOTAL NET EXPENDITURES 900,00000 FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION REVENUE INCREASE DECREASE 69 690033990 Fund Balance Appropriated 900,00000 900,00000 TOTAL NET REVENUE 11 Public Utilities – Update on Water Supply Director of Utilities and Engineering , Tim Broome , PE , submitted updated information to the Board indicating the County’s water usage comparison from 2007 to 2008 Commissioner Jeffrey P Carver inquired as to the County’s current water supply capacity Mr Broome reported , with the County’s purchase agreements , the water supply capacity stands at 14 million gallons per day and without the purchase agreements , the water plant capacity is approximately 95 million gallons per day He stated the County still has more pumping infrastructure improvements to complete , which are under construction Mr Broome stated once the pumping improvements are completed , the County will be able to produce 12 million gallons per day PagePage pageNumber8809 June 9 , 2008 – 6 00 pm Continued Mr Broome indicated the alternate day watering schedule as well as the newly implemented tiered water rate is having a positive impact on the County’s water supply capacity There being no further business , Commissioner W Ray Woodall moved the Board adjourn Commissioner Jeffrey P Carver seconded the motion , which carried by unanimous vote The meeting adjourned at 8 20 pm ____________________________ Cookie Pope , Chairman Paula G Woodard , Clerk to the BoardPage