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080618August 6, 2018 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 Allen, Frye, Kidd, McDowell and Haywood were present. Also present were County Manager Hal Johnson; Finance Officer Will Massie; County Attorney Ben Morgan; Amanda Varner, Clerk to the Board; and Dana Crisco, Deputy Clerk to the Board. Dr. Bob Shackleford gave the invocation and everyone recited the Pledge of Allegiance. Special Recognition—Governor's Volunteer Awards Chairman Allen, with the assistance of Elizabeth Mitchell of the United Way, presented certificates of appreciation to the winners of the 2018 Governor's Award for Volunteer Service: Brenda Roddy, Kay Kowalsky, YMCA's Outreach Garden Volunteers, Amy Uribe Pavon, Eddie Lindsay, Food Lion -Liberty, Jo Ann and Gary Harris Retirement Recognitions Jennifer Garner retired August 1, 2018, with 30 years of service to Randolph County with 27 of those years in Building Inspections. Ms. Garner was recognized by Building Inspections Director David Bryant, after which, Chairman Allen presented Ms. Garner with an engraved clock on behalf of the Board. Roger C. Hunt retired July 1St from the Sheriff's Office with 20 t/2 Years of Service. Mr. Hunt was recognized by Sheriff Graves, after which, Chairman Allen presented Mr. Hunt with an engraved clock on behalf of the Board. Public Comment Period Pursuant to N.C.G.S. § 153A-52.1, Chairman Allen opened the floor for public comment. County Attorney Ben Morgan read aloud the Public Comment Rules of Procedure. Dwain Roberts, 300 S. High Street, Asheboro, thanked the Commissioners and County for the prompt attention to the absence of lighting on the flag at the Register of Deeds building. There was light back on the flag the next day. Chairman Allen thanked him for letting us know about it. Consent Agenda On motion of Frye, seconded by McDowell, the Board voted unanimously to approve the Consent Agenda, as follows: • approve Board of Commissioners Regular Meeting Minutes of 7/9/18; • reappoint Bob McDufe to the Piedmont Triad Regional Water Authority; • reappoint Mazie Fleetwood, Leanne Henkel, and David Allen to the Sandhill Center Board of Directors; • adopt DOT Resolution adding Patriot Woods Drive to the State Road System, as follows: RESOLUTION 8/6/2018 WHEREAS, the Department of Transportation has investigated Patriot Woods Drive in the Patriot Woods 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 Patriot Woods Drive in the Patriot Woods Subdivision be added to the Division of Highways' Secondary Road System. Reappoint Lydia Craven to the Randolph County Public Library Board of Trustees; Appoint Lisa Canoy to the Aging Services Planning Committee to replace Jean Volrath (retiring from Library position); Approve Budget Amendment #5 for Encumbrances, as follows: 2018-2019 Budget Ordinance General Fund—Budget Amendment #5 Revenues Increase Decrease Appropriated Fund Balance $2,737,280 Restricted Intergovernmental $410,442 Trans er rom Well Being Reserve $205,207 Transfer from Economic Development Reserve $202,000 Appropriations Increase Decrease Administration $122,000 Information Technology $23,638 Tax $162,900 Elections $292, 791 Register of Deeds $33, 244 Public Buildings $676, 084 Sheriff $429, 753 Emergency Services $368Y512 Building Inspections $61, 756 Cooperative Extension $2,626 Other Economic Development Appropriations $572, 000 Public Works $3Y200 Public Health $230Y319 Social Services $277, 727 Veterans Services $4, 597 Other Human Services Appropriations $162, 847 Public Library $88, 575 Other Cultural and Recreational Appropriations $42Y360 Solid Waste Management Fund—Budget Amendment #5 8/6/2018 Revenues Increase Decrease Appropriated Fund Balance $9,025 $9,150 Appropriations Increase Decrease Solid Waste Management $9,025 $9,150 Emergency Telephone System Fund—Budget Amendment #5 Revenues Increase Decrease Appropriated Fund Balance $9,150 Appropriations Increase Decrease E-911 $9,150 ADUroval of Resolution in SUDDort of DOT Bridle Naming in Memory of DeDuty Tonev C. Summey Sheriff Graves said he had submitted an application to the NCDOT to initiate the process to have a bridge named in Randolph County to honor the memory and sacrifice of Deputy Tony Summey. Deputy Summey was killed in the line of duty on April 27, 2003, as result of a fatal assault while in the act of serving a legal process. Sheriff Graves introduced the Summey family in attendance. He said County Manager Hal Johnson provided the signed Character Certification Form required of local government to attest the character of the honoree. Sheriff Graves requested the Commissioners adopt a Resolution of Support to name Bridge 933 located over the Uwharrie River on Hwy 64 West in honor of Toney C. Summey. On behalf of the Board, Chairman Allen thanked the Summey family for their sacrifice and said this is only a small token of their appreciation for Deputy Summey's service. On motion of Haywood, seconded by Kidd, the Board voted unanimously to adopt a Resolution of Support in having a bridge named to honor the memory and sacrifice of Deputy Toney C. Summey, as follows: RESOLUTION IN SUPPORT OF BRIDGE NAMING IN MEMORY OF DEPUTY TONE C. SUMMEY WHEREAS, Deputy Toney C. Summey was employed by the Randolph County Sherifi's Office on July 16, 1999, and served until his untimely death on April 22, 2003; and WHEREAS, Deputy Summey was also involved with his church, served on the Board of Directors of the Tabernacle Fire Department, was a volunteer firefighter, and volunteered with community organizations; and WHEREAS, on April 22, 2003, Deputies Summey and Hollingsworth fearlessly went to serve warrants on an individual for a domestic dispute; and WHEREAS, Deputy Summey was shot three times and Deputy Hollingsworth was shot once before the subject surrendered to authorities, and WHEREAS, ultimately the shots fired by the suspect ended the life of Deputy Summey, and 8/6/2018 WHEREAS, Deputy Summey was a deeply devoted family man with a simple order for his life: God, Family, Work; and WHEREAS, his honorable service, actions, steadfast courage and supreme sacrifice while serving and protecting our county serve as a worthy example for all citizens of Randolph County. NOW THEREFORE BE IT RESOLVED that the Randolph County Board of Commissioners hereby supports the recommendation to designate Randolph County, NC, Bridge 933 located over the Uwharrie River on Hwy 64 West to honor the memory of Deputy Toney Clayton Summey. Vice Chairman Frye then read the Resolution aloud. Economic Development Matters—Proiect Gooseneck / Ferree Trailers VP of the Economic Development Corporation Kevin Franklin gave a summary of the project. Liberty Trailers DBA Ferree Trailers manufactures a wide range of flatbed and gooseneck trailers. The company was founded in 1949 and has a long history of quality production and growth. Ferree Trailers now occupies a 60,000 square foot facility at 5806 York Martin Road in Liberty which it constructed in 1999. In 2014, Ferree Trailers was acquired by Talbert Manufacturing, a trailer maker in Rensselaer, Indiana. The acquisition added a new market, expanded manufacturing capabilities, and added an East Coast distribution center to Talbert Manufacturing's growing business. Since the acquisition, demand has continued to increase, necessitating an expansion. The owners are considering a 52,000 square foot addition to the existing facility in Liberty. The expansion would allow paint and finish operations to transition to the new building while increasing weld -out capacity in the current structure. Mr. Franklin said if the project proceeds in Liberty, Talbert Manufacturing is committed to creating 24 net new full-time jobs at Ferree Trailers over an 18 -month period and retain those positions for an additional six months. The average wage of the new employees would be $35,704 which exceeds the current county average wage of $34,819. The company is requesting a NC Commerce Building Reuse Grant to offset capital investment of $3,300,000 ($2,600,000 in new construction; $700,000 in equipment) to expand in Randolph County. NC Commerce has reviewed preliminary project information and has invited submission of a full grant application requesting $300,000 for the project, or $12,500 for each new job. Ferree Trailers is located in an unincorporated area of Randolph County. Since the program requires the applicant be a unit of local government, the County would serve as the grant applicant. The grant requires a 5% local cash match, or $15,000 for the $300,000 grant request. Based on anticipated additional tax revenue generated by the proposed project, Randolph County would realize return of its cash match within one year. 8/6/2018 The targeted grant application deadline is October 25"'. The Rural Infrastructure Authority will meet on December 13f' to make the grant award decisions. The EDC requested that the Randolph County Board of Commissioners schedule a public hearing at its regular meeting on September 4h to consider authorizing submission of a Building Reuse Grant application, including a required 5% cash match of $15,000, to assist with the proposed expansion of Ferree Trailers in Liberty. Mr. Franklin said this project is competitive with the Indiana facility. On motion of Frye, seconded by Kidd, the Board voted unanimously to set a public hearing to be held during the September 4, 2018, meeting to consider authorizing submission of a Building Reuse Grant application, including a required 5% cash match of $15,000, to assist with the proposed expansion of Ferree Trailers in Liberty. Economic Development Matters—FPE NC LLC /EGI- Ernie Green Industries—Public Hearing VP of the Economic Development Corporation Kevin Franklin reviewed the project. FPE NC LLC is a wholly owned subsidiary of Ernie Green Industries (EGI), a global plastic injection molding company headquartered in Columbus, OH. The parent company has multiple U.S. facilities, including the FPE campus at 6966 Hwy 220 South, Asheboro, which is located in the Seagrove community. The facility produces both industrial goods and medical devices, and over the past several years, company leadership has successfully grown the medical device production business in Seagrove. The present opportunity seeks to enhance the medical device production capacity in Seagrove. Based on a request from an existing North Carolina -based customer, FPE is considering installation of a 1,500 square foot clean room in its main building (Plant 1) on the Seagrove campus. The preliminary cost estimate for the building improvements is $240,000 which includes installation of the clean room, upgrades to the HVAC system, and electrical work. These cost estimates could be revised as formal bids are received by the company. Should the project proceed, FPE is committed to creating 12 new full-time jobs directly associated with the new clean room. The average annual wage of these jobs will be $28,000. The company is eligible for a $60,000 Building Reuse Grant from NC Commerce to assist with the building upfits. Since the Seagrove facility is located in an unincorporated area of Randolph County, the County would serve as the grant applicant for this project. The grant program also requires a 5% local government cash match. Based on the company's commitment to create 12 new jobs, the County's match for this project would be $3,000. The County would be responsible for ensuring that repayment is made if the property owner defaults on its payment. The property owner is willing to assume this risk via a deed of trust on the property. Based on the company timeline, the targeted application deadline is August 30th. Awards are scheduled to be announced on October 18th Mr. Franklin stated that the EDC believes that the FPE project is a good economic development project for Randolph County, generating additional tax revenue and resulting in the 8/6/2018 creation of 12 new jobs. Therefore, the EDC requested that Randolph County adopt a resolution authorizing the submission of a Building Reuse Grant application to NC Commerce and commit to a local government cash match of $3,000. At 6:38 p.m., Chairman Allen opened the public hearing. Wade Stauffer, FPE/EGI Plant Manager, 2950 W. Greensboro Chapel Hill Rd., Snow Camp, NC, thanked the Board for the consideration of the grant. He said the business has grown almost four times the original size in the last five years. They launched the medical device division three years ago and it has been very successful. Various NC companies have asked them to manufacture product for them with the most recent being from Morrisville, NC. This company has requested the "clean room" for their product, but FPE will also be able to use it for future growth. Mr. Stauffer invited the Commissioners to come tour the plant. Hearing no further comments, the public hearing was closed. On motion of McDowell, seconded by Kidd, the Board voted unanimously to adopt a Resolution Authorizing The County Of Randolph To Apply For A Building Reuse Grant And To Provide The Local Match Grant Requirement For The FPE NC LLC Economic Development Project, as follows: RESOLUTIONAUTHORIZING THE COUNTY OFRANDOLPH TO APPLY FOR A BUILDING REUSE GRANT AND TO PROVIDE THE LOCAL MATCH GRANT REQUIREMENT FOR THE FPE NC LLC ECONOMIC DEVELOPMENT PROJECT WHEREAS, Section 158-7.1 of the North Carolina General Statutes authorizes a county to undertake an economic development project by extending assistance to a company in order to cause the company to locate or expand its operations within the county; and WHEREAS, the North Carolina General Assembly has authorized funds to be used for stimulating economic development and job creation; and WHEREAS, FPE NC LLC ("Company') has stated its commitment to invest two hundred forty thousand dollars ($240, 000.00) to upfit and renovate its facility located at 6966 U.S. 220 South in Randolph County and to create twelve (12) new full-time jobs with an average annual salary of twenty-eight thousand dollars ($28, 000.00) in Randolph County; and WHEREAS, the County of Randolph is considering the filing, by the County, of an application with the North Carolina Department of Commerce for a Building Reuse Grant on behalf of Company; and WHEREAS, said Grant requires a 5% local match from the local government making application; and WHEREAS, the maximum amount of the Grant that Company is eligible for is up to one hundred fifty thousand dollars ($150,000.00), requiring a local match of up to seven thousand five hundred dollars ($7,500. 00); and 8/6/2018 WHEREAS, the Board of Commissioners of Randolph County has held a public hearing to consider whether to participate in this project by applying for the grant and, if awarded, by providing the requested local match of up to seven thousand five hundred dollars ($7,500.00); and WHEREAS, upon the completion by Company of this expansion project, Company will have expended two hundred forty thousand dollars ($240,000.00) to upfit and renovate the facility in the County that it currently occupies and will have created a minimum of twelve (12) new full-time jobs in the County; and WHEREAS, this economic development project will stimulate and stabilize the local economy, promote business in the County, and result in the creation of a number of jobs in the County; and WHEREAS, the County has in its General Fund available revenues sufficient to fund this economic development project; NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of Randolph County, this 6th day ofAugust, 2018, as follows: Section 1. The County is authorized to apply for a North Carolina Building Reuse Grant from the North Carolina Department of Commerce for the FPE NC LLC renovation project as detailed herein. Section 2. The County is authorized to expend up to seven thousand five hundred dollars ($7,500.00) of County funds to provide the required local match for the above -referenced Building Reuse Grant applied for on behalf of FPE NC LLC by the County. Review of Capital Improvement Plan (CIP) Because the County is beginning to move forward with financing certain capital projects, Finance Officer Will Massie reviewed the current schedule and financing plan. The County currently owes $61,138,800 on previous projects that will be completely paid off in ten years which will provide the capacity to do other projects. The current priority projects are the County's Detention Center and the Agricultural Center, the Asheboro City Schools' Asheboro High School Addition/Renovations and various elementary and middle school renovations, and the Randolph County Schools' new middle school in the Archdale/Trinity area. He presented projections for future debt service based on estimated project costs. Mr. Massie presented the revised Capital Improvement Plan (CIP) schedule through 2020 with project cost estimates. He said the current funding plan is to maintain the existing $12.3 million level of debt service currently in the budget. A one-time transfer of $2.3 million from fund balance into Capital Reserve for future debt service payments has been done. The Board has committed to applying the landfill lease revenues to Capital Reserve for the next four years and shifting the Article 46 Sales tax (from RCC capital needs) for six years, beginning in 2020, which was estimated to be around $2.3 million per year. RCC would still get the $500,000 capital appropriation per year. 8/6/2018 Mr. Massie explained the original CIP included the Agricultural Center when it was estimated to be less than $20 million. He said $100 million in projects could be done without a tax increase, but once the scope of the Agricultural Center project expanded, it was estimated that a three cent property tax increase would be necessary to fully implement. The Board has been discussing a possible bond referendum. The goal was to set aside resources in Capital Reserve early to "smooth out" the impact to annual budgets as new debt service was added. Mr. Massie said with the current plan, by 2028 the County would have capacity to do other projects. He reviewed the projects RCC had been able to accomplish with the Article 46 sales tax proceeds. Mr. Massie reminded the Board that the County's debt policy includes several ratios to determine affordability of capital projects. He reviewed how the entire CIP financings would affect the debt policy ratios by 2021. The debt per capita would still be estimated to be below the state average for counties our size (as of June 2017). Debt as a percentage of property valuation would be below the statutory maximum but near our policy limit. The projected debt service as a percentage of budgeted expenditures in 2021 would be slightly higher than our policy limit but only for a few years. Public School Construction Installment Financing (LOBS) Agreement Public Hearing and Adoption of Authorizing Resolution- AHS Associate County Attorney Aimee Scotton reminded the Board that at their July 9' meeting they set a public hearing for August 6d' in order to consider whether to approve an installment financing arrangement to obtain financing through the sale of limited obligation bonds (LOBS) in an amount not to exceed $19 million for the renovation, expansion, equipment and improvement of Asheboro High School, said improvements to include but not be limited to the addition of classrooms, a multi-purpose area, science labs, band classrooms and storage and flex classrooms. Because the Asheboro High School property will serve as the collateral for the financing, it is necessary for the County to own the property during the term of the financing arrangement and lease it back to the Asheboro City Schools Board of Education. She said after the public hearing, if the Board wishes to proceed with this financing arrangement, they would need to adopt the resolution provided in their packet, which authorizes and approves the installment financing arrangement, authorizes the execution and delivery of documents in connection with said financing and approves the acquisition of the subject property from the Asheboro City Schools Board of Education. They would also need to approve the associated budget amendment for the Asheboro City Schools Capital Improvement Project (Project). At 6:54 p.m., Chairman Allen stated that was the hour, day and place fixed for a public hearing held pursuant to Sections 160A -20(g) and 153-158.1 of the North Carolina General Statutes, as amended, for the purpose of considering whether the Board of Commissioners for the County (the "Board") should approve (a) an installment financing contract under which the County would obtain financing pursuant to Section 160A-20 of the North Carolina General 8/6/2018 Statutes, as amended, in an amount not to exceed $19,000,000 for the purpose of providing funds, together with other available funds, for the construction and other accomplishment of the Project hereinafter described and (b) the proposed acquisition by the County from the Asheboro City Schools Board of Education, pursuant to Section 153-158.1 of the North Carolina General Statutes as amended, of an interest in the real and personal property included in the Project, including specifically the site of the Project and the improvements thereon, for use by the Asheboro City Schools. The County would secure the repayment by it of moneys advanced pursuant to such documents by granting a lien on a portion of the Project and certain related property. The Project consists of renovating, expanding, equipping and improving Asheboro High School, including but not limited to the addition of classrooms, a multi-purpose area, science labs, band classrooms and storage, and flex classrooms. The Chairman announced that the notice of the public hearing was published in the Courier - Tribune on July 26, 2018. The Chairman inquired to determine whether there were any persons who wished to speak at the public hearing. The names, addresses and testimony of the persons who were present and who offered comments on the proposed installment financing contract, pursuant to or who responded in writing to the notice of public hearing, are as follows: Kyle Lamb, Chair of the Asheboro City Schools Board of Education, 1217 Timberlane Rd., Asheboro, spoke in favor of the request. Mr. Lamb stated that Asheboro High School was built in 1950 and currently has capacity for 950 students. When school starts this year, they expect 1350 students to arrive (42% over capacity). He said the additional classrooms will help accommodate these numbers and provide innovative and flex classroom space. HVAC, plumbing and electrical will need to be updated during the renovation project as well as adding accessibility for special needs and ADA compliance. On behalf of their Board, staff, students, families and community, he asked the Commissioners to move forward with the project. Cranford Knott, 1450 Westmont Circle, Asheboro, stated that he is a lifelong resident of Asheboro, member of the business community, Asheboro High School alumni, and parent present to thank the Commissioners for their support in the past and ask for continued support going forward. "When you talk about economic development, you can't have great economic development without a great educational system. This project accomplishes both of those." Mr. Knott then referred to the County's Strategic Plan's goals and strategies he felt aligned with the project and highlighted them: Economic Development Goal #4: Build a highly -skilled workforce. Quality of Life Goal #2: Encourage educational practices that will lead to an engaged citizenry of lifelong learners who have the ability to change and innovate. Example Strategies: • Provide incentives and opportunities that attract and retain educators. 8/6/2018 • Provide facilities that support the growth of our students so that our students are prepared for college and adult life. Mr. Knott said the school hasn't changed a lot over the years and that this project is important for the students and the community. Chairman Allen asked and Clerk to the Board Amanda Varner stated that no written statement had been received related to the proposed financing. After the Board had heard all persons who had requested to be heard, Chairman Allen closed the public hearing. Commissioner Frye stated the Commissioners appreciate the cooperation and patience of both school systems in working through capital projects and establishing plans to address needs. The plan for this project "has been in the making for a long time and didn't just occur overnight." Chairman Allen agreed with Commissioner Frye and added that he knew the school addition and renovation has been discussed since at least 2014 and that he was glad to be able to start putting the first piece of the puzzle in place. It is "part of the grander scheme of things." Commissioner Kidd 1) introduced a resolution which was read by title RESOLUTION (1) AUTHORIZING AND APPROVING AN INSTALLMENT FINANCING AGREEMENT AND AUTHORIZING THE EXECUTION AND DELIVERY OF DOCUMENTS IN CONNECTION THEREWITHAND (2) APPROVING THE ACQUISITION OF PROPERTY TO BE USED BY THE ASHEBORO CITYSCHOOLS BOARD OF EDUCATION and moved it be adopted, and 2) motioned to approve the associated Capital Project Budget Amendment 92. Commissioner Haywood seconded the motion and the Resolution was adopted by the following vote: AYES: 5 NAYS: 0 The adopted Resolution is as follows: RESOLUTION (1) AUTHORIZING AND APPROVING AN INSTALLMENT FINANCING AGREEMENT AND AUTHORIZING THE EXECUTION AND DELIVERY OF DOCUMENTS IN CONNECTION THEREWITH AND (2) APPROVING THE ACQUISITION OF PROPERTY TO BE USED BY THE ASHEBORO CITY SCHOOLS BOARD OFEDUCATION WHEREAS, the Board of Commissioners (the "Board) of the County of Randolph, North Carolina (the "County') has determined to finance a portion of the cost of renovating, expanding, equipping and improving Asheboro High School, including but not limited to the addition of classrooms, a multi-purpose area, science labs, band classrooms and storage, and flex classrooms (collectively, the "Project'); WHEREAS, to effectuate such plan to finance a portion of the cost of the Project, the County and Randolph County Public Facilities Corporation, a nonprofit corporation organized and existing under the laws of the State of North 8/6/2018 Carolina (the "Corporation') have been negotiating certain financing documents and arranging for the negotiated sale of limited obligation bonds payable from certain installment payments to be made by the County pursuant to an Installment Financing Agreement (hereinafter defined) to be entered into by and between the County and the Corporation, pursuant to the authority granted to the County under Section 160A-20 of the General Statutes of North Carolina; WHEREAS, the Board duly conducted a public hearing today regarding (a) an installment financing contract to finance the construction and other accomplishment of the Project hereinafter described and (b) the acquisition by the County, for use by the Asheboro City Schools Board of Education, of the real and personal property constituting the Project; WHEREAS, there have been available at this meeting, forms of the following: (1) Installment Financing Agreement to be dated as of September 1, 2018, (the "Installment Financing Agreement') between the County and the Corporation; (2) Deed of Trust and Security Agreement to be dated as of September 1, 2018, (the "Deed of Trust') from the County to a trustee for the benefit of the Corporation; (3) Trust Agreement to be dated as of September 1, 2018, (the "Trust Agreement') between the Corporation and U.S. Bank National Association (the "Trustee'); (4) Lease to be dated as of September 1, 2018, (the "Lease') between the County and Asheboro City Schools Board of Education; (S) Administrative Agreement dated as of September 1 2018, (the "Administrative Agreement') between the County and the Asheboro City Schools Board of Education; (6) A Preliminary Official Statement (the "Preliminary Official Statement') relating to Limited Obligation Bonds evidencing proportionate undivided interests in revenues to be received by the Corporation under the Installment Financing Agreement (the "Bonds'); and (7) Contract of Purchase (the "Purchase Contract') between Robert W. Baird & Co., Incorporated (the "Underwriter') and the Corporation, including the Letter of Representation attached thereto (the "Letter of Representation'). WHEREAS, the Board of Commissioners of the County wants to approve the Installment Financing Agreement and the sale of the Bonds and to authorize other actions in connection therewith; and NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the County as follows: 1. The Board hereby approves the sale of the Bonds by the Corporation. The Bonds shall mature in such amounts at such times and shall bear interest at such rates as provided in the Trust Agreement; provided, however, that the aggregate principal amount of the Bonds shall not exceed $19, 000, 000 8/6/2018 and the final maturity of the Bonds shall not extend beyond 2038. The Bonds shall be issued in fully registered form in such denominations as set forth in the Trust Agreement and payments of principal and interest with respect to the Bonds shall be made by the Trustee to the registered owners of the Bonds at such times and in such manner as is set forth in the Trust Agreement. 2. The Bonds shall be subject to prepayment at the times, upon the terms and conditions, and at the prices set forth in the Trust Agreement. 3. The proceeds of the Bonds shall be applied as provided in the Trust Agreement. 4. Each of the Installment Financing Agreement, the Deed of Trust, the Lease, the Administrative Agreement and the Letter of Representation, in the form submitted to this meeting, is hereby approved, and the Chair of the Board, the County Manager, the Assistant County Manager/Finance Officer, the County Attorney, and the Clerk to the Board are each hereby authorized and directed to execute and deliver each of those documents, on behalf of the County, with such changes, insertions or omissions as each may approve, the execution thereof by any of them to constitute conclusive evidence of such approval 5. Each of the Trust Agreement and the Purchase Contract, in the form submitted to this meeting, is hereby approved in substantially such form, with such changes, insertions or omissions as appropriate. 6. Each of the Preliminary Official Statement and the final Oficial Statement, in the form of the Preliminary Official Statement submitted to this meeting, is hereby approved, in substantially such form, with such changes, insertions and omissions as appropriate, and the use thereof in connection with the public offering and sale of the Bonds is hereby authorized. 7. The Chair of the Board, the County Manager, the Assistant County Manager/Finance Officer, the Clerk to the Board and the County Attorney are each hereby authorized to take any and all such further action and to execute and deliver such other documents as may be necessary or advisable to carry out the intent of this Resolution and to effect the installment financing pursuant to the Installment Financing Agreement. Without limiting the generality of the foregoing, the Assistant County Manager/Finance Officer or any deputy finance director is authorized to approve all details of the financing, including without limitation, the amount advanced under the Installment Financing Agreement (which shall not exceed $19, 000, 000), the annual principal payments under the Installment Financing Agreement, the interest rates for the Bonds, the terms of the Installment Financing Agreement, and the discount below the principal amount of the Bonds at which the Bonds are sold to the Underwriter or the fee paid to the Underwriter. Execution of the Installment Financing Agreement by the Chair of the Board, the County Manager, the Assistant County Manager/Finance Officer or any deputy 8/6/2018 finance director, shall conclusively evidence approval of all such details of the financing. 8. The Board hereby approves the acquisition of the real and personal property constituting the Project. 9. All actions of the County effectuating the proposed financing are hereby approved, ratified and authorized pursuant to and in accordance with the transaction contemplated by the documents referred to above. 10. This Resolution shall become effective immediately upon its adoption. The adobted Cabital Proiect Budget Amendment #2 is as follows: 2018-2019 Budget Ordinance Asheboro City Schools Capital Project Ordinance #2 Revenues Increase Decrease Issuance of Debt $17,000,000 Sales Tax Reimbursement $160,000 Investment Income $50,000 Appropriations Increase Decrease Construction $15,550,000 Issuance Costs $160,000 Professional Services $500,000 Transfer to Capital Reserve Fund $1,000,000 Consider Proposal for Construction Manager at Risk (CWWR) for Detention Center County Engineer Paxton Arthurs stated that in early June the County requested bids for construction of the Detention Center. There were only two contractors who attended the pre-bid conference, but neither bid on the project, and no bids were received from any other contractor. Mr. Arthurs said that they considered putting out a second request, however, with the current market, they were not sure there would have been any better outcome. The Randolph County Purchasing Officer issued a Request for Qualifications for selecting a Construction Manager at Risk for the Detention Center project on June 26th. The County received five submittals from interested contractors. The Facilities Committee reviewed these submittals and short listed two of these firms due to their relevant experience in jail construction. These two firms were Bordeaux Construction Company, Inc. and James R. Vannoy and Sons Construction Company, Inc. On July 20 the Facilities Advisory Committee (comprised of the Facilities Committee, and Commissioners David Allen and Darrell Frye) and Darren Johnson (Jail Maintenance Director) interviewed both firms. They found both firms to be highly qualified and capable of managing this project. Additionally, they found that Bordeaux Construction had considerable experience working with the designer, Moseley Architects. They demonstrated additional technological experience in the form of Building Information Modeling (BIM) and their use of Procore Construction Management Software. Based on these additional capabilities, the Facilities Advisory Committee recommended that the Board select Bordeaux Construction Company, Inc. as the Construction Manager at Risk for the Detention Center project and that the Board authorize the County Manager to negotiate a contract 8/6/2018 with them where they will conduct an extensive prequalification and bidding process and will ultimately present the County with a Guaranteed Maximum Price (GMP) for the project. Commissioner Frye asked Finance Officer Will Massie to explain who is at risk and how it works. Mr. Massie said the County will negotiate a Guaranteed Maximum Price (GMP) for the project. Bordeaux will work with Moser Architects to refine the design and then bid out to all the sub- contractors needed to complete the project in order to come up with the maximum price that includes some contingencies. Commissioner Frye asked if the County is involved in the process of approving contracts or sub- contractors. Mr. Arthurs replied that the sub -contractors have to be pre -qualified and the County will be involved in that process. Mr. Arthurs said that the CM@R process has sometimes been considered negatively and occasionally may be more expensive. It is still competitively bid and many jurisdictions have used the savings to do extra on a project or have pocketed the savings. Chairman Allen asked if there were any incentives for the contractor to save money. Mr. Arthurs said that question was asked in the interview and that Bordeaux said there is a mechanism to do cost savings sharing. Commissioner Frye stated without this process the County would be further delayed in the construction of the Detention Center. Mr. Arthurs said Bordeaux would likely bid the project in January 2019 and start construction in March. On motion of Frye, seconded by Kidd, the Board voted unanimously to select Bordeaux Construction Company, Inc. as the Construction Manager at Risk for the Detention Center project and authorize the County Manager to negotiate a contract with them where they will conduct an extensive prequalification and bidding process and will ultimately present a Guaranteed Maximum Price (GMP) for the project. Update and Approval of DHHS Memorandum of Understanding (MOU) Associate County Attorney, Aimee Scotton, reminded the Board that she presented the Department of Health and Human Services (DHHS) MOU at the July meeting. The North Carolina General Statute 108A-74 states that the North Carolina Secretary of Health and Human Services shall require all North Carolina counties to enter into a written agreement each year that specifies mandated performance requirements and administrative responsibilities with regard to all social service programs other than medical assistance. On or about June 6, 2018, the County was provided with a version of this agreement via email and was instructed to sign the document as -is and return it to the North Carolina Department of Health and Human Services (DHHS). At the meeting last month, due to various concerns regarding the contents of this agreement, the Commissioners voted unanimously that a letter be prepared and submitted to DHHS voicing these concerns and asking for the opportunity to negotiate a better agreement. In particular, the 8/6/2018 letter pointed out specific objections to performance measures that were vague and ambiguous and that held a county accountable for circumstances beyond its control. As a result of our letter, the Secretary of NC DHHS requested a conference call on Thursday, July 26th with the County Manager, the Chairman of our Board of Commissioners, and Beth Duncan to discuss concerns. Ms. Scotton was in attendance for this call as well. DHHS had the following people present on the call: Secretary Mandy Cohen, Deputy Secretary Susan Perry Manning, and General Counsel, Julie Cronin. As this call progressed, it became apparent that DHHS is not concerned about holding the County accountable for outside factors like the availability (or lack) of court time. It seems that, while DHHS recognizes that we have no control over this, they want county management and officials to make an effort to exert whatever influence they may have in order to facilitate cooperation between the court system and DSS. The discussion then moved to those performance measures that were vaguely worded. For example, one of the performance measures reads as follows: "The County will provide leadership for ensuring that 41% of children who enter foster care in a 12 -month period are discharged to permanency within 12 months of entering foster care." This is followed by a sentence that reads "DHHS will work with each county to identify growth targets." Ms. Scotton said when you read this performance measure, the ambiguity is obvious. What is the measure? Is it 41%? Is it "providing leadership" to reach 41%? Or is it some unnamed "growth target?" Per DHHS, the 41% target is a federal standard, but one that they realize is unrealistic. She said the plan is for DHHS to work with the County to see where we are and what we can agree (with DHHS) would be a reasonable percentage of growth. This agreed-upon growth measure would then become the performance measure. A number of the performance measures in the agreement are already slated to be measured in this manner, through growth measures to be identified later. Susan Perry -Manning, Deputy Secretary of NC DHHS, stated that they had received a tremendous amount of feedback from the counties across the state and that some of the other performance measures may become growth measures as well. The State hopes to have the growth measures identified by January. Ms. Scotton said they were told that Randolph County was one of only two counties that hadn't signed the agreement and that these are performance measures that the County is responsible for meeting whether we sign it or not. Ms. Scotton said that during the call, Chairman Allen expressed concern about signing the agreement before the growth measures are identified. Julie Cronin, General Counsel for DHHS, agreed to send an explanation in writing certifying that the growth measures would be identified in the future as agreed between DHHS and the County. She further stated that, once the growth measures have been identified, these growth measures will become part of an addendum to the MOU that must be signed by both parties, DHHS and the County, in order to be a part of the agreement. Ms. Scotton said Ms. Cronin did a presentation at the County Attorney's Conference about this MOU and referenced the call with Randolph County. During that presentation, Ms. Cronin reiterated her commitment to sending out that explanation and to the growth measures becoming an addendum to the agreement. Ms. Scotton said she received an email from Ms. Cronin this afternoon stating again that she would be sending that out and stated that she is working with DHHS to identify exactly what mechanism they are going to use to meet with all 100 counties and get these growth measures in place by January so that can be part of what she sends out. 8/6/2018 Chairman Allen said until the growth measures, a goal you move toward, are defined, it is an ambiguous document that commits the County to the mercy of DHHS. Commissioner Frye said Yadkin County signed their MOU today. He added that counties are handicapped because it is a Federal standard. Chairman Allen said he would like to wait to sign the documentation until the explanation letter is received from DHHS General Counsel if the Board would consider authorizing him to do that. Ms. Scotton said she would email Ms. Cronin Tuesday morning and let her know the County is awaiting the letter before signing. Commissioner Kidd asked if there were any repercussions if it wasn't signed at this meeting. DSS Director Beth Duncan came forward to respond. She stated that the County is already outside of the law since it was due June 30"'. She didn't know if there were any negative ramifications of not signing it yet. Chairman Allen replied that DHHS is giving counties until January 1St before moneys are affected. He said there is a process leading up to that date. Ms. Duncan explained that between now and January, DHHS would be deciding where they are pulling the data from. DHHS would be publishing the first set of data in August. When it comes out, they want the counties to let them know if it looks correct and then there will be discussion about how to move forward with trying to meet the criteria. Then in January, DHHS is hoping that, in those six months, the data will be full of integrity. DHHS will begin measuring January through April. In April, there is the possibility they could withhold State and Federal funding if measures are not met. On motion of Frye, seconded by Haywood, the Board voted unanimously to authorize the Chairman and County Manager to sign the documentation entering into a Memorandum of Understanding with DHHS once the written explanation certifying that the growth measures would be identified in the future was received from DHHS General Counsel. Set Special Meeting / Public Hearing to Hear Zoning Appeals and Consider Amendments to the Unified Development Ordinance County Manager Hal Johnson stated that he had received an appeal on two zoning matters that the Commissioners would need to consider. The Planning Board also is proposing amendments to the Unified Development Ordinance to establish guidelines for solar farms within Randolph County zoning jurisdictions. He asked that the Board set a special meeting to hold public hearings on these items. Based on other scheduled meetings and meeting room availability, Mr. Johnson suggested Tuesday, August 21St at 6:00 p.m. On motion of Frye, seconded by McDowell, the Board voted unanimously to set a special meeting to hold a public hearing for zoning appeals and to consider amendments to the Unified Development Ordinance for August 21, 2018, at 6:00 p.m. County Manager's Update County Manager Hal Johnson announced that on Saturday, August 4th, while Emergency Services Maj. Jared Byrd was on vacation at the beach with his family, they witnessed an elderly 8/6/2018 male trying to save his three grandchildren from a riptide. In doing so, the man drowned. Maj. Byrd and his stepdad Thomas Brown, a former Randolph County paramedic (now nurse), immediately ran into the water, dragged the man out and began CPR. The children were fine. Fire/Rescue units from Sunset Beach arrived shortly thereafter and by the time they were leaving for the hospital the man had a pulse. Several hours later, in the local emergency department, the man was sitting up and talking. Mr. Johnson quoted Emergency Services Director Donovan Davis and stated "First -responders are never off-duty." Mr. Johnson said the County is very proud of Maj. Byrd and the quick actions of him and his stepdad. Regional Update Chairman Allen said there was no regional update but reminded attendees that the public hearing for the Agricultural Event Center is scheduled for Monday, August 13th at the Historic Courthouse at 6:00 p.m. Adjournment At 7:27 p.m., on motion of Frye, seconded by Kidd, the Board voted unanimously to adjourn. David Allen, Chairman Darrell Frye Kenny Kidd Hope Haywood Maxton McDowell Amanda Varner, Clerk to the Board 8/6/2018