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February 2, 2009 Minutes

February 2, 2009

The Board of Commissioners of Franklin County, North Carolina, met for a Work

Session at 12:30 P.M. in the Commissioner’s Meeting Room located in the County

Administration Building with the following Commissioners present: Chairman Robert L.

Swanson, Vice-Chairman Penny McGhee-Young, Bob Winters, Sidney E. Dunston,

Donald C. Lancaster, Harry L. Foy, Jr. and E. Shane Mitchell.

Chairman Swanson called the meeting to order for its second budget work session in

preparation for the 2009-2010 fiscal year. Some of the topics covered included the

following:

Update on budget information

Debt analysis

Chuck Murray, Finance Director, presented the following PowerPoint presentation:

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County Manager Angela L. Harris stated county department heads have already been

asked to consider 10 percent cuts and to submit estimates as to what they expect to

spend for the remainder of the fiscal year.

Mr. Murray has met with each department head to examine each financial situation and

discuss potential cuts. He said a similar exercise will be repeated in March, 2009.

Approximately $2.2 million in savings has been identified thus far as a result and said

several departments have excelled in their revenues. These figures are estimated

savings based on current spending patterns. Among departments that are expected to

reflect savings include Social Services, Jail and Solid Waste. Departments expected to

reflect a shortage include Inspections, Sherriff and Aging. Mr. Murray said all other

departments should come within their budgets or have savings within their budget. He

said if the County were to use $2 million of the fund balance available, the estimated tax

increase needed to fund projects that have already been approved would be 9.69 cents

as opposed to 13.25 which was projected in early January, 2009. In order to fund other

requested projects that have not been approved, an additional 6.92 would be needed.

Mr. Murray stated the current budget plan is to present the budget proposal to the Board

of Commissioners on May 4, 2009.

At approximately 1:42 P.M., the Board took a brief recess as Commissioner Foy arrived.

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When the meeting reconvened, it was stated the County must discover $3,777,937 in

order to balance the budget without a tax increase.

Commissioner Young said she feels positive the County’s bond rating can be increased

and stated there are debt management policies that could be implemented to assist.

She feels the policies need to be revisited from discussions about this topic last year.

Her interest is to obtain a higher bond rating, therefore obtaining the opportunity to get a

better interest rate.

Commissioner Young and Mrs. Harris commented that a retreat with the School of

Government would be beneficial as the County prepares for creating debt management

policies. She said other counties similar in size have found the retreat helpful to perform

capital planning. She was directed to examine the most economical way to plan for the

retreat.

Commissioner Lancaster stated the County should look into foreclosures and see if

there is a policy in place to look at each on a case by case basis.

The Manager was then asked to schedule another joint meeting with the Board of

Education.

Commissioner Swanson said no work sessions have been scheduled at this time.

The meeting adjourned at approximately 2:23 P.M.

The Board of Commissioners of Franklin County, North Carolina, met for its Regular

Meeting at 7:00 P.M. in the Commissioner’s Meeting Room located in the County

Administration Building with the following Commissioners present: Chairman Robert L.

Swanson, Vice-Chairman Penny McGhee-Young, Bob Winters, Sidney E. Dunston,

Donald C. Lancaster, Harry L. Foy, Jr. and E. Shane Mitchell.

Chairman Swanson called the meeting to order and asked the Board to consider two

add-on items.

Resolution supporting stimulus package infrastructure requests for Franklin County

Closed Session pursuant to NCGS143-318.11 (a)(3) to consult with an attorney employed or retained by the public body in order to preserve the attorney-client privilege between the attorney and the public body, which privilege is hereby acknowledged.

Commissioner Dunston made the motion to add both items to the agenda, seconded by

Commissioner Mitchell. The motion duly carried with all present voting “AYE.”

Chairman Swanson then asked the Board to consider approval of the consent agenda.

Commissioner Dunston made the motion to approve, seconded by Commissioner

Winters. The motion duly carried with all present voting “AYE.” The items approved are

as follows:

1. CONSENT AGENDA

A. Consider vendor selection for Radio Frequency Identification system B. Consider approving engineering and design services for the Pilot Lions Park

project to Site Solutions in the amount of $65,000

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2. COMMENTS FROM THE PUBLIC

This was the time set aside by the Board of Commissioners to allow individuals five

minutes to address the Board on issues concerning the county.

Rosemary Champion, 1168 White Level Road, Louisburg, NC

Mrs. Champion stated that after looking back over the Adequate Public Facilities

Ordinance approved by the Board in 2006, she is concerned the matter is not being

handled appropriately. She suggested the County look at other options and pay

more attention to long range planning. Mrs. Champion stated the County is in the

“same position as we were in five years ago.” During a difficult budget year, she

stated the County must look at every option available and said the school system

must look at creative ways to handle capacity such as multi-tracking or year round

calendars which she feels have not been explored by the School Board. She said

developers have agreed to pay fees associated with the APSO and reminded the

Board that it and the taxpayers have agreed to provide the capacity.

Jameson White, 120 Buckaroo Drive, Louisburg, NC

Mr. White read an article pertaining to the Radio Frequency Identification system

approved this evening for use at Franklin County libraries. He said he is

uncomfortable with the Board’s choice and asked that it reconsider.

Sheila Hanna, 2905 NC Highway 39 North, Louisburg, NC

Reflecting on previous visits to Board of Commissioner’s meetings, Mrs. Hanna

stated it has never been her intention to show disrespect to the Board. She stated

she appreciates the job the Board has taken on especially during difficult economic

times. She said there are apparently some people who feel she has in fact been

disrespectful. Following a budget meeting held earlier in the day, Mrs. Hanna stated

she is discouraged, but appreciates the Board’s decision to put further research into

personal residence foreclosures and to look at ways to improve the County’s current

bond rating and making sure proper funds are set aside.

3. DISCUSSION: MEMORANDUM OF UNDERSTANDING (MOU) WITH RIVER PLACE IV, LLC

Staff and legal counsel, working with representatives from River Place IV, LLC, have

drafted a proposed MOU that details a potential public/private partnership with regards

to the Burlington Mills water intake. The MOU is the first step between both parties in

determining the feasibility of a potential long term water supply contract.

Prior to any discussions on this topic, Commissioner Lancaster reminded the Board that

he questioned whether or not he should recuse himself from voting on this matter

because he has a family member that has a financial interest in the project. However,

he was informed that legally he could not recuse himself because there was no direct

financial impact. Commissioner Lancaster maintained he wanted the record to show

that this information was disclosed and stated he wanted to be transparent. He then

stated that investigation into the project began prior to his service as a county

commissioner.

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Public Utilities Director Bryce Mendenhall stated several years ago a study was

completed by Hobbs and Upchurch. He stated several ideas were identified in locating

alternative water sources, one of which was the Burlington Mills Intake.

Mr. Mendenhall introduced A.P. Carlton who is legal counsel for the project. Mr. Carlton

has 10 to fifteen years of experience in working with public and private entities in

developing regional water systems.

Mr. Mendenhall offered the following PowerPoint presentation.

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The GSE (government support entity) would be formed as a non-profit that would own

the project which is expected to cost $30,000,000.

Commissioner Foy asked if the MOU commits the County financially. Mr. Carlton stated

the MOU commits the County to move forward with the project development agreement

and into negotiating expenses. Mr. Carlton said that is when the financial commitment

would be considered.

Commissioner Winters made the motion to accept the MOU, seconded by

Commissioner Dunston. The motion duly carried with all present voting “AYE.”

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4. FYE 2007-2008 AUDIT REPORT PRESENTATION

Chuck Murray, Finance Director, and Jimmy Winston presented the FYE 2007-2008

audit report prepared by Winston, Williams, Creech, Evans and Company, LLP.

Mr. Winston presented the following PowerPoint presentation:

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Mr. Winston cautioned the Board about fund balance. He stated if the County dips into

its fund balance it will be hard to build it back up based on the current economic climate.

He cautioned the board to be conservative in budgeting as it moves into the year 2010.

He stated he doesn’t believe we’ve seen the worst of the economy yet. Mr. Winston

commented on reporting benefits for retirees and said it carries a significant liability. He

also suggested the implementation of a fraud hotline. Mr. Murray stated the County

currently has a “whistle blower” policy where complaints are submitted into suggestions

boxes and are handled by the County’s Human Resources Director.

Mr. Murray provided the following PowerPoint presentation.

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Commissioner Winters made the motion to approve and accept the audit report,

seconded by Commissioner Dunston. The motion duly carried with all present voting

“AYE.”

The Board offered congratulations on a successful audit.

5. CDBG SCATTERED SITE GRANT (08-C-1820)

The County was recently awarded a CDBG scattered site grant in the amount of

$400,000 from the Division of Community Assistance. The grant project ordinance was

approved by the Board on January 5, 2009 for improvements to five eligible applicants

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in addition to fees for grant administration. The Board was asked to consider awarding a

grant administration contract to The Wooten Company, the apparent low bidder.

Scott Hammerbacher, Planning and Inspections Director, stated only two proposals

were received from the eight distributed. He stated there was a $7,000 difference in

price. He asked the Board to award the grant administration contract to The Wooten

Company.

Commissioner Dunston made the motion to approve the grant administration contract,

seconded by Commissioner Mitchell. The motion duly carried with all present voting

“AYE.”

6. APPOINTMENTS

A. CAMPO

The Board was asked to consider the appointment of a County Commissioner

and alternate to serve as the County’s representative to the Capital Area

Metropolitan Planning Organization (CAMPO) Technical Advisory Committee.

Former Commissioner Lynwood Buffaloe previously served as the County’s

representative.

Commissioner Swanson nominated Commissioner Don Lancaster to serve.

The nomination was approved unanimously with all present voting “AYE.”

7. RESOLUTION SUPPORTING STIMULUS PACKAGE INFRASTRUCTURE REQUESTS FOR FRANKLIN COUNTY

County Attorney Darnell Batton read the proposed resolution.

Commissioner Dunston made the motion to approve the resolution, seconded by

Commissioner Mitchell.

Commissioner Winters then asked for a friendly amendment to change the word “the” to

the word “a” in the fourth paragraph of the resolution.

Commissioner Lancaster made the motion to approve the change, seconded by

Commissioner Foy. The motion duly carried with all present voting “AYE.”

The board then unanimously approved Commissioner Dunston’s earlier motion to

approve the resolution, seconded by Commissioner Mitchell. The motion duly carried

with all present voting “AYE.”

The fourth paragraph of the resolution now reads the following:

“NOW, THEREFORE, BE IT RESOLVED, that the Board hereby expresses its

intent to participate to the fullest extent possible in a Federal and/or State economic

stimulus plan as it relates to infrastructure improvements; and”

8. BOARD, MANAGER AND CLERK’S COMMENTS

This was the time set aside for the Board of County Commissioners, the County

Manager, and the Clerk to the Board to report on various activities. The Board may also

discuss other items of interest.

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County Clerk Kristen King: Mrs. King asked Commissioners Lancaster, Dunston and

Swanson if they could attend a meeting on February 6, 2009 at 8:00 A.M. with North

Carolina Representative Lucy T. Allen. The meeting was confirmed. Mrs. King then

offered a reminder submitted on behalf of the Franklin County Homebuilders

Association. She stated the “Designers of Tomorrow Awards Ceremony” would be held

February 12, 2009 at 7:30 P.M. at Terrell Lane Middle School. Mrs. King then asked the

Board’s direction as to whether or not to list Commissioner’s email addresses on the

county website. The board agreed to list their individual addresses online, but asked

that personal addresses not be included.

Commissioner Lancaster: No report.

Commissioner Mitchell: Commissioner Mitchell reported on a request he made to the

North Carolina Department of Transportation (NCDOT) to reduce the speed limit on

Fred Wilder Road. He expressed his appreciation for a prompt investigation of the

matter and stated the NCDOT has already reported back with its findings. He stated the

speed limit could not be altered at this time due to the density of homes in the area, but

said sign maintenance and sign warning improvements would be completed.

Commissioner Dunston: Commissioner Dunston commented on a meeting he

attended earlier in the day with Congressman Bob Etheridge as it relates to requests of

the stimulus package. He said many times if counties to make the effort to ask for

financial assistance they reduce their changes in receiving assistance.

Commissioner Swanson: No report.

Commissioner Young: Commissioner Young stated she spent a week in Chapel Hill

completing a course in capital management and planning and bond and financing

training. The following week, she stated she attended a legislative conference. A week

later, she reported she travelled to Little Rock, Arkansas to attend a methamphetamine

conference. She stated the trip was paid for by justice funds. She also reported that she

recently attended a meeting of the Five County Mental Health Authority. She stated

eight candidates have submitted applications for the area director position left vacant by

Foster Norman.

Commissioner Winters: Commissioner Winters reported on a recent meeting of the

Animal Advisory Board.

Commissioner Foy: No report.

County Manager Angela Harris: Mrs. Harris reported on a draft bill that is being

proposed by Representative Lucy T. Allen. The bill is to be entitled “An Act Expanding

Permitted Uses of 911 Funds in Franklin County.”

Commissioner Dunston then took a moment to thank local emergency staff and

Emergency Services Director Randy Likens for their prompt response on the evening of

January 18, 2009. He stated his daughter was involved in a automobile crash when her

vehicle struck a patch of ice on Highway 56 and travelled down an embankment.

9. CLOSED SESSION The Board was asked to enter into a closed session pursuant to NCGS143-318.11

(a)(3) to consult with an attorney employed or retained by the public body in order to

preserve the attorney-client privilege between the attorney and the public body, which

privilege is hereby acknowledged.

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Commissioner Dunston made the motion to enter into closed session, seconded by

Commissioner Swanson. The motion carried 6 to 1 with Commissioner Foy voting “NO.”

Following the closed session, Commissioner Dunston made the motion to enter back

into open session, seconded by Commissioner Young. The motion duly carried with all

present voting “AYE.”

County Attorney Darnell Batton stated the County has reached a step in its contract with

the radio project vendor (Piedmont Communications) who is unable to comply with the

performance bond. He said a number of complex issues have come from that

development and said the Board could use advice and input from the 911 committee in

choosing how to move forward. He stated the next meeting of the 911 committee would

be held Tuesday, February 3, 2009. He asked the Board for a motion to director

Communications Director Christy Shearin to bring those issues before the 911

committee to explain how the County got there and what the options are in moving

forward whether it is moving forward with the same vendor, rebidding or not moving

forward with the project. Mrs. Shearin would be asked to report back to the Board prior

to any decisions being made. Commissioner Winters made the motion to direct Mrs.

Shearin to bring the issues before the 911 committee, seconded by Commissioner

Dunston. The motion duly carried with all present voting “AYE.”

Commissioner Dunston then made the motion to adjourn, seconded by Commissioner

Young. The motion duly carried with all present voting “AYE.”

Robert L. Swanson, Chairman Kristen G. King, Clerk to the Board