MINUTES
STATE
OF NORTH CAROLINA BOARD OF COMMISSIONERS
COUNTY
OF HENDERSON JUNE 9, 2009
The Henderson
County Board of Commissioners met for a special called meeting at 7:00 p.m. in
the Commissioners' Meeting Room of the Historic Courthouse on
Those present
were: Chairman William L. Moyer, Vice-Chairman
Also present
were: Associate County Attorney Sarah Zambon, Public Information Officer Intern
Christina DeStefano, Sheriff Rick Davis, Finance Director J. Carey McLelland, Health
Director Tom Bridges, County Engineer Marcus Jones, Planning Director
Absent was: Clerk to the Board Teresa L. Wilson.
CALL TO
ORDER/WELCOME
Chairman Moyer
called the meeting to order and welcomed all in attendance. The main purpose of the meeting is the
continued discussion of the FY2009/2010 budget.
Commissioner McGrady made the motion to approve the
agenda as presented. All voted in favor
and the motion carried.
IMPORTANT DATES
Chairman Moyer
noted that a Public Hearing on Economic Development Incentives for Project
Safety Point 2 needs to be scheduled.
Chairman Moyer made the motion that the Board sets a
Public Hearing on Economic Development Incentives for Project Safety for 4:00
p.m. on Monday, June 22, 2009. All voted
in favor and the motion carried.
CONSENT AGENDA
Lease with Sixth Avenue Rehabilitation Partners,
Inc.
A draft lease between Henderson County and 6th
Avenue Psychiatric Rehabilitation Partners was provided for the Board’s
consideration. The annual lease amount
specified is for $70,332.
Staff recommends the Board approves the proposed
lease and authorize the appropriation of fund balance in this amount, currently
being held with Western Highlands LME, be appropriated to 6th Avenue Clubhouse to cover the
lease payment.
Commissioner McGrady made the motion to approve the
consent agenda as presented. All voted
in favor and the motion carried.
FY2009-2010
BUDGET DISCUSSIONS
Disabled American veteran’s
transportation network (DAvtn)
Chairman Moyer
stated that Christopher Westall, Commander of Chapter 14 for the Disabled
Americans Veterans,was present and has been working on the transportation
network issue for a while and is an expert on this and what this will do for
our county. The Commissioners received a
memo prepared by Chris with respect to the programs along with a letter of
endorsement from Mike Murdock. He asked
Mr. Westall to come to the podium to present additional information to the
Board.
The Unmet
Need: DAV Chapter 14 serves a community
of approximately 30,000 veterans in Henderson, Polk, and eastern Transylvania
counties. Currently, there is no viable
transportation system in place to serve veterans without transportation who
must travel to/from medical appointments at Charles George VA Medical Center
(CGVAMC) Asheville, NC. The unmet need,
identified through VA Voluntary Services, was placed at 40 veterans per week in
2007.
The Proposed
Solution: DAVTN was immediately
identified as a logical solution. The
program provides assistance to Chapters and has placed over 2,000 vans in
service nationwide since inception.
Through fundraising and donations, Chapter 14 has secured the funding
for our portion of the van acquisition cost under the DAVTN program, but we are
seeking to partner with the counties in our service area as well. A timetable and outline of the process is
provided:
Statement of
Intent: It is the intent of DAV Chapter
14, with the assistance of our partners, to purchase a van to be placed in the
DAV Transportation Network at Charles George VAMC. Point of contact is Commander Christopher
Westall, DAV Chapter 14.
Mr. Westall spoke
with Charles George VA Medical Center earlier in the day and received a
tentative approval on their part that they will accept a van if purchased
during this year’s cycle of transportation network. Headquarters in Raleigh advised him that in
North Carolina there are fifty-seven (57) chapters of Disabled American
Veterans. Currently there are fifty-two
(52) vans in service serving all four medical centers. There has never been a van in Hendersonville
since the program started 12-15 years ago.
Chairman Moyer
noted that the program is subsidized in several ways with the initial cost of
the van in the $25,000 range. Once the
van is obtained all future cost are borne by the hospital; if additional funds
are raised and there is a continuing need, there is hope of obtaining a second
van.
Commissioner Williams made the motion that the Board
allocates in their budget $5,000 to go toward the purchase of a van for
DAVTN. All voted in favor and the motion
carried.
Mr. Westall
stated if the other two counties do not participate DAVTN has monies set aside
for this project. They are seeking partnership
with all three counties. Pending the
outcome of this request, he would next be going to Transylvania and Polk
Counties.
Henderson
County FY 2009-2010 Budget Talley
|
|
Reductions |
Additions |
Total
Budget |
Fund Balance
Appropriated |
|
Issues from May 20th Budget Workshop |
$
109,480,098 |
$ 2,267,171 |
||
|
1) Two DSS
Positions recommended for elimination |
|
$
87,772 |
$
109,567,870 |
$ 2,354,943 |
|
2) Repair/replace
E911 fiber link |
|
$
28,605 |
$ 109,596,475 |
$ 2,383,548 |
|
3) Back-up
generator for IT and Detention Center |
|
|
$ 109,596,475 |
$
2,383,548 |
|
4) School
Resource office contract. The Board
may wish to subsidize this program is funds are cut. Changes the Fund Balance needed, but not
the Total Budget. |
|
$ 68,648 |
$
109,596,475 |
$ 2,452,196 |
|
5) Frozen/funded position |
$
246,998 |
|
$
109,349,477 |
$ 2,205,198 |
|
6) Fuel Costs -
$4.00 per gallon used for budget. Each
$0.25 reduction in costs equals a $47,000 savings |
$ - |
|
$
109,349,477 |
$ 2,205,198 |
|
7) Economic
Development/Chamber Building |
$ 12,900 |
|
$
109,336,577 |
$ 2,192,298 |
|
8)
Payoff schedule for debt service on 6th
Avenue Clubhouse – County will receive two years of lease payments from 6th
Avenue. Changes the Fund Balance
needed, but not the Total Budget |
$ 70,332 |
|
$
109,336,577 |
$ 2,121,966 |
|
9) Health
Department Overflow Parking Lot.
Option #2 is to gravel the lot at $11,000. |
|
$ 11,000 |
$
109,347,577 |
$ 2,132,966 |
|
10) School
Expansion Request - Current School Expansion Request – Capital |
|
$187,017 |
$
109,534,594 |
$ 2,319,983 |
|
|
$345,000 |
$
109,879,594 |
$ 2,664,983 |
|
|
11) Freeze
appropriation of school capital funding to schools based on State ADM
decision. Changes the Total Budget
needed, but not Fund Balance. |
$ - |
|
$
109,879,594 |
$ 2,664,983 |
|
12) State ADM
decision impact. Changes the Fund
Balance needed, but not the Total Budget. |
|
$ - |
$
109,879,594 |
$ 2,664,983 |
|
13) Property/Liability
insurance Reduction |
$
210,306 |
|
$
109,669,288 |
$ 2,454,677 |
|
14) Tax Function
Consolidation - $ to be determined |
|
|
$
109,669,288 |
$ 2,454,677 |
|
Issues from June 1st Public Hearing |
|
|||
|
15) Lead Poisoning
Prevention Program |
|
$ - |
$
109,669,288 |
$ 2,454,677 |
|
16) Hendersonville
Trolley |
|
$ - |
$
109,669,288 |
$ 2,454,677 |
|
17) Construction
Control Proposal (Estimated at $9,000 monthly) |
|
$
108,000 |
$
109,777,288 |
$ 2,562,677 |
|
18) Veteran’s
Clinic Transportation Van |
|
$ 5,000 |
$
109,782,288 |
$ 2,567,677 |
|
19) Soccer Fields
– Cost To Be Determined |
|
|
$
109,782,288 |
$ 2,567,677 |
|
TOTAL |
$
540,536 |
$
841,042 |
$
109,782,288 |
$ 2,567,677 |
Assistant County
Manager Selena Coffey went over the list as follows:
1)
The
two DSS positions as recommended for elimination were Volunteer Services
Coordinator and Computer Tech Support position.
DSS has asked that those positions be titled as Income Maintenance
Caseworker positions. No action was
taken by the Board at this time.
2)
Repair/replacement
of the E911 fiber link which was cut several years prior. Sheriff Davis stated that there have been no
major outages attributed to Repair/replacement of the E911 fiber link which was
cut several years prior. Sheriff Davis
stated that there have been no major outages attributable to the existing
link. The issue is that if the main line
is broken there is no back up for 911 capabilities. No action was taken by the Board at this
time.
3)
Back-up
generator for IT and Detention Center – A large portion of servers and
technology equipment is housed in the 1995 Courthouse with virtually no
back-up. Marcus Jones stated that
originally a project budget was established of $300,000. At the end of the design phase it was
realized that it was not a matter of reconfiguration of wiring infrastructure
on the existing generator as it does not have the capacity to supply what is
needed. Another generator has been
identified at the cost of $150,000. Mr.
Jones should have a more accurate figure by Thursday of this week. No action was taken by the Board at this
time.
4)
School
Resource office contract – The State is possibly going to cut the funding for
school resource officers program. Ervin
Bazzle noted that the State House proposal does suggest a cut of approximately $2,000
per officer over the funding given. The
State has never fully funded the school resource program for the total
cost. It has been subsidized by at risk
money (Program 69) that the school receives for children at risk. These funds have also been cut. The school officials feel that this program
is very important and should be a priority.
Sheriff Davis stated that based on the numbers provided by Dr. Page the shortage
would be $68,648. This item will
tentatively be placed in the budget.
5)
Frozen/funded
positions – Commissioners McGrady and Young felt that these positions should
not be funded at this time and as the positions are needed the budget be
amended at a later date. Commissioner
Williams and Messer felt that the funding should remain as some funds should be
earmarked; six months funding would be appropriate. After further discussion it was the
consensus of the Board to tentatively fund the frozen positions for 6 months
and see how things progress. If things
improve and there is need in a certain area then the County Manager can move on
that certain position but not necessarily all of them.
6)
Fuel
Costs – Each $.025 reduction in cost equals a $47,000 savings. County Manager Steve Wyatt reminded the Board
of the substantial increase by Duke Energy recently. Should there be a substantial increase for
part of the year, perhaps some of these fuel funds could be considered for use against
the utility costs. It was the consensus
of the Board to continue the fuel cost budget at $4.00 per gallon.
7)
Economic
Development/Chamber Building – Ms. Coffey stated that this pertains to the
$17,000 rent amount that we are currently giving the Partnership for Economic
Development in our contribution to them.
The discussion has been that the Partnership moves in to the top portion
of the Chamber Building. This amount
could be cut if the Board chose to do so.
This figure is for the entire year and the Partnership has indicated two
to three months to up-fit the building.
The Board may consider looking at a 3/4 impact range, which may be
appropriate. Major improvements such as
the roof would be a cost to the County; cosmetic improvements would be a cost
to the Partnership. It was consensus
of the Board to take a ¾ cost reduction at $12,900.
8)
6th
Avenue Clubhouse – This item was completed during the Maintenance of Effort
discussion.
9)
Health
Department overflow parking lot – Option #2 is to gravel the lot at
$11,000. Health Director Tom Bridges
stated that the environmental health trucks are being parked in this area; many
are four wheel drive. It was the
consensus of the Board to spend $11,000 to gravel the parking area.
10) School Expansion
Request, current, School Expansion Request, capital - Ervin Bazzle spoke to the
$187,017 for current expenses; he felt this was the critical amount. This is composed of the increase and employer
match in hospitalization and retirement plus utilities. No action was taken by the Board at this
time.
11) Appropriation
for School funding and proposal to freeze for capital funding – $449,000 is in
the budget, however the County Manger is suggesting that the funds be frozen
until we know what will happen with regards to the State. This would change the fund balance but not
the total budget. Chairman
Moyer made the motion that the $449,000 for school funding not be frozen from
the budget. All voted in favor and the
motion carried.
12) State ADM
decision impact – This money has been budgeted and if it not received it will
be taken from Fund Budget. This would
reduce Fund Balance by $449,000 for a total reduction of $750,000.
13) Property/Liability
Insurance Reduction – We have received notification that there will be a
reduction in our premium in the upcoming budget year. There were no issues with respect to
insurance reduction.
14) Tax Function
Consolidation – The Board will continue to study this issue with respect to
putting the Assessor and Collector possibly under one person. There is nothing that would immediately
impact the budget coming out of the reorganization at this time. The Board is looking for savings but they
have not materialized at this point. Tax
Assessor/Interim Collector Stan Duncan stated that there are issues with
regards to the current budget as proposed.
He asked that the Board consider a transfer of a position from Collections
to Assessment as a Tax Relief Programs Assistant with an increase in budget of
approximately $8,000, and fill the vacant GIS Mapping position at $45,342. Mr. Duncan asked that after the move to 100
N. King Street that the safety of the monies being collected by the County, for
the County, be a priority in the transfer of staff. He requested that monies be set aside for the
completion of Map Matrix, Phase II (software program) in the amount of $14,700
as a continuing budget item to dissipate the coming year. Mr. Duncan further requested the funding for
Experian QAS at $6,600. This project has
been found to be the best internal solution for the money to improve mailing
addresses. In regard to Travel &
Staff for Tax Collections, this area has been neglected in the past. He did not feel that this was the time to
reduce additional training expenditures.
Finally, the need for a marked vehicle notifying people that we are from
the County with 4WD capability. The
Board will look further at this information and no action was taken at this
time.
15) Lead Poisoning
Prevention Program - Chairman Moyer stated the Board had received several
presentations with respect to lead poisoning prevention programs and they were
obviously very good programs. These were
evaluated when the budget was done and the decision was made not be put any
special additional monies into this program at this time. The Board did not propose any additional
monies with respect to the lead poisoning prevention program.
16) Hendersonville
Trolley – A request was received by the Board for funding of the trolley. The Board did not propose any funding for
the trolley.
17) Construction
Control Proposal – No action was taken by the Board at this time.
18) Veteran’s Clinic
Transportation Van – Covered earlier in the meeting.
19) Soccer Fields - No
action was taken by the Board at this time.
In regards to
capital projects, Chairman Moyer noted that the situation with the State is
critical. He feels that we have not yet
heard the full extent of what is going to be put on the County with respect to
having to pick up more and more of the burden.
This is probably a two to three year problem with respect to capital
projects. Major changes have been made
in the budget and more cuts may still need to be made. The Commissioners are committed to not
raising taxes this year. Chairman Moyer
feels that it will be essential to not raise taxes in the next fiscal year as
well when you look at the affect on our people.
We will need to continue to find ways to help our small business people
survive.
With respect to
what the State is doing, it is unfortunate especially with the affect it will
have with respect on education and teachers. Chairman Moyer did not feel that it would be
possible to support moving forward on the capital projects until we see that
there is a true turnaround. To put money
into capital projects now when we are facing serious loss of teacher positions,
no increases to county employees, and possible severe cutbacks in other
positions within the county cannot be justified. It would not make sense to discuss
Construction Control until we see where we are in capital projects. He did not want to see any additional long
term debt.
Commissioner
McGrady disagreed with Chairman Moyer’s position. He felt that the suggestion of not moving
forward with Apply Valley/North Henderson and the preliminary work on the Law
Enforcement Center is a mistake. You
must look at it in the amount of debt that is coming off of our books over the
next two years, which is approaching $3 million. Taking into account also how relatively cheap
it is to fund capital projects and the experience we are having with capital
projects in terms of their cost, we can potentially have a 20 to 30% savings by
moving forward with these capital projects at this point and time when the
financing is relatively cheap and construction is cheaper than we have seen it
recently. He was particularly concerned
with the point suggested that we may be seeing some teacher layoffs and almost
suggesting that we may need to be called upon at some point to make up the
State’s part of some of the programmatic side of the schools. Once we start funding programmatic pieces, where
do we stop. We need to stick with the
responsibility for capital projects that we have on our plate.
Commissioner
Young was in agreement with Commissioner McGrady. There is $1.5 million of maintenance repair
at Apple Valley/North Henderson which he feels with the new construction should
be tied together. It can be done cheaper
during this window of opportunity which will close in the near future. This will be done with retired debt service
payments so it will not actually run the expenditures up enough to have to
raise taxes. In the coming year we have
more debt service retirement coming off and he would be in favor of doing more
capital projects at this opportune time.
Commissioner
Williams requested numbers from Finance Director Carey McLelland; under
estimates of debt servicing for the projects that we have tentatively
considered at this point, Apple Valley/North Henderson, the Health Department,
etc. what is the total?
Mr. McLelland
responded that programmed into the budget and included as an increase in debt
servicing, a little over $300,000; a full year would be around $1.2 million.
Commissioner
Williams stated a little less than $800,000 is coming off in the coming year
and approximately $2.2 million the following year.
Mr. McLelland noted
that the $3 million is a little bit further down the road. In 2010 it is right at $800,000 rolling off
and then combined in 2011 it is right at $2 million coming off. This would make the total coming off in 2011
approximately $2 million.
Chairman Moyer
asked the Board to look at what would have to be appropriated for fund balance
this year (approximately $2.6 million) alone to balance the budget, let alone
next year.
Commissioner
Williams questioned how much of this would be unique or one time expenditures
for the coming budget. His view was
similar to those of Commissioners McGrady and Young. We do find ourselves in a unique time period
with low interest rates and construction costs and people in need of work. There is risk in everything and we must weigh
those risks. There are a number or
projects out there which have been there for some time, recognizing that at
some point in our future we have planned to go forward with some of these
projects. The downside is that there
still remains uncertainty. These are
projects which we have recognized that need to be done for some period of
time. He proposed stepping up the
approach, assuming the numbers are accurate, and cleaning the capital list
slate; particularly the ten year life projects.
Commissioner
Messer stated that this is the toughest budget he has had to deal with. The collection rate has been around 97 – 98%
since he has been on the Board. He felt
it would be quite a bit lower in the following year and we should slow
down. Mr. Messer does not support some
of the capital projects items.
Chairman Moyer
stated that the Construction Control was contingent upon the capital projects
decision. He felt that it was
interesting logic to say that we are not going to spend money to maintain the
building that we have and yet we are willing to spend money and occur debt to
build new buildings.
Commissioner
McGrady noted that the motion had already been made and approved at the last
meeting. He felt that the Commissioners
were being asked to reconsider their decision.
Chairman Moyer made the motion that the Board does
not fund the two (2) long-term capital projects; Apple Valley/North Henderson
High School and the Law Enforcement Center at this time. The motion failed 3-2 with Commissioners
McGrady, Williams, and Young voting nay.
Commissioner
Williams made it clear that he was in no way suggesting a tax increase and he
was not opposed to making cuts in other places.
Construction Control Proposal
County Manager
Steve Wyatt stated that the Board has held discussions about County Government
involvement not only in the County projects but also the school projects. He questioned the Board as to what level of
involvement the County Government would have.
From conservations held, there is a wide span of thought on that level
of involvement. Based on what he had
determined in his own mind as the consensus, he felt that the Board wants to
have an active presence and involvement in all of the processes and active
information coming back to the Board on a regular basis as to progress,
projects completed, efficiencies gained, and to have some County Government
oversight of all of the projects. We are
not staffed or equipped to have a construction management person on there and
questioned how to accomplish this task.
The Chairman was made aware of a very quality individual who we sat down
with and looked at the projects and basically the scope was fairly large and it
wasn’t something he wanted to attempt.
In looking for other options, he has researched and talked with other
folks and Construction Control Corporation acts in this capacity for Surry and
Jackson County in North Carolina. The
Surry County manager gave excellent references by phone. Construction Control
has done the type of things that the Board shows interest in. He has also spoke with other individuals who
have capabilities and are interested in providing this service as a County
employee. Construction Control
Corporation was available for questions.
Mr. Lee McClure
of Construction Control Corporation spoke in regards to management of these
projects. He provided a brief overview
of the services they provide with questions following. They recognize that most of their clients
today are facing pretty difficult challenges on funding capital improvement
programs. Their level of experience and
information can be helpful to the counties.
A management team has been put together to provide input, information
and assistant to the counties. A
financial analysis was ran on the Henderson project and it calculates
accurately how much money would be saved if the County moved forward at this
time. He referred to a handout provided
to the Board including the following:
Background
Options being
considered
·
Full
Construction Program Management Services – CCC assumes the responsibility for
the management and success of your building program. They plan and manage the total program,
handle the problems and details and keep the County fully informed. Full time on site management. The cost management program saves money by
dependable cost estimating, cost analysis of systems, cost analysis of
materials & design details, more efficient space design, life cycle
evaluation and direct contract procurement.
o
Plan
& Schedule Total program
o
Expedite
All Activities
o
Reduce
& Control Costs
o
Manage
Construction
o
Assure
Top Quality
o
Track,
Document & Report
o
Protect
and County’s Interest
·
Owner
Representation Services – CCC provides a highly qualified Owner Representative
who is acceptable to the county to serve as the project consultant and who will
devote an average of two or three days per week (at the County’s option) to the
building program.
The Range of
Potential Cost Savings
Value
Engineering 4% to 8%
Constructability
Review 1% to 2%
CCC’s Direct
Contract 4% to 5%
Range of Savings 9% to 16%
Ross Bush, of
Construction Control Programs, manages the Surry County program and discussed
what he is doing and has done in Surry County.
Basically in Surry County they act as the owner’s advocate. He also acts as the Board and the County
Manager’s representative with three (3) different school boards.
Mr. McClure
shared information in regards to other projects they had managed.
Commissioner
McGrady asked with respect to the dollar amount being reflected in the budget
tally, what were the assumptions being made by the County Manager’s office with
respect to owner representation and/or cost management and/or construction
program management.
County Manager
Steve Wyatt responded owner representation is where he felt the Board was based
on feedback. The feedback is different
amongst the Board and this is the decision that the Board will need to
make.
Commissioner
McGrady felt that the scope reflects clearly on Apple Valley/North Henderson
and questioned if it extended beyond that.
Mr. Wyatt stated
that the scope would include all county and school projects.
Chairman Moyer
stated that the issue was the timeframe.
Commissioner
McGrady felt that if the Board wishes to move forward on this they would need
to direct and request the County Manager, once the decision is made of the
direction to go, to negotiate the contract and specifically the scope of that
contract reflective of the projects subject to the services.
It was the
consensus of the Board to continue this to the next meeting as they were not
ready to make a decision.
10) School Expansion Request, continued –
Commissioner
McGrady indicated some level of skepticism until the Board runs the numbers and
understands exactly what the financing burden will be based on decisions made
at this meeting.
Commissioner
Williams stated that rather than looking at it as capital outlay, consider
financing and looking at debt service on it.
Ervin Bazzle
questioned a comment about the $1.5 million project at Apple Valley/North
Henderson and felt it was not included in the conversation.
Commissioner McGrady
stated that it was if the Board sticks with their decision made at the last
meeting to finance out $3 million in capital projects.
Chairman Moyer
and Commissioner Williams requested clarification on the $1.5 million dollar
project.
Carey McLelland
stated that it was not included in the last list of capital items
received.
County Manager
Steve Wyatt stated that it was included (he would have to refer back to
minutes) he believed with the Apple Valley/North Henderson project at an
estimated cost of $1.5 million. The
project would be $8 million plus $1.5 million to total approximately $9.5
million.
Chairman Moyer
questioned the Board if they would be doing $3 million of long term maintenance
other than the $1.5 million.
Ervin Bazzle
stated that the capital project at Apple Valley needs to include the $1.5
project for maintenance.
Commissioner
McGrady assumed that the County would be fully funding Apple Valley/North
Henderson plus the $1.5 project and then adding an additional $1.5 from the maintenance
list.
The Board was
informed that the
video tape had
ran out.
ADJOURN
Commissioner Messer made the motion to adjourn the
meeting. All voted in favor and the
motion carried.
Attest:
Teresa
L. Wilson, Clerk to the Board
William L. Moyer, Chairman