March 10, 2006 - 8:30 AM - County Board of Commissioners Meeting Minutes (Special)

10 437 Meeting of the Johnston County Board of Commissioners March 10 , 2006 The Johnston County Board of Commissioners met in special session Monday , March 10 , 2006 at 8 30 am at the County Agricultural Center , Highway 210 , Smithfield , 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 Lu Hickey and Robin Edwards , Facilitators The Chairman called the meeting to order and welcomed everyone to the retreat She turned the meeting over to Facilitators , Lu Hickey and Robin Edwards , who reviewed with the Board the proposed agenda , and went over the suggested ground rules for the retreat 1 Public Utilities Presentation Public Utilities Director Tim Broome thanked the Board for the opportunity to share items on the department’s horizon and discuss strategies to meet future challenges He introduced Assistant Utilities Director Haywood Phthisic , Business and Customer Service Manager Debbie Holloman , and Environmental and Utilities Engineer Chandra Coats Mr Broome began the presentation by highlighting the overall challenges facing the department , followed by a discussion on several topics including water supply , wastewater , and solid waste materials recycling Current Challenges • Expand infrastructure to stay ahead of growth o Overcome regulatory obstacles schedule delays , conflicting rules , and recalcitrant apathetic agencies o Arrange funding o Adjust user fees o Maintain competitive user fees o Manage construction • Comply with State and Federal regulations o Water Supply Counter conflicting criteria New tighter regulations o Wastewater Nitrogen N limit cap , cost of Nitrogen credits o Solid Waste Unresponsive state agency – acrimonious permitting process , recycling “ talk ” vs actual cost Water Supply Mr Broome noted the current number of retail customers is approximately 21,000 ; the number is expected to grow to 36,000 customers by 2020 The average daily demand for water is 6 million gallons per day gpd , and projected to reach 14 million gpd by 2020 Peak day demands are considerably higher ; 8 million gpd in 2006 , and 18 million gpd by 2020 Mr Broome outlined the following water supply challenges and strategies Challenges & Strategies Strategies in italics • Develop water supplies for service beyond 2014 o Negotiate purchase contracts with Harnett County , Wilson Wilson County , and Raleigh for near - term needs o Permit a new source supplied by Little River and Lower Neuse River for long - term needs o Devise and implement a formal water conservation initiative • Expand water delivery infrastructure to accommodate demands o Complete water district development two more districts o Continue annual capital program funded from current fund balance looping mains , reinforcing mains , storage tanks , and booster stations o Plan major transmission additions and fund with low interest loans or COP’s Page438 March 10 , 2006 Continued o Staff , equip , and fund pipeline construction group for small diameter mains and all taps starting in FY06 - 07 • Comply with new quality regulations and continuously deliver a palatable , aesthetically pleasing product o Fill Water Supply Manager position DONE o Expand sampling sites o Step up distribution system quality monitoring o Formalize flushing program o Pilot test supplemental treatment processes o Optimize treatment processes Mr Broome presented a graph of the projected water capital expenditures for FY 2006 - 07 thru FY 2030 - 31 Current capital expenditures for water are approximately 7 million Wastewater Mr Broome presented a map illustrating the areas of sewer service availability in the County , and a second map showing the Outside Residential Sewer Service Areas and Municipal Transition Districts The average daily demand for wastewater is 43 million gpd ; the peak daily demand is 6 million gpd The current wastewater treatment plant has the ability to handle 70 gpd By 2013 , staff anticipates the peak daily demand to be at 95 million gpd Mr Broome explained in detail the “ Nitrogen dilemma ” ; the NCDENR – Division of Water Quality has capped the total amount of nitrogen that the County can discharge into the Neuse River , without purchasing additional nitrogen credits from another discharger or from the State The Environmental Management Commission EMC has increased the price of nitrogen credits from 22 lb to 57 lb In addition to the Nitrogen dilemma , Mr Broome outlined the following wastewater supply challenges and strategies Challenges & Strategies Strategies in italics • Expand transmission infrastructure to accommodate growth in demand o Upsize , extend , expand developer installed gravity lines , wwps ’ , and force mains through annual capital expenditures o Plan , design , and permit transmission facilities 20 year growth , and pursue low interest State loan for construction o Approach regulatory permitting proactively • Expand treatment infrastructure to accommodate growth in demand o Plan , design , and permit wastewater treatment plant expansion for 10 year needs , and pursue low interest state loan for construction o Pursue NPDES discharge permit for 20 year needs o Approach regulatory permitting proactively o Permit and purchase new WWTP site • Nitrogen Dilemma o Optimize Nitrogen removal with available treatment processes o Expand reclaimed water system o Devise novel innovative program as an alternative to purchasing Nitrogen credits – special legislation required o File suit against NCDENR Mr Broome presented a graph of the projected wastewater capital expenditures for FY 2006 - 07 thru FY 2015 - 16 Current capital expenditures for wastewater are approximately 2 million Following discussion , Board members requested Mr Broome and staff to further look into the Nitrogen dilemma , and report back to the Board at a later time Solid Waste and Materials Recycling Mr Broome presented to the Board a graph illustrating landfill solid waste projections thru 2015 In 2005 , the landfill received approximately 31,232 tons of construction & demolition C & D waste and 108,750 tons of municipal solid waste MSW Projections for 2015 are 41,256 tons C & D and 143,650 tons MSW Johnston County’s MSW tipping fee is 33 per ton , and the average for the southeastern states is 3343 per ton Page439 March 10 , 2006 Continued Mr Broome outlined the following challenges for solid waste and materials recycling Challenges • Permitting and constructing a new C & D cell before existing cell is full • Filling the Landfill Operations Manager position • Locating and acquiring new convenience sites • Achieving timely permitting of future MSW cell • Generating adequate reserve funds for remediation and closure • Continuing to operate solid waste program with no capital debt Mr Broome presented a graph of the projected solid waste capital expenditures for FY 2006 - 07 thru FY 2013 - 14 Current capital expenditures for solid waste are approximately 19 million Following discussion , the Board thanked Mr Broome and his staff for the presentation 2 Solid Waste Convenience Site Program – Committee Recommendations Haywood Phthisic , Assistant Utilities Director , presented to the Board the following committee recommendations on the solid waste convenience site program The committee consisted of Commissioners Braswell , Mims , and Carver and several Public Utilities staff members • Change program to debit card system ; start with a “ punch ” card system and transition to electronic system within three years The charge would equate to 2 per cubic yard The cards would be sold for 50 for 25 cubic yards of garbage • Sell the cards as a commodity There would be no ID , vehicle or personal information requested by staff members Cardholders could easily loan their card to someone for a load • Accept only municipal solid waste which will fit into the compactor hopper opening approximately 40 ” x 40 ” For example , if someone wanted to bring a sofa , they would need to have it cut into pieces Large items would go to the landfill • For lost cards , the customer would have to buy a new card Commissioner Allen L Mims , Jr noted the intent of the proposed system is to make the convenience site program self sustainable , and eliminate the loss , approximately 700,000 annually , that the County incurs Commissioner Mims pointed out the committee is unsure whether the proposed fee will cover the expenses ; this will depend on the number of customers that choose to buy the cards Commissioner Tony Braswell reminded the Board that the reason the committee looked at the convenience site program was because people were abusing the sites The proposal is an alternative that will prevent multiple households from sharing a single decal for a set fee , and eliminate judgment calls as to what can and cannot be dumped at the sites Commissioner Jeffrey P Carver stated that First Citizens has agreed to sell the cards at its Johnston County branches for one year Commissioner DeVan Barbour suggested the committee consider cards in lesser increments for municipal customers or county residents that only use the sites occasionally Commissioner Wade M Stewart expressed concern the requirement , which reads “ Accept only municipal solid waste which will fit into the compactor hopper opening ” He declared this would lead to more trash and large items beside the roads throughout the county , and questioned how many residents would travel to the County landfill near Smithfield to dispose of the large items that would not fit into the compactor Commissioner Stewart stated , in his opinion , the proposal appears as a short term solution to a long term problem Commissioner Cookie Pope agreed with Commissioner Stewart’s concerns about more trash beside the roads rd Following further discussion , Board consensus was to place the item on the April 3 agenda 3 Transportation Planning UpdatePage440 March 10 , 2006 Continued Steven Finn , Director of Planning Zoning and Inspections , thanked the Board for the opportunity to provide an update ; he introduced Planning staff members Amanda Engesether and Berry Gray Mr Finn presented a map illustrating a projected land use plan for the county , which identified the rural , secondary , and primary land use areas , and noted the locations of the Municipal Transition Districts , Sewer Service Areas , and town jurisdictions He emphasized the importance of the projection as it relates to the county’s transportation network and utilities infrastructure plan , and suggested that his staff , the growth committee and the Planning Board begin taking steps to look at the matter further Mr Finn informed the Board that Commissioner Braswell , chairman of the Transportation Advisory Committee TAC , and other committee members had been working diligently on several projects , including a voluntary road fund program He stated that more information would be presented to the Commissioners over the next several months Commissioner Tony Braswell added that the County’s growth had significantly impacted transportation , and a potential plan may be in the works for the future He noted the TAC had been studying several projects , including the widening of Highway 42 , and substandard bridges on Highway 39 and over Interstate 95 at exit 95 in Smithfield and exit 106 in Kenly 4 Financial Update David Rose and Kyle Laux , with Davenport & Company LLC , presented to the Board a brief financial update on the following potential refunding opportunities • Series 1999 Installment Payment Revenue Bonds o 166 million original par amount issued in August 1999 o Used to pay a portion of the construction costs of the Riverwood and Clayton Elementary Schools , and the Heritage Center • Series 2001 Public Improvement Bonds o 25 million original par amount issued in May of 2001 o Issued to fund school construction costs Mr Rose noted the Local Government Commission’s and Davenport’s benchmark for refunding is debt service savings of at least 3 of the refunded principal amount on a present value basis Based on current market rates , the 1999 Installment Payment Revenue Bonds are on the edge of meeting the 3 benchmark ; the 2001 Public Improvement Bonds are approximately 30 basis points away from meeting the 3 benchmark The projected gross debt service savings , net the costs of issuance , for the 1999 bonds equals approximately 440,000 from Fiscal Years 2007 to 2022 ; the projected gross debt service savings , given a 30 basis point drop in borrowing rates and net the costs of issuance , for the 2001 bonds equals approximately 540,000 from Fiscal Years 2007 to 2021 Mr Rose requested the Board’s permission to continue monitoring the status of the refunding opportunities as borrowing and re - investment rates evolve over the next several months He stated this would strategically position the County to be able to take advantage of savings only if the refundings meet the savings benchmark of 3 He emphasized this would place the County at a no risk obligation to move forward should the situation not prove favorable , and the County would retain total control over the decision to move forward Following discussion , Board consensus was to allow Davenport to take the steps necessary to monitor the two refunding opportunities over the next several months There being no further business , Commissioner DeVan Barbour moved the Board adjourn Commissioner W Ray Woodall seconded the motion , which carried by unanimous vote ____________________________ Cookie Pope , Chairman ____________________________ April N Byrd , Clerk to the BoardPage