February 9, 2007 - 1:00 PM - County Board of Commissioners Meeting Minutes (Special)

10 92 Meeting of the Johnston County Board of Commissioners February 9 - 10 , 2007 The Johnston County Board of Commissioners met in special session Friday , February 9 , 2007 and Saturday , February 10 , 2007 at the Sheraton New Bern located at 100 Middle Street , New Bern , NC 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 , April N Byrd , Clerk to the Board , John R Massey , Finance Officer , J Mark Payne , County Attorney , Deva C Holt , Deputy Clerk , and Pat LaCarter and Eleanor Green , Facilitators The Chairman called the meeting to order at 1 00 pm and welcomed everyone to the retreat She turned the meeting over to Facilitators Pat LaCarter and Eleanor Green , who reviewed with the Board the proposed agenda , and went over the suggested ground rules for the retreat 1 Financial Update David Rose and Kyle Laux , with Davenport & Company LLC , gave a brief financial presentation , which included the following items • Update on the County’s financial standing as it relates to capital funding following the successful Spring 2006 New Money - General Obligation Bond Issue and Fall 2006 Installment Payment Refunding Transaction o June 9 , 2006 – Moody’s reaffirms rating of Aa3 ; S & P reaffirms rating of AA - with stable outlook o July 11 , 2006 – County successfully sells 37,500,000 of New Money – General Obligation Bonds for public schools ; Bond issue results in an all - in fixed borrowing rate of 450 o November 1 , 2006 – County successfully sells 13,625,000 of Installment Payment Revenue Refunding Bonds resulting in debt service savings of 565,000 o November 17 , 2006 – County updates the Local Government Commission on the plan to move forward with the Spring 2007 Referendum for public schools , community college , and recreation facilities • Update on the effect of the planned Spring 2007 Referendum on the County’s debt affordability o Working with Davenport , the County updated its original five year bond issue strategy for the balance of the 2005 Referendum and the new Spring 2007 Referendum to a four year timeframe This is a strength of the County to pay off debt quickly , creating more debt capacity o To help facilitate the faster timing of debt issuance , the County is planning on dedicating a portion up to 2 million per year of the monies from the NC State lottery fund to offset debt service on the new debt o The updated plan continues to maintain the County’s strategy of debt issuance without increases to the real estate tax rate • Recommendations for maintaining enhancing the County’s existing credit ratings o Continue past conservative budgeting practices , and maintain substantial fund balance levels o Consider the adoption of formalized financial policy guidelines related to Outstanding Debt and Debt Service Levels Reserve ie Fund Balance Levels Capital Improvement Budgeting Cash Management Investment Management Mr Laux stated that Davenport would return to the Board with a detailed time schedule for the planned Spring Summer 2007 New Money Bond Issue and a possible refunding opportunity in regards to 2001 General Obligation School Bonds County Finance Director John Massey mentioned the County has approximately 800,000 in lottery funds that can be drawn down from the State at any time to be used toward school construction or debt service To do this , the Commissioners will need to request that the State release the funds to the County Commissioner DeVan Barbour suggested the Finance Committee discuss the adoption of formalized financial policy guidelines , as proposed by Davenport , in conjunction with FY 07 - 08 budget preparations Page93 February 9 - 10 , 2007 Continued Commissioner Jeffrey P Carver agreed this is a very important item that the Finance Committee needs to discuss soon 2 “ What We Do Well Would Like To Do Differently ” Discussion The Board discussed the following questions , and came up with a respective list for each item What do we do well as a Board Organization • Communicate well • Agree to disagree • Keep each other informed on what is going on in our areas ; share what we hear • Will talk about anything • Use individual talents within the Board ; use individual skills to help work on County issues • Work well with municipalities and the school board • Make people feel comfortable at board meetings • Listen well to citizens and others • Promote positive relationship between Board and staff ; employees feel supported and valued • Help employees gain education and experience and move up the ladder • Encourage customer driven organization , and constantly focus on improving customer service • Endorse great web page • Support County Manager for customer service and growth of staff • Encourage staff to share with Board • Possess conscientious and competent staff • Respect Board members and staff ; no backstabbing • Adopt informal motto , “ We aim to please ” What would we like to do differently as a Board Organization • Need to communicate better collectively than we do as individuals ; sometimes Board members feel left out of the loop • Get off track at times during Board meetings ; need to stay focused What do we want to accomplish in the next 12 months to 5 years • Adopt long - range plan and land - use policy • Identify space requirements for government offices , jail and possible courtrooms • Focus on transportation and traffic planning • Work with legislature to address needs ; host legislative breakfast • Be more pro - active with DOT • Examine landfill situation and whether there is a potential for a revenue source • Discuss “ Greenbox ” situation • Address trash on highways , and litter problems • Look at comprehensive County beautification plan • Address issue of mobile classrooms on school grounds • Continue to appoint qualified individuals to boards and committees ; avoid political patronage • Try to maintain agriculture land conservancy , ie Voluntary Agriculture District Program It was the consensus of the Board to request the County Manager look at the “ What Do We Want to Accomplish ” list , and come back to the Board with recommendations on how to address these items 3 Public Utilities Presentation Public Utilities Director Tim Broome made a brief presentation on the County’s water needs and wastewater collection treatment According to 2006 data , the County used 75 mgd of water on average days and 100 mgd on peak days By 2040 , the projected water demand is approximately 230 mgd for average days and 300 mgd for peak days Mr Broome explained the following current and proposed future water supplies , and the projected capital cost Page94 February 9 - 10 , 2007 Continued Current Supplies Neuse River Wilson’s Mills Water Treatment Plant at Build - out 120 mgd Smithfield Purchase Agreement 20 mgd Benson Dunn Purchase Agreement 05 mgd Harnett County Purchase Agreement 20 mgd Subtotal 165 mgd Proposed Future Supplies Wayne Sanitary District 05 mgd Sampson County Purchase Agreement 05 mgd Wilson Wilson County Purchase Agreement 05 mgd City of Raleigh 10 mgd Lower Neuse River New Water Treatment Plant at Princeton 240 mgd Subtotal 265 mgd TOTAL 430 mgd Project Capital Cost for Water Supply 2007 - 2010 100 million 2011 - 2014 80 million 2015 - 2021 240 million 2022 - 2028 160 million 2029 - 2040 240 million Total 820 million Mr Broome stated there are numerous financing options including water - district lease purchases , revenue bonds , certificates of participation , Federal and State grants , and State revolving loans He noted that staff proposes the Board consider adjusting the minimum monthly water charge from 15 to 17 , the assessment fee for residential taps from 550 per tap to 600 , and capacity fee for bulk purchase and commercial usage from 250 per gpd to 300 He concluded the portion of the presentation on the County’s water needs by mentioning the following challenges Near - term Challenges for Water Supply • Maintaining quality in the distribution system • Compliance with forthcoming Federal quality regulations • Reducing peak daily demands and increasing conservation measures • Extending service to existing homes and businesses with well problems • Upgrading fire protection by adding more fire hydrants and upgrading hydraulic capacity in certain areas • Staffing to keep up with water system growth Mr Broome continued the presentation with comments on the County’s wastewater collection and treatment system The County’s current wastewater treatment surplus capacity is 260,000 gpd , and there is 300,000 gpd worth of sewer capacity requests in the “ que ” By 2010 , the projected wastewater demand is approximately 80 mgd for maximum monthly flow , and by 2030 , this is expected to be over 140 mgd The 20 year wastewater facilities plan is anticipated to cost the following Phase 1 19 million Phase 2 10 million Phase 3 14 million Phase 4 12 million Total 55 million Mr Broome stated the plans are to fund the first phase with a State Revolving Fund - Low Interest Loan in the amount of 16 million , and a County contribution of 3 million from Fund 68 Reserve Similar to the water supply discussion , staff proposes the Board consider adjusting the monthly sewer charges for customers to help fund the 20 year capital plan He noted that additional wastewater treatment plant capacity and associated funding would be required if the Outside Residential Sewer Service Areas ORSSA were expanded to include the McGee’s Crossroads , Little Creek and Archer’s Lodge areas Mr Broome concluded the presentation on the County’s wastewater needs by mentioning the following challenges Page95 February 9 - 10 , 2007 Continued Near - term Challenges in Wastewater • Delays obstacles in the Division of Water Quality capacity permitting • Avoiding piecemeal development of sewer infrastructure • Acquiring sewer line easements • Staffing to keep up with expanded wastewater services and facilities Following brief discussion on the County’s water and wastewater needs , it was the consensus of the Board to requests staff put together options in regards to possible water conservation measures 4 Growth Management Presentation Assistant Planning Director Berry Gray gave an overview of the proposed plan as presented by the Growth Management Committee GMC to the Commissioners He specifically mentioned the following items outlined in the plan • The GMC recommended that all land presently zoned to permit residential dwellings has a use , as of right , to be developed at an average density of one dwelling per two acres of useable land There should be two choices for individuals who wish to go through the subdivision process 1 standard subdivision and 2 special use permit subdivision Mr Gray explained these two choices in detail • Measures recommended to assist the County to live within its means or increase its revenues 1 The “ cap on permit ” ordinance of 2000 that was designed to only build as many homes as the County could finance school capacity for the children they produced 2 Impact fees , land transfer fees and an increase in ad valorem property tax 3 Adoption of a four - year revaluation 4 Local bill allowing the County to use the “ Welcome Stranger ” method of property valuation 5 Multi - track year round schools Mr Gray stated the Planning Board has reviewed the plan , and voted to recommend approval to the Commissioners Commissioner Allen L Mims , Jr , member of the GMC , stated the group looked at numerous factors that affect the County He emphasized the desire to maintain the County’s rural character was especially considered Commissioner Mims pointed out the density requirement would allow a farmer to take advantage of development and continue to farm , while preserving the County’s rural character and open space for years down the road It was the consensus of the Board to focus the dialogue around three items 1 pace of growth , 2 location of growth , and 3 quality of growth The following is a list of comments made by Board members Pace of Growth • Feel that the pace of growth needs to keep up with infrastructure • Want to see County set the bar and then ask municipalities to follow • Need to decide what the number is for growth within infrastructure capability • Need to study above recommendations 1 - 5 in the report • Ask staff to perform analysis on above recommendations 1 - 5 outlined in Growth Management plan • Need to also analyze what would happen with spike in growth or with significant decrease in growth Location of Growth • Would like to see current municipalities and land values preserved , and maintain County’s rural character Quality of Growth • Would like to see well - designed houses and subdivisions that are not “ doomed for failure ” • Would like to see developers place consideration on amenities • Suggest looking at possible subdivision ordinance Commissioner W Ray Woodall moved the Board recess the meeting for the evening , and reconvene at 8 30 am Saturday Commissioner Jeffrey P Carver seconded the motion , which carried by unanimous vote The meeting was recessed at 6 32 pm PagePage pageNumber596 February 9 - 10 , 2007 Continued Chairman Pope called the meeting back to order at 8 35 am Saturday , February 10 , 2007 The Board continued the discussion on growth management with conversation about the following items • Concern about traffic issues and congestion , and the need to deal with problems now • Need better transportation planning and more County input in process • Need patterns that promote flowing traffic • Need support from the NC Department of Transportation • Suggest starting discussion with County’s Transportation Advisory Committee • Need to reserve corridors and right - of - way so roads can be built properly • Need to make immediate plan ; time is important Following discussion about the next step in regards to the Growth Management Plan , Commissioner Wade M Stewart moved the Board authorize the County Manager to form a stakeholder work group blue ribbon committee consisting of the members as listed below , and give them an objective to review and critique st the proposed plan , produce a proposal of their own or amendment to the proposed plan by June 1 , and include with their actions their opinions regarding the five recommendations outlined in the plan , reviewing the rural character of the County , considering an effective growth pace for the County , and giving consideration to future locations of growth Commissioner DeVan Barbour seconded the motion Members • Two representatives from each town • Two representatives from the County Economic Development Board • Two representatives from the Homebuilders Association • Two representatives from the Board of Realtors • Two representatives from the Surveyors Engineers profession • Two representatives from the Bankers profession • Two representatives from the Board of Education • One representative from each of the Commissioners ’ districts , nominated by Farm Bureau • County Planning Director , as needed • County Utilities Director , as needed Discussion Commissioner Allen L Mims , Jr stated a committee for this purpose should be much smaller In his opinion , the Board should either vote on the Growth Management Plan as presented , or put in place a moratorium on new subdivisions until the County gets a plan to act upon Commissioner DeVan Barbour agreed that the committee should be functional , however , he opposed the idea of a moratorium Commissioner W Ray Woodall supported Commissioner Stewart’s proposal Commissioner Jeffrey P Carver stated he feels the proposed committee is too large He expressed concern that the group would not have sufficient information to adequately review the plan Commissioner Tony Braswell commented that it would be better if the committee was smaller Vote Ayes Commissioners Cookie Pope , Wade M Stewart , W Ray Woodall , DeVan Barbour , and Tony Braswell Nays Commissioners Allen L Mims , Jr and Jeffrey P Carver After a self - critique of the retreat by Board members , and conclusion that there was no further business , Commissioner W Ray Woodall moved the Board adjourn Commissioner Allen L Mims , Jr seconded the motion , which carried by unanimous vote The meeting adjourned at 10 35 am ____________________________ Cookie Pope , Chairman ____________________________ April N Byrd , Clerk to the BoardPage