April 23, 1996 - 6:30 PM - County Board of Commissioners Meeting Minutes (Recessed)

April 23, 1996The Johnston County Board of Commissioners resumed regular session Tuesday, April23,1996, at 6 30 pm in the Johnston Memorial Hospital Cafeteria, Smithfield, North Carolina,with the following membersPresent Norman C Denning, Chairman, John M Booker, Vice Chairman, James WCash, Jerry F Wood, Cecil M Massengill, Eleanor N Creech and Cookie PopeAbsent NoneAlso Present Richard B Self, County Manager, Joyce H Ennis, Clerk to the Board, JohnstonMemorial Hospital Board of Trustees and Administrative StaffThe Chairman called the meeting to order and the following business was transacted1 Rezoning Case 146 - DecisionCASE #146 Petition to rezone approximately 21978 acres on NC 1010 ClevelandRoad in Cleveland Township from AR R-40 to Residential 30 Owner Troy LancasterEverett Knight, engineer with McKim Creed, presented the preliminary engineeringreport concerning flooding and erosion problems in Southgate Subdivision, Section XI, and theeffect rezoning the Troy Lancaster property would have on this situationHe reported the flooding problems in the lower areas of Southgate XI are primarilyfrom backwater from Mill Branch and excessive flow from the smaller of two watersheds thatextend into the subdivision Rynal Drive, which is a primary access into this section of thesubdivision, runs adjacent to one tributary and eventually crosses another He stated theculverts at the crossing are undersized and would not meet Department of Transportationstandards in order for Rynal Drive to be state maintained In addition, the culverts atdriveway crossings to the lots are also undersized, which creates additional overflow problemsHe noted further study would be needed to determine corrective measuresConcerning the Troy Lancaster property, Mr Knight stated that development of thistract would likely affect the existing problems at Southgate, however, rezoning from AR R-40to R-30 to allow approximately 20 additional homes to the development, would have little orno impactBased on the Planning Boards recommendation, and the engineering report fromMcKim Creed, Commissioner Cecil M Massengill moved the Board approve rezoning case#146 of approximately 21978 acres on NC 1010 from AR R-40 to R-30 Commissioner JerryF Wood seconded the motion, which carried by unanimous vote2 Financing Hospital Emergency Room - DiscussionChairman Denning thanked the Hospital Board of Trustees for inviting theCommissioners to hold their meeting at the hospital and for providing the delicious meal Heexplained the Commissioners would like to understand why the Hospital plans to borrowmoney for the emergency room project when it has more than sufficient reserve funds on handHospital President Lee Farnell asked Hank DeBragga, Chief Finance Officer, to reviewthe hospitals financial status with the Board Mr DeBragga went over the current financialreports He explained that a certain amount of money must be kept on hand at all times TheLocal Government Commission requires at least 8 of the current operating budget, however,he noted the LGC reports that an average of 1783 is kept in reserve by most similar entitiesHe noted the Duke Endowment looks at days of operation cash on hand and the average ageof depreciable assets As of 123195, the hospital had 127 days operating capital availableThese reserve amounts, plus funds for future renovations and equipment replacement, accountfor the current cash balance in excess of 13 millionMr Farnell noted the Board of Trustees and hospital staff believe it would be prudentto borrow funds for the new emergency room, and save the reserves for renovation and moremodern equipment He outlined a seven year project to modernize the hospital Plans includemajor renovation to the first floor with an emphasis on outpatient services He referenced amedical mall approach with treatment rooms, ambulatory surgery areas, up-to-date radiologyand laboratory equipment, and a cardiopulmonary unit Other proposed renovations includeupgrading patient rooms, obstetrics, and the dietary area Total cost of these renovations aspresented is estimated at 125 million He noted this could possibly be pared down some sincethese are preliminary plans and are subject to some changes277Commissioner Cookie Pope asked how the hospital could justify spending money on newfacilities when the recently constructed medical arts building is still virtually empty She askedif this building could be utilized to provide some of the needed services Mr Farnell respondedthe medical arts building should have additional tenants in the near futureIn response to a question from Commissioner John M Booker, Mr Farnell explainedthe proposed 125 million would come from hospital reserves, and the County would not beasked for further assistanceCommissioner Pope questioned why the hospital needs Quorum Health Resourcesmanagement services Mr Farnell and the Trustees responded that Quorum saves the hospitalmore each year than the annual fee of 250,000 plus salaries Quorum provides access to thelargest purchasing consortium for competitive pricing on medical supplies and equipmentTrustee Chairman, Melvin Edwards, stressed the contract is reviewed annually and the Boardof Trustees is well satisfied with the serviceIn relation to the proposed renovations, Commissioner Pope asked how much input themedical staff has had on the plans Mr Farnell stated several doctors were on the planningcommitteesCommissioner Eleanor N Creech expressed her appreciation to the Board of Trusteesand hospital staff She noted the facilities must be updated in order to attract good doctors tothe areaFollowing further discussion, Commissioner Jerry F Wood moved the Board supportthe hospitals request to borrow 4 million for construction of the emergency roomCommissioner John M Booker stated he was not prepared to vote on the issue at thistime He noted he would prefer time to review the information presented at this meeting, asthis was the first time he had heard of the seven year renovation project He stressed that hefully supports the advancement of Johnston Memorial Hospital and good health care inJohnston County, however he would like to further study the facts and figures before makingany decisionIn response to Commissioner Bookers comments, Commissioner Wood withdrew hismotionThere being no further business, Commissioner John M Booker moved the Boardadjourn Commissioner Jerry F Wood seconded the motion, which carried by unanimous voteNorman C Denning, ChairmanJoyce H Ennis, ClerkDetailsAnnotationsEntry PropertiesModified11192013 114232 AMCreated492003 102207 AMTemplateMinutesFieldsMinutes - TypeRecessedMinutes - Date4231996Book20