111692RANDOLPH COUNTY
BOARD OF COMMISSIONERS
November 16, 1992
The Randolph County Board of Commissioners met in special session at 6:30
p.m. on November 16, 1992. Commissioners Frye, Kemp, Langley, Petty and Comer
were present.
Chairman Frye recognized reporter Crystal Baity, stating that this meeting
is her first official assignment for the High Point Enterprise. He also
recognized Mike Pollard of The Courier -Tribune.
Appointment - Sophia Firemen's Relief Fund Board of Trustees
On motion of Langley, seconded by Petty, the Board appointed Edwin Beeson
as a trustee for the Sophia Fire Department's Firemen's Relief Fund.
Telephone System Update
Jim Bryan of Telecom Development Associates, the County's telephone
consultant, discussed negotiations -with Centel relative to the cost of leasing
their Centrex service. The Board had voted earlier to pursue the acquisition of
new PBX's because analysis -showed it would cost about $1,000,000 less over ten
years than Centrex. Mr. Bryan explained that there have been several cost
adjustments because Centel has agreed to waive installation charges and wiring
charges, donate 538 single -line phones, and install a remote switching center in
the McDowell Road area. Centel has also offered a volume discount for 400 voice
mail boxes ($3 per box per month). He said that over a ten-year period, Centrex
will cost about $300,000 more than the PBX option, but that Centrex gives the
County more flexibility in reassessing its telecommunications needs. sooner. And
at the end of six years, Centrex's costs are less than those for the PBX option.
Therefore, the County should reassess its needs at the end of five years, when
the contract expires, which would still give the County a year to implement a
different option, if so desired. Also, with Centrex, all liability lies with
Centel for the system and for service and Centrex can be operational by
February, 1993. Mr. Bryan recommended that the County choose the Centrex
option.
On motion of Kemp, seconded by Petty, the Board approved a five-year
contract with Centel for the Centrex service and authorized the County Manager
to execute the contract for the County.
Phone Consultant Contract - Phase 3
On motion of Langley, seconded by Petty, the Board approved Phase 3
(Installation and Performance) of the contract with Telephone Development
Associates at a cost of $6,422.
Aikens Rezoning Request
Chairman Frye stated that the rezoning request of Andy and Keith Aikens,
including the public hearing, was heard on November 2, but no action was taken.
He announced that each side would be given 6-8 minutes to speak in summary
regarding this request.
Jon Megerian, attorney for the applicants, stated that hearing to this
point have not been about the real issue, which is how the property will be
used. He said it will be an orderly, affordable development in harmony with the
area and that it will not be of higher density than a restricted residential
subdivision. Therefore, it would not create any greater burden on schools,
roads, or public health and safety. Mr. Megerian stated the area is full of
mobile homes on one side of the road and that an appraiser has said that Mixed
Residential is the highest and best use for .this property. He said the County
Zoning Ordinance encourages the use of mobile homes in an orderly fashion and
that denial of this request would send a message that mobile homes probably
won't be placed anywhere in the county because there is nowhere better suited
than this property. He said the mobile home parks in the area are not nearly so
regulated as this proposed development will be. He said the Board should put
emotions aside and consider what is best for this property pursuant to the
ordinance which, in his opinion, is to grant the request. He said it would not
have any substantial adverse effect on the neighborhood.and that home values
would not be hurt any more than by mobile homes already there.
Pam Merritt of Finch Farm Road was spokesman for the opposition. She said
that the Planning Board has denied rezoning requests for this property twice
because of the high density. She said that the only issues are whether the
proposed development is compatible with.the surrounding area and whether it is
consistent with'the County's land use plan., Ms. -Merritt said that the Planning
Board has twice"said that the rezoning requests for this property are not
consistent with the land use plan. As for compatibility, she said,'most of the
area is zoned Residential -Agricultural; only one high-density mobile home park
is located on the,west side of Old Mountain Road, and none are.on the east side.
Ms. Merritt stated that there are other uses for this land which the applicants
can pursue.
Chairman. -Frye -asked Hal Johnson what types of buffers are typical Mr.
Johnson stated that it depends on the site and topography. In a subdivision,
land is being sold and the seller can't control the land. Mr.. Johnson said that
the Planning Board was looking at a long-term plan for Finch Farm Road and Old
Mountain Roads and that established development patterns already there were for
Residential Restricted. Chairman Frye noted that the major difference in a
mobile home park and subdivision is that in a subdivision the resident owns his
property and home.
Chairman Frye made a motion to approve this request with a buffer zone of
not less than 10 feet and with the reduction of time for underpenning from 90 to
45 days, with this change being placed in the deed restrictions. Mr. Langley
seconded this motion. Commissioners Kemp, Petty, and Comer voted against this
motion. Therefore, the request was denied.
Executive Session - Real Estate Acquisition and Personnel Matter
On motion of Kemp, seconded by Petty, the Board voted to go into executive
session to discuss real estate acquisition and a personnel matter. At 8:50 p.m.
the Board returned to open session without taking any action concerning the
executive session.
Adjournment
On motion of Langley, seconded by Kemp, the Board adjourned.
RANDOLPH COUNTY TELECOMMUNICATIONS SYSTEM RECOMMENDATION
Reasons for Reduction in Cost Differential Between Centrex and Multiple PBX Configuration
_How and Why the Changes were Made
1) After the original recommendation was made to the Board, Centel asked Randolph County to reconsider
its Centrex proposal.
2) An Executive Committee was formed by Randolph County to meet and to negotiate with Centel.
3) The County agreed that there was no substantial advantage to the Multiple -PBX configuration originally
endorsed by the County over Centrex other than cost.
4) Centel management replaced the Account Representative with a management team consisting of a Local
Government Accounts Specialist, the Sales Manager for Operations, and the District Manager.
5) Centel intitally offered to provide Installation at no charge and a clause that would allow Randolph
County to terminate the service with no penally should the system not meet the County's needs.
6) TDA requested the following additional adjustments from Centel on the County's behalf:
a) The installation of a Remote Switching Center (RSC.) in the McDowell Road area to reduce monthly
service charges,
b) Reductions in the cost of telephone equipment,
c) Free installation of 62 prewires for future station locations and rewiring of existing station locations
that need it, and
d) A volume discount for voice mail boxes.
7) Centel agreed to the above in addition to its original adjustments.
Nov. 16, 1992
(Prepared by Telecom Development Associates)
REASON
AMOUNT
1)
Installation Charges for New Service Will Be Waived by Centel
$45,000
2)
Charges For Rewiring 620 Existing Station Locations Will Be Waived by Centel
$50,000
3)
Charges for Prewiring 63 Future Station Locations Will Be Waived by Centel
$5,000
4)
538 Single -Line Feature Sets will be Provided at No Charge to the County by Centel
$54,876
5)
Centel Agreed to Install a Remote Switching Center in the McDowell Road Area
a)
Monthly Service at the County Office Building will be Reduced by $16.30 per Location
$404,892
b)
Monthly Service at the McDowell Center will be Reduced by $9.25 per Location
$257,520
6)
400 Voice Mail Boxes were Added to the Original Cost Estimate 00 ma. G d afAe1 %x
($145,434)
TOTAL REDUCED COSTS OVER 10 YEARS
$671,854
_How and Why the Changes were Made
1) After the original recommendation was made to the Board, Centel asked Randolph County to reconsider
its Centrex proposal.
2) An Executive Committee was formed by Randolph County to meet and to negotiate with Centel.
3) The County agreed that there was no substantial advantage to the Multiple -PBX configuration originally
endorsed by the County over Centrex other than cost.
4) Centel management replaced the Account Representative with a management team consisting of a Local
Government Accounts Specialist, the Sales Manager for Operations, and the District Manager.
5) Centel intitally offered to provide Installation at no charge and a clause that would allow Randolph
County to terminate the service with no penally should the system not meet the County's needs.
6) TDA requested the following additional adjustments from Centel on the County's behalf:
a) The installation of a Remote Switching Center (RSC.) in the McDowell Road area to reduce monthly
service charges,
b) Reductions in the cost of telephone equipment,
c) Free installation of 62 prewires for future station locations and rewiring of existing station locations
that need it, and
d) A volume discount for voice mail boxes.
7) Centel agreed to the above in addition to its original adjustments.
Nov. 16, 1992
(Prepared by Telecom Development Associates)
RANDOLPH COUNTY - Telecommunications Alternative Costs
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
CENTREX vs PBX CUMULATIVE COST COMPARISON
(Randolph County)
92-93 93-94 94-95 95-96 96-97 97-98 98-99 99-00 00-01 01-02
(Budget Year)
(Prepared by Telecom Development Associates)
8 Centrex
❑ PBX
Cumulative
PBX
Annual
Centrex
Centrex
PBX
1992-1.993
$294,653
$265,51.1
$294,653
$265,511
1993-1994
$640,785
$606,804 :::
$346,132
$341,293
1994-1995
$986,91.7
$970,418 ::
$346,132
$363,613
1995-1996
$1,333,049
$1,334,031.
$346,132
$363,613
1.996-1997
$1,679,181
$1.,697,644 :::
$346,132
$363,613
1997-1998
$2,025,313
$2,061,258 ::::
$346,132
$363,613
1.998-1999
$2,371.,445
$2,322,306 ' :
$346,1.32
$261,049
1999-2000
$2,717,577
$2,583,355 ::::
$346,132
$261,049
2000-2001
$3,063,709
$2,844,404 :::;:
$346,1.32
$261,049
2001-2002
$3,409,841
$3,105,452 :`:
$346,132
$261,049
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
CENTREX vs PBX CUMULATIVE COST COMPARISON
(Randolph County)
92-93 93-94 94-95 95-96 96-97 97-98 98-99 99-00 00-01 01-02
(Budget Year)
(Prepared by Telecom Development Associates)
8 Centrex
❑ PBX
On Time, On Target & On Top:
Providing Telecom Solutions That Help Your Bottom Line
"""M lie 11 , W
• -
Facts:
► The cost to implement a multiple -PBX configuration is virtually the
same as Centrex over the first six years.
► The decrease from the original cost differential is due to adjust-
ments made by Centel management since the feasibility study.
► Both alternatives should not significantly affect the 1992-93 budget
amount.
► Both alternatives should meet the County's telecommunications needs
for the next seven to ten years.
► The current system requires two people who are dedicated to answer-
ing incoming calls. One position can be eliminated with either
alternative (annual salary and benefits equals about $16,800).
►
The cost for a telecommunications system that will meet the County's
needs will be greater than the current budget next year.
Issues:
►Operational Capability: Neither alternative is superior to the
other in its ability to meet the County's needs.
► Time to Implementation: The Centrex alternative can be installed
four months sooner.
►
Capital Outlay/Credit: PBX systems require a capital outlay by the
County depleting credit lines whereas Centrex is an expense item.
► Service Responsibility: With Centrex, responsibility for everything
lies with Centel vs. County responsibility for PBX equipment.
► Space Requirements: Centrex requires less space than PBX systems.
► Power: Centrex is powered through the Central Office whereas
commercial power is required for PBX systems.
methods of Analysis:
► 1992-93 Telecommunications Budget is $295,156.
► 1992-93 alternative costs were determined by an average of to -date
expenditures plus the cost to implement the alternatives.
► Subsequent years' costs were set by projected expenses of equipment,
network, long distance, system maintenance, and cellular service.
Alternatives:
► Implement a multiple -PBX configuration or Centel's Digital Centrex
Service.
Reooanmendation:
► Telecom Development Associates recommends to the Randolph County
Board of Commissioners that it authorize the implementation of
Centel's Digital Centrex service.
P.O. Drawer 1307 • Cary, North Carolina 27512 • ( 919)772-5397 • Fax(919)481-9255