CALDWELL COUNTY BOARD OF COMMISSIONERS

Lenoir, North Carolina February 6, 2006

10:00 a.m.

Present: Faye R. Higgins, Chairman

Alden E. Starnes, Vice Chairman

Herbert H. Greene

Timothy E. Sanders

Dr. John W. Thuss

Absent: None

Staff Present: Bobby White, County Manager

Kathy T. Myers, Clerk to the Board

Chairman Higgins called the meeting to order and welcomed everyone. Reverend Nickey Waters, pastor of Poovey’s Chapel Baptist Church gave the invocation and Mack Chandler led the Pledge of Allegiance.

Chairman Higgins requested that Item #I4 be removed from the February 6, 2006 agenda and asked Commissioners if there were any other amendments to the agenda. Commissioner Sanders requested to add a closed session to discuss potential location of a business/industry, pursuant to N.C.G.S. 143-318.11(a)(4). Commissioner Greene moved to approve the agenda as presented and amended, Commissioner Starnes seconded, and the motion carried unanimously.

Recent Economic Development Activities Update

John Howard, EDC Director, briefed Commissioners on various economic development issues. He provided copies of the Economic Development Commission’s vision and mission statements as well as its strategic priorities for 2006. Commissioners were also presented unemployment statistics for Caldwell County compared to other Unifour counties and Mr. Howard expressed concern about job losses in the County. He said efforts were ongoing to attract industry to locate in Caldwell County and talked of potential projects for the Foothills Regional Airport. He also provided Commissioners a brochure advertising the Western North Carolina Industrial Crescent.

Foothills Mental Health Activities Update

Commissioner Greene introduced Steve Corley, Foothills Area Program Executive Director, to provide the Board of Commissioners information about the mental health delivery reform. Mr. Corley briefed Commissioners with the history of reform activities that began in 2001. The State of North Carolina determined that the mental health system could benefit by change and a plan was developed to require area programs to move toward a local management entity (LME). The LME’s would provide services to the public by way of for-profit or not-for-profit agencies. Foothills Area Program (FAP), as an LME, was required to develop a local business plan which was done and approved in the summer of 2003 by the State Department of Health and Human Services. FAP went through a 3-year process to divest 1/3 of its services each year and has been fortunate not to have any services come back. FAP is slightly ahead of schedule (approximately 2/3 of the way) and on track to divest the remaining services on time. Mr. Corley said he attended a meeting in 2005 of the Oversight Committee chairs and others regarding the reform process and Secretary Odom, at that time, reported there was a $28 million shortfall in LME funding after only one year into the process. They were told LME’s would need to consolidate certain functions: utilization management; utilization review; and after hours screening and triage. Ms. Odom proposed those functions be consolidated among the groups of LME’s and she would pick which LME’s would partner. However, after discussions it was felt that would not be in the best interest of the citizens and Ms. Odom granted approval to allow LME’s to choose their partners. Subsequently, FAP partnered with Catawba County LME and Crossroads LME (Surry, Iredell, and Yadkin Counties). On January 10, 2006, Crossroads LME submitted an application to be the lead LME in the partnership and Crossroads LME received notification that it was confirmed to provide after hours triage and referral but not confirmed to provide utilization management and utilization review. FAP, Catawba County, and Crossroads LME’s will use the statewide vendor to provide these two functions.

Mr. Corley also reported that the $28 million shortfall meant a funding cut to FAP of about $1.485 million or approximately 25%. He said once very firm data is received from the State, FAP will moved forward with necessary activities to address the funding cut (reduction in services/staff, etc.). He reported FAP had done well in the reform process and, in December 2005, FAP had 3 programs recognized as programs of excellence. That was a record in that there had never been an area program to receive this recognition for three programs.

Mr. Corley informed Commissioners that anytime anyone has a question about mental health services they may call 1-866-FAP-4YOU to access information about care.

Regional Air Quality Update

Commissioner Thuss briefed the Board on Environmental Protection Act (EPA) rules and regulations resulting from legislation enacted by Congress in 1970 to clean up the environment. In 1997, federal standards were reviewed for dealing with two pollution entities: 1) ozone and 2) PM2.5. He said the County would be dealing with the ozone issue this summer and the public would be aware by daily notices in the News-Topic, flags at various locations, etc. The PM2.5 is an ongoing issue generally thought to be the bi-product of the following sources which are all chemically related:

• stationery (fossil/coal burning) 30%
• mobile (diesel engines, gasoline engines, off-road construction vehicle engines) 30%
• human activities (land clearing, burning wood for heat, small engine use, etc.) 20%
• natural (volcanic activity, forest fires, plant metabolism 20%

Commissioner Thuss said the EPA, as a part of its regulatory process for the Unifour, recommended portions of Caldwell and Alexander Counties, and all of Catawba County be classified non-attainment for PM2.5 about a year ago. However, the Unifour Air Quality Compact successfully dealt with the local EPA agency for the State in requesting only Hickory be designated as the nonattainment area and not the other counties. At this time, Catwaba County is the only area designated nonattainment. He provided information about the air quality monitors and said only one monitor in Hickory is accepted by the EPA but the site is felt to be inappropriate. Due to the committee’s efforts, the State located another monitor at a different site; however, both monitors provide similar readings. In February, the EPA is going to audit the site for its appropriateness and accuracy. The one downtown separates various particles and identifies their sources. The other only records the particles. He said it is important to know what makes up the particles and a detailed analysis is needed of the results so that the Early Action Compact may address and make changes to improve air quality within the Unifour that can be changed. Commissioner Thuss talked about the negative impact non-attainment designation when industries look to locate in an area. He also provided information about ongoing programs and potential projects to assist in determining the PM2.5 sources and, thus, to identify ways to improve air quality in the Unifour.

NACo Justice & Public Safety Steering Committee

Commissioner Sanders reported that he along with Sheriff Gary Clark and Emergency Services Director Tommy Courtner, attended a national Justice & Public Safety Committee meeting of NACo. In attendance of the meeting also were a commissioner each from Cabarrus and New Hanover Counties. He said the problems of “meth” and its impact on local communities was the major issue of the meeting. It effects not only the users but also, property crimes, children in the homes of meth manufacturers/users, the whole county, jail overcrowding, inmate healthcare, etc. “Meth” is called the silent killer and treatment for addiction to it is totally different from other substance abuses because it is long term. He extended appreciation to all law enforcement agencies in the County that help to get the drug off the streets and deal with the criminals.

Another topic, disaster preparedness, was discussed. As a result of Hurricane Katrina, communities must commit to preparedness plans for disasters that may occur. He commended Caldwell County for having a strong local emergency plan and said the Board of Commissioners stand strong for local EMS and law enforcement in Caldwell County.

Commissioner Sanders also talked about their visit to Phoenix’ EMS and 911 Communications facility and said Caldwell County is committed to do something about its 911 communications this upcoming budget year. He noted that New Hanover County just addressed their 911 communications needs and invited Caldwell County to visit their facility.

NCACC Agriculture Committee Update

Commissioner Starnes reported on a meeting of the Agriculture Steering Committee he attended recently. The committee would like the North Carolina Senate to enact legislation for efforts to develop a program to preserve farmland and allow the counties to decide how the program would be implemented. North Carolina is fast losing farmland, and in the next 50 years, it is projected there won’t be any farmland left that hasn’t been used for industrial and residential development. The committee would like the State to set aside $200 million per year for five years, totaling $1 billion to invest in the purchase of farmland to save it from development. Commissioner Starnes listed the following amount of acreage the committee would like the State to purchase and preserve for certain purposes.

• 6,000 miles of streambank
• 50,000 acres of farmland
• 25,000 acres of forest
• 35,000 acres of local parks and trails
• 60,000 acres of state forest
• 150,000 for game lands and natural resources
• 350 historic landmarks
• 50,000 acres for scenic highways

January 25^th Regional Transportation Meeting Update

Chairman Higgins reported on a regional transportation meeting she attended to discuss the current status of the Hwy 321 bridge project with NCDOT board members from both Caldwell and Catawba Counties, respectively. She said Congressman Patrick McHenry was able to secure some funding and have it earmarked for the bridge project. Caldwell County Commissioners continue to lobby for the project to be implemented as soon as possible so that the funds can be used before the time limit is up. She said the bridge project is necessary to accommodate Hwy 321 when it is improved to six lanes in the future and impressed upon the County’s representative that it was a majority priority. She received a follow-up letter from Mike Pettyjohn, NCDOT Division Engineer, indicating $3,477,098 was the amount of fund for Caldwell County during this calendar year. The correspondence also contained information about shifting roads on the priority list for paving and she highlighted the following roads that changed.

• Steeltown Road is #6 and is the highest priority
• Indian Grave Road is #10
• A portion of Roby Martin Road is #15
• Cottrell Place is #18
• Another portion Robey Martin Road is #20
• Flemings Chapel Road is #21

Mr. White commended Commissioners for their efforts on the Hwy 321 bridge project and encouraged all local governments to stay involved in the project. He said the environmental clearance for the project needs to be completed as quickly as possible.

Mr. White noted that, as former chairman, Commissioner Sanders served on the MPO (Metropolitan Planning Organization)/Transportation Board and is still a member of the board; however, in the past, it has been the current chairman who serves on the board. Commissioner Sanders agreed and moved to appoint Chairman Faye Higgins to replace him on the Board. Commissioner Starnes seconded the motion and the vote was unanimous.

Update on Activities re Future Site of Human Service Facility

Mr. White provided Commissioners an overview on activities regarding the future human service facility since their last work session. He said the management team along with some of the Commissioners completed a preliminary visit with each of the four architect firms to meet them and to talk with representatives of the firms about the project. Each firm made a presentation and provided their qualifications, abilities, and interest in the project.

Mr. White said there seemed to be two (2) options the Board is investigating: 1) use of the Lenoir Mall site; and 2) a new construction. He said discussions with each firm included requests that they evaluate both options and work with staff to better define what was needed and what the facility would look like. Each firm was informed that all five Commissioners wanted another (formal) presentation and the opportunity to further discuss the project.

Mr. White said, as a result of a second request during the work session, he contacted Wilkie Construction who has agreed to prepare a written proposal that would look at the constructability of the Lenoir Mall facility for Commissioners’ review. Also, Mr. White said he met with the Local Government Commission to briefly discuss financing the project as well as communications talkability project and potential future school construction projects. The meeting with the LGC was to provide information about the projects in an effort to get a specific recommendation from them.

Mr. White said staff would coordinate formal sessions with the architect firms (located in Greensboro, Winston-Salem, Charlotte, and Hickory) so that all five Commissioners and the press, if they wanted to attend, could talk further and in more detail about the human service facility project.

Request to Lift Hiring Freeze to Fill Vacancies

Commissioners were presented requests from various department heads to lift the current hiring freeze and to fill vacant positions in their departments. Commissioner Sanders moved to lift the hiring freeze and to approve filling the following vacancies as requested, Commissioner Greene seconded and the motion carried unanimously.

Health Department

• Office Supervisor V – Clinic

Grade 61

Entry Salary - $ 22,634.00

• Public Health Nurse II – Child Health (Child Service Coordination)

Grade 70

Entry Salary - $ 34,456.00

• Accounting Technician II – Home Health

Grade 61

Entry Salary - $ 22.634.00

Department of Social Services

• Adult Medicaid Income Maintenance Caseworker

Grade 63

Entry Salary - $24,822.00

• Processing Assistant III

Grade 57

Entry Salary - $18, 801.00

• Adult Services Social Worker II

Grade 66

Entry Salary - $28,574.00

• Administrative Assistant II

Grade 65

Entry Salary - $27,267.00

• Foster Care Social Worker

Grade 68

Entry Salary - $36,068.60

• Customer Service Assistant

Grade 59

Entry Salary - $20,634.00

• Family and Children’s Medicaid Income Maintenance Caseworker

Grade 63

Entry Salary - $24,822.00

• Child Protective Services Social Worker

Grade 70

Entry Salary - $39,624.40

Convenience Center Site Attendants

• Two (2) part-time site attendant

Hourly Rate of $7.39

Tax Department

• Revaluation specialist

Grade 57

Salary Range $18,801.00 to $29,527.00

Detention Center

• Detention officer

Entry Salary - $22,634.00

Contract with Bowman, Pegg & Starr for County’s Audit

Sam Yearick, Finance Officer, appeared before Commissioners to request their consideration of the contract proposed by Bowman, Pegg & Starr, CPA, to conduct the FY05-06 audit for the County. Mr. Yearick noted the firm had audited the County for a number of years, were very knowledgeable, knew the County’s accounting system, and worked well with county staff. He said the proposal included a 2% increase over the previous year contract, noting that the previous contract was for a number of years and there had been no increase.

Commissioner Starnes moved to approve the contract with the 2% increase for Bowman, Pegg & Starr CPA to conduct the County’s FY05-06 audit. Commissioner Thuss seconded the motion and it carried by majority vote. Commissioner Sanders voted against the motion.

At 12:00 p.m., Commissioner Greene moved to recess the meeting until 1:00 p.m. Commissioner Thuss seconded the motion and it carried unanimously.

At 1:00 p.m., Chairman reconvened the meeting.

FY2005-06 Mid Year Budget Review

The County Manager said he and Sam Yearick looked at each departmental budget to review expenditures for the first six months as well as budget projections for the remainder of the year. He noted that Chairman Higgins and Commissioner Thuss, members of the budget committee, also attended all the meetings with department heads as part of the review. He referred Commissioners to the itemized summary of each department’s revenues, expenditures, and projections.

Mr. White reported there were three general revenues sources that were projected to be more than originally budgeted:

• Anticipate ad valorem tax collections will exceed initial budget by about $400,000.00
• Investment earnings are projected to be $200,000.00 over what was budgeted
• Small amount of hold harmless monies (Article 42 sales tax) of about $6,000.00

He also noted there were some challenges on the expense side of the summary:

• Inmate medical costs for three types of inmates (federal, state or other county, and local). Medical costs for federal inmates are reimbursed to the County at $45 per day through an agreement with the U.S. Marshal. Medical costs for state and other county inmates are reimbursed to Caldwell County by the state or respective county. However, Caldwell County is required to pay for medical expenses of local inmates housed at the detention center. It is projected there will be a substantial increase in inmate medical costs over what was initially budgeted in the amount of $50,000.00. Mr. White cautioned Commissioners the amount could not be justified but was merely a projection based on the previous six-month history. He asked the Board’s approval of a budget amendment to use fund balance money to cover the increasing costs through the remainder of the year. There was lengthy discussion about electronic house arrest utilization for local inmates.

• EMS revenues are anticipated to be down by about $183,000.00. Staff has initiated a more aggressive collection program and there have been some preliminary benefits. Mr. Yearick advised that accounts receivable for EMS is about $2 million.

• DSS Administration revenues potentially will be lower than projected by as much as $179,000.00. Mr. White explained the maintenance of effort commitment between the County and the State. Until that threshold is met, the County cannot maximize federal dollars.

The County is required to pay a portion (about 5.65%) of ever dollar spent in Medicaid as its local match. In the current fiscal year, the County budgeted $4,173,000.00. Based on the experience of the first six months, the staff has projected our mandated Medicaid match could exceed our budget amount by $367,000.00.

Mr. White also noted two (2) positive financial projections:

• Debt service savings is projected to be $314,088.00 due, partly, to the communication project not being financed this fiscal year.

• About $20,468.00 in additional revenues from various departments not originally budgeted.

Mr. White reported that total revenues and expenses are within $177,000.00 (short) of the approximate $65 million budget. It is staff’s best estimate at this time and, at the end of February, staff will review projections again to get a clearer picture.

Mr. White also talked about fund balance percentage calculation that compares dollars in fund balance to dollars in the general fund. The County budgets a lot of education flow-through dollars in general fund (about $1.7 million) so that Commissioners have direct linkage between the flow-through dollars and what the school gets. He said some counties put money in a special account so it is not within the general fund and counted in calculating the fund balance percentage. Mr. White recommended Commissioners consider doing the same and use a special fund account for the flow-through dollars to the schools.

Following the mid year budget review presentation by Mr. White and Mr. Yearick, Commissioner Starnes moved to approve the following budget amendment to provide necessary revenues for inmate medical care costs projected for the remainder of FY2005-06. Commissioner Sanders seconded the motion and it carried unanimously.

Decrease 10.299000 Fund Balance $50,000.00

Increase 10.4320.330010 Medical Reimbursement $30,000.00

Increase 10.4320.439700 Inmate Medical $50,000.00

Increase 10.4320.439800 Inmate Medical Reimbursement $30,000.00

Mr. White talked about water enterprise fund which is in good shape in terms of revenues and expenditures at this point in time. He said that staff did not see any changes necessary for this fund. He also talked about possible ways to streamline the process required by the State to get permitted for getting water line installation. 911 and all other funds are where they need to be at this point in the fiscal year.

2005 Tax Liens on Real Property

In accordance with N.C.G.S. 105-369, the Tax Administrator, provided the number of accounts and total dollar amount of tax liens on real property as of January 31, 2006 of 5,153 and $2,031,430.23, respectively. Mr. Chandler reported that about 100 bills were more than $5,000.00. Commissioner Sanders moved to accept the report and to direct the Tax Collector to advertise the 2005 delinquent tax liens and to proceed with collection activities for the taxes in accordance with general statute requirements. Commissioner Starnes seconded and the vote was unanimous.

Consent Agenda

1. Approval of Minutes

The County Manager recommended the Board of Commissioners approve the minutes of the January 23, 2006 regular meeting as prepared and presented by the Clerk.

2. Budget Amendments

The County Manager recommended the Board of Commissioners approve the following budget amendments and to authorize staff to execute documents associated with the amendments.

a. DSS (Additional Crisis Intervention Program Funds); $43,837.00

The Department of Social Services received notification their allocation of federal Crisis Intervention Prevention Funds would be increased by $43,837.00. The funds are used to assist eligible county residents with utility and shelter expenses in crisis situations. It was noted there is no local match required. The following budget amendment is necessary to reflect the additional funding:

Increase 10.5692.331600 Temp Federal $43,837.00

Increase 10.5692.438800 Emergency Assistance $43,837.00

b. Health Department (Healthy Caldwellians State Grant); $5,000.00

Healthy Caldwellians was awarded a $5,000.00 state grant which will be administered through the County’s Health Department in accordance with the State’s Consolidated Agreement. The funds will flow through the Health Department according to a contractual arrangement with Healthy Caldwellians. The following budget amendment is necessary to receive the funding and provide the funding for the Healthy Caldwellians program:

Increase 10.5110.330500 Healthy Caldwellians $5,000.00

Increase 10.5110.444100 Contractual Expense $5,000.00

c. Health Department (Smart Start Program); $8,723.80

The County’s Smart Start program will increase the family nurse practitioner from 60% FTE to 80% FTE to provide services related to a new agreement with the Caldwell County School System for mobile unit services one day each week. The following budget amendment is necessary to reflect the increased salary and benefits which are billable Medicaid reimbursable:

Increase 10.5166.330515 SS-Medicaid $8,723.80

Increase 10.5166.412100 Salaries $5,575.00

Increase 10.5166.418100 FICA $ 430.00

Increase 10.5166.418200 Retirement $ 275.00

Increase 10.5166.418300 Hospitalization $2,334.00

Increase 10.5166.418400 Dental $ 99.00

Increase 10.5166.418700 Life $ 10.80

d. Spartan Medical Center/Sales Tax Reinvestment; $33,364.47

In FY2004-05, the County approved a Sales Tax Reinvestment appropriation of up to $47,000.00 for use in matching a Rural Center grant. The funding was to install sewer lines to serve the industry and create new jobs. The project is now completed and the following budget amendment is necessary to roll the funds from the Sales Tax Reinvestment fund balance into the current budget and pay the invoices for the installation work.

Decrease 20.299000 Fund Balance $33,364.47

Increase 20.4504.444100 Contractual $33,364.47

e. Register of Deeds Office (Automation Enhancement); $6,000.00

The following budget amendment is necessary to use automation enhancement funds to pay the expenses to convert old microfilm in the Register of Deeds office to a current format:

Increase 10.4181.341201 ROD Automation Enhancement $6,000.00

Increase 10.4181.464900 ROD Automation Enhancement $6,000.00

3. Library Services & Technology Act (LISTA) Grant

Jim McKee submitted information regarding a potential $15,000.00 LISTA grant that could be used in a long range plan to look at ways to better cooperate with the community college and their library services as well as the various library facilities located in the public school buildings throughout the County. Specifically, the grant funds would be used to finance services of Mr. William Millett, President of Scope View Strategic Advantage, to look at these possibilities. It was noted there are no local matching funds required. The County Manager recommended the Board of Commissioners authorize the formal application of a $15,000.00 Library Services and Technology Act grant to initiate a long range planning effort involving future library services.

4. Request to Purchase Paper Shredder for Communications Center

The County Manager informed Commissioners of a request from the Communications Center staff to purchase a paper shredder for the department using available federal asset seizure funds to finance the purchase. Mr. White recommended the Board of Commissioners approve the purchase of a heavy duty paper shredder for the Communications Center and to approve the following detailed budget amendment to transfer $1,000.00 from the federal asset seizure fund to the Communications Center equipment line item.

Increase 23.4313.331100 Asset Seizure Revenue $1,000.00

Increase 23.4313.452000 Non-cap Equipment $1,000.00

5. Communications Equipment Purchase Authorization

Within the current OSSI contract, the Communications staff identified limited funds that will not be obligated as part of the overall project. In terms of implementation for the overall communication upgrade, the State notified the County of a needed additional piece of equipment (a Cisco VPN 3002 Hardware Client) estimated to cost $885.00. Mr. White recommended the Board of Commissioners approve the equipment purchase, to approve the following budget amendment to realign existing OSSI project funds to acquire the equipment, and to reflect this action in the current FY2005-06 capital outlay program.

Decrease 10.4312.444000 Contractual $885.00

Increase 10.4312.452000 Non-cap Equipment $885.00

Commissioner Greene moved to approve the five (5) items on the consent agenda as presented and recommended by the County Manager. Commissioner Starnes seconded the motion and it carried unanimously.

Appointments

Chairman Higgins nominated Glennis Ponder Hatton for appointment to the Criminal Justice Partnership Board and to serve as Chair of that Board. Commissioner Starnes moved to accept the nomination, Commissioner Greene seconded, and the vote was unanimous. Chairman Higgins also nominated Tracy Pyle, and John “Jack” Day for appointment to the Criminal Justice Partnership Board. Commissioner Greene moved to accept the nomination, Commissioner Starnes seconded the motion, and it carried unanimously.

Closed Session

At 2:05 p.m., Commissioner Greene moved to go into closed session to discuss personnel matters and the location of new business, pursuant to N.C.G.S. 143-318.11(a)(6) and 143-318.11(a)(4), respectively. Commissioner Starnes seconded the motion and it carried unanimously.

A motion was moved by Commissioner Thuss, seconded by Commissioner Greene, and carried unanimously to come out of closed session to regular session.

There being no further business, Commissioner Thuss moved to adjourn. By unanimous vote, Chairman Higgins declared the meeting adjourned at 3:00 p.m.