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022218 RetreatFebruary 22, 2018 Special Meeting —Commissioners Retreat The Randolph County Board of Commissioners met in special session at the Randolph County Office Building, 725 McDowell Road, Asheboro, for a Planning Retreat. Commissioners Allen, Frye, Haywood, Kidd and McDowell were present, as well as, County Manager Hal Johnson; Assistant County Manager/Finance Officer Will Massie; County Attorney Ben Morgan; Associate County Attorney Aimee Scotton; Clerk to the Board Amanda Varner and Deputy Clerk to the Board Dana Crisco. County Department Heads/staff and outside agencies were in attendance and made presentations where so noted later in these minutes. At 12:30 p.m., Chairman Allen called the meeting to order. County Manager Hal Johnson gave an overview of the agenda. RCATS - Strategic Planning Implementation Funding Update Randolph County Senior Adults Director Martha Ogburn stated that the Randolph County Strategic Plan adopted by the Board in 2016 identified access to public transportation as a key contributor to the well-being of the Randolph County community and cited example strategies for expanding that access. These strategies included evaluating transit options and needs through agency and governmental planning, exploring options to leverage and match State and Federal funding sources, and working with transportation providers to ensure citizens have access to work, court, medical appointments, pharmacies, grocery stores and other necessities. RCATS was awarded a $50,000 grant of Strategic Planning Implementation Funds to support two projects aligned with these strategies. Ms. Ogburn reviewed those, as follows: 1. Local Matching Funds for Community Connectivity Plan The North Carolina Department of Transportation, Public Transportation Division (PTD) provides grants management, planning support, and oversight duties for sub -recipients of federal Section 5311 rural transit funds in the state and provides planning assistance, including guidance and funding. RCATS is a sub -recipient of 5311 funds. In June of 2017, PTD contracted with RLS and Associates, a transportation management and operations consulting firm, to prepare a five-year Community Connectivity Plan (CCP) for RCATS. Key sections of the CCP are a Success Plan, an Asset Enhancement Plan, a Financial Plan, a Service and Connectivity Plan and an Assessments and Strategies Plan. Based on input from stakeholder interviews and public forums, rider and community surveys, peer group analysis, analysis of trip origins and destinations, and performance assessments, recommended service enhancements and strategies to achieve them have been identified that would address unmet transportation needs and service gaps throughout the county. The final plan is scheduled for presentation to the CCP Project Steering Committee in March 2018. 2. Local Matching Funds for RCATS Expansion Vehicles In 2013, RCATS submitted two separate projects to the Piedmont Triad Rural Planning Organization to purchase two additional 20 -foot light transit vehicles (one on each project) via the State Transportation Improvement Program (STIP). In February of 2017, RCATS received notification that both projects were approved for funding in FY2018. The vehicles have been ordered and delivery is expected in May 2018. Payment for the vehicles, including the local 10% match monies, will be due 30 days after delivery. Ms. Ogburn announced that the current Transportation Director Roger King will be retiring in June. County Operation of the Franklinville Library Randolph County Public Library Director Ross Holt said in Randolph County, the Library is a cooperative venture between county government and the municipal governments in the cities and towns where libraries are located. Three libraries: Asheboro, Archdale and Seagrove are operated by the County with significant municipal support; four libraries: Franklinville, Liberty, Ramseur and Randleman are operated by their municipalities with significant County support. All are under the general leadership of the County Public Library but the relationship between the County Public Library and individual municipal libraries may change over time as local needs change. At its meeting on January 10, 2018, the Franklinville Board of Commissioners voted unanimously to ask Mr. Holt to develop a proposal for the County to assume operation of the John W. Clark (Franklinville) Public Library when the current librarian, Martha Cain, retires at the end of the fiscal year. He said he has presented a proposed contract for County operation of the library to the Town of Franklinville Board which they unanimously accepted on February 13th. By the terms of the agreement, the County Public Library would take over operation of the Franklinville Library on July 1, 2018, in an arrangement similar to those in place with Asheboro and Archdale, in which the County operates the library but the town is responsible for the facility and other support. Franklinville has agreed to continue its existing contribution to operation of the John W. Clark (Franklinville) Public Library while covering the added cost of placing appropriately qualified staff at the appropriate level on the County pay plan. Any costs to the County are in-kind or otherwise absorbed in the existing Public Library budget. No additional funding will be required on the part of the County. Consensus of the Board was to consider their request. Mr. Holt plans to request approval of the proposed contract at the March Board of Commissioners meeting. Emergency Services Recruitment and Retention Issues Emergency Services Director Donovan Davis gave an update on department operations, staffing and the number of calls in the last year. He said staffing is the primary concern since the number of calls continues to increase and then retaining staff once he hires them. Emergency Services has been losing EMS employees to other counties that work a 12 -hour shift instead of 24-hour. Many have transitioned into nursing, have become a physician's assistant, or completely left the field due to fatigue and the pay. He said studies support the shift change because of the effects of fatigue and the risk it causes patients under the care of a paramedic. EMS has become a specialty service in emergency medicine. He gave examples of things a medical doctor and paramedic both can do but a nurse can't. Mr. Davis said the future of EMS is changing and the National EMS Scope -of -Practice Model has been revised and is expected to be adopted later this year, implementing a system that establishes national standards for personnel. Mr. Davis' priority staffing requests were to add 9-1-1 Telecommunicators to complete the separation of call -taking and radio dispatch and to devise a plan to add a new EMS shift and convert existing employees to 12 -hour shifts. He said these positions were part of the goals established in the Strategic Plan. Mr. Davis informed the Commissioners that the Fire Marshal and staff are working on a Fire Protection Ordinance that will include a fee and fine schedule for consideration in the next few months and will be included in the 2018-19 proposed budget. Fire department contracts are being reviewed and a possible recommendation for updates could be heard in late 2018 or early 2019. Policies and procedures have been created for the morgue which will open on March 1 st He also gave an update on the opioid crisis: • 33 overdose patients in January • 15 overdose patients as of February 15th • Eight overdose suspected deaths since January 1 (youngest: 18 -year old male and oldest: 65 -year old male) • Paramedic/Public Health response collaborative is going slow for referrals Mr. Davis said they are currently working with NC VIPER radio technicians to identify the best location in northern Randolph County to add a radio tower because of the poor coverage in the Randleman/Climax/Level Cross areas. They are also researching a countywide replacement paging system because of expected changes in FCC regulations for VHF tone systems. Discussion of Possible Uses For Any Opioid Settlement Mr. Johnson stated that Commissioner Stan Haywood had asked that the Board have a Planning Retreat discussion on possible uses of any opioid settlement that the County may receive as a result of the pending lawsuit authorized by the Board of County Commissioners. Johnson advised the Board that he and County legal staff had just received the draft copy of the legal Complaint that would be filed in Federal court on behalf of Randolph County by the national law firm approved by the Commissioners. Johnson said after review he expected the Complaint to be filed in Federal court the first week of March 2018. Johnson said that although there is no way of knowing the length of time before any settlement, he noted that the Federal Judge who first would preside over the lawsuit has indicated that he would expect expedition of this process due to the numbers of people dying each day from opioid overdose causes. Commissioner Haywood stated that we have to be proactive in addressing this issue because of its impact on our citizens. He noted the previous report given to the Commissioners today by Emergency Services Director Donovan Davis that indicated that Randolph County has suffered eight overdose deaths since January 1, 2018; the youngest was 18 and the oldest 65. This is a national tragedy, and the Commissioners should look for ways to direct any settlement funds to help those who are suffering from addiction. Mr. Johnson said that during the Randolph County Opioid Forum held in August 2017, it was reported that of 90 inmates admitted to the Randolph County Jail, the same 90 inmates had been rearrested over 250 times and was determined a drug addiction or a mental health issue was the reason. Commissioner McDowell stated that there are so many County Departments that are impacted by this crisis. He mentioned not only impacts to the Jail and Emergency Services, but also to the Department of Social Services. Commissioner Allen stated that the County should look to reinvest possible settlement funds into local mental health programs that seek to aid victims that are in the recovery process. Commissioner Frye stated that he felt this legal court and settlement process would take a long period of time and this would give the County time to further reflect on areas to direct any settlement that would have the most impact for Randolph County. Commission Frye said although the law suit is filed on behalf of Randolph County he did not think all the cases would be adjudicated individually. County Attorney Ben Morgan stated that he felt the opioid lawsuits would be similar to the tobacco settlements of the 1990s. Commissioner Kidd stated that we should begin keeping data on costs to various county agencies so that Randolph County would be better prepared to allocate settlement monies in areas where they would have the most need and impacts. Other Post -Employment Benefits (OPEB) Finance Officer Will Massie said there is increasing scrutiny on local government's understanding of its other post -employment benefits liability and how it plans to fund it over time. The NC State Treasurer frequently asks about a unit's other post -employment benefits liability as part of the LGC's review of local government debt issuances. He said bond rating agencies are concerned with the degree to which such costs will escalate and whether the government has plans to address them. Mr. Massie spoke of the retiree health insurance plan that was amended in 2011 and the financial reporting that is in place now and the changes that are expected 6/30/2018. Mr. Massie said that Randolph County doesn't currently set aside monies to pay for future OPEB costs. If the County chooses to do so, funds would have to be in a separate custodial trust in order to report reduced OPEB liability on the financial statements. He said the pay-as-you-go method is adequate for the County. Break At 2:06 p.m., the Board recessed for a short break. Retreat Resumed At 2:20 p.m., the retreat resumed. Capital Improvement Plan Mr. Johnson reviewed the topics to be included with presentations related to the Capital Improvement Plan (CIP). He reminded the Board that two Bills were introduced into the General Assembly last year that could have provided funding for some of the County's capital projects. The intent of the Public School Building Bond Act of 2017 (NC School Bond — HB866 / SB 542) was to provide, subject to a vote of the qualified voters of the State, for the issuance of one billion nine hundred million dollars ($1,900,000,000) general obligation bonds of the State for the purpose of providing funds, with any other available funds, for public school facilities through grants to counties for public school capital outlay projects. He provided the amounts for distribution if the proposed NC School Bond — HB866 / SB 542 were to go forward and pass: Asheboro City Schools -$7,149,452 and Randolph County Schools -$26,601,006. This would assist with needed school construction and repairs in Randolph County. He said there is no current authority to levy an additional sales tax except for transportation (Article 43). HB 333 would have given counties authority to have a referendum to gain an additional quarter cent sales tax. HB 333 passed House last year and stalled in Senate. Mr. Johnson restated these are two House Bills that may or may not happen, and neither was figured into this discussion. Detention Center Project — County Engineer Paxton Arthurs said that architects are still working on design. He provided the site plan and discussed the construction phasing for the addition and renovations at the Detention Center. Phase one would be the new addition. Once it is complete, inmates can be moved into it allowing other renovations to take place. Plans have been submitted to state agencies for the required approvals. Application for construction permit has been filed with the City of Asheboro. The architect will present the design at the March meeting and ask to move forward with the bidding process. Northgate Demolition — Mr. Arthurs said seven bids were received for demolition on the far south end unit being considered for Elections and the north end being considered for Adult Day Reporting and Probation/Parole at the Northgate complex. The expense associated with this work is available in the budget that was already approved as part of the initial purchase. The Manager will move forward with the contract. ➢ Received 7 Bids Base Bid Total (Base + 1&2) Bar Const. $102,000 $170,000 Garanco • HM Kern $125,700 $198,800 • Lomax Const. $119,700 $185,200 • Muter Const. $126,000 $178,500 • Omega Dev. $146,900 $213,100 • Smith & Allen $140,000 $211,500 Mr. Arthurs said that the center section of the complex (formerly CommunityOne) that had been subject to water damage when a pipe froze, busted and then thawed will be ready to house early voting in April. After early voting has ended, repairs will proceed. Trinity Ambulance Base and Convenience Site — Mr. Arthurs reviewed the site plan for these and gave the following update: o Tasks Complete • Property Purchased and Cleaned up • Property surveyed • Two parcels combined into one • Septic System approved by Health Department o Tasks Remaining • Abandon existing well and septic system • Finish Ambulance Base Design and Bidding (February — May) • Ambulance Base Construction (June — November) • Apply for Special Use Permit for Convenience Site (April) • Finish Convenience Site Design and Bidding (April — July) • Construction of convenience site (August — December) Agricultural Center — Mr. Johnson said that he remembered previous comments by Commissioner Haywood stating that the agri-business center can be a "megasite" for Randolph County agriculture, just as the Greensboro -Randolph Megasite can be a catalyst for our industrial and manufacturing growth. Mr. Johnson stated that as the concept of an agri-business center process developed, many citizens representing agriculture, commerce, tourism, and other areas of our community, were asked to provide input on the proposed center as it began design. Mr. Johnson said he asked our architects to include all the recommendations submitted by assigned committees into the initial draft of the proposed site. This was to give the Commissioners and public an understanding of the cost to implement all options. Unfortunately, the cost of the initial draft agri-business center totaled over $68 million. Mr. Johnson said, as County Manager, he appointed a targeted work group to review these initial suggestions and to recommend various options for development that reduce cost but still allow the proposed agri-business center to be constructed at a level that would meet the needs of the Randolph County agricultural community. Mr. Johnson said this would help if the County decides to develop the agri-business center all at one time and avoid constructing the facility in phases which would likely take place over many years. He said the following reductions had been recommended in the draft conceptual plan to obtain the cost estimate of $53,336,683: • Size of arena - 250x130 square feet • Remove walls from stall barn & warm-up areas • Remove HVAC for main arena area • Retain civic center space for 800 table seats • Reduce requested office space • Eliminate NC Forestry Service from complex Mr. Johnson emphasized that the conceptual plan shown would be subject to many changes as the project develops. He said consultation with the City of Asheboro on utility provision, road designs, and other infrastructure support would have an impact on building locations. Mr. Johnson stated that it was essential for this project to be a real "public-private partnership." He said the current plan reflects areas of the 104 acre site that could be used for future commercial development such as a hotel and related retail establishments. This could provide opportunities for the County to sell acreage to provide up -front funds for construction or enter into long term leases that generate recurring income needed to operate an agri-business center. Mr. Johnson said the County could consider hiring a professional firm that specializes in providing business plans for the operation of an agri-business center. The business plan would consider such questions as: what type of events do we anticipate, what kind of revenues, what expenses, what services will the facility need to offer, what level of staffing will be necessary, and how to handle the general administration and operations of the facility. Mr. Johnson said the County would pursue all available grants for this project; however, we should realize that there may be limited grants available for this type of facility. Local fundraising and naming rights for the arena and civic center could also provide a small part of funding opportunities. He said that the Commissioners had consistently made it clear that they desired to implement all the capital projects that were being reviewed at this planning retreat without a tax increase to the citizens of Randolph County. The original projections for cost of an agri-business center without requiring a tax increase was preliminarily set at $17,500,000. This cost estimate would allow an office building and a relatively small arena. Mr. Johnson said there are options available to the Commissioners should they desire to pursue the full agri-business center project at the $53 million dollar range. He listed HB866- N.C. School Bond, House Bill 333 -Local Option Sales Tax Flexibility, and General Obligation Bond Debt. The N.C. School Bond is currently stalled in the legislature, however, if the HB 866-N.C. School Bond should be moved forward by the legislature and a state referendum passed on the November ballot, over $33 million would be available to Randolph County to allocate to the County and City School systems. This would free up money that is currently being allocated for school capitol project needs and allow those funds to be redirected toward the agri-business center funding needs. He said the House Bill 333 -Local Option Sales Tax Flexibility was also a possibility, however, this Bill is still being considered by the N.C. Legislature, and would require a November referendum. A general obligation bond debt is funded in part with additional county property taxes and the Commissioners have the authority to call for a referendum. This referendum would ensure public support for the full project and could be on the November 2018 general election ballot. The County could still finance and commence construction in mid -2019. Any advocating (pro/con) would have to come from outside organizations. Chairman Allen asked what would happen if a referendum didn't pass. Mr. Massie said the County could go back to planning the facility in phases over a period of time if they didn't want to fund it completely now. Commissioner Frye said "in order to accommodate the needs and generate revenue," the plan would need to remain as proposed. Chairman Allen said he preferred a bond referendum more than waiting for a possible sales tax option. Commissioner McDowell said that he is always being asked about the progress of the agricultural center. He asked would the County "want to lease or sell some property for revenue sources?" Mr. Massie said leasing is probably the best option so that it helps to support the annual operating expenses of the facility. Financing of Priority Projects — Mr. Massie reviewed the status of priority capital projects that are in the current Capital Improvement Plan. He provided the revised financing schedule and cost estimates of these projects: CIP — Revised Schedule & Cost Estimates August 2018 Randolph County Detention Center $18,000,000 Asheboro City Schools Asheboro High School Addition / Renovation I $17,000,000 Mid - 2019 Asheboro City Schools Elementary and Middle School Renovations $ 2,500,000 Randolph County Schools - Trinity Middle School $28,000,000 Agricultural Center $19,500,000 Mid - 2020 Asheboro High School Renovation II $15,000,000 He stated that the amount of debt service required for these projects was approximately $18 million more in total over the next ten years than was currently being budgeted. The recommended financing plan was to supplement the existing level of debt service ($12.4 million per year) with a six year diversion of the Article 46 Sales Tax (from RCC capital needs) from 2020-2025 ($2.2 million per year) and a one-time transfer of Fund Balance for future debt service of $6 million. RCC would still get approximately $500,000 per year from the Article 46 sales tax distributions. Mr. Massie reviewed the possible effect of the proposed debt on our debt affordability ratios and showed that the impact was acceptable. He also stated that once these facilities are in service, we would expect budget pressure for the additional operating costs. He concluded his comments stating the County may consider seeking a ratings upgrade from the bond rating agencies. Financing of Northgate Renovation —Mr. Massie reviewed financing options for renovation of Northgate Plaza for Elections, Probation and Parole, and Adult Day Reporting Center offices: ► Proposals for Funding Northgate: • Option 1—Renovate in Phases (proposed in January) o Board of Elections renovation ($1.7 million) using residual $900,000 and another $800,000 from fund balance o Probation and DRC phase ($2.9 million) is dependent on future resources o Courthouse renovation phase is dependent on completion of probation phase and future resources • Option 2—Renovate entire space for Elections, Adult Day Reporting Center and Probation as a pay-as-you-go project ($4.6 million) o Use the residual $900,000 and $3.7 million from the debt service reserve to pay for what is needed to renovate entire Northgate (Elections, Probation, and DRC) o Commit to use next $3.7 million of landfill lease revenues to restore the debt service reserve by 2022 o Courthouse renovation phase is dependent on completion of probation phase and future resources • Option 3 — Postpone renovation of Northgate Plaza indefinitely o Entire renovation is dependent on future resources o Courthouse renovation phase is dependent on completion of probation phase and future resources Board members favorably discussed the option of completing the entire project. Chairman Allen stated he liked the idea of moving the project forward but was not entirely comfortable with committing the landfill lease revenue for several years. Break At 3:35 p.m., the Board recessed for a short break. Retreat Resumed At 4:10 p.m., the retreat resumed. Update on Strategic Planning Implementation County Manager Hal Johnson gave an update on the disbursement of funds for the twelve projects that were approved during the first implementation phase of the Strategic Plan. Business Continuity Planning IT Director Michael Rowland and Associate County Attorney Aimee Scotton gave an update on the planning process for business continuity. Business Continuity was also an identified goal in the County's Strategic Plan. Key employees in each department attended training to begin the process and all departments have completed their Business Impact Analysis of their functions. The Implementation Team will be reviewing those through mid-April. Next steps: • Recovery strategies — April through November • Tabletop exercises — November through January • Present draft plan — 2019 retreat The Board of Commissioners will approve the overall plan and priorities. Mr. Rowland also updated the Board on how the County is protecting systems against cyber security threats. Economic Development Reserve Finance Officer Will Massie said for three years, the Board committed one cent of the property tax rate to fund economic development initiatives, in order to finance infrastructure, site development, and incentives. These funds were occasionally supplemented with other resources. These funds were placed in the Economic Development Reserve until the Board approved specific projects. Management recommended disbursing installment payments for all future performance based incentive contracts out of General Fund using related property tax revenue growth, rather than from the Economic Development Reserve Fund. This could preserve Economic Development Reserve monies for just site development and infrastructure development initiatives. Mr. Massie proposed to earmark a specific revenue stream for Economic Development Reserve to replenish the Reserve for future initiatives. A dedicated special revenue is required in order to report Reserve separate from General Fund. Management proposed any future amounts over the amount currently budgeted for Medicaid Hold Harmless could be transferred to the Economic Development Reserve. Economic Development funding would then have a dedicated source that grows or declines as economy changes and does not use currently budgeted resources. Mr. Massie asked the Board if they felt the County has a role to encourage the development of new, competitive industrial sites or the development of water and sewer infrastructure systems in certain areas of the county to promote economic development. Chairman Allen said he was more concerned with industrial development than residential along the 421 corridor. In regards to water supply, he said he felt as though Ramseur could be the source to distribute water to the eastern half of the county. The County also has an allocation of treated water from the Piedmont Triad Regional Water Authority that could be distributed through the Greensboro line. Discussion Chairman Allen asked the Board to discuss the topics and questions they were presented to be sure that the Board had given sufficient comment to provide guidance to the County Manager and Finance Officer as they proceeded with related budget issues. Commissioner Haywood asked if there is a source that could be counted on to "champion" for the agri-business center. Mr. Johnson replied that Chambers of Commerce and agriculture related agencies may be willing to. Mr. Massie asked if the Board was comfortable with the $55 million estimate for the agricultural center project. Commissioner Haywood said yes. Commissioner McDowell replied the he felt that citizens would be disappointed with a $20 million facility and are very interested in this project. Commissioner Haywood said the agri-business center is vital to Randolph County. Chairman Allen said that the facility could draw unique visitors that would also take advantage of other tourist locations while here. Chairman Allen again stated what he said earlier regarding that he would prefer general obligation bonds instead of sales taxes for the financing of the agricultural center. Mr. Massie asked how the Board felt about pursuing a contract with a financial advisor to help with the organizational structure and to develop a business plan. Chairman Allen replied that if it was cost effective to do then he felt the County should go ahead. Commissioner Kidd asked for a better idea of what it would cost before going forward. Adjournment At 5:15 p.m., on motion of McDowell, seconded by Frye, the Board adjourned. David Allen, Chairman Darrell L. Frye Stan Haywood Maxton McDowell Kenny Kidd Amanda Varner, Clerk to the Board