050514May 5, 2014
The Randolph County Board of Commissioners met in regular session at 6:00 p.m. in the
1909 Randolph County Historic Courthouse Meeting Room, 145 Worth Street, Asheboro, NC.
Commissioners Holmes, Frye, Haywood and Lanier were present. Commissioner Kemp was
absent. Dr. Bob Shackleford, RCC President, gave the invocation and everyone recited the
Pledge of Allegiance.
Special Recognitions
Chairman Holmes recognized the following Centenarians and Vice Chair Frye presented each
honoree (or family member or care home representative) able to attend with a certificate of
recognition: Thelma Luther --100 on 5/4/14, Glenna C. Allred --103 on 12/26/13, Minnie
Hutcheson --105 on 3/16/14, Mary Cummings --105 on 7/28/13. Note: Certificates will be hand -
delivered or mailed to the honorees that were unable to attend.
Recognition of Retiree
Ann Sparks, who retired on April 1st with 16 years of service to Randolph County Public
Health, was recognized by Public Health Director MiMi Cooper, after which, Chairman Holmes
presented Ms. Sparks with an engraved clock on behalf of the Board.
Public Comment Period
Pursuant to N.C.G.S. § 153A-52.1, Chairman Holmes opened the floor for public comment.
County Attorney Ben Morgan read aloud the Public Comment Rules of Procedure.
Jon Nance, 3483 New Hope Church Rd, Asheboro, commented that he had a problem with
the intermingling of government and business in regard to the incentives package that the Board
was offering to lure an unnamed company to move into the former Ramtex building in Ramseur.
He stated that the Board could provide him the $75,000 and he would create jobs. Mr. Nance
was also concerned the company would move the jobs back to overseas facilities once the three-
year performance based grant was expended.
Approval of Consent Agenda
On motion of Frye, seconded by Lanier, the Board voted unanimously to approve the
Consent Agenda, as presented:
• approve minutes ofApril 7 regular meeting and two sets closed sessions;
• approve Budget Amendment #28 for Emergency Services ($15,737 Emergency
Management Performance Grant), as follows:
2013-2014 Budget Ordinance -General Fund
Budget Amendment #28
Revenues
Increase Decrease
Restricted Intergovernmental
$15,737
Appropriations
Increase Decrease
Emergency Services
$15,737
• appoint Ken Auman & Denise Summerell to Nursing Home Community Advisory
Committee;
• reappoint Vickie Cox and Gail Briles McDowell to Regional Partnership Workforce
Development Board;
• reappoint Sarah Shoffner & Harold Holmes to Randolph Co. Public Library Board of
Trustees;
• reappoint Nan Kemp, Mac Whatley, Marsha Haithcock and Robyn Hankins to Randolph
County Historic Landmark Preservation Commission;
• appoint Warren Coble to Adult Care Home Community Advisory Committee for -1-yr.
term;
• adopt resolution adding 0.304 -mile Turning Oaks Trail in the Oaks Subdivision to
Division of Highways' Secondary Road System, as follows:
WHEREAS, the Department of Transportation has investigated 0.304 mile of Turning
Oaks Trail in The Oaks Subdivision; and
WHEREAS, the subject street has been found to meet minimum requirements for addition.
NOW, THEREFORE, BE IT RESOLVED by the Randolph County Board of
Commissioners that 0.304 mile of Turning Oaks Trail in The Oaks Subdivision be added to the
Division of Highways' Secondary Road System.
• adopt resolution abandoning 0.10 -mile section of SR 1602 (Leach Street) from Division
of Highways' Secondary Road System, as follows:
WHEREAS, the Department of Transportation has investigated 0.10 mile SR 1602
(Leach Street) in Randolph County for purposes of abandonment, and
WHEREAS, it has been determined that this subject street should be abandoned from the
Division of Highways' Secondary Road System.
NOW, THEREFORE, BE IT RESOLVED by the Randolph County Board of
Commissioners that 0.10 mile SR 1602 (Leach Street) in Randolph County be abandoned
from the Division of Highways' Secondary Road System.
• approve Budget Amendment #29 for Article 46 Sales Tax Collections for RCC Capital
Project, as follows:
2013-2014 Budget Ordinance -General Fund
Budget Amendment #29
Revenues
Increase Decrease
Appropriated Fund Balance
$689,000
Appropriations
Increase Decrease
Transfer to RCC Capital Project
$689,000
• reappoint Phil Ridge to the Randolph County Planning & Zoning & Board of
Adjustment;
• adopt Resolution of Authorization to Apply for FEMA Assistance, as follows:
RESOLUTION
DESIGNATION OF APPLICANT'S AGENT
North Carolina Division of Emergency Management
,
Organization Name (hereafter named. Organization) Disaster Nuns er:
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Applicant's State Cognizant Agency for Single Audit purposes (If Cognizant Agency is not assigned, please indicate):
Applicant's Fiscal Year (FY) Start Month: -Twi-V Day;
Applicant's Federal Employers Identification Number
Applicant's Federal Information Processing Standards (TIPS) Number
PRIMARY AGENT
SECONDARY AGENT
Agent's Name
Agent's Name 7.490D 9 YRD
Organization
a-RA17Y
Orgunizatio 5
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Official Position
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Official Position
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Mailing Address
Mailing Address
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City,State, Z'
City State zip
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Daytime Telephlofie
( 33,4) 318- ca
Daytime Telephon
33 a/8 - &I t3
Facsimile Numb
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FacsirnH N be
U'745 3 /V -109,x'1
Pager or Cellular Number
Pager or C91lular Number
( 3 36 ) 30 - &S80
BE IT RESOLVED BY the governing body of the Organization (a public entity duly organized under the laws of the Slate of North Carolina)
that the above-named Primary and Secondary Agents are hereby authorized to execute and rile applications for federal and/or state assistance on
behalf of the Organization for the purpose of obtaining certain state and federal financial assistance tinder the Robert T. Stafford Disaster Relief
& Emergency Assistance Act, (Public Law 93-288 as amended) or as otherwise available. BE IT FURTI IER RESOLVED that the above-named
agents are authorized to represent and act for the Organization in all dealings with the State of North Carolina and the Federal Emergency
Management Agency for all matters pertaining to such disaster assistance required by the grant agreements and the assurances printed on the
reverse side hereof. BE IT FINALLY RESOLVED THAT the above-named agents are authorized to act severally. PASSED AND
APPROVED this Sda X of 9201!f
,�OVER !ING BODY CERTIFYING OFFICIAL
a rel 61)111 /,V,
sane and ' Title Nalbe
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Name and Tikle Official Posjtiofi'
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Name and Title Daytime T I !phone
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CERTIFICATION
(Name) duly appointed and C' (Title)
of the Goverhing Body, do hereby certi that the above is a true and correct copy of a resolution,passed and
ap7rr)ved by the Governing Body (Organization) on the day of
4, L/ .204,
Date: 5" Z Ll Signature;
Rev. 06/02
Changes to New Business Agenda
Chairman Holmes announced that Item C. Economic Development Project Public Hearing
and Request to Adopt Economic Incentives Contract, Item H. Approve Operating Agreement
with Landfall Partner, Item I Approve Budget Amendment for Reimbursement of Landfall Costs
and Item J. Approve Budget Amendment for Water Fund (PTR WA Settlement) had been removed
from the New Business Agenda. Note- Item J was added back to the agenda later in the meeting
where so noted.
Update on Proposed New Facilities
Charles Todd, Little Diversified Architectural Consulting Principal and Primary Contact,
shared the qualification process of his firm, as well as, the conceptual designs that they had
prepared for Randolph County for the proposed new Emergency Services headquarters. Little
Diversified Architectural Consulting is the lead on the project and will work in association with
Wright Architecture of High Point, who will be responsible for the engineering. Winbourne
Consulting, Inc., will be the technology expert for the 911 electronics portion of the project.
Mark Wright, Wright Architecture, PA., said his firm has over 14 years of experience and that
they would be the local support of Little's expertise on this project.
Mr. Todd said they have teamed up with these companies to complete several local projects,
including the Victory Junction Gang Camp. They have completed other government facilities,
including Charlotte's 911 ECC Communications Center; Wake County 911 and Sheriff s
Headquarters; and Catawba County's 911 ECC, EOC and Courts.
Mr. Todd said that their firms have designed the conceptual drawings around Randolph
County Emergency Services' project goals: a secure building with functionality and designed for
growth, use of existing land (overcoming topography issues) and the ability to access current
utilities on the existing street. He reviewed the three different options (one-, two- and three-
story facility) and the reasons for each design. Option A: a three-story scheme that was designed
to Department of Defense terrorism standards, utilizing the clearance of the front of the building
and creating a blast proof condition. It works with the topography and is broken out into service
levels. Option B: a two-story scheme that would sit a little differently on the site and service
areas would be a little closer together. Fewer pillars and less roofing would be needed than with
a one-story. Option C: the one-story scheme, which does use more of the site and the topography
comes into play, but puts all service areas on one floor. Although it uses more of the land, it
eliminates the need for elevators. Mr. Todd asked that they not rule out any option in these
conceptual designs until more work is completed from the cost standpoint.
The existing 911 call center uses the Xybix system and they would draw plans around the
existing infrastructure, but not design it around one proprietary system, so that they comply with
the general statutes and allow for equal competition for the technology components in the
building.
Mr. Todd presented the possible options for layout of the consoles in the command center
which determined the square footage of the room and may allow for growth.
Mr. Todd stated that the entire construction was designed based on the project goals. The
Emergency Services apparatus bay is currently shown as 81' deep with five bays that will hold
ten vehicles. Mr. Todd said the apparatus bay could be scaled back or completed in stages but the
other infrastructure needed to be specific due to the components that go into it and expansion
capability, if needed.
The structure integrity is governed by the NC building codes for the 911 ECC and EOC
buildings. Mr. Todd said that additional codes were likely to be added in the next state building
code update and those have been recommended in this design as well as using national standards.
Commissioner Frye asked if they have experience in retrofitting an existing building and Mr.
Todd confirmed that they have experience.
Approval of Resolution of Support to Extend NC Film Tax Credit
Tammy O'Kelley, Tourism Development Authority Director, introduced Mario Lopez, AHS
senior, who is enrolled in the high school's Career and Technical Education Program. He is
currently interning with the TDA as part of the course.
Ms. O'Kelley stated that in 2006, North Carolina finally got into the game offering
production companies a 15 percent tax credit if they spent a minimum of $250,000 in North
Carolina, with a credit cap of $7.5 million. It quickly resulted in landing projects such as "Nights
in Rodanthe" and HBO's "Eastbound & Down."
Other states continued to raise the ante with competing incentives, and in 2010, North
Carolina passed legislation that provided a 25 percent tax credit to production companies
spending more than $250,000 in the state, with a credit cap of $20 million. The incentive, a post -
performance tax credit received when filming is complete and after the state has audited
expenses, is not paid to actors or producers. Additionally, all work and services must be
performed in North Carolina, a mandate on the production companies to hire and spend locally.
And they do because they know if they don't they will not receive the incentive on non-
qualifying expenditures.
She summarized the need for the NC Film Tax Credit to be extended and stated that a study,
conducted by Dr. Robert Handfield, professor of supply chain management at N.C. State
University and released on March 31, 2014, showed a positive return on investment. Based on
calculations of actual motion picture and television industry activity in 2012, there was more
than $391 million of total production spending in the state enabling North Carolina to maintain a
nationally recognized crew base with talented new workers entering the labor force from North
Carolina's film schools in the state's public universities. It further provided that the film industry
in North Carolina provides 4,259 jobs at an average wage of $66,000 for the industry compared
to a statewide annual average wage for all private industries of $43,056. (NC Labor and
Economic Analysis Division, Quarterly Census of Employment and Wages, 2012) or all
occupations of $41,750 (US Bureau of Labor Statistics, Occupational Employment Statistics,
2012 Annual Average Wage, May 2012).
Ms. O'Kelley requested that the Commissioners join with the NC Travel & Tourism
Coalition, Piedmont Triad Host Group, Piedmont Triad Film Commission, Randolph County
Tourism Development Authority, Archdale -Trinity Chamber of Commerce, Archdale City
Council; and Greensboro and Winston-Salem Councils; and also adopt a resolution of support to
the NC General Assembly to extend the NC Film Credit for five years. She expects the
Asheboro -Randolph Chamber of Commerce and the Asheboro City Council to adopt resolutions
in the coming weeks.
On motion of Frye, seconded by Lanier, the Board voted unanimously to adopt a resolution in
support to the NC General Assembly in Extending NC Film Credit, as follows:
RESOLUTION OF SUPPORT OF EXTENDING
NORTH CAROLINA'S FILM TAX CREDIT
WHEREAS, the fibra production incentive legislation (NC GS § 105-130. 47 the state's
25% refundable tax credit to productions whose spend is greater than $250, 000) is set to sunset
on December 31, 2014; and
WHEREAS, states who have reduced or eliminated their respective fibra incentive programs
experienced a dramatic drop in production within their borders; and
WHEREAS, North Carolina has established itself as one of the top filming destinations in
the world as a result of its current 25% refundable tax credit incentive for fibra productions, as
well as the state's established fibra industry infrastructure; and
WHEREAS, the film production workforce has more than doubled in the last six years with
an average of more than 25, 000 job opportunities being available each year since the passage of
the current incentive, an increase of more than 16, 000 from years prior to adoption of the current
incentives; and
WHEREAS , the fibra industry is responsible for 8,481 direct jobs and $206.7 million in
wages in North Carolina, including both production and distribution -related jobs, with more than
3, 000 of the jobs production -related, and
WHEREAS, more than 4,000 highly skilled fibra professionals reside in the state of North
Carolina; and
WHEREAS, the state's fibra industry supports more than 1, 000 small business and retail
operations throughout the state; and
WHEREAS, film production has contributed to jobs and increased economic activity in more
than 50 North Carolina counties, including Randolph; and
WHEREAS, spending by production companies in the state has exceeded $1 billion over the
past six years and is averaging in excess of $292 million per year since the passage of the current
incentive, a 265 percent increase from the yearly average from years prior to its adoption; and
WHEREAS, fibra industry spending has a direct impact on tourism and tourism related
business in the state, including spending on lodging and at restaurants and attractions in addition
to showcasing North Carolina's scenic beauty and destinations; and
WHEREAS, the sunset of the current 25 percent refundable tax credit incentive would
effectively decimate the state's fibra industry as it has in other states; and
WHEREAS, without a stable incentive program in North Carolina, opportunities for projects
in the state, and particularly in the Piedmont Triad, will be lost as productions will go to states
with stronger, more competitive incentive programs resulting in a loss of tax revenues for our
county and region.
NOW, THEREFORE, BE IT RESOLVED, that the Randolph County Board of
Commissioners does hereby declare our support for North Carolina's Film Tax Credit and the
current state tax policy that has caused this industry to grow in our state.
BE IT FURTHER RESOLVED that we call upon our representatives in the North Carolina
General Assembly to extend the NC Film Tax Credit sunset date for five years through December
31, 2019.
This the 5rh day of May, 2014.
Contract Award for Document Imaging for Child Support Enforcement
Child Support Enforcement Director Damon Brown said that during his budget presentation
in June 2013, he requested funds for the purchase of document imaging software, equipment and
services needed to make the agency as paper free as possible and streamline the office structure.
The installation of the equipment and software has been completed. One of the final steps is
having all of the files scanned into the new document imaging system. He said this is a major
step in improving office efficiency. Six companies that offer document imaging service were
contacted for estimates of cost and services offered. Only two companies responded. Tarheel
Imaging and Microfilming, Inc. responded with the best price and service offer. DSS also used
Tarheel Imaging and Microfilming, Inc. for their document imaging project.
The quote received from Tarheel Imaging and Mircrofilming, Inc. is $37,180. On the
possibility of going over the estimate provided, the contract will have a maximum amount of
$40,000. As with most expenditures of the Child Support program, 66% of the cost of the project
will be reimbursed by the federal government. Funds are currently available within Child
Support Enforcement's budget to cover the purchase.
On motion of Frye, seconded by Haywood, the Board voted unanimously to award a contract
for $40,000 to Tarheel Imaging and Microfilming, Inc. for document imaging in the Child
Support Enforcement office and to authorize the County Manager to negotiate and sign the
contract.
Rezoning Public Hearing & Action
At 7:06 p.m., the Board adjourned to a duly advertised public hearing. Hal Johnson, Planning
Director, presented the following requests, and Chairman Holmes opened the public hearing for
comments on each request and closed it before taking action on the requests:
SOUTHWEST LAND, LLC, Asheboro, North Carolina, (Toby Strider, owner) is requesting
that 32.32 acres located at 3295 Archie Newsom Road, Richland Township, be rezoned from RA
to RIO -CD. Secondary Growth Area. The proposed Conditional Zoning District would
specifically allow the development of a solar PV farm as per site plan. The Planning Board
reviewed this request on April 8, 2014, and unanimously recommended that this request be
approved. The Planning Board found the following policies within the 2009 Growth
Management Plan that support determination of consistency with the adopted plan with this
recommendation:
Policv 3.12 New rural industrial development should provide site specific development plans
along with vegetated buffers or other landscaping designed to reduce substantial impacts to
adjoining land uses.
Board of Commissioner Resolution Adopting the Growth Management Plan, Policy #2.
Recognize that growth management policies should afford flexibility to County boards and
agencies that will enable them to adapt to the practical requirements often necessary for rural
development.
Don Lanier, P.O. Box 383, Asheboro, Real Estate Broker working with Southwest Land,
LLC and Mr. Strider, spoke in favor of this request, saying the property is surrounded by wooded
buffer to the west, is on the end of a street and suitable for the requested solar farm.
On motion of Haywood, seconded by Frye, the Board voted 3-0 (Commissioner Lanier asked
to be recused due to conflict of interest.) to approve the request of Southwest Land, LLC, as
determined consistent with the standards and policies contained within the Growth Management
Plan and outlined in the recommendations provided by the County Planning Board.
DON LANIER, Asheboro, North Carolina, is requesting that 7.72 acres located at 5175 NC
Hwy 49S, Concord Township, be rezoned from LI -CU to LI -CD. Secondary Growth Area. The
proposed Conditional Zoning District would specifically allow a commercial truck brokering and
repair garage business as per site plan. David Alan Parrish is the property owner. The Planning
Board reviewed this request on April 8, 2014, and unanimously recommended that this request
be approved. The Planning Board found the following policies within the 2009 Growth
Management Plan that support determination of consistency with the adopted plan with this
recommendation:
Policv 3.9 Individual rezoning decisions within Rural Growth Areas will depend upon the scale
of the development, and the specific nature of the site and its location.
Policv 3.11. New rural industrial development shall be located in areas of the site that would
lesson impact to adjoining residential and agricultural lands.
Commissioner Resolution Adopting the 2009 Randolph County Growth Management Plan, #3.
Ensure the opportunity for landowners to achieve the highest and best uses of their land that are
consistent with growth management policies in order to protect the economic viability of the
County's citizens and tax base.
Don Lanier, P.O. Box 383, Asheboro, Real Estate Broker on behalf of Brad Lanier, spoke in
favor of this request, saying that Brad Lanier wishes to use the property for his business and for
service and maintenance of the 22 trucks used for his transportation business.
On motion of Frye, seconded by Haywood, the Board voted 3-0 (Commissioner Lanier asked
to be recused due to conflict of interest.) to approve the request of Don Lanier, as determined
consistent with the standards and policies contained within the Growth Management Plan and
outlined in the recommendations provided by the County Planning Board.
RANDY CHEEK, Bennett, North Carolina, is requesting that 2.21 acres located on Reed
Creek Road, Columbia Township, be rezoned from RA to HC -CD. Municipal Growth Area. The
proposed Conditional Zoning District would specifically allow a plumbing and septic contractor
business as per site plan. The Planning Board reviewed this request on April 8, 2014, and
recommended by a vote of 4 to 2, that this request be approved with the condition that
appropriate buffers be worked out with the Planning Staff prior to the May 5, 2014
Commissioners' meeting. The Planning Board found the following policies within the 2009
Growth Management Plan that support determination of consistency with the adopted plan with
this recommendation:
Policy 4.5 Effective buffering and/or landscaping should be provided where commercial
development adjoins existing or planned residential uses.
Commissioner Resolution Adopting the 2009 Randolph County Growth Management Plan, #3.
Ensure the opportunity for landowners to achieve the highest and best uses of their land that are
consistent with growth management policies in order to protect the economic viability of the
County's citizens and tax base.
Board of Commissioner Resolution Adopting the Growth Management Plan, Policy #2.
Recognize that growth management policies should afford flexibility to County boards and
agencies that will enable them to adapt to the practical requirements often necessary for rural
development.
Hal Johnson said that he and the planning staff did meet Mr. Cheek on-site to propose buffer
options. The buffer recommendations are to place an eight -foot fence to enclose the entire site
leaving three feet of space from fence to property line on the north side. Then he would place
evergreens along the inside of the northern boundary of the fence. On the west side of the
property the fence would be placed on the higher elevation of the property, which is
approximately twenty feet from the property line leaving existing trees and foliage to be
maintained as a natural buffer.
Commissioner Haywood inquired about the number of trucks on site and noise that the site
might generate. Mr. Johnson stated that Mr. Cheek is a one-man business and he would not be
there during the day, but was unsure of the number of trucks or types of equipment Mr. Cheek
would keep there.
Myra Stuart, 190 Reed Creek Rd., Ramseur, spoke in opposition to this request. Ms. Stuart
lives on adjoining property to the north side of the site. She stated that this rezoning request is
not consistent with the Growth Management Plan and said she cited five different examples at
the April Planning and Zoning meeting, when she also spoke in opposition. She doesn't feel the
applicant has offered sufficient buffer (a screen fence, only three feet from her property line).
She said there are undetermined details of a tree buffer along the fence line, such as the species
of evergreen and whether they will be seedlings or in mid growth. Ms. Stuart does not feel the
business will be situated on the site in a way to lessen the impact to adjoining properties but
mainly that it is not in harmony with the surroundings of a quiet residential area.
On motion of Frye, seconded by Holmes, the Board voted unanimously to deny the request of
Randy Cheek. The following policies contained within the Growth Management Plan support a
vote of denial as not supporting a Determination of Consistency:
Policv 3.11: New rural industrial development shall be located in areas of the site that would
lesson impact to adjoining residential and agricultural land.
Policv 3.12: New rural development shall provide site specific development plans along with
vegetated buffers or other landscaping designed to reduce substantial impacts to adjoining land
uses.
Policy 3.7 Sustainable economic growth, environmental protection, and quality of life shall be
pursued together as mutually supporting growth management goals.
Recess
At 7:40 p.m., the Board took a short recess.
Meeting Resumed
At 7:50 p.m., the Board returned to regular session.
Contract Award for Purchase of Software
Social Services Director Beth Duncan, stated that NC DHHS/DSS has informed them that
Child Protective Services, Foster Care, and Adoptions have been released from the state's NC
FAST project. However, the exemption does not provide any state funds for a case management
system for now or the foreseeable future. Randolph County DSS has been holding onto an
antiquated, partially functional, form management system (eCMS) as their automation for these
programs with anticipation of NC FAST taking over in 2015. She said that since the state is
bowing out of fielding an effective case management system, the County must move forward to
improve efficiencies and data collection, but most importantly, incorporate a system that
provides real-time process tracking and reporting. Social worker caseloads and supervision's
span of control already exceed state guidelines and successful mission accomplishment in these
programs is waning. Administration must provide the tools and manpower necessary for success.
Ms. Duncan said that they have reviewed what some other counties are doing and have found
that Northwoods is the other major supplier in North Carolina for similar activities. She said their
review revealed that even though Northwoods is better than what we have now, it does not
provide the type of approach that they are seeking and that with an estimate of $379,207 to
$675,790 to implement the project in Randolph County, funds are just not available. FAMCare
Rapid Case Management software is an information platform with front end tools that allow quick
documentation of case information with automated workflow. It is designed to keep the team on task
with an added ability to measure successes at every step. Randolph County IT has reviewed and
evaluated the proposal from Global Vision Technologies for a one-year lease of the FAMCare
software.
Ms. Duncan said that the outcome would provide a tool that is necessary to help social
workers track case status and collect case data to meet NC General Statutes, help meet the
requirements established by DHHS/DSS, and help accomplish the DSS mission in serving the
citizens of Randolph County. She said that current funds can be reallocated within the existing
DSS budget to cover the cost.
On motion of Lanier, seconded by Frye, the Board voted unanimously to approve the one-
year lease contract with Global Vision Technologies in the amount of $43,390 for FAMCare Rapid
Case Management software for Child Protective Services, Foster Care, and Adoptions Programs and
authorized the County Manager to negotiate and execute the contract, as requested.
Approval of County Match to Purchase Vehicle for JDRC
JDRC Director Megan McKinnon said that the Juvenile Crime Prevention Council has
approved the purchase of a used vehicle for the Juvenile Day Reporting Center contingent upon
the Commissioner's approval of a 30% County match. The amount of the vehicle is $7,460.00.
She said that the State requires a 30% match from the County on any capital outlay that they
receive. For this purchase that 30% match is $2,238.00.
Pursuant to G. S. 143-131, an informal bid process was conducted for the purchase of a used
vehicle and the following bids were received:
Vendor
Location
Total Bid
Friendly Chevrolet
2001 Chevy Impala Sedan
Troy, NC
(mileage 40,120) $7460.00
**Low Bidder
Wayne Thomas Chevrolet
Asheboro, NC
(mileage 60,592) $9,500.00
2007 Buick LaCrosse Sedan
Restricted Intergovernmental
$5,443
M & L Motors
Lexington, NC
( mileage 116K) $9,770.00
2010 Honda Civic Sedan
Juvenile Day Reporting Center
$6,048
Ms. McKinnon requested that the Board award the bid for the vehicle to Friendly Chevrolet at
a total cost of $7460.00 as they met the specifications, the requirements (good condition, low
mileage and under $10,000.00), and were a responsible bidder.
Ms. McKinnon said that the JDRC recently sold four vans for a total of $5,443. Per grant
instructions, 30% of that amount goes back to the County, which equated to $1,633. The JDRC
would like to use this money towards the 30% match for the purchase of the used vehicle, if the
Commissioners agree. Therefore, only $605 additional funds would be required from the County
for this purchase.
Ms. McKinnon requested that the Commissioners approve $2,238 ($1,633 + $605) as a 30%
local match to purchase the vehicle.
On motion of Frye, seconded by Haywood, the Board voted unanimously to approve a $2,238
expenditure as a 30% local match to purchase a used vehicle for JDRC from low bidder,
Friendly Chevrolet, and approve Budget Amendment #30, as follows:
2013-2014 Budget Ordinance -General Fund
Budget Amendment #30
Revenues
Increase Decrease
Restricted Intergovernmental
$5,443
Appropriated Fund Balance
$ 605
Appropriations
Increase Decrease
Juvenile Day Reporting Center
$6,048
Chante to New Business Agenda
Chairman Holmes announced that Item J. Approve Budget Amendment for Water Fund
(PTRWA Settlement), previously removed from the New Business Agenda (where noted in the
minutes) has been added back, since the item's presenter, Mr. Greg Flory, Executive Director
Piedmont Triad Water Authority, was now in attendance.
AUUroval of Budget Amendment for Water Fund (PTRWA Settlement)
PTRWA Executive Director Greg Flory said that the Authority recently settled a lawsuit
concerning water flow downstream. On April 151h, the PTRWA Board of Directors accepted a
mediated settlement in this case to end the controversy and litigation over riparian rights in the
flow of Deep River. Randolph County's share of the settlement is $440,625 (18.75% of the total
$2.35 million settlement). Mr. Flory said that the settlement is for all claims of damages up to
the 48 million gallons per day (MGD) safe yield of the reservoir. It is inclusive of all of the
plaintiffs' attorney and expert witness fees and any applicable interest charges that would have
been allowed under the inverse condemnation statute. The agreement encompasses all known
facilities between the Randleman Dam and the confluence of the Haw and Deep Rivers. He said
that this means that any future exposure for damages caused by the transfer of water out of one
basin to another, the significant damage component in the case, should be limited. They feel the
settlement mitigates any possibility of damages from hydroelectric plants further downstream.
He stated the case had been going on since 2008 and was argued before three levels of the NC
Court on the legal grounds that the hydroelectric facilities had for filing the lawsuit, which they
filed as an inverse condemnation lawsuit against the PTRWA. The PTRWA maintains that their
legal basis for that argument was possibly incorrectly interpreted; however, the Supreme Court
denied the appeals.
Mr. Flory said that there were two components in the claim of damages. The first part of the
claim was from the use of the water for filling of the lake and the ongoing component was for the
water transferred out of the basin. They claimed that the water being transferred out caused them
to lose their capability to produce electricity with that water. The judge ruled that they were
eligible for damages for that claim for a period of fifty years.
Commissioner Frye reiterated that all the owners of the hydroelectric plants were asked by the
Environmental Management Commission (EMC) to participate in the review process by
providing individual facility information to assist the EMC in its deliberations, but the owners
declined to provide the requested information and the PTRWA's permit was issued by the EMC.
Commissioner Frye said public hearings were held throughout the 90's on the Environmental
Impact Reviews of the project and the reclassification of the water supply. Many outside
"interested" parties participated in the hearings and permitting process and the issuance of the
permits was challenged in court by several groups. However, the hydroelectric facilities owners
neglected to participate in the process and did not object to the issuance of the permits to flood
the lake.
Commissioner Frye reviewed specific dates from the case history, as follows: In December
2008, "which would have been about three weeks after Senator Kay Hagan was elected to the
Senate," is when the judge filed notice that the Superior Court denied PTRWA's motion to
dismiss. In May 2009, PTRWA moved to have the Superior Court rule on the specific questions
of law in the case and were denied. In November 2009, the PTRWA filed a motion with the
Superior Court for a relief from the trial judge's order and requested that the judge who issued
the order disqualify himself from the case in order to avoid the appearance of impropriety.
Specifically, PTRWA moved that the impartiality of the court was called into question. This was
due to the fact that the judge who heard the case had been recommended by Senator Kay R.
Hagan as a potential candidate for a lifetime appointment as a federal judge. Senator Hagan's
husband is a partial owner in one of the hydroelectric facilities represented in the case and Mr.
Hagan's law firm was also representing all the plaintiffs.
Mr. Flory said that from the surface it does appear they intentionally sat out of the
administrative process and waited until there was money invested in the facility before the
lawsuit was brought forward.
Mr. Flory said that the settlement agreement calls for payments to be made by June 1.
Assistant County Manager/Finance Director Will Massie said these funds can be taken from
appropriated fund balance of the Water Fund.
Commissioner Haywood asked Board Attorney Ben Morgan about the liability of not paying
the invoice and Mr. Morgan advised they would be in contempt of court.
On motion of Frye, seconded by Holmes, the Board voted 3-1, with Lanier opposing, to
approve the payment of $440,625 to Piedmont Triad Regional Water Authority for Randolph
County's share of a lawsuit settlement and approved Budget Amendment #31 for Water Fund, as
follows:
2013-2014 Budget Ordinance—Water Fund—Budget
Amendment #31
Revenues
Increase Decrease
Appropriated Fund Balance
$440,625
Appropriations
Increase Decrease
Purchase of Water
$440,625
Update on 2014 Reappraisal
Assistant County Manager/Finance Director Will Massie said that local governments have to
deal with a revaluation of property periodically. Under NC law, property taxes are the primary
revenue source to local governments. In 2013-14, Randolph County's property tax levy was
53.4% of total County budget and in 2013-14 it was 73.4% of general County revenues.
Mr. Massie said that tax values are set to market value at regular intervals on real estate and
annually on personal property, business personal property, public service companies and motor
vehicles. The Tag and Tax program, whereby citizens pay their property taxes when they renew
their auto tags, required the County to wait for accurate valuation information from DMV, which
came in April, in order to compare past values with projected ones to make sure the amounts are
as accurate as could be estimated at this time. Mr. Massie said that exemptions, exclusions and
deferrals create a reduction in the property base and have to be considered.
Each county must reappraise all real property at least once every eight years unless the Board
elects a shorter cycle. Randolph County elected a six-year cycle, but postponed the 2013
Reappraisal until 2014 due to software issues. He said every district saw changes, whether to
land values, housing prices, business property, vehicles or public service company assessments.
Since real estate values are over 75% of the total valuation, the economic effects of the financial
crisis negatively impacted our tax base. Motor vehicles continue to recover from the decline in
valuation seen in 2009. Overall, Randolph County experienced a 3.56% decline in total
property value compared to 2013-14.
Mr. Massie said that when the tax base changes, local governments need to adjust the tax rate
as well, to arrive at the same total tax revenues. This is referred to as the revenue neutral tax
rate. It must be reported but does not have to be adopted as the upcoming tax rate. He gave the
following example: consider the simple formula 25 x 4 = 100. If you change the 25 to 20, the
multiplier would have to change to 5 in order to still equal 100 (20 x 5 = 100).
NC General Statute 159-11(e) of the Local Government Budget and Fiscal Control Act
defines how this mathematical calculation works, and includes a growth factor based on
historical growth since the last reappraisal date:
(e) In each year in which a general reappraisal of real property has been conducted, the
budget officer shall include in the budget, for comparison purposes, a statement of the
revenue -neutral property tax rate for the budget. The revenue -neutral property tax rate is
the rate that is estimated to produce revenue for the next fiscal year equal to the revenue
that would have been produced for the next fiscal year by the current tax rate if no
reappraisal had occurred. To calculate the revenue -neutral tax rate, the budget officer shall
first determine a rate that would produce revenues equal to those produced for the current
fiscal year and then increase the rate by a growth factor equal to the average annual
percentage increase in the tax base due to improvements since the last general reappraisal.
This growth factor represents the expected percentage increase in the value of the tax base
due to improvements during the next fiscal year. The budget officer shall further adjust the
rate to account for any annexation, de -annexation, merger, or similar event.
Mr. Massie said that for 2013, 70 counties had sales assessment ratios over 100% and
Randolph County had a ratio of 104.5%.
He stated that the current Gross Levy multiplied the Growth Factor of 0.56% divided by the
valuation gives the 2014-15 revenue neutral tax rate of $.6361. In order to keep the same
revenues flowing into the budget you have to adjust the tax rate to offset the difference to operate
at the current level.
The revenue neutral tax rate is required to be calculated for each school and fire tax district.
The revisions to the fire district borders a couple of years ago have been considered in the
growth rate portion of the calculation.
He said that in regards to the Randleman -Sophia Service District, since the 2013-14 tax rates for
the two former districts were the same ($.10 per $100 of valuation), the new value is the sum of
both districts and the new tax rate calculated on the combined total. Each municipality within the
County has calculated its own tax rate. The following are the details of the calculation for the
County fire districts:
2014 district
property tax
rate
2015 Estimated
Valuation
2015 Revenue
Neutral Tax
Rate
One cent on tax rate
generates (97.5%
collection rate)
Randolph County
$0.6100
$10,060,796,799
$0.6361
$980,928
School Districts
Asheboro City School
$0.1385
$2,146,988,698
$0.1437
$209,331
Archdale -Trinity School
$0.0900
$2,205,538,952
$0.0954
$215,040
The revisions to the fire district borders a couple of years ago have been considered in the
growth rate portion of the calculation.
He said that in regards to the Randleman -Sophia Service District, since the 2013-14 tax rates for
the two former districts were the same ($.10 per $100 of valuation), the new value is the sum of
both districts and the new tax rate calculated on the combined total. Each municipality within the
County has calculated its own tax rate. The following are the details of the calculation for the
County fire districts:
Fire Districts
2014 district
property tax
rate
2015 Estimated
Valuation
2015 Revenue
Neutral Tax
Rate
One cent on
tax rate
generates
Bennett Fire District
$0.080
$41,492,099
$0.0771
$4,045
Climax Fire District
$0.120
$453,294,299
$0.1244
$44,196
Coleridge Fire District
$0.073
$238,040,255
$0.0740
$23,209
Eastside Fire District
$0.090
$447,238,659
$0.0922
$43,606
Fairgrove Fire District
$0.080
$355,552,577
$0.0883
$34,666
Farmer Fire District
$0.075
$204,844,912
$0.0769
$19,972
Franklinville Fire District
$0.100
$477,727,079
$0.1033
$46,578
Guil-Rand Fire District
$0.120
$1,943,366,688
$0.1262
$189,478
Julian Fire District
$0.100
$86,820,882
$0.1019
$8,465
Level Cross Fire District
$0.110
$215,859,370
$0.1116
$21,046
Northeast Fire District
$0.090
$131,026,054
$0.0902
$12,775
Randleman Fire District
$0.100
$239,485,519
Seagrove Fire District
$0.100
$195,193,283
$0.1006
$19,031
Sophia Fire District
$0.100
$125,490,872
Southwest Fire District
$0.100
$82,079,034
$0.1003
$8,003
Staley Fire District
$0.100
$153,130,392
$0.0993
$14,930
Tabernacle Fire District
$0.100
$337,375,745
$0.1054
$32,894
Ulah Fire District
$0.061
$556,095,290
$0.0621
$54,219
Westside Fire District
$0.100
$646,321,726
$0.1033
$63,016
Randleman -Sophia District
N/A
$364,976,391
$0.1032
$35,585
* Randleman (Tiger Country) and Sophia Districts merged on 7/1/14.
Adiournment
At 8: 30 p. m., on motion of Frye, seconded by Lanier, the Board voted unanimously to adjourn.
J. Harold Holmes, Chairman Darrell L. Frye
Arnold Lanier
Stan Haywood
Amanda Varner, Deputy Clerk to the Board