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022422 Planning Retreat February 24, 2022 – Annual Planning Retreat The Randolph County Board of Commissioners met in a special session at 1:00 p.m. in the Randolph County Office Building, Meeting Room A, 725 McDowell Rd., Asheboro, NC. Chairman Darrell Frye, Vice-Chairman David Allen, Commissioner Maxton McDowell, and Commissioner Hope Haywood were present. Commissioner Kenny Kidd entered where noted. Also present were County Manager Hal Johnson, Assistant County Manager/Finance Officer Will Massie, County Attorney Ben Morgan, Associate County Attorney Aimee Scotton, Deputy Clerk to the Board Sarah Pack, and Clerk to the Board Dana Crisco. Chairman Frye called the meeting to order and gave a brief overview of the agenda. County Manager Hal Johnson said this is a historic time for the County in reference to issues faced. This is an informal meeting with no action taken, but it is an opportunity to give direction and discuss strategic issues impacting the County. Mr. Johnson gave an overview of the items on the agenda and the speakers who will be present. He said Mike Fox, the attorney representing the County in the opioid litigation, had been asked to th present at the retreat, but was unable to attend. He will be on the April 4 agenda to discuss the status of the opioid settlement. Mr. Johnson reminded the audience that there have been more capital projects in the past five to six years than any time in County history. He stated Chairman Frye attended the National Association of Counties (NACO) meeting and was provided with good reference information on how American Rescue Plan Act of 2021 (ARPA) funds can be used. Toyota Battery Project – Update on Site Development Mr. Johnson introduced Kevin Franklin, Economic Development Corporation (EDC) President. Mr. Franklin introduced Crystal Gettys, Business Recruitment Director. Mr. Franklin gave an overview of the status of the Toyota Battery Project at the Megasite. The environmental permits have all been issued for the site. Ames Construction is the grading contactor selected by the NC Department of Transportation (DOT) to complete the grading work at the site. Up to 100,000 cubic yards of dirt per day will be moved during the next few weeks as grading continues. Toyota plans to begin construction on the first building in May 2022. Grading and construction will run concurrently for a time. There has been collaboration between the EDC and multiple County departments for the work on this site. Toyota Battery Manufacturing North Carolina will be the name of the plant at the site. The first hire has been made for this site. There are no other domestic Toyota battery manufacturing operations at this time. Toyota is working through the strategic planning and training processes in order to support additional economic growth in the area. There will be revenue coming to the County from taxes paid by Toyota. Mr. Franklin said the County has an Economic Development Fund supplemented by tax dollars, but the fund has not had money added recently. There is a new site, the Wall Brothers site, that needs sewer. Mr. Franklin suggested a small portion of Toyota’s tax dollars be allocated back to the Economic Development Fund. As such, when new projects arise, the funds will be available to invest in the community. 2/24/22 Commissioner Kenny Kidd entered at 1:18 p.m. Mr. Franklin said there is a need for workforce attraction as a component of additional industry support. There are 1750 jobs proposed in Phase One of the Toyota project. There could be as many as 5,000 jobs created by this project. There are existing manufacturers in the county that currently have openings for employees. Mr. Franklin said we need to do everything possible to be able to supply the workforce to these companies. Residential development will need to be addressed as well in order to support this workforce. There is a significant need for residential development, beyond the construction already happening in the Trinity and Asheboro areas. Vice-Chairman Allen asked if the land at the Megasite has been conveyed to Toyota. Mr. Franklin said the land will be conveyed prior to Toyota actually starting construction, likely in early to mid-May 2022. There is a cell tower with two companies actively evaluating how to move the tower. Commissioner Haywood said the housing situation is concerning. How do we recruit when there is no place for employees to live? There is a revival of sorts in Reidsville, Rockingham County, because there is nowhere local to live. We are even losing our own children because there is not housing available to them. County Attorney Ben Morgan said there were 35 properties for sale currently in the 27203-27205 zip codes. Vice-Chairman Allen said there will be a need for water and sewer with additional construction. Mr. Franklin said the water table is a concern for big subdivisions. Vice-Chairman Allen said schools and other infrastructure will be needed as well. Crystal Gettys, EDC Business Recruitment Director, said site development has been an ongoing conversation. There are several major concerns. The I-74 Industrial Center (Wall Brothers property) is under partial agreement with Samet Corporation. Environmental studies have been completed at the site. Water and sewer were “red-flagged” items. There have been discussions with municipalities to determine how to best serve the site with water and sewer. Right now, the projected cost is over $4 million. Grants will be utilized to help fund the site. In order to qualify for a utility grant, a government agency must control the property. There will need to be collaboration with the DOT in order to address road issues. This site is a top priority as it is the furthest along in development. There is a smaller site in Archdale that already has infrastructure in place. In the past, the EDC proposed building a speculative (spec) building. Due to the pandemic, Samet pulled back all spec building plans. The plan changed to getting the site as close to being ready for permitting as possible. Samet is working on how to position a building on the site. The architectural design and other studies are complete. Anticipated cost of a spec building now is $90-100 per square foot, which has increased since the initial cost estimate. This site, due to its readiness, is one the EDC can submit easily for projects. 2/24/22 The Timmons Group is conducting a study across the county to identify potential areas for future industrial development. Infrastructure is a large consideration in selecting sites. Many state and federal grants require that a local government be in control of or own the property. As the data comes back from Timmons, property control will be a consideration. Ms. Gettys said many communities have incentives policies. Randolph County has been very gracious over the years with offering incentives packages to new companies entering the local market. The EDC is proposing an incentives policy. This gives the EDC a tool to use when speaking with new companies regarding what the County can offer based on different parameters. If qualifications are standardized, the EDC can tell companies what they can qualify for after a public hearing. If there is a policy, less special closed sessions will be needed to discuss incentives packages. Existing industries also need our support; they are the largest taxpayers in the county. Expanding industry increases the tax based. They need to know that their growth is welcomed and supported. Large companies are great corporate citizens. The EDC has drafted an incentives policy with different levels of participation based on percentages. This is not new money; it is money returned after taxes are paid. Site preparation is drawing in potential clients, even to very rural areas. Other communities have sites that are more prepared which is drawing in business. One rural community has plans for five spec buildings to be constructed. Commissioner McDowell asked what “community” means. Ms. Gettys said that term could refer to the county or municipality, but predominantly another county. The community with plans for five buildings is a county. Megasite Fire Protection Services Fire Marshal Erik Beard gave an overview of development of the Megasite in reference to proposed buildings and square footage that will need to be fire protected. There will be hazardous materials used in production which will require additional fire protection systems. There will be increased transportation needs for hazardous material by rail and road. There will be additional commercial and residential growth around the site which will increase population density. There are 200-300 workers on site daily and increased traffic around this site. This has already led to a traffic incident involving equipment from the Megasite. Several fire departments have already begun training on specialized extrication techniques due to the nature of the specialized equipment at the site. Blasting will begin soon which requires storage for powder at the site. There will be 80,000 pounds of blasting powder stored on the site at any given time. Companies that supply this powder are trying to lessen the number of times powder will need to be shipped. Some of these blasts will use up to 15,000 pounds of powder. Up to this point, the largest blast Mr. Beard has ever seen was 5,000 pounds. The company overseeing the blasting is working to make the process as safe as possible. 2/24/22 Mr. Beard reviewed how the area will be protected. There are three certified heavy rescue agencies in proximity of the site, including Guilford County Squad 50, Franklinville Fire Department, and Ash-Rand Rescue. At this point, Ash-Rand is the only entity that is automatically dispatched to the site. Emergency Medical Services will be provided by Randolph Emergency Services (Bases 2, 3, and 5). There are plans for a future base in northern Randolph County in the Climax area. All of the fire departments surrounding the site are hazardous materials operations certified. The North Carolina Regional Hazardous Materials (haz-mat) Response Team is only 29.4 miles from the site. This resource is requested through state emergency management. The City of Greensboro Fire Department has two available haz-mat teams who could be contracted into provided an automatic response. Mr. Beard said he has worked with local agencies to determine best practices for fire protection for the site. A fire station similar to the Asheboro station will likely be needed in the Julian area. As of now, the Julian Volunteer Fire Department, Climax Volunteer Fire Department, and the Town of Liberty Fire Department will serve the site. Mr. Beard provided a handout detailing the current fire protection and agency staffing levels that would serve the site (Attachment A). Mr. Beard discussed the anticipated minimum fire response needed based on fire alarm responses and structural fire alarm responses. A second alarm will require additional response. The response can include responders from multiple locations, but the initial response should come from one location. Staffing is key. Mr. Beard proposed several options for fire protection at the site. One option proposed that Julian Fire Department handle the area, which would not change the fire district. This Department is well established in the community. However, in the past, the department has struggled with staffing and retention. They are dependent on surrounding department to meet response demands. This Department is also rural with aged equipment, requiring a significant upfront investment. This option would require a robust contract to ensure coverage is being provided. Another option proposes a merger between Julian and Liberty Departments. This would provide for more initial responses and a lower ISO rating. Julian is currently at a 5; Liberty is a 3 in the city and 4 in the rural area. There is potential to be a 3 or even a 2 for the entire area. There is an established relationship between these two departments. There would be more opportunity for recruitment and retention. A merged department would allow for governance by a municipal/town board. There is already a template available for mergers due to the previous merger of Randleman and Sophia Departments. However, this would require a merging and renaming of the rural district. It may not be well received in the respective communities. An additional option includes a merger between Julian, Liberty, and Climax forming a County- owned and operated fire department and contracting with out-of-county agencies such as Greensboro. Mr. Beard said he recommended a merger between Julian and Liberty Fire Departments. 2/24/22 Vice-Chairman Allen said an important consideration will be the size of the site and maneuverability in relation to travel and placement of fire resources. There may be a need for newer facilities. Mr. Beard has been in discussion with Julian officials regarding access to the site. Placement of fire services has to be a “win-win” for the citizens of the area. Vice-Chairman Allen asked about the effect of blasting on domestic animals and wildlife in the area, and if there are any plans for communications with local landowners. Mr. Beard said the blasting powder is completely harmless without the other ignition components. However, it is highly explosive if given an ignition source. There are many regulations regarding storage. There is a process the blasting company has to complete to make notification to local landowners. Notification will denote blasting during specific times, but will not distinguish individual blasts. Mr. Beard said most of the time, there is a “boom” sound but it is muffled. It will mainly affect the areas in direct proximity to the blast area. Mr. Beard said a Level III Fire Inspector must be on site for every blast. Commissioner Haywood asked if there is already a notification process for all citizens in Randolph County. Donovan Davis, Chief of Emergency Services, said cell phones can receive a call if the owner is signed up. Countywide landlines can be accessed with or without permission. Commissioner Haywood suggested pushing to get citizens signed up for alerts as this is a great communication avenue. Targeted messages could be sent to impacted parts of the population. Vice-Chairman Allen noted that Guilford County would need to be included also. Chief Davis said a notification radius can be set for emergency notification. Commissioner Kidd asked what problems a merger may bring about. Mr. Beard said combining three entities would require a substantial amount of work at the fire department and County levels. Commissioner McDowell expressed concerns about the safety of storing the powder. Mr. Beard said there are many regulations in place with particular concerns about protection from terrorism. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) is heavily involved in the regulation of blasting powder storage. Plans Examiner Position Request Mr. Beard presented a request for a Fire Plans Examiner position. He described aspects of the position including related benefits and funding. There has been a 400% increase in inspections related to new construction since 2014, including a 125% increase from 2020 to 2021. The person in this position would be involved in comprehensive plans review, consultation, permit issuance, and testing. Randolph Health/American Healthcare Systems Update Tim Ford, Randolph Health Chief Executive Officer (CEO), gave an update on the status of Randolph Health. American Healthcare Systems (AHS) became the official owner of Randolph Health on October 1, 2021. This has been a very complex acquisition. The hospital has expanded 2/24/22 the number of beds available in order to accommodate COVID-19 pandemic cases. Staff have been under a lot of pressure during the pandemic. One of the largest issues the hospital faces is staffing. Mr. Ford detailed types of staff the hospital is working to recruit and plans for additional primary care practices throughout the county, as well as an outpatient care program. Mr. Ford explained the new services the hospital plans to add for the community as well, including neurology and rheumatology. Commissioner Haywood asked if the hospital is still having trouble getting critical patients into other hospitals. Mr. Ford said it’s becoming easier but there is a backlog of patients. Commissioner Haywood asked what the plans are for the Cancer Center building. Mr. Ford said there are ongoing discussions with Cone Health. The Oncology section has been moved. The building is still used for office visits and radiation treatment which is still a partnership. Right now, there are no plans as to what to do with the space after Cone builds a new facility. Chairman Frye said that this community needs a hospital. There are board members that are required, but there have been no board meetings. The County advanced $3 million to the hospital but doesn’t know where it went. The County agreed to the Rural Healthcare Stabilization Loan (RHSL) but the hospital hasn’t produced required information. Mr. Ford said a draft of the updated feasibility study has been sent to the Local Government Commission (LGC). Chairman Frye asked when the board meetings will be and when the $12 million RHSL loan will come into play. Mr. Ford said he had plans to discuss with the Board of County Commissioners (BOCC) the seats for the board. They’ll be ready for a board meeting in March. Chairman Frye said things we were told and expected haven’t materialized. Mr. Ford said the study took a lot of time and asked Chairman Frye to suggest board members. Chairman Frye said board members have been suggested to Mr. Ford and attorney Faisal Gill twice now. Mr. Ford asked for the suggestions to be resent. Chairman Frye asked if funds will be drawn down immediately once available and Mr. Ford said yes; there are significant equipment needs. Vice-Chairman Allen said the $3 million was for capital expenses and asked how the money was used. Mr. Ford said some was used for capital but they can find things to use it for. Vice- Chairman Allen said taxpayers would like to know how funds are spent. He suggested AHS present capital outlay requests to Finance Officer/Assistant County Manager Will Massie for accounting purposes. It is very important that the Board of Directors be implemented. Chairman Frye said there has been no contact from American Healthcare Systems (AHS) CEO Mike Sarian or Mr. Gill. It is very serious for the County to have this matter settled. Citizens expect to have a functional hospital available. Commissioner McDowell said in the past the Board has heard how insufficient the equipment is at the hospital. He asked if upgrades have been made. Mr. Ford said some minor equipment has been upgraded, but no major upgrades have been made at this point. Rural Healthcare Stabilization Loan 2/24/22 Mr. Massie gave an update on the Rural Healthcare Stabilization Loan (RHSL) requirements for conditional LGC approval. The North Carolina Attorney General approves the sale of Randolph Health to American Healthcare Systems, LLC (Proposed Buyer). The applicant, Randolph County receives an opinion from VMG Holdings LLC doing business as VMG Health that the hospital stabilization plan as presented by the Proposed Buyer demonstrates a financially sustainable health care service model for the community in which Randolph Health is located. The applicant, Randolph County, receives 2 seats with full voting powers on the governing board of the Proposed Buyer or the entity which becomes the owner of Randolph Health for at least as long as the RHSL Loan is outstanding. The applicant, Randolph County, shall disburse RHSL Loan funds to the Proposed Buyer by multiple draws of no fewer than 3 draws, and, for-each draw down, shall receive adequate security interests in amounts and form satisfactory to the County to secure the Proposed Buyer's repayment of the RHSL Loan funds. Mr. Massie asked the Board to consider how they would pay the debt services on the RHSL. Options include a property tax increase, article 46 sales tax, or Waste Management lease renewal. He suggested the Board begin discussing these options. Cybersecurity Michael Rowland, Information Technology Director, gave an update on countywide cybersecurity. A security assessment was performed by the North Carolina National Guard (NCNG) working under North Carolina Emergency Management. They scanned the internal and external network, software, and hardware for vulnerabilities, as well as reviewed network configurations and server logs. The County’s security program is ever evolving as required to meet new security threats. The NCNG assessment was an excellent opportunity to see where technology of the County had progressed and where it needed to go. The Information Technology department (IT) has spent the last year making changes to address the areas identified. Some of this work was on-going at the time of the assessment. IT has completed what they could with the existing budget. IT now needs to complete projects that are outside the scope of the normal IT budget request. Commissioner Haywood asked if this was something the County had to pay for. Mr. Rowland said it was free and the organization offered to perform a follow-up for free as well. A vulnerability assessment and patch management solution was being implemented at the time the NCNG performed their work. IT purchased the BMC Track-IT solution in early fiscal year (FY) 2020-2021. It allows staff to automate desktop, laptop, and server OS patch installations. IT initially used it to manage updates for desktops and laptops, but have since expanded it to include 2/24/22 most servers. IT still updates critical servers like Public Safety manually in order to manage the downtime. IT was able implement a Security Information and Event Management (SIEM) solution in July of 2021. Staff can now send security logs from firewalls, anti-virus software, Microsoft 365, and critical servers to InfusionPoints. The service uses artificial intelligence (AI) to scan the logs for possible security issues. It sends any issues to the IT security team to take the appropriate action. Since implementing the SIEM there have already been 9 incidents that were identified and resolved. The service gives staff constant visibility into security logs. This saves staff from having to dedicate an incredible amount of time reviewing logs. The service provides the eyes and the advanced security knowledge that staff doesn’t have and the County can’t afford. The ManageEngine AD360 implementation is planned for FY22-23. This project will provide even more visibility and control in servers, file storage, and users as recommended by the NCNG. Network port control is all about managing who and what is on the network and what they can get to. IT staff would like to implement ClearPass to meet this need. The firewall upgrade will be included in the FY22-23 technology replacement plan. The current PA3020 pair is 6 years old. IT staff are planning on upgrading to a pair of PA3220 firewalls. The new firewall software includes advanced threat detection using AI. NCNG assessment recommended implementation of an “air gapped” backup solution to protect data backups from being destroyed if a ransomware attack were to occur. The only way to recover data during a ransomware attack without paying the ransom is to restore the data from a known good backup. Ransomware attacks target all data backups to prevent this from happening. The proposed ExaGrid solution provides this additional level of protection and also increases the amount of data that can be backed up. One of the other findings from the NCNG assessment was the need to refine disaster recovery and incident response policies and plans. This is something that IT has been struggling to complete the past few years, and Mr. Rowland said that he feels that IT needs vendor expertise and guidance through this process. Costs for the aforementioned security projects have been identified. Mr. Rowland is working on getting pricing on the policy and planning assistance. He would like to include these projects in the FY22-23 budget request. He thinks it is possible to get all the projects done in a year, but that depends on vendor availability. Chairman Frye asked what the timeline for implementation would be. Mr. Rowland said, ideally, it will occur within the year but it could take several years. Vice-Chairman Allen said if there is a data breach, the cost would be astronomical to respond and remedy the breach. Mr. Rowland said the County has cyber insurance but the cost could be 2/24/22 upward of one million dollars. Mr. Morgan said cyber insurance policies cover very specific things. Commissioner McDowell asked if intelligence interference is coming from the same area. Mr. Rowland said Russia, North Korea, and Iran are big sources. These countries pose a cyber threat. Infrastructure Planning John Grey, Wooten Company, gave an update on infrastructure planning. He detailed the project scope as follows: Phase 1 1. Review previous studies for applicable information. 2. Project 20-year population growth for the County and each local government using NC Census data and evaluation tools provided by the State of NC. 3. Gather data on existing water and sewer customers including existing daily flows, number and type of customers and rate information. 4. Project water and sewer capacity needs based on population growth projections 5. Discuss water and sewer capacities with the local governments/system owners associated with the project requests designated as for Economic Development. 6. Project needed capacities of the local governments/system owners associated with the project requests designated as for Economic Development. 7. Meet with County Staff to review findings and considerations for decision matrix. 8. Develop decision matrix for evaluating submitted project requests. 9. Review possible funding sources for the Phase 1 projects. 10. Provide recommendation to County on project requests designated for Economic Development in a letter report. He showed a map of water systems in Randolph County and gave statistics on existing systems in the county. Mr. Grey reviewed the project requests that have been submitted and gave a summary of each request, which together totaled over $21.5 million. He then showed the adjusted requests for a combined total of over $16.1 million. He reminded the Board that it is not County water going to Toyota; it’s Greensboro water. Commissioner Allen said there are many considerations in order to manage the needed growth. Commissioner McDowell said as generations change, large tracts of land will come available and will likely be purchased by developers. The water will need to come from somewhere. Commissioner Haywood asked if a large-scale developer would help defray the cost of running water lines if they planned a large development. Chairman Frye said the developer would want to pick up the lines at the beginning of the subdivision. Mr. Grey said if it was supplied by Asheboro, they’d be annexed. 2/24/22 Capital Projects Update County Engineer Paxton Arthurs gave an overview of ongoing capital projects. He showed a site plan of the Detention Center showing the new addition and renovations. The Phase 2 E-Pod schedule has been updated to allow for replacing the smoke control system as required by the state. The phasing plans have been updated for D and F pod as well. G-Pod construction will hopefully be finished by the end of 2022. Phase 3 may also be completed by the end of the year as well. Phase 4 will finish by March 2023. The Courthouse renovation for the Clerk of Court was divided into five phases. Phase 3 is currently being completed. Phase 4 has been started and should finish in March. Phase 5 was able to be reduced and completed. There are two projects happening at Northgate Commons. The Dollar General (DG) and Rent- A-Center (RAC) spaces will be renovated. The RAC space will be vacated in March. The DG space is currently being renovated. The DG space will be for Child Support and the Criminal Division of the Sheriff’s Office. The RAC space will house DSS in 39 offices. This is estimated to be a $1.6 million project. At the Historic Courthouse, the asbestos abatement is complete and the architects are wrapping up the schematic design. The budget estimate is $2.8 million. A space needs study is being conducted for the Health Department. Several divisions will be moved around, including WIC moving to Northgate. This project is estimated to cost $1 million with grants funding additional costs. The Juvenile Day Reporting Center (JDRC) building will be renovated once Child Support moves out. There will be four new classrooms with the project costing roughly $200,000. The Animal Shelter kennel building is complete, but there’s been a delay on fencing and gates. The contractor is hiring a new subcontractor to complete the project. Farm, Food, and Family Education Center Kenny Sherin, Cooperative Extension Director, presented plans for the Farm, Food, and Family Education Center. The Farm, Food, and Family Education Center is a dynamic, innovative, and collaborative place for people and organizations to build Farm, Food, and Family systems that strengthen economies, enhance resiliency, and build community. Mr. Sherin discussed members of the committee and gave a brief overview of the most recent committee meeting. The proposed cost of the Center is $25 million. $18.4 million in funding has been secured between State funding, undesignated funds, Randolph Electric Membership Corporation (REMC), and the United States Department of Agriculture (USDA). This includes a zero percent interest loan to the County. There is $6.6 million in additional funding needed. 2/24/22 Mr. Sherin reviewed the schedule for the construction of the Center, up to the opening of the Center in the first quarter of 2025. This is a rough estimate of the timeline. The Food and Family Resource Center will include Cooperative Extension and Soil and Water offices, a commercial shared-use kitchen, a demonstration/teaching kitchen, a business incubator makerspace, a digital skills lab, and a food hub/cold storage. The Training and Event Center will include space for training and events, a raw material shed, an incubator farm livestock barn, an incubator farm equipment workshop, and a training and incubator farm greenhouse. Mr. Sherin showed examples of what the Training and Event Center would look like using pictures from Union County’s agriculture facility. There are several layout options on the site. There is an operational plan in place that includes an operational team, a programming team, and a finish line funding team. Chairman Frye asked how confident Mr. Sherin is on the timeline. Mr. Sherin says he is going by what the architect says. Commissioner Kidd asked if the entire site will be developed or if there will be opportunity to invite future investment. Vice-Chairman Allen said the topography is unique and challenging on the site. There won’t be a whole lot of leftover space. Commissioner Kidd asked if private funding options were available. Vice-Chairman Allen said it’s possible. Capital Improvements Plan Mr. Massie presented the proposed Capital Improvements Plan. The current capital improvement projects include Trinity Middle School, the Asheboro High School renovation, the Detention Center addition, and the Courthouse renovation. The Farm, Food, and Family Education Center is partially funded and the Historic Courthouse renovation and Deep River Trail are unfunded. Other unfunded identified capital needs include renovation of the Public Health building, renovation of remaining Northgate space, renovation of Juvenile Day Reporting Center building, expansion of Social Services, and an Emergency Services VIPER communication tower. Funding sources may be local pay-as-you-go financing, American Rescue Plan funds, or debt. American Rescue Plan Act Funds Update Mr. Massie reviewed the American Rescue Plan Act (ARPA) Funds requirements and considerations. The US Treasury Final Rule included Revenue Loss Election, additional flexibility in categorical requirements (COVID-19 pandemic related response costs, negative impact response, water and sewer infrastructure, and broadband), and clarified capital projects requirements. Revenue loss election allows local government to use $10 million of the ARPA funds for revenue loss. These can then be used for any governmental purpose, but still require compliance with Uniform Guidelines and all other federal rules. There are still reporting and audition requirements. Mr. Massie explained the County’s ARPA allocation, including $10 million in 2/24/22 revenue loss and $17,905,631 in ARPA Categorical Restricted, for a total of $27,905,631. The County can report a revenue loss, Mr. Massie said. Mr. Massie reviewed the 200CFR Uniform Guidelines and audit requirements. He suggested the Board adopt and implement the following required written policies:  General Financial Management & Internal Controls Policy  Eligible Projects Policy  Cost Principles/Allowable Costs Policy  Conflict of Interest Policy  Nondiscrimination Policy  Effort Certification Policy  Records Retention Policy  Procurement, Suspension & Debarment Policy  Subaward Policy  Property Management Policy  Program Income Policy The municipal auditing market is already a niche market and it is getting smaller. Mr. Massie described the administration of ARPA funded projects. Option One would allow the County to award funds to other entities as Subgrantee, distribute funds, and contractually require their compliance with federal guidelines. The Subgrantee would bid the project, report to the County, and the County monitors compliance. Option Two would include administering the project with County staff to ensure compliance with procurement, auditing, and reporting requirements. Suggested best uses of the ARPA funds include water and sewer improvements. Water improvements must comply with Clean Drinking Water Loan Program criteria, or projects evaluated as necessary, cost effective, and sustainable. Sewer improvements must comply with Clean Water Loan Program criteria, or projects evaluated as necessary, cost effective and sustainable. The NC DEQ has a list of Distressed Units. Trinity, Franklinville, and Ramseur are on the list. Liberty is close. The current requested projects include: Community Programs Cooperative Extension – Community Food Systems Initiative – $219,000 Cooperative Extension – Digital Literacy Skills Initiative – $265,050 Tourism Development Authority – Restore Personnel to Pre-Pandemic Level – $400,000 Capital Projects Randolph County – Deep River State Trail – $1,000,000 Town of Seagrove – Historic Luck's Cannery – $500,000 2/24/22 Mr. Massie said that the Deep River Trail Project would require specific documentation since the amount requested is at or above $1 million. Water & Sewer Infrastructure I-74 Industrial Center – Highway 311 Sewer Extension to Asheboro – $3,800,000 Seagrove Ulah Metropolitan Water District – Little River Wastewater Extension – $1,984,000 Seagrove Ulah Metropolitan Water District – Wastewater Plant Improvements – $2,490,500 Mr. Massie asked if the Board wished to consider potential broadband projects if they develop. The GREAT Grant allows the County to leverage ARPA funds. Mr. Sherin said the reason we are getting inquiries about broadband is because the State is putting out requests for proposals. Companies get more points if they partner with counties. It’s up to the Board to match these organizations in order to pursue the GREAT grant. There’s another grant called CAB that may be helpful as well. Vice-Chairman Allen said people will not want to live in an area with no internet access. Mr. Massie said funding sources to consider include ARPA Categorial Restricted (specific purpose), ARPA Revenue Loss (any government purpose), or County pay-as-you-go funding. Revenue Loss would provide $10 million, Categorical Restricted would provide $17,905,631, and the County has $11,492,380 in funding available. Confidence in meeting federal requirements, administrative burden on potential sub-grantees, complexity of project (one purchase or multiple sub-grantees or contractors), and timing of certain projects are all important considerations. The projects that are the easiest to justify using Categorical Restricted ARPA funds include direct COVID-19 related expenditures, certain public safety personnel costs, community programs, sewer infrastructure, and broadband development. The projects that are the easiest to justify using Revenue Loss ARPA funds include capital projects such as Public Health building improvements, an Emergency Services tower, and water infrastructure. The projects that are the easiest to justify using County funding are capital projects such as the Historic Courthouse renovation, Farm, Food, and Family Education Center, Deep River Trail connections, Historic Luck’s Cannery, and other small County pay-as-you-go projects. If these are moved to County funded projects, many hoops are eliminated. Mr. Massie made suggestions for the Board to consider at their March regular meeting. 2/24/22 Chairman Frye asked for clarification regarding the State reporting process. Mr. Massie said there is a requirement to document decision making, but there could be additional reporting requirements at the federal level. Budget Priorities for FY 2022-2023 Mr. Massie said that 93.02% of the budget for property tax collections was collected through January 31, 2022, as compared to 92.50% collected through January 31, 2021. Vehicle tax collections are up 4.8% through January. The sales tax distributions for July through November sales are 14% ahead of fiscal year 2021. There is an estimated 2.33% increase in employee health plan costs expected in FY22-23, totaling a cost of $225,000. There is an expected proposed 12.15% increase in the NC Local Government Retirement System for the FY23, totaling $400,000. A 1% cost of living pay plan adjustment would total $517,000 before any new positions are added. A 1% education increase would total $305,997. Assumed priorities for FY22-23 include anticipated increases in retirement and health care costs and Cost of Living Adjustment for employees. Mr. Massie asked the Board to consider positions that improve effectiveness of County operations based on expanding service needs. Debt service for the Rural Healthcare Stabilization Loan will also need to be funded. The original contract payment for the Landfill lease is $1 million. With an inflation adjustment, this amount increases to $1,195,000. The variable tonnage revenues won’t be known until the distribution is received in July. Open Discussion Chairman Frye said there will be an opioid litigation update on the April regular meeting agenda. Vice-Chairman Allen said the Farm, Food, and Family Education Center Committee would like to feel more secure about the $5 million in funding supplied by the County. Mr. Massie said he doesn’t know what other needs may come up, but it would be okay to carve out some County funds for the Center. Adjournment Hearing no further business, Chairman Frye adjourned the meeting at 6:03 p.m. ________________________________ ________________________________ Darrell Frye, Chairman David Allen ________________________________ _________________________________ Kenny Kidd Maxton McDowell 2/24/22 ________________________________ _________________________________ Hope Haywood Sarah Pack, Deputy Clerk to the Board 2/24/22