WAKE COUNTY BOARD OF COMMISSIONERS
Regular Meeting
July 7, 2014 2:00 P.M. Room 2700, Wake County Justice Center
Members present were: Chairman Phil Matthews, Vice Chair Joe Bryan, Paul Coble, Rich Gianni, Caroline Sullivan, Betty Lou Ward, James West
Others attending were: Jim Hartmann, County Manager, Scott Warren, County Attorney, Joe Durham, Deputy Manager, Johnna Rogers, Deputy Manager, Denise Hogan, Deputy Clerk, Susan J Banks, Clerk to the Board
Meeting Called to Order: Chairman Phil Matthews
Pledge of Allegiance
Invocation: Commissioner Rich Gianni
Items of Business
Approval of Agenda
Betty Lou Ward motioned, seconded by Paul Coble, to approve the Agenda as presented. The motion passed unanimously.
Approval of the Minutes of the Commissioners' Work Session on June 9 and Regular Meeting on June 16, 2014
Rich Gianni motioned, seconded by Paul Coble, to approve the Minutes of the Commissioners' Work Session on June 9 and Regular Meeting on June 16, 2014. The motion passed unanimously.
Consent Agenda
Betty Lou Ward motioned, seconded by Caroline Sullivan, to approve the Consent Agenda. The motion passed unanimously.
Correction of Tax Levy Date in FY15 Budget Ordinance
1 Betty Lou Ward motioned, seconded by Caroline Sullivan, to approve a correction to the FY15 Budget Ordinance properly stating the tax levy date as January 1, 2014. The motion passed unanimously.
After adoption of the FY15 Budget on June 16, 2014, staff discovered a typographical error regarding the date of the FY15 Tax Levy in Section 1. The property valuation date for the tax levy should have been listed as January 1, 2014, rather than January 1, 2015.
The corrected ordinance is provided.
OPERATING BUDGET ORDINANCE FOR FISCAL YEAR 2015
BE IT ORDAINED by the Board of County Commissioners of Wake County, North Carolina:
Section 1: TAX LEVY. There is hereby levied a tax at the rate of fifty-seven and eight-tenths cents (57.8¢) per one hundred dollars ($100) valuation of property that is located within Wake County and listed for taxes as of January 1, 2014 . The revenue from this source is included in "Ad Valorem Taxes" in Section 2 of this Ordinance.
This rate is based on estimated valuation of property, for the purpose of taxation of: (1) 100% of total assessed property tax value of real, personal and public service valuation of one hundred eighteen billion, seven hundred ninety-five million ($118,795,000,000) and an estimated collection rate of 99.50%; and (2) 100% of total assessed property tax value of vehicle valuation of eight billion, five hundred seventy million ($8,570,000,000) and an estimated collection rate of 99.0%.
The Revenue Director of Wake County is hereby authorized, empowered, and commanded to collect the taxes set forth in the tax records filed in the office of the Wake County Revenue Department in the amounts and from the taxpayers likewise therein set forth. Such taxes are hereby declared to be a first lien upon all real property of the respective taxpayers in the County of Wake, and this order shall be a full and sufficient authority to direct, require, and enable the Revenue Director to levy on and sell any real or personal property of such taxpayers, with or without the assistance of the Wake County Sheriff, for and on account thereof, in accordance with law.
Section 2: GENERAL FUND REVENUES. (A) It is estimated that the following revenues will be available in the General Fund for the fiscal year beginning July 1, 2014 and ending June 30, 2015:
Ad Valorem Taxes $737,930,000 Sales Tax 147,883,570 Lease/Rental Vehicle Tax 2,550,000 Payment in Lieu of Taxes 1,231,685 Real Property Transfer (Excise) Tax 9,443,000
2 Federal Shared Revenues 11,596,870 State Shared Revenues 74,049,728 Local Shared Revenues 4,442,566 Licenses and Permits 4,716,459 Charges for Services 62,009,128 Investment Earnings 45,264 Miscellaneous 1,723,981 Transfers from Other Funds 2,577,466 Interfund Transfers 850,000 Appropriated Fund Balance Committed for Future Appropriations of ABC Revenue 3,750,000 Committed for Future Appropriations of Revaluation Reserve 1,461,500 Restricted for Future Appropriations of Register of Deeds 23,783 Automation Funds Unassigned 137,000
TOTAL GENERAL FUND REVENUE $1,066,422,000
Section 2(B): In accordance with Board action on June 21, 2013, there is hereby appropriated $3,750,000 from Committed for Future Appropriations of ABC Revenue for funding of Wake County Public School System operating appropriation (Section 4(b)).
Section 2(C): Thirty percent (30%) of the proceeds from the local half-cent sales and use tax authorized July 1, 1984 under authority of Article 40 of the North Carolina General Statutes and sixty percent (60%) of the local half-cent sales and use tax authorized October 1, 1986 under the authority of Article 42 of the North Carolina General Statutes are hereby declared to be included in the appropriation for school capital outlay, capital projects, and/or school debt service.
Section 3: GENERAL FUND EXPENDITURES. The following amounts are hereby appropriated in the General Fund for the operation of the County government and its activities for the fiscal year beginning July 1, 2014 and ending June 30, 2015:
General Government Board of Commissioners 514,630 County Manager 1,453,093 County Attorney 1,732,761 Board of Elections 3,478,085 Budget and Management Services 743,884 Facilities, Design, and Construction 1,206,395 Finance 2,183,377 Human Resources 1,902,628 Information Services 12,360,935 Register of Deeds 2,716,979 Revenue 8,642,480 Community Services 27,669,815
3 Environmental Services 8,875,333 General Services 26,381,521 Medical Examiner 204,200 Human Services 186,881,070 City-County Bureau of Identification 5,614,158 Sheriff 74,235,021 Fire Services 1,527,661 Emergency Management 668,124 Emergency Medical Services 34,780,506 Emergency Communications 1,163,039 Education Wake County Public Schools (Section 4(A)) 337,676,400 Reserve for WCPSS (Section 4(B)) 3,750,000 Wake Technical Community College 16,478,000 Non-departmental Memberships 474,133 Public Agencies 1,491,053 Non-departmental Services 73,126 Criminal Justice Partnership Programs 898,534 Economic Development 329,500 Cooperative Extension 209,529 Soil and Water Conservation District 429,814 Salary and Benefit Reserve 5,794,000 Health Benefits 5,977,013 Risk Management Cost of Claims 1,374,203
Transfers Transfer to County Capital Projects Fund 27,418,000 Transfer to Schools Capital Projects 56,184,000 Transfer to Debt Service Fund 198,774,000 Transfer to Wake Tech Capital Project Fund 3,305,000 Interfund Transfer to Revaluation Reserve 850,000 TOTAL GENERAL FUND APPROPRIATION $1,066,422,000
Section 4: WCPSS APPROPRIATION. (A) Purpose and Function. The appropriation to the Wake County Public Schools System (WCPSS) is hereby allocated by purpose and function as defined by NCGS 115C-426 and as authorized by NCGS 115C-429(b). The Wake County Board of Education will notify the Board of Commissioners of amendments to the WCPSS budget. For amendments which would increase or decrease the amount of the County appropriation allocated to a purpose and function by more than fifteen percent (15%) of the adopted appropriation the WCPSS will notify the Board of Commissioners at a public meeting of the Board of Commissioners.
Instructional Services Regular Instructional Services $ 98,226,985
4 Special Populations Services 28,430,350 Alternative Programs and Services 9,954,669 School Leadership Services 25,006,104 Co-Curricular Services 7,848,766 School-Based Support Services 11,480,350 180,947,224 System-wide Support Services Support and Developmental Services 7,116,992 Special Populations Support and Development Services 3,065,779 Alternative Programs and Services Support and 1,216,257 Development Services Technology Support Services 12,982,070 Operational Support Services (WCPSS Fund 02) 83,960,178 Operational Support Services (WCPSS Fund 04) 4,644,307 Operational Support Services (WCPSS Fund 08) 867,466 Financial and Human Resource Services 14,935,400 Accountability Services 2,287,292 System-wide Pupil Support Services 3,913,407 Policy, Leadership, and Public Relations Services 7,794,617 142,783,765 Ancillary Services Community Services 0 Nutrition Services 0 Adult Services 0 0 Non-Programmed Charges Payments to Other Governmental Units 13,945,411
TOTAL WAKE COUNTY PUBLIC SCHOOLS $ 337,676,400 APPROPRIATION
Section 4(B): TEACHER SUPPLEMENT RESERVE. A reserve is hereby established of $3,750,000 for additional appropriation to WCPSS. Appropriation of the reserve is contingent upon the Board of Education (BOE) taking action to utilize the $3,750,000 to increase the locally funded teacher supplement scale. Following the action taken by the Board of Education, the County will appropriate the $3,750,000 as a recurring amount that will increase the funding for WCPSS operating to $341,426,400.
Section 4(C): FUND BALANCE EXCHANGE INCENTIVE. A funding incentive is established for WCPSS whereby upon remittance of a portion of WCPSS fund balance to the County, to be deposited in the County Debt Service Fund, the Board of Commissioners will take action to appropriate and set forth increased recurring funding to WCPSS. The additional recurring appropriation will be calculated using the County’s debt and capital model and most current financial information available at the time of the remittance to determine the property tax rate required to provide sufficient funding for existing and authorized future debt and capital as well as to maintain a combined general fund and debt service fund fund balance of at least 30% of combined operating revenues. The amount of the recurring appropriation will be the difference between the recalculated property tax rate dedicated to debt and capital and 19.9 cents, the dedicated amount assumed in Section 3.
5 Section 5: DEBT SERVICE. (A) REVENUES. It is estimated that the following revenue will be available in the Debt Service Fund for the fiscal year beginning July 1, 2014 and ending June 30, 2015:
Transfer from General Fund – Ad Valorem $ 164,563,000 Transfer from General Fund – Sales Tax 34,211,000 Transfer from Major Facilities Fund 991,000 Transfer from Fire Tax District Fund 1,407,000 State Lottery Proceeds 10,000,000 Interest Income 1,712,000 Other – Federal 2,786,017 Other – Bond Premiums 30,860,983
TOTAL DEBT SERVICE FUND REVENUE $ 246,531,000
Section 5(B): EXPENDITURES. The following is hereby appropriated in the Debt Service Fund for the fiscal year beginning July 1, 2014 and ending June 30, 2015 for the purpose of paying debt service commitments:
Debt Service Principal, Interest, and Fees $ 246,531,000
TOTAL DEBT SERVICE FUND $ 246,531,000 APPROPRIATION
Section 6: SOLID WASTE. (A) HOUSEHOLD FEE. The Revenue Director of Wake County is authorized, empowered and commanded to collect a Residential Waste Reduction fee of $20 per household with the annual real property tax bill and direct the revenues from the fee to the Solid Waste Enterprise Fund.
Section 6(B): REVENUES. It is estimated that the following revenue will be available in the Solid Waste Enterprise Fund for the fiscal year beginning July 1, 2014 and ending June 30, 2015:
State $ 1,616,991 Charges for Services 8,231,779 Licenses and Permits 6,500 Interest Income 251,681 Miscellaneous 555,526 Sales of Recyclable Materials OK 989,504 Closure/Post Closure Reserve OK 798,560 Transfer from South Wake Landfill Fund 1,009,459 TOTAL SOLID WASTE ENTERPRISE $ 13,460,000 FUND REVENUE
Section 6(C): EXPENDITURES. The following is hereby appropriated in the Solid Waste Enterprise Fund for the fiscal year beginning July 1, 2014 and ending June 30, 2015:
Operating Expenses $ 12,004,606 Transfer to General Fund 450,000
6 Reserve for Future Appropriation 1,005,394
TOTAL SOLID WASTE ENTERPRISE $ 13,460,000 FUND APPROPRIATION
Section 7: SOUTH WAKE LANDFILL. (A) REVENUES. It is estimated that the following revenue will be available in the South Wake landfill Fund for the fiscal year beginning July 1, 2014 and ending June 30, 2015:
Disposal and License Fees $ 14,891,000
TOTAL SOUTH WAKE LANDFILL FUND $ 14,891,000 REVENUE
Section 7(B): EXPENDITURES. The following is hereby appropriated in the South Wake Landfill Fund for the fiscal year beginning July 1, 2014 and ending June 30, 2015:
Operating Expenses $ 13,881,541 Transfer to Solid Waste Enterprise Fund 1,009,459
TOTAL SOUTH WAKE LANDFILL FUND $ 14,891,000 APPROPRIATION
Section 8: CORPORATE FLEET. (A) REVENUES. It is estimated that the following revenue will be available in the Corporate Fleet Fund for the fiscal year beginning July 1, 2013 and ending June 30, 2014:
Charges for Services $ 8,836,872 Sale of Materials 411,900 Other Financing Sources 673,228 Investment Earnings 20,000 Transfers 125,000
TOTAL CORPORATE FLEET FUND $ 10,067,000 REVENUE
Section 8(B): EXPENDITURES. The following is hereby appropriated in the Corporate Fleet Fund for the fiscal year beginning July 1, 2014 and ending June 30, 2015:
Operating Expenses $ 10,067,000
TOTAL CORPORATE FLEET FUND $ 10,067,000 APPROPRIATION
7 Section 9: RESEARCH TRIANGLE PARK. There is hereby levied a tax at the rate shown below, per one hundred dollars ($100) valuation of property listed for taxes as of January 1, 2014, located within the Wake County portion of the Durham-Wake Counties Research Triangle Park Research and Production Service District for the raising of revenue for said district. The estimated total of valuation of property for the special district for the purpose of taxation is as follows:
Assessed Value Tax Rate
Research and Production $ 1,517,719,529 3.79 cents Service District
There is hereby appropriated to the Durham-Wake Counties Research Triangle Park Research and Production Service District from the net proceeds of this tax the amount for use by said district in such manner and for such expenditures as is permitted by law from the net proceeds of this tax, including a tax collection rate of two-tenths of one percent to be paid to Wake County for collecting the tax. The anticipated revenue from this tax rate is $586,408. The actual net proceeds from the tax shall constitute the appropriation from said tax levy.
Section 10: AUTHORITY TO TRANSFER APPROPRIATION. The County Manager, or his designee, is hereby authorized to transfer appropriations within a Fund as contained herein under the following conditions: A) He may transfer amounts between appropriations within the same Fund. For transfers exceeding $75,000 he shall make a report of the transfer to the Board of Commissioners at the next regularly scheduled meeting of the Board following the transfer.
B) He may transfer amounts from the salary and benefits reserve to individual departmental appropriations following adoption of the budget in order to properly fund salary and benefit amounts within departments.
Section 11: AUTHORITY TO EXECUTE CONTRACTS. The County Manager, or his designee, is hereby authorized to execute contractual documents under the following conditions:
A) He may execute contracts for construction or repair projects that do not require formal competitive bid procedures.
B) He may execute contracts for: (1) purchases of apparatus, supplies, and materials, or equipment which are within budgeted appropriations; (2) leases of personal property for a duration of one year or less and within departmental appropriations; (3) lease of personal property for more than 12 months if the annual expense is less than $50,000; and (4) service contracts within appropriations or contracts for 12 months or less.
C) He may execute grant agreements to or from governmental units and other public, private, and non- profit organizations that are within budgeted appropriations, unless a grantor requires approval and execution by the Board of Commissioners.
D) He may execute contracts, as the lessor or lessee of buildings, land, equipment, vehicles, heavy equipment and other property provided that such leases are of one-year duration or less and that funds therefore are within budgeted appropriations.
E) He may, within budgeted appropriations, approve all change orders and amendments to contracts previously approved by the Board of Commissioners.
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Section 12: AUTHORITY TO SETTLE CLAIMS. The County Manager, or his designee, may authorize payment in an amount not to exceed $100,000 in settlement of any liability claims against the County or against any of its officers or employees as provided by Resolution of May 20, 1985 and Resolutions of October 6, 2003. The County Manager shall make quarterly reports to the Board of Commissioners of any such payments.
Section 13: ENCUMBRANCES AT YEAR END. Operating funds encumbered by the County as of June 30, 2014 are hereby appropriated to this budget. Multiple year grants unexpended by the County as of June 30, 2014 are hereby appropriated to this budget.
Section 16: WHITE GOODS. Funds provided by the State of North Carolina for disposal of white goods that are not spent as of June 30, 2014, are designated for future year expenditures on white goods programs and are hereby appropriated to the Solid Waste Enterprise Fund budget.
Section 17: ELECTED OFFICIALS COMPENSATION. Funding is provided in Section 2 of this ordinance for a 2.75% compensation adjustment for the members of the Board of Commissioners, the members of the Wake County Board of Education, the Register of Deeds and the Sheriff effective July 1, 2014.
Section 18: FEE CHANGES. As authorized in Section 153(A)-102 of the North Carolina General Statutes, the following fees are hereby established or amended, effective on July 1, 2014.
East Wake Transfer Station Fee increased from $36.00 to $39.00
Description Fee Tipping Fee 9.00
Section 19: The County Manager shall distribute copies of this Budget Ordinance as appropriate.
ADOPTED the 16th day of June 2014; Section 1 Levy Date Corrected the 7th day of July 2014.
Home and Community Care Block Grant
Betty Lou Ward motioned, seconded by Caroline Sullivan, to approve the plans for the Home and Community Care Block Grant submitted by Wake County Human Services, Meals on Wheels, and Resources for Seniors and affixes required signatures. The motion passed unanimously.
Agency HCCBG Match Total Funds Requirements Meals on Wheels $1,052,495 $101,014 $1,153,509 Resources for Seniors $1,874,853 $196,086 $2,070,939 Total $2,927,348 $297,100 $3,224,448
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Wake County Juvenile Crime Prevention Council Annual Plan and Certification for FY 2014-15
Betty Lou Ward motioned, seconded by Caroline Sullivan, to adopt the Wake County Juvenile Crime Prevention Council Annual Plan and Certification for FY 2014-15 and affix signatures on appropriate forms. The motion passed unanimously.
Appointment of Map and Plat Review Officers for the Town of Apex
Betty Lou Ward motioned, seconded by Caroline Sullivan, to adopt a Resolution appointing Map and Plat Review Officers for the Town of Apex. The motion passed unanimously.
WAKE COUNTY BOARD OF COMMISSIONERS
July 7, 2014
RESOLUTION APPOINTING STAFF FROM THE TOWN OF APEX TO SERVE AS MAP AND PLAT REVIEW OFFICERS
WHEREAS, Article 2 of Chapter 47 (§47-30.2) of the North Carolina General Statutes requires the Board of Commissioners of each County to designate one or more persons experienced in mapping or land records management to be appointed as a Review Officer to certify the maps or plats presented to the Register of Deeds as complying with all statutory requirements for recording: and
WHEREAS, the review of statutory requirements is of a technical nature; and
WHEREAS, Town of Apex staff is qualified to undertake this technical review and therefore are the logical people to implement this requirement; and
WHEREAS, one of the services the Town of Apex staff provides to the community is a similar technical process for subdivision plat review in order to verify compliance with the Town’s development regulations; and
WHEREAS, it appears most efficient for the Town of Apex to avoid adding another layer of development review by providing for the certification of statutory compliance for all maps or plats to be presented to the Register of Deeds for recording within the
10 context of subdivision review procedures:
NOW, THEREFORE, BE IT RESOLVED that the Wake County Board of Commissioners designates the following persons to serve as the Review Officers for all lands within the municipal and extraterritorial jurisdiction of the Town of Apex:
NAME POSITION/TITLE
Dianne F. Khin Planning Director
Brendie Vega Principal Planner
Reed G. Huegerich Transportation Planner
June Cowles Senior Planner
Lauren Simmons Planner II
William C. Brown GIS Specialist
Katherine Mayo Planner
This motion was made by Commissioner Betty Lou Ward and seconded by Commissioner Caroline Sullivan, and passed by unanimous vote of the Wake County Board of Commissioners on this 7th day of July 2014.
Amendment Conservation/Greenway Easement from Eastwind Development, LLC for the Amber Homeowners Association Property Phases 1 and 4
Betty Lou Ward motioned, seconded by Caroline Sullivan, to authorize the Chairman to execute an Amendment to the Conservation/Greenway Easement from Eastwind Development, LLC for the Amber Homeowners Association Property, Phases 1 and 4, to Wake County recorded at Book 15536, Page 1409, Wake County Registry, subject to the terms and conditions approved by the County Attorney. The motion passed unanimously.
Prepared by and after recording return to:
Eastwind Development, LLC c/o RH Stockett Homes, Inc. 901-F Paverstone Drive Raleigh, NC 27615
FIRST AMENDMENT TO DEED OF EASEMENT TO WAKE COUNTY FOR GREENWAY AND/OR CONSERVATION PURPOSES
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Parcel Identifier: 1763662656 and 1763559671
COUNTY OF WAKE
THIS FIRST AMENDMENT TO DEED OF EASEMENT (“First Amendment”) is made on this ______day of ______, 2014, by and between Eastwind Development, LLC, ("Grantor"), whose address is 901-F Paverstone Drive, Raleigh, NC 27615 and the County of Wake, a political subdivision of the State of North Carolina, (" Grantee") whose address is P.O. Box 550, Raleigh, NC 27602.
RECITALS
A. Grantor and Grantee entered that certain conservation easement on the 16th day of December, 2013, which was recorded in Book 015536, Pages 01409 – 01417 of the Registry of Wake County, North Carolina (the “Conservation Easement”).
B. The defined terms set forth in the Conservation Easement shall have the same meaning in this First Amendment.
C. Grantor and Grantee desire to amend the Conservation Easement for the purpose of extinguishing Grantor’s development density credits in Article II, Section 9 of the Conservation Easement.
NOW THEREFORE, for and in consideration of the facts contained in the recitals of the Conservation easement, and for and in consideration of the mutual covenants, terms, conditions and restrictions contained in this First Amendment, Grantor and Grantee do hereby agree to amend the Conservation Easement as follows:
(1) Grantor hereby agrees that Article II, Section 9 of the Conservation Easement, which reserves for the Grantor the right to receive the benefit of development density credits appertaining to the property, is hereby deleted in its entity for the purpose of permanently extinguishing all density credits from the property in Exhibit .
(2) The agreements contained herein by Grantor constitute a grant and conveyance unto the Grantee, its successors and assigns, forever and in perpetuity for the benefit of the people of Wake County, a Conservation Easement in, over, though, under and across the property, together with the right to conserve and protect the Conservation Values and Character of the Property as described in the recitals herein and in the recitals of the Conservation Easement.
12 (3) Except as specifically modified and amended herein, all other terms and provisions of the Conservation Easement shall remain in full force and effect.
IN WITNESS WHEREOF, Grantor has caused this First Amendment to be executed in his name by authority duly given and Grantee has caused this First Amendment to be executed in its name by authority duly given.
GRANTOR:
Eastwind Development, LLC
______
Name: ______
Title: ______
STATE OF NORTH CAROLINA
COUNTY OF ______
I, ______, a Notary Public for said County and State, do hereby certify that ______, on behalf of Eastwind Development, LLC personally appeared before me this day and acknowledged the due execution of the foregoing instrument. Witness my hand and seal this ____ day of ______, 2014.
______Notary Public My commission expires: ______
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Accept and Appropriate $219,315 from the Kate B Reynolds Charitable Trust for the EMS Department
Betty Lou Ward motioned, seconded by Caroline Sullivan, to accept and appropriate a multi-year grant totaling $219,315 in revenues and expenditures to the Grants and Donations Fund from the Kate B. Reynolds Charitable Trust beginning July 1, 2014 thru June 30, 2016 for the Wake County Emergency
14 Medical Services Department Advanced Practice Paramedic Program. The motion passed unanimously.
Approve a Three-Year Agreement with Laboratory Corporation of America for $107,100 to Provide Laboratory Services for Programs in the Wake County Sheriff's Office
Betty Lou Ward motioned, seconded by Caroline Sullivan, to to approve a three-year agreement for $107,100 with Laboratory Corporation of America with an option of two successive one-year renewals not to exceed a total term of five years, to provide laboratory services for Sheriff’s Office, and authorizes the County Manager to execute a contract for these services. The motion passed unanimously.
Three-Year Cisco Network Equipment Capital Lease Agreement
Betty Lou Ward motioned, seconded by Caroline Sullivan, to adopt the attached resolution that authorizes the County Manager to enter into and execute a three-year capital lease agreement with Key Government Finance, Inc., in the amount of $1,111,272 including interest, for the acquisition of Cisco network equipment for use throughout Wake County facilities. The motion passed unanimously.
The Board of Commissioners for the County of Wake, North Carolina met in regular session in the Commissioners’ Meeting Room in the Wake County
Justice Center in Raleigh, North Carolina, the regular place of meeting, at 2:00 p.m., on July 7, 2014, with Phil Matthews, Chairman, presiding. The following
Commissioners were:
PRESENT: Joe Bryan, Paul Coble, Rich Gianni, Caroline Sullivan, Betty
Lou Ward and James West.
ABSENT: N/A
ALSO PRESENT: Jim Hartmann, County Manager; Johnna Rogers,
Deputy County Manager; Joe Durham, Deputy County Manager; Scott Warren,
15 County Attorney; Susan J. Banks, Clerk to the Board and Denise Hogan,
Deputy Clerk.
* * * * * *
Chairman Matthews introduced the following resolution the title of which was read and copies of which had been distributed to each Commissioner:
RESOLUTION MAKING CERTAIN FINDINGS AND DETERMINATIONS REGARDING THE FINANCING OF THE ACQUISITION OF CISCO NETWORK GEAR
BE IT RESOLVED by the Board of Commissioners (the “Board”) for the County of Wake, North Carolina (the “County”) as follows:
Section 1. The Board does hereby find and determine as follows:
(a) There exists in the County a need to acquire Cisco network
equipment for use throughout Wake County facilities to ready the
County’s network for the future implementation of a Voice over
Internet Protocol (VoIP) communications platform to replace aging
AT&T Centrex telephone service currently utilized by the County
(b) After due consideration, the County has determined to enter into
a lease/purchase agreement (the “Agreement”) with Key
Government Finance Inc., on behalf of Cisco Systems Capital Corp.
(“Key Government Finance Inc.”) providing for Key Government
Finance Inc. to lease Cisco network gear (the “Property”) to the
County in various County facilities. Pursuant to the Agreement,
the County would lease the Property from Key Government
16 Finance Inc. for three years and purchase the Property at the end
of such term for $1.
(c) It is in the best interest of the County to enter into the Agreement
in that such transaction will result in the acquisition of the
Property in an efficient and cost effective manner.
(d) Entering into the Agreement is preferable to a general obligation
bond and revenue bond issue in that (i) the nature of the Property
does not allow for the issuance of revenue bonds to finance the
costs of the Property; (ii) the costs of the Property exceeds the
amount to be prudently provided from currently available
appropriations and; (iii) the circumstances existing require
entering into the Agreement as soon as practicable to commence
acquisition of the Property
(e) It has been determined by the Board that the acquisition of the
Project through the Agreement is acceptable to the Board.
(f) The County’s bond counsel will render an opinion to the effect that
the proposed Agreement is authorized by law and is a purpose for
which public funds may be expended pursuant to the Constitution
and laws of the State of North Carolina.
(g) The debt management policies of the County have been carried out
in strict compliance with law, and the County is not in default
under any obligation for repayment of borrowed money.
17 (h) No tax increase is anticipated to be necessary to provide for lease
payments.
Section 2. The Board hereby authorizes and approves the Board of
County Commissioners to authorize the County Manager to enter into and execute a three-year capital lease agreement with Key Government Finance,
Inc., in the amount of $1,111,272, including interest, for the acquisition of
Cisco network equipment for use throughout Wake County facilities.
Section 3. This resolution shall take effect immediately upon its passage.
Upon motion of Commissioner Betty Lou Ward, seconded by Commissioner
Caroline Sullivan, the foregoing resolution was adopted by the following vote:
Ayes: Joe Bryan, Paul Coble, Rich Gianni, Phil Matthews, Caroline
Sullivan, Betty Lou Ward and James West.
Noes:
* * * * * *
I, Susan J. Banks, Clerk to the Board of Commissioners for the County of Wake, North Carolina, DO HEREBY CERTIFY that the foregoing is a true copy of so much of the proceedings of said Board for said County at a regular meeting held on July 7, 2014, as it relates in any way to the passage of the foregoing resolution relating to a lease/purchase agreement by said County and that said proceedings are recorded in the minutes of said Board.
18 I DO HEREBY FURTHER CERTIFY that proper notice of such regular meeting was given as required by North Carolina law.
WITNESS my hand and official seal of said County this 7h day of July
2014.
______
Clerk to the Board of Commissioners
[SEAL]
Approval of Addendum 1 to Memorandum of Understanding for Jordan Lake Partnership
Wake County staff recommends that Wake County continue membership in the Partnership so that it can continue to monitor any proposed changes to the Jordan Lake allocations and ensure that RTP South is appropriately represented in those discussions. Based on the MOU, there are two levels of membership. Level I is for agencies with 10,000 or more water service connections at a cost of $7,500 per year. Level II is for agencies with less than 10,000 water service connections at a cost of $2,500 per year. Wake County’s involvement is related only to its jurisdictional responsibilities in RTP South. Therefore the County is a Level II agency that will cost $2,500 per year. Payment for membership is made out of available CIP Water/ Sewer funds.
Betty Lou Ward motioned, seconded by Caroline Sullivan, too authorize the County Manager to execute Addendum 1 to the Memorandum of Understanding for the Jordan Lake Partnership to extend the term to June 30, 2019. The motion passed unanimously.
ADDENDUM No. 1 to the MEMORANDUM OF UNDERSTANDING SUPPORTING A REGIONAL PARTNERSHIP FOR WATER SUPPLY PLANNING AND POTENTIAL JOINT USE OF THE B. EVERETT JORDAN RESERVOIR
The purpose of this Addendum is to extend the term of the Memorandum of Understanding from June 30, 2014 to June 30, 2019. The addendum is authorized under the MOU pursuant to Section 7 regarding Duration, Amendment and Termination, which states that the term of the MOU can be extended upon mutual written agreement of the signatories.
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WHEREAS, the Jordan Lake Partnership has proved a successful collaborative effort to define Jordan Lake’s role in a long-term sustainable and secure regional water supply for the Research Triangle Region; and,
WHEREAS, the Partnership has accomplished a number of its objectives, including calculating peer-reviewed population and water demand projections, identifying future water supply needs, Phase I of the Interconnections Study, the Western Intake Study, drafted alternative supply plans and unanimously agreed on a preferred regional alternative, and completed Volumes I & II of the Triangle Regional Water Supply Plan; and,
WHEREAS, the work of the Partnership is ongoing, including Phase II of the Interconnections Study, and submission of Partners; Jordan Lake allocation applications; and,
WHEREAS, Partners intend to continue to support regional collaboration by participating in the Jordan Lake Partnership;
BE IT RESOLVED, that the signatories of the Memorandum of Understanding Supporting a Regional Partnership for Water Supply Planning and Potential Joint Use of the B. Everett Jordan Reservoir would like to extend the term of the MOU;
NOW, THEREFORE, the signatories have agreed to the following Addendum to the Memorandum of Understanding:
I. On March 16, 2009, signatories entered in a Memorandum of Understanding (MOU) for the purpose of pledging to work together as part of a Jordan Lake Regional Water Supply Partnership, referred to as the Jordan Lake Partnership. II. The parties now mutually agree to amend the referenced MOU as follows. Delete the first sentence in Section 7 and replace it with the following: "The term of this Memorandum of Understanding shall begin upon the approval of the second signatory. This Memorandum of Understanding shall terminate on June 30, 2019." III. The parties have executed this addendum on the day and year written below. Agreed and accepted:
Approval of Lease Extension for Capitol Area Workforce Development (CAWD) at 2321 Crabtree Boulevard, Raleigh, NC
Capital Area Workforce Development Board (CAWDB) is a public-private partnership that focuses on economic development by ensuring that the local workforce has the skills, training and education to meet the needs of local
20 employers. The Board oversees several programs in Wake and Johnston Counties designed to serve individuals, youth, and businesses.
Major programs/services include:
Workforce Investment Act (WIA) Adult & Dislocated Worker Services Workforce Investment Act (WIA) Youth Services JobLink Career Centers - Capital Area’s one-stop career centers Incumbent Worker Program (IWDP); Education and Occupational Training
Wake County provides for CAWD office space needs. Based upon County staff’s continuing evaluation of available office space and negotiations with the owners of the current space, the best deal for the taxpayers was to remain in the current spaces for this short period. The other spaces investigated at comparable price per square foot cost would require significant up-fitting and a more costly payment by the Tenant of taxes, insurance and common area maintenance costs. The terms of the proposed lease would be as follows: 1. Commencement Date: January 1, 2015;
2. Term: 60 months through December 31, 2019; (with two renewal options)
3. Rental rate: $12.50/SF x 5,644 SF for the first year ($70,550) with a provision for three percent (3%) annual escalation for the term of the lease.
4. Landlord covers Tenant's portion of taxes, insurance and common area maintenance; and
5. Landlord will provide: new paint, carpet throughout the subject area; new tile in the break room; remove the combination lock from the hallway door/replace with key lock and repair the water fountain.
Betty Lou Ward motioned, seconded by Caroline Sullivan, to authorize the County Manager to execute the documents needed for a lease extension at 2321 Crabtree Boulevard, Raleigh, NC, on behalf of Wake County for Capitol Area Workforce Development (CAWD), subject to terms and conditions acceptable to the County Attorney.
The motion passed unanimously.
Acceptance of Federal Historic Preservation Fund Grant of $16,000 for the Wake County Historic Preservation Commission
21 Using funding from the Wake County 2015 Historic Preservation Fund, the Wake Historic Preservation Commission (WHPC) proposes to hire a consultant to complete an update of the existing architectural survey that will include site visits, high resolution digital photography, preparation of written entries, and data entry in the HPO’s s survey database as well as identification of properties not previously recorded within corporate limits and extraterritorial jurisdictions of Fuquay-Varina, Holly Springs, Apex, Rolesville, Knightdale and Wendell, for placement on the state’s national register study list and final report.
The project will be accomplished under the supervision of staff of the North Carolina Office of Archives and History as well as Wake County Community Services. The Wake County Historic Preservation authorized the grant application in June 2014. The grant requires a $9,000 cash match from County dollars. The County will satisfy the match requirement by using funds already budgeted in the FY15 Wake County Historic Preservation Fund.
Funding Allocations:
State Historic Preservation Office Grant $16,000 FY15 Wake County Historic Preservation Fund $9,000 Total Project Cost $25,000
Betty Lou Ward motioned, seconded by Caroline Sullivan, to accept Federal Historic Preservation Fund Grant of $16,000 for the Wake County Historic Preservation Commission and approve the appropriate budget revisions. The motion passed unanimously.
Tax Committee Recommendations for Value Adjustments, Late Filed Applications, Collections Refunds and Tax Collections
Betty Lou Ward motioned, seconded by Caroline Sullivan, to accept the Tax Committee Recommendations for Value Adjustments, Late Filed Applications, Collections Refunds and Tax Collections as provided. The motion passed unanimously.
1. Report Collections – Wake County Only – May 2014
2. Wake County In-Rem Foreclosure Progress Report – May 2014
3. Consideration of Requests for Adjustments, Rebates, and/or Refunds of Penalties: (Wake County and Town of Cary), (Wake County and Town of Fuquay-Varina), (Wake County and Town of Morrisville), (Wake County and City of Raleigh), (Wake County and Town of Wake Forest)
4. Consideration of Refund for Taxes, Interest, and Penalties: (Wake County Only), (Wake County and Town of Cary), (Wake County and Town of Fuquay-Varina), (Wake County and Town of Garner), (Wake County and City of Raleigh)
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5. Consideration of Requests for Tax Relief Exclusions: (Wake County and Town of Fuquay-Varina), (Wake County and Town of Garner)
6. Consideration of Requests for Exemptions: (Wake County and Town of Garner), (Wake County and City of Raleigh)
7. Rebate Details: (Wake County and Town of Angier), (Wake County and Town of Apex), (Wake County and Town of Cary), (Wake County and Town of Fuquay- Varina), (Wake County and Town of Garner), (Wake County and Town of Holly Springs), (Wake County and Town of Knightdale), (Wake County and Town of Morrisville), (Wake County and City of Raleigh), (Wake County and Town of Rolesville), (Wake County and Town of Wake Forest), (Wake County and Town of Wendell), (Wake County and Town of Zebulon)
Regular Agenda
Approval of Amendment 2 to Agreement with the Town of Cary and Research Triangle Foundation for Water Supply Allocation Transfer to Town of Cary
Mr. Eric Staehle, Project Manager, Facilities Design and Construction, stated that as part of the request for approval of Amendment 2 to the Agreement with the Town of Cary and Research Triangle Foundation for water supply allocation transfer to the Town of Cary, he would review the water/sewer agreements, off- site and on-site water and sewer, water reclamation, Jordan Lake Partnership and Jordan Lake Water Allocation. He said no municipalities can annex into RTP so the jurisdiction is in Wake County.
A Memorandum of Agreement was established in 1989 between Wake County, Town of Cary and Research Triangle Foundation, to help with the development of the Research Triangle Park. The agreement addressed design, construction and ownership of water/sewer infrastructure and water/sewer service. An Interlocal Agreement was created in 2003, amended in 2006 and specific responsibilities were outlined in the agreement. The ILA provided for water/sewer and reclaimed water off-site infrastructure for projects within the County portion of RTP South with the County providing the infrastructure and the Town of Cary providing the service, operation and maintenance of lines. The agreement included the funding policy as Wake County's Economic Development support by providing financial assistance by reimbursing companies for on-site infrastructure projects for industrial tenants in RTP South.
**Map for RTP and RTP South.
23 Some of the RTP area crosses over into Durham County. This project is for RTP South which is in Wake County. Mr. Staehle provided updates on some of the projects in RTP South. Cape Fear Sewer Phase II Project is 6400 linear feet of sewer line that will serve Biogen, Cisco, Kitts Creek Subdivision, as well as future needs. Jordan Lake Water Reclamation Project is reclaimed water off-site infrastructure construction which will be used by tenants for irrigation and cooling towers which reduces the need for potable water.
- Wake/Cary completed (26,000 lf) - Cary completed (2600 lf) - Cary construction in 2014 (16,000 lf) - Wake budgeted for FY 2018 (11,000 lf)
On-Site Water and Sewer Projects provide water, sewer, reclaimed water, from off-site lines onto properties within 5 feet of a building for new and expanding industries within RTP South
NetApp Data Center has recently been completed and it includes water, sewer and reclaimed water. On-Site Water and Sewer Projects provide water, sewer, reclaimed water, from off-site lines onto properties within 5 feet of a building for new and expanding industries within RTP South
ects but are done on a case by case basis
Mr. Staehle reviewed specific planning issues as they relate to RTP South.
Jordan Lake Partnership
Wake County is a member of the Jordan Lake Partnership made up of 13 governmental agencies.
with the primary purpose of jointly planning for the expanded use of available water supply in Jordan Lake. - a 50 year water supply plan supported by all regional managers water allocation usage through 2045 Partners in the Jordan Lake Partnership include: Apex, Cary, Chatham County, Durham, Hillsborough, Holly Springs, Morrisville, Orange County, OWASA, Pittsboro, Raleigh, Sanford, and Wake County
Mr. Staehle stated that this request is for an amendment to the Interlocal Agreement. The original agreement states that the County will construct the
24 water and sewer lines necessary to provide service to the sites of tenants in RTP South. Operation and maintenance of these facilities will be the responsibility of the Town of Cary; and the Town of Cary will provide water supply and wastewater treatment to the tenants of RTP South based upon available allocations from Jordan Lake and capacity at Cary’s wastewater treatment facilities. Cary will include in their budgeting and planning process, facilities needed to meet the projected water and sewer demands of RTP South.
The State of North Carolina owns the water supply storage in Jordan Lake and periodically allocates that storage to units of local government. Wake County, on behalf of RTP South, received an allocation of 3.5 percent of the water supply storage pool of Jordan Lake from the State of North Carolina on July 11, 2002. Cary, at the request of RTF, treats water from Wake County’s Jordan Lake allocation at the Cary/Apex Water Treatment Facility to supply the customers in RTP South. The Town of Cary, along with the Towns of Apex and Morrisville, and Wake County, received an Interbasin Transfer (IBT) Certificate from the NC Environmental Management Commission (EMC) on July 12, 2001. This certificate provides for the transfer of surface water from the Haw River basin (where Jordan Lake, the water supply source is located) to the Neuse River basin, via discharges from the North Cary and South Cary Water Reclamation Facilities as well as through consumptive use by customers located in the Neuse River basin).
The Town of Cary currently operates and maintains the water, sewer, and reclaimed water infrastructure in RTP South under the original agreement, and customers in RTP South are treated the same as any other customer in the Town’s service area.
On February 24, 2010, the State of North Carolina announced it would initiate a new “Round 4” allocation process, where it began the process of evaluating requests for Jordan Lake water supply storage, from each of the municipalities its serves along with Wake County. This new allocation process was precipitated by a request from Chatham County. At the same time, consistent with the intent for Cary to manage providing all utility services for customers in RTP South, Wake County and Research Triangle Foundation propose to further amend the original Agreement to allow for Wake County to transfer its 3.5 percent Jordan Lake water supply storage allocation to Cary, and for Wake County to discontinue being a party to the Cary/Apex/Morrisville/Wake County Interbasin Transfer certificate. The purpose of this request is as follows:
accurately reflects how the system is actually operated; reduces reporting requirements to the State of North Carolina; saves Wake County the costs of application preparation/annual fees; and improves overall efficiency for both Wake County and the Town of Cary.
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Wake County and towns of Cary, Apex and Morrisville notified the EMC on September 30, 2013 of their intent to request a modification to the jointly held IBT certificate, where Wake County will discontinue being a party to the IBT certificate. Amendment 2 to the Agreement for Water and Sewer Service to RTP South has been established to delineate the changes to the Jordan Lake allocation from Wake County to Cary, the removal of Wake County from the IBT certificate, and to clarify Cary’ s responsibilities for planning and delivering a water supply to RTP South customers. Highlights of this Amendment are as follows:
Cary shall maintain a sufficient allocation of Jordan Lake water supply storage, and an Interbasin Transfer Certificate, to meet the water supply needs of the customers in RTP South in addition to the needs of other Cary customers. Cary shall continue to be assigned the responsibility to plan for facilities needed to deliver water and sewer services, including Interbasin Transfer management and water supply. Cary shall continue to maintain water infrastructure and provide water service to the customers in RTP South. Cary shall be reimbursed for such facilities through water and sewer user charges. Cary shall continue to submit any reports required by the NCDENR Division of Water Resources for IBT and Jordan Lake allocation compliance.
In support of this arrangement, on May 1, 2014, the Town of Cary submitted a draft application to the NC Division of Water Resources (DWR) on behalf of Cary, Apex, Morrisville and Wake County for a new Jordan Lake Water Supply Storage Allocation. The application requests additional allocations for Cary and Apex (7.2 percent) and maintains existing allocations for Morrisville and Wake County (3.5 percent each), with the expectation that both will be transferred to Cary upon request by Morrisville and Wake County, respectively.
Wake County will submit their transfer request following execution of this Amendment. DWR will evaluate all applications for Jordan Lake allocations and submit its recommendations to the NC Environmental Management Commission (EMC) in March 2015. Following a public comment period, the EMC will decide Jordan Lake water supply storage allocations in November 2015. If the Cary/Apex allocation increase request is granted and the allocation transfers implemented, the resulting allocation (46.2 percent in total, 35.6 percent for Cary and 10.6 percent for Apex) should meet the water supply needs of Cary, Apex, Morrisville, and RTP South through 2045. These requests are consistent with the Long Range Water Resources Plan and with the Jordan Lake Partnership’s Triangle Regional Water Supply Plan. Upon transfer of the
26 allocation by the EMC from Wake County to the Town of Cary, Cary will assume responsibility for annual operation and maintenance payments to the NCDENR Division of Water Resources for the Jordan Lake water supply storage allocation that was assigned to Wake County. In 2014, that payment was $2,291.81 and future costs are not expected to differ significantly. Wake County staff, including the County Attorney and Facilities Design & Construction has worked closely with staff from the Town of Cary and RTF to bring about this proposal. A letter of support from RTF and proposed Resolution from the Cary Town Council are attached. Wake County staff therefore recommends approval of Amendment 2 to this Interlocal Agreement. Wake County will remain a part of the Jordan Lake Partnership. He shared the Wake Allocation as follows:
Current Wake Allocation=3.5 MGD Planned Demand in 2030=2.2 MGD Planned Demand in 2045=3.2 MGD
He introduced the water quality experts with him.
Commissioner Ward asked about the testing of the waters and the past issues. She asked about the quality of the water supply.
Mr. Syd Miller, Water Resources Engineer with the Town of Cary, said they have a very advanced water treatment plant and are able to treat the water quality today. They are concerned about the future water quality in the lake. They have another project where they are installing aerations near their intakes that would prevent stratification of the lake. It makes the treatment of water quality more difficult during the summer months. The Cary Town Council has stated their preference would be for the state to continue its work on a nutrient management strategy for the future water quality of the lake. Vice-Chair Bryan asked about the long-term strategy for reclaimed water.
Mr. Staehle said the offsite infrastructure plan is being put into place at the facilities as part of the plan for decreasing the use of potable water and expanded conservation of Jordan Lake. Vice-Chair Bryan asked if the long term plan to 2035, would lead to the build out of RTP South. Mr. Staehle said a new master plan was done for RTP in the last few years but he was not familiar with the master plan. Mr. Mason Ailstock, Vice President of Business Development for the RTP, said the master plan being developed is for the heart of the RTP but their business recruitment efforts would also continue for the southern portion of the park. The plan would be driven by economics and prospects. Vice Chair Bryan asked if there would be enough capacity for the next 50 years of build out. Mr. Ailstock said there would be enough capacity.
Commissioner Coble asked about the cost of preparing an allocation request. Mr. Staehle said there was no cost for the state application but there was cost
27 estimated about $11,000 to $15,000 for hiring a consultant to put the application together. This year the cost was about $2,300 and it should range from $2,300 to $4,000 over the next 30 years for a total around $70,000.
Commissioner Coble asked if there were any concerns about disagreements between the towns and would Wake County function as the mediator in these discussions. Mr. Staehle said there had been no issues of servicing the area or disagreements. Commissioner Coble asked Mr. Warren how disagreements would be handled. Mr. Warren said the agreement is driven by RTP South with the county's input. Mr. Staehle said there is a mechanism in place that can be administered if needed where the county can get the allocation back. The request would be an administrative change through the Division of Water Resources. Vice-Chair Bryan said he remembered a time when a utility was used to stop growth. He asked how the change would be made, how Wake County and RTP South are protected so a municipality cannot effect the growth of the community. He asked if the county were to step away from this plan, what protection is there for the county’s allocation. Mr. Staehle said the agreement states the county's current allocation of 3.5% would remain providing services to the RTP South customers. Vice Chair Bryan stated his understanding was then that there would be no way that the county’s water allocation would not be provided by this document. Mr. Staehle said Vice Chair Bryan was correct in his statement.
Commissioner Coble said that he wanted assurance that if Wake County steps back in then the allocation would come back to the county and there are some measures of control. Mr. Staehle said both statements are included, that the 3.5% would remain going to RTP South as well as the language that the county could go to the state and request the allocation be given back to the county. Mr. Warren said he was satisfied with the language in the agreement.
Joe Bryan motioned, seconded by Betty Lou Ward, to authorize the County Manager to execute Amendment 2 to the Interlocal Agreement between Wake County, the Town of Cary and Research Triangle Foundation, subject to the terms and conditions acceptable to the County Attorney. The motion passed unanimously.
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COUNTY OF WAKE STATE OF NORTH CAROLINA AMENDMENT NO. 2 TO AGREEMENT for Water and Sewer Service to the Wake County Portion of Research Triangle Park This Amendment No. 2 To Agreement (“Amendment No. 2”), made and entered into on ______, 20___, amends the Agreement, made and entered into on October 28, 2003 (“Agreement”), and amended by Amendment No. 1 to Agreement dated July 7, 2006 (“Amendment No. 1”), by, between and among the COUNTY OF WAKE, a body politic and corporate organized under the laws of the State of North Carolina, (“Wake County”), the Town of Cary, North Carolina, a municipal corporation of the State of North Carolina (“Cary”), and the Research Triangle Foundation of North Carolina, a not for profit foundation organized under the laws of the State of North Carolina (“RTF”).
WITNESSETH WHEREAS,
Agreement and Amendment No. 1 concern the provision of water and sewer service to the Wake county portion of Research Triangle Park (“RTP South”). The State of North Carolina owns the water supply storage in Jordan Lake and periodically allocates that storage to units of local government under the authority of NCGS Chapter 143, Section 354. Wake County, on behalf of RTP South, received an allocation of 3.5 percent of the water supply storage pool of Jordan Lake from the State of North Carolina on July 11, 2002. Cary, pursuant to Agreement and Amendment No. 1, treats water from Wake County’s Jordan Lake allocation at the Cary/Apex Water Treatment Facility to supply the customers in RTP South. On February 24, 2010, the State of North Carolina announced it would begin the process of evaluating allocation requests for Jordan Lake water supply storage and is referring to the process as “Round 4 Jordan Lake allocations.” Wake County and RTF desire for Wake County to transfer its 3.5 percent Jordan Lake water supply storage allocation to Cary, for use in serving customers in RTP South. Cary, Wake County, Apex and Morrisville notified the NC Environmental Management Commission on September 30, 2013 of their intent to request a modification in the jointly held Interbasin Transfer certificate.
30 Wake County desires to discontinue being a party to the Interbasin Transfer certificate. Wake County and RTF desire for Cary to maintain a sufficient allocation of Jordan Lake water supply storage, and an Interbasin Transfer certificate, to meet the water supply needs of the customers in RTP South, in addition to the needs of other Cary customers. Wake County and RTF desire for Cary to continue to maintain water infrastructure and provide water service to the customers in RTP South. This Amendment No. 2 is authorized by the provisions of NCGS Chapter 160A, Articles 16 and 20 and Chapter 153A, Articles 2 and 15.
NOW, THEREFORE, IT IS AGREED BETWEEN WAKE COUNTY, CARY, AND RTF THAT:
1. Purpose
During the Round 4 Jordan Lake allocation process, Wake County and Cary will both request that the North Carolina Environmental Management Commission (EMC) transfer Wake County’s Jordan Lake allocation (3.5 percent of the water supply pool) to the Town of Cary’s portion of the Cary/Apex allocation. Similarly, Cary and Apex have notified the EMC that they will be requesting a modified Interbasin Transfer (IBT) certificate and one modification will be to remove Wake County as a named holder of the IBT certificate. The purpose of this Amendment No. 2 is to update the Agreement as amended to include this transfer of Wake County’s Jordan Lake allocation to the Town of Cary and removal of Wake County from the IBT certificate.
2. Amendment to Section 4
Section 4 “Interbasin Transfer” of the existing Agreement as amended will be deleted in its entirety and replaced with the following:
4. Interbasin Transfer
Wake County, RTF and Cary recognize an Interbasin Transfer (IBT) certificate is needed to operate the current and planned water and wastewater infrastructure to best meet the needs of Cary, RTP South, and Cary’s other customers. Cary, Wake County, Apex and Morrisville jointly hold an IBT certificate. Cary and Apex are proceeding with a request to modify the certificate, including removing Wake County and Morrisville as certificate holders, consistent with other water and sewer related permits. Cary will plan for facilities needed to deliver water and sewer services, including IBT management, and will be reimbursed for
31 such facilities through water and sewer user charges. Wake County and RTF will comply with conditions (for example, buffer requirements) in the existing or any modified IBT certificate that apply to Cary’s water and sewer service area.
3. Amendment to Section 7
Section 7 “Planning” of the Agreement as amended will be deleted in its entirety and replaced with the following:
7. Planning
7.1 Projection of Capacity Needs
RTF agrees to provide Cary with updated water demand, wastewater flow, and wastewater pollutant loading projections at any time that RTF desires for Cary to begin incorporating such updated RTP South projections in Cary’s planning and budget process as per section 7.2. The demand, flow, and loading projections will include average annual and maximum day potable and reclaimed water demands, and average annual and maximum month wastewater flows and loads. Demand, flow and load projections should be provided for each of the next five years, and in five-year increments for years ending in zero and in five thereafter, up to the year estimated to represent buildout for RTP South.
7.2 Planning to Meet Capacity Needs
Cary will include the most recently provided RTP South projected needs for water supply, wastewater, and reclaimed water in its annual budgeting process and in master plans. When master plans are updated, or upon request by RTF or Wake County, Cary will provide RTF and Wake County with documentation describing the water, wastewater and reclaimed water projects related to serving the needs of RTP South. Cary will indicate the portion of cost for any capital project that is needed solely to treat higher than normal pollutant loadings from RTP South customers. If applicable, Wake County and/or RTF will indicate in writing to Cary their willingness to enter into a Letter of Agreement, as discussed in Section 17, for any wastewater system capital costs associated with higher than normal pollutant loadings.
7.3 Available Capacity
Upon request by RTF, to respond to potential customers, Cary agrees to provide an estimate of current available water supply capacity,
32 wastewater treatment capacity (including pollutant loading capacity), and reclaimed water capacity. Cary will also provide, and keep current, a guide sheet that can be used to estimate user charges during recruitment activities. RTF agrees to share the guide sheet, as well as Cary’s reclaimed water policy and utility ordinance, with potential new customers.
Available water supply capacity will be based on the Cary/Apex Water Treatment Facility capacity at the time of the request less the current capacity already committed to existing and permitted customers.
Available wastewater capacity will be based on the capacity – both hydraulic and pollutant loading - at the facility or facilities treating wastewater from RTP South at that time.
Hydraulic capacity will be based on the facility capacity less the current flows already committed to existing and permitted customers. It is the developer's responsibility to confirm hydraulic capacity of the downstream sewer systems.
Available pollutant loading capacity will be based on either loading at normal concentrations as defined in Cary’s sewer use ordinance, or, if additional loading capacity for RTP South has been provided at the request of Wake County and/or RTF, the remaining loading capacity after considering the loading currently allocated by permit to existing RTP South Customers.
Available reclaimed water capacity will be based on the reclaimed water facilities in place at that time less the current amounts already committed to existing and permitted customers.
Reservation of capacity for a specific development does not occur until after permits are obtained from Cary and fees are paid to Cary. It is understood by Wake County and RTF that Cary will be planning facilities based on the projections provided by RTF as stated in Section 7.1, and that it is possible, in the event that customers’ needs are greater than projected, and/or grow faster than projected, that capacity may not be immediately available. Cary will work with RTF and Wake County to identify and implement options for providing the capacity when needed.
4. Amendment to Subsection 8.1
Subsection 8.1 “Jordan Lake Allocation” of the existing Agreement as amended will be deleted and replaced with the following:
33 8.1 Jordan Lake Allocation
On July 11, 2002, Wake County, on behalf of RTP South, received an allocation of 3.5 percent of the water supply storage in Jordan Lake from the North Carolina Environmental Management Commission (EMC). As of early 2014, this allocation is estimated to be able to meet average annual water demands of 3.5 mgd, sufficient to meet RTP South needs through 2045. As part of the Round 4 Jordan Lake allocation process initiated by DWR in 2010, Wake County will request that for the purpose of supplying customers in RTP South, this allocation and any additional amount needed for future water supply be allocated to Cary instead of Wake County. Cary’s portion of the Cary/Apex Round 4 Jordan Lake allocation request will include the transfer of Wake County’s 3.5 percent allocation on behalf of RTP South to Cary. Generally, the 3.5 percent allocation transferred from Wake County to Cary will be used to meet RTP South needs to the extent that it would be if the allocation were not transferred.
Cary will be responsible for applying for any allocation that may be needed in the future and including water demand forecasts provided by RTF as per Section 7.1. Cary will track the status of the Jordan Lake allocation on a daily basis, and submit reports as required by the NCDENR Division of Water Resources but will discontinue tracking a separate allocation for Wake County/RTP South.
5. Amendment to Subsection 8.3
Subsection 8.3 “Water Shortage Conditions” of the existing Agreement as amended will be deleted and replaced with the following:
8.3 Water Shortage Conditions
In the event of a water shortage condition caused by mechanical or other failure, catastrophic event, drought conditions, or any other cause that affects Cary’s ability to supply water, RTP South customers are subject to any water restrictions imposed by Cary as authorized by Cary’s Utility Ordinance and/or as described in Cary’s Water Shortage Response Plan. RTP South customers may develop their own Drought Contingency Plans, subject to Cary’s approval, in lieu of meeting the default requirements in the Cary Water Shortage Response Plan. An approved Drought Contingency Plan can then be used – and must be followed.
To be considered for approval a Drought Contingency Plan must include:
a. Estimated amount of potable water use per day, during both an average winter month and an average summer month, for different
34 purposes including drinking water, basic sanitation, process water, irrigation, and other major uses specific to the customer. b. Description of any alternate water sources available. c. Description of existing high-efficiency fixtures, technologies, hardware, management practices, or other measures in use to reduce water use. d. Measures that would be taken during each Water Shortage Response stage in order to meet the requirements in Section IV of the Cary Water Shortage Response Plan. e. Description of the impact to the customer or to the public (e.g. reduced production, reduction of business hours, employee impacts, structural damage, etc.) of meeting the water use reduction requirements. f. Proposed alternative measures to be taken during each Water Shortage Response stage, and the resulting expected reduction in water use for the categories listed in item a, under both average winter and average summer conditions.
Non-residential customers with an approved Drought Contingency Plan must resubmit their plan for approval by the Town of Cary every five years or sooner if there is a significant change in water use or other conditions which would alter the plan’s effectiveness.
6. New Provisions
The following new provisions will be added:
18. The parties agree to work together in good faith and will all due diligence to provide for and carry out the purpose of this Agreement and that they will, from time to time, execute and deliver such further instruments as may reasonably be necessary for carrying out the intention of this Agreement.
19. If at any time Wake County and RTF determine that they would prefer for Wake County to hold the Jordan Lake allocation designated to serve RTP South, Cary will cooperate with Wake County in making the request to the NCDENR Division of Water Resources to transfer allocation from Cary to Wake County. Following any such transfer, Wake County would be responsible for all regulatory and administrative tasks, including requests for future allocation, related to the Wake County Jordan Lake allocation.
20. This Amendment No. 2 shall be effective upon execution by all parties. Except as amended herein, the Agreement, as amended, remains in full force and effect.
35 In testimony whereof, Wake County, Cary and RTF have caused this Amendment No. 2 to be executed in their corporate names by their respective Managers or officers, as applicable, all by the authority of their respective Councils or board of directors, on the day and year first written above.
SIGNATURE PAGES FOLLOW
COUNTY OF WAKE
______James K. Hartmann County Manager County of Wake
______Date
APPROVED:
______Scott W. Warren County Attorney, as to form
This instrument has been preaudited in accordance with the provisions of the Local Government Budget and Fiscal Control Act. ______Johnna Rogers Finance Officer, County of Wake
TOWN OF CARY
______Benjamin T. Shivar Town Manager Town of Cary
______Date
This instrument has been preaudited in accordance with the provisions of the Local Government Budget and Fiscal Control Act.
36 ______Karen A. Mills, C.P.A. Finance Officer, Town of Cary
RESEARCH TRIANGLE FOUNDATIONOF NORTH CAROLINA
______Bob Geolas President & CEO Research Triangle Foundation
______Date
Approval of Lease Amendment with UNC Health Care System at WakeBrook Campus
Mr. Mark Forestieri, Wake County Facilities Design and Construction Director, said that on May 19, the Board approved the schematic design for the 12-bed expansion in support of acute behavioral healthcare services to be provided UNC Healthcare. This request was for a second amendment to the lease agreement between Wake County and UNC Healthcare. The 7,248 SF building expansion will feature twelve individual patient rooms with private restrooms, dining, quiet lounge, nurse’s station and other support and services functions. The expansion is proposed to increase the number of acute inpatient beds to 28 at the 111 Sunnybrook Building.
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He shared a map of the campus and opportunities for expansion on this site. He said the design for this property included a future building, possibly a two- story 15,000 sq. feet building. There is potential space on the immediate right side of the building for a future addition. He shared the goals of the project, as follows:
Provide capability to work with more challenging patients (Small units work better with these patients) Safe Environment for patients and staff Design Programs to meet the needs of the different patient populations Provide adequate space for patient health and well-being Expansion meets UNC commitment to increase inpatient behavioral health services for Wake County citizens
Chair Matthews asked Mr. Forestieri to demonstrate the boundaries of the site showing where there is additional space is on the site. He said there are nineteen acres but only nine of the acres are actually buildable due to the hill site with a large storm pond. He described the remainder of the property and its constraints. Commissioner Ward noted that there were large amounts of rocks found on the site after development. Mr. Forestieri said that space has been reserved on the site for additional facilities to be built as space is needed. Mr. Forestieri explained that in the existing building the first floor is clinical space and the second floor is administrative support. The facility is not designed for two floors of clinical space because it is not good functionally to have second and third stories in such a confined space. He said the additional space is being reserved for facilities for larger programs.
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Mr. Forestieri shared the following highlights of the Amendment:
County will contract with architectural design team and other consultants to design, test and inspect a 7,248 SF 12-bed expansion and renovations to 802 SF of existing space in the 111 Sunnybrook Building. County will bid the project and manage the contract for construction of the above proposed expansion UNC Health Care will contract directly for the security system and for furnishings fixtures and equipment in the expansion. Division of responsibility is maintained between Wake County and UNC Health Care from the original lease (Wake County will continue to own the entire campus, including this expansion Right of modification of the entire campus reverts solely to Wake County, who retains the right to approve and perform all modifications requested by UNC. UNC Health Care will repay the County for the cost of design and construction as follows: $400,000 down payment at signing of the Lease Amendment, payments of $800,000 paid out quarterly beginning January 1, 2015, and the final amount paid at completion of the project. UNC Health Care will continue to occupy the premises rent free as long as it provided behavioral healthcare at this location UNC Health Care in consideration of expending funds for improvement.
39 Following approval of the above actions by the Board, detailed design and bid documents will be prepared and the project will be bid late this Fall. Staff will return to the Board with a request to award a construction contract by the end of the year. Construction of the expansion is scheduled for completion in February 2016. He shared the schedule summary. The total project cost will be $4,400,000 including design, construction, permitting, materials testing and contingency. A $400,000 payment will be provided on execution of the agreement and quarterly payments will be made beginning in January, 2015, and final payment due when building is completed. UNC will contract for the security and furniture costs. He provided a schedule summary:
Prequalification Approval - October 2014 Bid Opening - November 2014 Award Construction Contract - December 2014 Begins Construction - January 2015 Substantial Completion - December 2015 Expansion opens to patients - February 2016
40 Chairman Matthews asked if these buildings could be expanded or built so they could have additional floors in order to meet the space needs for mental health programs in Wake County. Mr. Forestieri said that one of the new buildings could be a multi-story building. The future addition under consideration is more appropriate as a two-story building because it will be attached to the existing building. The program only requires the amount of square footage that already exists and the square footage already available suits the need for the area of expansion. Chairman Matthews said that needs change over time and asked whether a second story could be added. Mr. Forestieri said that staff does not feel that is the best space for a second story. He said ideally the building would have a continuous second story. An elevator and additional stairs would be needed. There is one elevator in the middle of the building. The second story of the existing building was not built to hospital standards so can only be used for administrative space, not patient rooms. Mr. Forestieri said this is not ideal space for additional elevators. Mr. Dean Reys said that there is certain program space that is required and additional square footage would have to be added to accommodate this as a two story building. Mr. Forestieri said the patient space is already tight. He said they were just able to fit twelve patient beds in the space. Commissioner Ward asked if the parking lot would be sufficient. Mr. Reys said the current parking is more than sufficient. He said that more parking would be added with future construction. The amount of parking needed would rest on how the staff shift changes are scheduled. Vice-Chair Bryan said there is an increasing mental health population in Wake County and they want to continue to meet those needs. Staff has said future buildings are needed to meet the capacity. He said there is $40 million from UNC, which is appreciated, for the new service being added for mental health.
Joe Bryan motioned, seconded by Paul Coble, to approve the Second Amendment to the Lease Agreement with UNC Health Care System for WakeBrook Campus, subject to terms and conditions acceptable to the County Attorney; and appropriate $4,400,000 for design and construction of a 12-bed expansion, to WakeBrook Campus, 111 Sunnybrook Building, to be reimbursed by UNC Health Care System. The motion passed unanimously.
SECOND AMENDMENT TO LEASE AGREEMENT
THIS SECOND AMENDMENT TO LEASE AGREEMENT (this “Second Amendment”) is made effective this ______, 2014 (the “Effective Date”), between WAKE COUNTY, a public body politic and corporate of the State of North Carolina (“Wake County”) and the UNIVERSITY OF NORTH CAROLINA HEALTH CARE SYSTEM, a State agency and an affiliate entity of the University of North Carolina, on behalf of UNC Hospitals (“UNCH”) (Wake County and UNCH hereafter referred to individually as a “Party” and together as the “Parties”).
RECITALS:
R1. Wake County is the owner of that real property located in Wake County, North
41 Carolina commonly known as the WakeBrook Campus, which real property consists of approximately 18.68 acres of land (the “Land”) on which there sits two buildings – one building located on the western side of the Land containing a total of approximately 39,776 square feet of space and sometimes known by the address 107 Sunnybrook Road, Raleigh, NC 27610 (the “107 Sunnybrook Building”), and one building located on the eastern side of the Land containing a total of approximately 19,175 square feet of space and sometimes known by the address 111 Sunnybrook Road, Raleigh, NC 27610 (the “111 Sunnybrook Building”) (together the “Buildings”) (the Buildings and the Land referred to herein together as the “Property”).
R2. Wake County, as landlord, and UNCH, as tenant, entered into that certain Lease Agreement dated January 8, 2013 (the “Lease Agreement”), pursuant to which UNCH has been leasing all or a portion of the Buildings (the “Existing Premises”) and, along with its affiliates, providing various behavioral health services, including (i) the operation of a crisis and assessment facility and two sixteen (16) bed units for substance abuse, detox and facility-based crisis at the 107 Sunnybrook Building, and (ii) at the 111 Sunnybrook Building, the operation of sixteen (16) acute, inpatient psychiatric beds and support functions.
R3. The Lease Agreement was amended by that First Amendment to Lease Agreement (the “First Amendment”) dated December 3, 2013, pursuant to which UNCH was permitted to use a portion of the 107 Sunnybrook Building to provide additional medical services through a primary care clinic.
R4. UNCH, with the support of the Wake County Commissioners, applied for a Certificate of Need to add twelve (12) additional beds to the acute, inpatient psychiatric unit at the 111 Sunnybrook Building, and the North Carolina Department of Health and Human Services, Division of Health Service Regulation approved UNCH's Certificate of Need (amendment to the Certificate of Need has been filed and approval is pending).
R5. Wake County and UNCH then entered into a Memorandum of Understanding dated January 8, 2014 (the “MOU”) to memorialize the agreement of the Parties (i) that Wake County would engage a design consultant to perform preliminary design services for an addition to the 111 Sunnybrook Building that would accommodate twelve (12) additional acute, inpatient psychiatric beds; (ii) that UNCH would fund the costs of such preliminary design work; and (iii) that upon the Parties’ approval of the preliminary design deliverables, the Parties would endeavor to draft (and obtain required approvals for) one or more agreements regarding the funding, design, construction, development, and leasing of such an addition.
R6. Following the execution of the MOU, Wake County, with the approval of UNCH, entered into an initial design agreement (the “Initial Design Agreement”) with LS3P Associates Ltd. (the “Architect”) to provide preliminary design services for the 12-bed addition, specifically the preparation and submittal of programming and partial schematic design documents sufficient to enable the Parties to obtain estimates of probable construction costs.
R7. The Architect has completed the preliminary design services required under the Initial Design Agreement. Attached as Exhibit A-1 and Exhibit A-2 to this Second Amendment are, respectively, the Architect’s Site Plan and the Architect’s Floor Plan for the 12-bed addition (together with the other programming and schematic design documents produced by the Architect pursuant to the Initial Design Agreement, the “Preliminary Drawings”).
R8. The Preliminary Drawings depict (i) a one-story addition to the 111 Sunnybrook Building consisting of approximately 7,248 additional square feet of space, which will contain
42 twelve (12) individual patient rooms with private restrooms, dining, quiet lounge, nurses’ station and other support spaces for patients and staff (together the “111 Sunnybrook Addition”), and (ii) minor renovations to approximately 802 square feet of space within the existing 111 Sunnybrook Building (or more area as agreed between the parties) and additional work in the parking lot areas of the Property (together the “111 Sunnybrook Renovations”) (the 111 Sunnybrook Addition and the 111 Sunnybrook Renovations to be referred to herein together as the “111 Sunnybrook Improvements”). Upon completion of the 111 Sunnybrook Improvements, the facility will contain 28 acute, inpatient psychiatric beds.
R9. The Parties have approved (i) the Preliminary Drawings, (ii) the scope of the 111 Sunnybrook Improvements, and (iii) the estimated costs of construction. Accordingly, the Parties now wish to further amend the Lease Agreement to set out their respective rights and obligations with respect to the funding, design, construction, development, and leasing of the 111 Sunnybrook Improvements.
NOW, THEREFORE, for and in consideration of the premises and other good and valuable considerations, the receipt and sufficiency of which are hereby acknowledged, Wake County and UNCH agree to further amend the Lease Agreement as follows:
1. Recitals/Capitalized Terms. The foregoing recitals are made a part of this Second Amendment, and are incorporated herein by reference. Capitalized terms used in this Second Amendment and not otherwise defined shall have the meanings ascribed to such terms in the Lease Agreement. All references in the Lease Agreement to “this Lease Agreement” or “this Lease” shall be deemed to be the Lease Agreement as amended by the First Amendment and by this Second Amendment unless the context requires otherwise.
2. 111 Sunnybrook Improvements.
(a) Wake County, with UNCH’s input, shall manage the design and construction of the 111 Sunnybrook Improvements in accordance with the terms of the Work Letter attached to this Second Amendment as Exhibit B and incorporated herein by reference (the “Work Letter”).
(b) Wake County shall initially fund and pay for the costs of designing and constructing the 111 Sunnybrook Improvements, but only up to a maximum of Four Million Four Hundred Thousand and 00/100 Dollars ($4,400,000.00) (the “Allowance”), and subject to UNCH’s obligation to repay the Allowance in full as more fully set forth in Sections 4.1 through 4.4 of the Work Letter.
(c) Wake County will complete the Work in accordance with the Approved Plans and Specs (as defined in the attached Work Letter), in a good and workmanlike manner, and in compliance with all applicable Governmental Requirements and the applicable portions of Design Guide for the Built Environment of Behavioral Health Facilities, March 2013 Edition 6.0.
The parties recognize that the Design Guide is prescriptive, and Wake County reserves the right to make adjustments as advised by Architect, provided that UNCH receives notice of intended adjustments and an opportunity to object within a reasonable time, which shall be five (5) days unless otherwise agreed by the parties. Except for any obligations or warranties set out in this Second Amendment, including the Work Letter, Wake County shall deliver the 111 Sunnybrook Improvements to UNCH in their "as-is, where is" condition without any obligation on Wake County's part to undertake any additional improvements or alterations therein except as may be otherwise set forth herein.
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(d) Provided that UNCH has complied with the payment obligations set forth in B-4 of the Work Letter, effective as of the Addition Commencement Date (hereinafter defined), (i) Wake County shall lease to UNCH, and UNCH shall lease from Wake County, the 111 Sunnybrook Addition, and (ii) the Premises, as defined in the Lease Agreement, which after the completion of the 111 Sunnybrook Addition shall mean collectively the Existing Premises (as modified by the 111 Sunnybrook Renovations) and the 111 Sunnybrook Addition. The 111 Sunnybrook Improvements when completed shall be part of the Property, Premises, and Leased Premises, subject to all the terms and conditions of the Lease Agreement except as expressly modified in this Second Amendment.
3. Term and Commencement of Term.
This Second Amendment shall be in full force and effect from the Effective Date, but the lease term of the 111 Sunnybrook Addition shall commence on the Addition Commencement Date and shall run co-terminous with the term of the Existing Premises. For the purposes of this Second Amendment, the Addition Commencement Date shall be the date on which the 111 Sunnybrook Improvements are Substantially Completed and Wake County delivers the 111 Sunnybrook Improvements to UNCH for occupancy.
Wake County shall use commercially reasonable efforts to Substantially Complete the 111 Sunnybrook Improvements and deliver the 111 Sunnybrook Improvements to UNCH for occupancy on or before December 1, 2015. The terms “Substantial Completion,” “Substantially Complete” and “Substantially Completed” shall mean that: (i) the 111 Sunnybrook Improvements have been constructed in accordance with the Approved Plans and Specs (subject to any modifications by mutual agreement of the Parties), (ii) the 111 Sunnybrook Improvements are sufficiently complete such that they may be lawfully occupied by UNCH notwithstanding that “Punch List Items,” as defined in the Work Letter, may remain to be completed), and (iii) UNCH has been provided a certificate from the Architect that the 111 Sunnybrook Improvements have been substantially completed and a certificate of occupancy or, to the extent applicable, a temporary certificate of occupancy by the appropriate governmental authorities that allows for the intended use of the premises as an acute, inpatient psychiatric facility, with all of the Project’s parts and systems operable as required by the Approved Plans and Specs. Within thirty (30) days after the 111 Sunnybrook Improvements are Substantially Completed and Wake County delivers the 111 Sunnybrook Improvements to UNCH for occupancy, Wake County and UNCH shall execute a Commencement Date Agreement, in a form attached hereto as Exhibit “C”, which sets forth and confirms the Addition Commencement Date.
The parties have agreed that the Addition Commencement Date shall be the Substantial Completion date to facilitate UNCH’s earliest lawfully permitted access to the 111 Sunnybrook Improvements for the purpose of meeting permitting, licensure, and other preoperational requirements in a timely manner, including but not limited to requirements of N.C. Division of Health Service Regulation. After attainment of Substantial Completion, Wake County shall continue to diligently pursue attainment of the permanent Certificate of Occupancy in a timely manner, work on any Punch List Items, and reasonably cooperate with UNCH to meet the “Target Completion Date” of February 1, 2016, The “Target Completion Date” shall be defined as the date upon which the 111 Sunnybrook Improvements are ready for the operation of an acute, inpatient psychiatric facility open to patients in the ordinary course of business for UNCH.
Wake County shall not be liable to UNCH for any delays that extend the Addition
44 Commencement Date or the Target Completion Date. The parties mutually agree to modify these dates in the event of force majeure, delays or circumstances beyond the control of Wake County, or delays resulting from project modifications requested by UNCH.
4. Rent. Commencing on the Addition Commencement Date, UNCH shall continue to occupy the entire Premises, including the 111 Sunnybrook Improvements, rent-free so long as UNCH and/or its affiliates utilize the entire Premises to provide behavioral health services pursuant to the terms of any provider agreements then in place with Wake County and/or Alliance Behavioral Healthcare (or its successor).
5. CON Requirements. Wake County shall reasonably cooperate with UNCH in providing information necessary to comply with all aspects of the Certificate(s) of Need issued, or to be issued to, UNCH.
6. Maintenance and Repair. The Parties’ respective maintenance and repair obligations with respect to the 111 Sunnybrook Improvements shall be the same as for the Existing Premises, as such obligations are specified in Sections 10 - 12 of the Lease Agreement.
7. Title to Improvements. Except for removable trade fixtures and other personal property belonging to UNCH, which shall be removed by UNCH at the expiration or earlier termination of the Lease Agreement, Wake County shall retain title to and ownership of all 111 Sunnybrook Improvements. Upon expiration or termination of the Lease Agreement for any reason all such 111 Sunnybrook Improvements shall remain on the Property and belong to Wake County, with no return of funds or additional consideration due from Wake County to UNCH, and UNCH shall owe no further funds or consideration on the project to Wake County other than the payment obligations defined by the Lease Agreement as it may be amended from time to time, except to the extent modified by the terms of this Second Lease Amendment.
8. Adjustments to the Lease Agreement.
(a) All references in the Lease to “Alliance Behavioral Healthcare” and “Alliance” are deemed to refer to Alliance Behavior Healthcare (or its successor authorized to manage behavioral health on behalf of Wake County).
(b) Section 6 (Modifications) and Section 7 (Agency Created) of the Lease Agreement are hereby deleted in their entirety. The Parties agree that UNCH shall have no right to make any further structural or permanent modifications to the Premises without Wake County’s prior written consent; and any right to modify set forth in Section 3 (Use of Premises) or any other Section of the Lease Agreement is superseded by the terms of this Second Amendment. As used herein, “structural or permanent modification” means an alteration or improvement within the existing building which requires a modification to the walls, floors, ceilings, utilities, attachment of furniture or partitions to such surfaces. Installation of equipment that will change consumption of utilities is also considered a modification under this section. An insignificant or de minimis change in consumption, such as additional wattage required to operate microwave ovens, shall not be considered a change in consumption for the purpose of this Section. Wake County shall not unreasonably withhold consent to a request for modifications required by The Joint Commission standards or required for DHSR licensure. Wake County shall reasonably consider any request for enhancement of patient care, taking into account UNCH’s reasons for the request, and the feasibility and long term consequence of the alteration. In addition, any further modifications requested by UNCH and approved by Wake County shall be performed by or through Wake County at UNCH’s sole cost and expense (unless otherwise agreed by the Parties in writing). Wake County, though, shall have the right to make any other
45 improvements or additions to the Property that it deems necessary or appropriate, without the necessity of UNCH’s prior approval, as long as such improvements or additions (or their construction) do not materially interfere with UNCH’s permitted usage of the Premises and rights under the Lease Agreement and any amendments. Wake County agrees to coordinate any such activities with UNCH to prevent harm to, injury of or excessive disruptions for patients.
(c) Section 8 (CON Rights) of the Lease Agreement is hereby deleted therefrom as such section no longer has any applicability. Wake County agrees to cooperate with UNCH, as reasonably requested by UNCH, in seeking any CON modification that UNCH may require in order to provide services at the WakeBrook Campus within the scope of Provider agreements.
(d) Section 17 of the Lease is amended to correct a typographical error; the timeframe referenced in Section 17 is hereby amended to be sixty (60) days.
9. Affirmation of Lease Agreement Terms. Except to the extent herein revised, modified or amended, all terms, conditions and provisions of the Lease Agreement are hereby affirmed and ratified in all respects, and shall remain in full force and effect. This Second Amendment supersedes the MOU in all respects.
10. Counterparts. This Second Amendment may be executed in any number of counterparts and all so executed shall constitute one agreement binding on the Parties, notwithstanding that all Parties have not signed the same counterpart.
[Signature Page Follows]
IN WITNESS WHEREOF, the Parties sign and seal this instrument as of the date first written above.
WAKE COUNTY
By: ______Phil Matthews, Chairman Wake County Board of Commissioners
Attest: ______Susan J. Banks Clerk to the Board
Date: ______
STATE OF NORTH CAROLINA WAKE COUNTY
I, ______, a Notary Public of Said State and County, do hereby certify that Phil Matthews and Susan J. Banks personally came before me this day and acknowledged that they are the Chairman and Clerk, respectively, of the Board of Commissioners of Wake County, North Carolina, and that by authority duly given and as the act of The County of Wake, the foregoing instrument was signed in the County’s name by the Chairman of its Board of Commissioners, sealed with its corporate seal and attested by such Clerk.
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Witness my hand and official seal this ______day of ______, 2014.
______Notary Public
______(Printed Name of Notary)
My Commission expires: ______
UNIVERSITY OF NORTH CAROLINA HEALTH CARE SYSTEM, on behalf of UNC Hospitals
By: ______William L. Roper, M.D., MPh CEO
Date: ______
STATE OF NORTH CAROLINA ______COUNTY
I, ______, a Notary Public of said State and County, do hereby certify that Dr. William L. Roper, with whom I am personally acquainted, who, being by me duly sworn, says that he is the CEO of the University of North Carolina Health Care System; and that this Instrument was executed by the authority vested in him, all by order of the Board of Directors, and that the said instrument is the act and deed of said Board.
Witness my hand and official seal this _____ day of ______, 2014.
______Notary Public ______(Printed Name of Notary) My Commission expires:______
Public Comments:
Mr. Tom Benton, Vice-Chair, Wake County Board of Education, thanked the board for the 1/4 cent sales tax discussion on the agenda. It is unknown what the state will decide on the schools budget. There have been regular meetings about the decisions to be made. He said the fund balance has been rolled over
47 into the new budgeted year. He asked the board to place the 1/4 cent sales tax referendum before the voters.
Mr. Brad Honeycutt said that Ravenscroft charges $22,000 a year for students. He asked the board to look at the property tax assessments in Wake County.
Mayor Frank Eagles, Town of Rolesville, said that Mayor McFarling could not be present. He said the Mayors Association Resolution that has been released is inaccurate.
Mr. Dave Corsetti, Aycock Street, asked the board to consider placing the 1/4 cent sales tax on the ballot for the voters in order to meet the needs of the schools. Mecklenburg and Guilford counties have approved the ¼ cent sales tax already.
Approval of $6,373,474 Funding Agreement with Alliance Behavioral Healthcare for Behavioral Health Services
Ms. Denise Foreman, Assistant to the Manager, reported this request is a continuation of the county's commitment for behavioral healthcare. The Board approved a $25 million commitment to Alliance Behavioral Healthcare for behavioral health services. The funds are divided for services from Holly Hill Hospital, UNC Health Care and Alliance Behavioral Healthcare. The contract with Alliance Behavioral Healthcare is for the management of the services provided in the community and this is a continuation of that effort.
Mr. Rob Robinson, Chief Executive Officer of Alliance Behavioral Healthcare, presented the funding request for $6,373,474 which is not new money. He introduced Mr. Sean Shriver, Chief Clinical Officer, and Dr. Beth Melcher, Chief of Network Development and Evaluation, who are involved in the oversight of the services delivery system. He thanked Mr. Hartmann and Ms. Foreman for their guidance on the funding request. He stated that 2014 was a transitional year where Wake County no longer was in service delivery. He thanked the board for the per capita funding to help individuals with mental health, substance abuse and developmental disabilities. It allows them to provide specialized programming, service un-served or under-served populations, beneficial programs and fill gaps in services.
Mr. Sean Shriver shared a funding update from July 2013 thru March 2014.
Wake FY 2014 funding: $25,202,558
Wake funding is being leveraged with federal and state funding to focus on:
Crisis services; inpatient and detox
48 Continuation of divested services, and Gaps in the service continuum.
He reported that their focus had been on crisis services.
49 He shared Wake’s budget, actuals and reviewed patients served using Wake County funds. He stated Wake County had a program with 700 individuals, which had been 2,000 individuals, who needed continued outpatient services. He said with Monarch's new program, 2,000 individuals are being seen on a monthly basis and the number is continuing to grow. With the Monarch Open Access Outpatient Services, twenty-three patients can access services every day. A patient can walk in and talk to a therapist, see a nurse and get a health check, can see a psychiatrist and be started on medications on the same day. In many communities it can take up to six months to see a psychiatrist. He said that Alliance is required to provide Wake County with regular program performance reports. He reviewed the following services:
Drop In Center Supported Employment Intellectual and Developmental Disabilities School-based Program UNC Step SouthLight MH/SA
Mr. Shriver shared the funding for programs for Fiscal Year 2015. He shared a chart of the Wake County funding agreement for fiscal year 2015.
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He said that there have been placement issues with children that needed the assistance of social services. He said there would be one-on-one support for persons that have been incarcerated. There will be expansion of Haven House programs. Increased funding for Monarch will help with the expansion of the outpatient clinic. School-based mental health program funding will provide additional care in the schools. Transitional living facilities will allow persons to come out of the facility to stable housing. The UNC ACTT team will help those that are eligible.
Commissioner Coble asked which programs are new and which programs previously existed or were funded by the county prior to the Alliance Healthcare agreement. He asked how much was spent last year and where the
51 $6,373,474 amount fits into the funding program. He said he did not see any comparative information for this year's funding and programs.
Ms. Foreman said the information provided was for nine months of data and they do not anticipate spending all the money in all categories. For some programs, they have looked at expanding the service or reducing funding. She used the Drop-In Center as an example of a shift in funding, not necessarily an expansion of services. Some state funding has been shifted. There is more ability to track services when the program is county funded. She said some of the programs are new, expanded or funding has shifted. She reviewed each program:
Adult Outpatient Services (Monarch) - shifting funds and increase in funds Child Sex Abuse Treatment - shifting funds and increase in funds City of Raleigh Parks and Rec Program - shifting funds and increase in funds Drop-In Center - shift funds Foster Care Service Support - new program Forensic Post-Release Team - new pilot program Forensic Team - ongoing at current level Haven House Psycho-Educational Program - new program Haven House Juvenile Assessment - new program I/DD Bridge Clinic - shifted funds Outpatient Services – unsure School Based Mental Health Program – same Southlight Building contract - Transitional Living - Pilot program UNC ACTT – new
Commissioner Coble summarized that some funds were moved around within the system, the total funds spent is same as last year, and using some pilot programs to test some programs for accountability and creditability. Ms. Foreman said prior to asking for any funding increases they would use this opportunity to test some projects. Commissioner West asked what criteria or factors were used for shifting or dropping programs. Ms. Foreman said that no programs were dropped. The programs that were shifted were because not all the funds would be used in 2014 so they could have a reduction in funds but service levels would not change. Other programs may have had a shift in state funds where they had been mixed in with the county funds. They pulled the state funds out and put more county funds in to maintain the same service levels. Some programs have all county funds in order to have a clearer picture for what services were being provided by county funds.
Commissioner West asked what priority or criteria was used to make the shifts in funding. Mr. Robinson said that being responsible with the funding was the primary focus. During the year of transition, they looked to see if the funding was being utilized appropriately. He said there was a transition of services and
52 evaluation to fill the gaps. They found some sources that would pay for certain services so they utilized those sources. He said the continually assess the network, the needs and the gaps and fill in with existing funds. They considered utilization management, care coordinators in the field, discussions with providers and stakeholders in the county as criteria and then made decisions and improvements. Commissioner Ward asked about the foster care program. Mr. Shriver said there are several foster care programs. There are programs for children under six years old, children that have experienced trauma and a new program for children who need specialized foster care. There are assessments made with children that have experienced trauma. Some children are referred for specialized foster care placement but may not necessarily have a medical issue. Commissioner Ward asked if any services are directed to young adults under 21. Mr. Shriver said there are services for youth with Medicaid.
Caroline Sullivan motioned, seconded by Betty Lou Ward, to authorize the County Manager to enter into a funding agreement not to exceed $6,373,474 with Alliance Behavioral Healthcare that provides funding for behavioral health services subject to terms and conditions acceptable to the County Attorney. The motion passed unanimously.
Wake County Public School System CIP 2006 Reallocation Request and CIP 2013 Appropriation Request (Second Reading)
Mr. Joe Desormeaux, Wake County Assistant Superintendent for Facilities, stated this was a request for a CIP 2006 reallocation request to cover improvements at Abbotts Creek Elementary School, Scotts Ridge Elementary School, Pine Hollow Middle and South Garner High School. In addition, the request is to appropriate $7.4 million for security in accordance with the approved CIP 2013 plan. He explained the schools have set standards for school related security. A chart reflecting the security needs to bring every school in the system up to the standards. The security needs far exceed available resources. This request today is to fund the critical needs. Each school will receive the minimum number of security cameras. Elementary Schools will receive card access system for exterior doors and a door buzzer system will be installed. The total request is for $7,429,735.
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Betty Lou Ward motioned, seconded by Caroline Sullivan, to approve CIP 2006 reallocation of $1,050,000 from Wake Forest - Rolesville High School renovations and $250,000 from Rolesville Middle School to Offsite Public Improvement; and approve the appropriate of $7,429,735 for Security in the CIP 2013 plan. The motion passed unanimously.
Land Acquisition for an Elementary School Site in the East Raleigh Area (E-36) (Second Reading)
Mr. Joe Desormeaux, Superintendent for Facilities for Wake County Public Schools, stated this request was the second reading of the request for funding for the elementary school site E-36. The target area for E-36 was identified in the CIP 2013 plan with funding for both land acquisition and construction.
54 The E-36 target area is in north Wake County and includes northeast Raleigh. The school is proposed to open in the fall of 2016. He shared the top sites identified and a comparison matrix of the top sites.
55
.
Mr. Desormeaux shared a land acquisition comparison. He stated the staff recommendation was the Tarheel Club Road site which has the least acreage, second lowest price per acre, lowest site price, and the most effective cost per usable acre. Site development costs are estimated to be less than the typical range. Savings are estimated to be around $784,000. Off-site water and sewer cost are estimated to be less than typical. Off-site road costs are estimated to be in the typical range. Mr. Desormeaux said the site consists of 21.5 acres and is located at the intersection of Tarheel Road and Tarheel Clubhouse Road. He shared an aerial map and the concept plan with the specific design selected for the site. The prototype was designed by Walter Robbs Callahan & Pierce Architects, PA and will be used for the first time on this site. He provided the land acquisition pricing comparison. The sales price is over the appraised price by 1.4%. The overage will be offset from savings in off-site water and sewer costs. The $30,000 per acre is the lowest sale price of any properties previously purchased.
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Ms. Johnna Rogers, Deputy County Manager, said Wake County staff recommends purchase of this site. Commissioner Coble said there was recent article about the Wake County Board of Education changing the directions of where they purchase land for school sites. He said it would be helpful to know the Board of Education's plans to shift directions for school sites prior to purchasing additional properties. Mr. Desormeaux said that Wake County Board of Education has asked staff to look at the sites close to the county board to see if they can be shifted closer inside the county. Commissioner Coble asked if there has been discussion about sites closer into Raleigh. Mr. Desormeaux said there was discussion about the sites that were close to the county's border and there has been discussion about some sites in downtown. Vice-Chair Bryan stated he wanted to discuss the target rings and how the county paid $72,000 per acre for E-40 and now have found property for E-36 for $30,000 per acre. He said these properties overlap. In addition, there is a secondary site today for $32,000 per acre. He asked why other sites in the $30-32,000 per acre were not being pursued or researched in the same target circle. Mr. Desormeaux said the site Commissioner Bryan referred to were not in the E-40 circle but at the time those sites may not have been available.
Caroline Sullivan motioned, seconded by Betty Lou Ward, to authorize the Board of Education to purchase 21.50 acres of land in East Raleigh for an elementary school (E-36) in an amount not to exceed $750,000 (including closing costs), pursuant to N.C.G.S. 115C-426. The motion passed unanimously.
57 Land Acquisition for an Elementary School Site in the West Holly Springs Area (E-43) (Second Reading)
Mr. Desormeaux stated this was the second reading on the school site identified as E-43 which was included in the CIP 2013 plan for land acquisition and construction. He shared the school site target ring which included the area of Holly Springs and southeastern Apex area. This site was in the first priority group for construction in CIP 2013 with school opening in the fall of 2016. He shared the E-43 Site Comparison of the four potential sites. He said the site recommended today for purchase consists of an assemblage of five parcels totaling 23.550 surveyed areas located on the northern side of Holly Springs New Hill Road east of its intersection with Green Oaks Parkway. This site supports a full elementary program, has the lowest acreage encumbered by streams wetlands and easements and most effective cost by useable acre. The site development costs are estimated to be less than typical range with savings estimated to be around $775,000.
Owner Surveyed Wake County PIN Acreage 1 Sabrina Johnson Reade 2.654 0639-95-8539 2 Garland Johnson, Jr. 13.184 0639-96-6073 2 Marcus & Tamara Johnson 1.000 0639-95-5904 4 Kim Johnson Raines 0.990 0639-95-8820 5 Leonard & Katherine Shaffer 5.722 0649-06-6014 Total 23.550
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Offsite water costs are expected to be less than typical range. Mr. Desormeaux said the offsite sewer extension and road improvement costs are expected to be in the typical range. He shared an aerial photo of the site. The total site is 23.550 acres. He shared the site assemblage valuations.
59 The sales prices are over the appraised values on two parcels because they include owner occupied houses due partly to anticipated relocation expenses. The sales prices are under the appraised values on three parcels that include land only. He shared the schematic design for the full elementary program with specific design for the site. The design was provided by Moseley Architects and will be built for the first time in Wake County. Pricing comparisons were provided on land acquisition. The blended sales price is under the appraised value. They expect savings in on-site development and off-site water costs.
Ms. Rogers said county staff supports the site purchase. She also stated that some additional information had been provided about prior land acquisitions. Commissioner Gianni asked if an agreement had been reached and resolved with the property owner Kim Johnson Raines. Mr. Desormeaux said a letter of condemnation for the site has been issued. They have been trying to arrange a meeting with the owner who actually contacted them today. He said they will try to work this situation out before having to enact condemnation.
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Commissioner Gianni asked if there should be some language in the motion stating this is approved only if the additional property can be acquired. Mr. Warren stated some language to that effect could be added but it would probably go forward as one lump sum deal. He said it could be an amendment to the motion or not. Commissioner Coble said he asked at the last meeting if additional land could be purchased because he was troubled by acquiring the property by using the eminent domain procedure. He preferred this purchase move forward without use of eminent domain. Ms. Rogers said the challenge is because there is a resident's home in the middle of the property.
Commissioner Coble expressed great concern about condemning someone's home but was also concerned about the negotiations if the county did not take this step. Ms. Rogers said that the offer price includes moving costs to the resident. Commissioner West asked if this set a precedent. Mr. Desormeaux said they had not used condemnation on a home before but had used it for easements and such where it was necessary in the past. Ms. Rogers said they are still trying to work thru this with the owner for this one acre but staff still supports the property is needed and the land is at a good price.
Commissioner Gianni asked if price was the issue on this piece of property. Ms. Rogers said the owner wants significantly more than the appraised value which the county is not willing to pay. Mr. Warren said that the process would not slow the purchase if it cannot be resolved. They would still be able to move forward with the project even if not resolved with the land owner. Mr. Desormeaux said there was a similar site in Holly Springs. Ms. Betty Parker stated they ran into this situation with the property for Holly Springs High
61 School where it ended up with the court determining the fair market value. They are now working together and she believed they would be able to resolve the situation. However, the Board of Education has authorized the use of condemnation if needed.
James West motioned, seconded by Caroline Sullivan, to authorize the Board of Education to purchase 23.550 acres of land in West Holly Spring for an elementary school (E-43) in an amount not to exceed $1,270,000 (including closing costs), pursuant to N.C.G.S. 115C-426. The motion passed unanimously.
Appoint Wake County Commissioner as Voting Delegate for NC Association of County Commissioners 2014 Annual Conference
Commissioner Coble nominated Vice-Chair Bryan to serve as the Voting Delegate for Wake County Board of Commissioners at the NC Association of County Commissioners 2014 Annual Conference on August 14-17, 2014.
Paul Coble motioned, seconded by Rich Gianni, to appoint Vice-Chair Joe Bryan as Voting Delegate for NC Association of County Commissioners 2014 Annual Conference being held August 14-17, 2014. The motion passed unanimously.
Discussion of Local Option Sales Tax
Commissioner Sullivan spoke about the documented correlation of a student's success is the quality of their teacher. Research shows that top performing school systems in the world have one constant feature; top performing teachers. She said there is a problem with teacher recruitment and retention, nationally and locally. She said two million teachers from the baby boomer generation will be leaving the profession. In addition, 55% of teachers leave the profession within the first five years of teaching due to salaries and stress. The county would have a teacher recruitment problem even if the state was not at the bottom for teachers’ salaries.
Wake County already has a teacher shortage in math and special education and had to pay $1,000 signing bonus for teachers last year in those areas. Wake County largely depends on out of state teachers because North Carolina has never produced enough teachers to supply the schools. Due to the General Assembly's dissolution of the Teaching Fellows Program and the low salaries of teachers, the undergraduate program is down 25% in students and down 35% in graduate and mid-career students in education. The state will give the teachers a raise this fiscal year but it is unknown whether the state will continue the upward movement to get the teachers' salaries where they should be. It is the State's job to ensure teachers' salaries are high enough that they are not lost to other states for higher salaries. It is the County's job to provide
62 the support for Wake County to remain competitive among peer counties within the state. It is imperative for Wake County to provide good support to teachers because the most teachers are hired in Wake County and there is the most student growth. Sixteen new schools will be opened in the next four years.
Commissioner Sullivan noted that during the budget meeting, it was clear that teacher recruitment was important to the entire board. This board passed a resolution for Wake County to pay the highest teacher supplement. She said Commissioner Coble was quoted in the newspaper speaking about Wake County having the highest teacher supplement would give Wake County the advantage for hiring new teachers. Mecklenburg and Guilford counties have voted to place the 1/4 cent sales tax on the November ballot. Mecklenburg County will put $28 million in teacher supplement. Wake County Commissioners were congratulating themselves for putting 3.75 million in teacher supplement which would average $240 addition per teacher. Mecklenburg County will be paying almost $3000 more per teacher. She said North Carolina is behind nationally on teacher supplement and Wake County cannot be allowed to be far behind on teacher supplement within the state. She asked that the Board let the voters decide if Wake County should remain competitive in teacher recruitment and retention and if they think its important for Wake County to pay its teachers more than other counties. She asked that the voters be given the opportunity to vote on this issue. This would send a message to current and potential teachers that the county wants them to teach in Wake County and they are valued here. In Wake County, they have aspired to have the best school system in the nation, not just the state. She said she wanted Wake County to be able to recruit the best teachers and be treated as valued professionals.
Commissioner Ward spoke of the importance of teachers' salaries and stated the schools are just about the most important thing in county. She said when businesses look at coming to Wake County, they ask about the public schools. She said if the schools are allowed to go downhill because the teachers are not paid adequately, then shame on us. This will give the citizens of Wake County an opportunity to vote on this decision. She said the citizens would not be paying anything different than what they already pay on taxes but will give a special tax to move ahead.
Commissioner West said that he has spoken with many citizens about what is being called "a teacher crisis." He said he is not for a lot of taxes but knows there must be revenue to move forward to be one of the leading counties in the state and this is always a price to pay. He said the agenda item states this topic was for discussion and very pleased to advance this idea. He stated that the Manager stated at the budget session that the county cannot grow out of this situation. There was a lot of discussion about what the state will or will not do on teacher pay and it is a tangled web that the county has gotten caught in. He was concerned about hidden costs in the state's proposal. He said he
63 knew the county needed to do something soon and hoped the board can obtain the information needed to make a good decision for the future of this county. He stated he did not believe growth would take care of the needs and they may need other options. He said that other options must be researched. He said Speaker Tillis said the state must collaborate with counties to look at creative ways of funding. He said the state may be looking for counties to do more of the funding. The Board needs to be proactive and commended the Manager on taking the leadership on an objective way to get the board to look at options. The environment has changed because of Mecklenburg and Guilford counties decisions and now there is more competition. It also impacts the way Wake County teachers perceive the support and respect for them by the Board. He hoped this would continue to be a top priority for future discussions. The teachers asked the Board to take the leadership and sometimes that means a sacrifice for the bigger good. He said he wanted to look at this closely and is waiting for the numbers from the School Superintendent and County Manager so they can move forward and do the right thing.
Commissioner Ward said she wanted to make a motion because there had been some excellent options proposed that the County does not currently have but wanted to put this on the agenda and vote on it at the next meeting. She said if they did not take action now, August 4th would be the latest date they could take action on it and she felt staff could be ready to present the information by August 4th. Chairman Matthews asked Commissioner Ward if she was ready to make a motion, stating it would be cutting it close for the Board of Elections to get this implemented. Commissioner Sullivan said that it is more reasonable to wait and see what the state's decision is but she felt the August 4th meeting would work for the Board to consider the action. Commissioner Ward said based on conversations she had, that the Board of Elections could handle implementing the election in this timeframe. Vice-Chair Bryan said the NC House of Representatives and the Governor have supported a minimum raise of 5%. The Senate is considering an 11% increase in teacher salaries. He asked what other information was needed. Commissioner Ward said she wanted to know exactly what the state's decision would be because she did not believe any of that was going to move forward based on past actions. Commissioner Sullivan said Vice Chair Bryan was quoted in the paper saying he wanted to know what the state was going to do before the county made a decision. Commissioner Bryan said if there was a motion on the table then he was prepared to vote. Commissioner Sullivan said when the Board voted on the county budget, there was a plan on how to address school funding long term. She said regardless of what comes out of the decision by the General Assembly, there will be negative financial implications for the county. She said the manager suggested there were two ways to address the long range versus the short range funding for schools but the county will need more revenue. She said with the NC House plan, the County would need $6 million more in revenues for teacher supplement whereas with the Senate's plan it would mean $13 million more was needed. She said it was great that the State was
64 working towards getting the teacher pay where it should be but those funds are not budgeted in the current school systems budget. She said it needs to be figured out if the schools will spend their savings to cover that budget for this year but there will be a sustainability problem for the future. There needs to be a long range plan and this fits in to that plan. Vice-Chair Bryan said the goal is specific for one year. A decision does not have to be made by August 4th. The Board will not have the answers to a long-range plan by August 4. He said the state will have its budget and have given counties the clue that the teacher pay will increase 5%. He said the Board will not be in the position to do long range planning so why did they want to make a motion. Commissioner Ward said that she would make the motion and for the motion to stand (to add consideration of allowing citizen to vote on the quarter cent sales tax for schools to the August 4 agenda). Chairman Matthews asked for clarification from Commissioner Ward. Commissioner Ward moved to put the motion before the Board today for consideration of the putting the quarter cent sales tax for schools on the November ballot. She said the Board has not addressed this situation and the teachers do not make enough money to meet their needs. They are people who need the county's help at this point. She spoke of Tom Benton, School Board member, who was present.
Chairman Matthews asked if there was a second to the motion. Commissioners Sullivan and West asked to make comments. Chairman Matthews asked if there was a second to the motion. He ruled there was no second to the motion. Commissioner Sullivan stated she wanted this item on the August 4th meeting agenda. She stated the County Attorney stated any commissioner can add an agenda item. Mr. Warren stated there was a motion made which he thought was seconded. Commissioner Coble said there was motion made but did not receive a second so the question was if the motion failed due to no second. He said Commissioner Sullivan was asking for a different motion (to add the item to the August 4th agenda). Mr. Warren said he heard Commissioner Ward make a motion to put the item on the agenda for August 4th, but was unclear about there being a second to the motion. Then there was an amendment to the motion to vote on the item today. He said they needed to figure out which motion stands and if there is a second.
Commissioner Ward said Commissioner Sullivan wanted to move ahead but it was silly to not move forward with a vote today on the teachers' salaries. She said since the Board could wait, she withdrew her original motion and said she would motion to schedule the vote on a referendum for funding teachers' salaries on the August 4th agenda. Commissioner Sullivan seconded the motion.
Commissioner West said he attended an agenda meeting, where this was discussed and he was told that the item could be brought up for discussion. He said he understood that motions could be made at any time when all the commissioners were at the table. He said the commissioners talk, exchange
65 ideas and discuss things that would work for the people. He said another commissioner in the agenda meeting said this item would be for discussion but today seemed to be trying to push this item through to a vote for political purposes.
Chairman Matthews responded that he did not know that anyone was pushing this through for political purposes. He said it was requested that the item be added to this agenda and it was put on the agenda for discussion. There has been a motion and a second.
Commissioner West said Chairman Matthews did not understand what he meant. He said he specifically asked if the board would take action on this item today. He said he specifically asked if there would be action today and was told no but then the commissioner has encouraged action to be taken today and tried to facilitate pushing this to item for a vote today. He said it looks like gamesmanship. Vice-Chair Bryan said that he was in the agenda meeting Commissioner West was speaking of and then stated that it would be on the agenda for discussion and action could be taken. Commissioner West said the intentions were premature. Vice-Chair Bryan asked what additional information was needed. Commissioner West said that discussion has been made to look at options based on what the state decides. He said the plan was to make sure they had all the information so they would not be rushing through the process. He said it is the Board of Commissioners' responsibility to honor the public's request and make sure they have the right information. He said if it was pushed through today, they already knew what the outcome would be. Vice-Chair Bryan said the school system's fund balance amount will not be known until later in the year when an audit is done. He said they already know the NC House is looking at a 5% increase and 11% on the Senate side for teacher salaries. Commissioner Coble said that the motion was made by Commissioner Ward, not by Commissioner Bryan so he did not violate anything that he had said in the agenda meeting. He questioned if a motion should be on the table concerning putting something on the agenda because if the motion failed, it would prevent the member from putting an item on the agenda.
Mr. Warren said the Board's Rules of Procedure allow any commissioner to put an item on the agenda as long as presented seven days ahead, which is still in effect. He said that he was in the agenda meeting where this was discussed and that the Board can still take action on the item, if they choose. Motions can be made when the motion is directly relevant to the topic being discussed. He said the board can take action. He said a motion is not necessary to put an item on an agenda and the board can take action on an item that is on the agenda for discussion.
Chairman Matthews clarified that there was a motion and second and they were withdrawn. He said now Commissioner Sullivan has requested that the
66 item be put on the August 4th agenda and it is acceptable to do so and move on. Commissioner Gianni said he understands that more information is needed. He asked if there is a number in mind to help determine if the Board or shouldn't have a referendum. He asked if there would be new information by August 4th or is the board just delaying for the sake of delaying.
Commissioner Sullivan said a decision must be made by August 4 in order to get the ballots printed. She wanted to start thinking about it today and then vote on it on August 4th. She said the state's action will not change her mind. She said that sustainability for funding the supplement will need to be found. She said they are waiting on the state budget to be determined to see whether Wake County needs to fund an extra salary increase. She said $14 Million is the starting point including growth and opening new schools. Wake County is starting with a deficit. She said decisions must be made concerning the shifts in funding between the county and schools. It is helpful to wait as long as possibly to see what the State will do on the teachers supplement, salary and what impact the state will have on the county.
Commissioner Gianni tried to clarify the question. Commissioner Sullivan said if the state approves 11% the county will need to make up $14 million which will have to be funded with sales tax or property tax. She stated the county would start out with a significant deficit next year. She said when they adopted the budget they talked about how to handle the school system's budget and the deficits. Commissioner Sullivan said the Governor's budget had a $6 million supplement and cap and $9 million for Workers Comp being passed to the counties and $5 million in tort claims. The school funding has been shifting for a while and it is not sustainable if the state continues to add workers comp and other expenses to the counties.
Vice-Chair Bryan said the State Legislature and Governor McCrory have shown their intentions to give a 5% raise to teachers. He said that is the major issue. It is a state-wide issue and must be solved at the state level or the rural/urban divide will continue to be exasperated. Counties such as Greene, Edgecombe, and Hyde cannot raise enough resources. It will not be good for too many urban counties to get to far out of the system. This would hurt the children across North Carolina. The matter should be addressed at the appropriate level which is the State of North Carolina and they addressing it with an increase between 5% and 11%. At the winter retreat, the board set a goal of academic excellence for the children and to begin a strategic planning process for all of the county's services. There is no action plan that can be shown. In the spring, the board set priorities for the North Carolina Legislative Goals and made teacher pay increase its highest priority which the Legislature is now addressing. The board passed six to one bipartisan budget that the county needs to raise taxes 8.25 percent to pay for the school bond. The Wake County Schools Budget was increased by $14 million to $341,426,400 which is an operating increase of 4.3% plus making the local teachers supplement the
67 highest in the state at approximately $6,500 per teacher. The additional language in the Senate proposes giving back their successive fund balance, estimated by county staff is in the $35-$65 million range which would move to increase sustained county funding by $4 Million to $10 Million per year. He said the two professionals, County Manager and Schools Superintendent, are meeting and looking at long term county needs, planning, and prioritizing the fiscal year and what options to consider. He reviewed county programs that could use the quarter cent sales tax. He said now is not the time to raise taxes because they raised taxes $100 coming out of the recession. There is a $35 million to $65 million fund balance at the schools. Some people say its only $40. People paying $1080 now would be going to $1120 in sales tax. He said property tax is $1329 if in the county with another $1000 if you live in a town and additionally people pay state and federal income taxes. He said on top of this, they are looking at a regressive tax on 120,000 people who can least afford it. Now is not the time to raise taxes. He said this is a state issue and they are going to solve it. He said to give the state time to solve it. Commissioner West said Commissioner Bryan made a good statement related to some of the issues. He said it concerned him that they may not want to look at the pros and cons around this particular issue. He said he feels like he is hearing that they want to rush through this issue. The manager has indicated there are other issues, data and information that the Board needs to receive to make a decision. They need to come together, look at the difference perspectives and have full discussion of this item. Teachers are leaving Wake County. Guilford and Mecklenburg may have influence on Wake County. A thorough analysis, with all the pieces must be done as they were elected to do and not just verify their own position. Vice-Chair Bryan said the budget ordinance speaks to short term schedule on a joint evaluation on Wake County Public Schools System, a revised budget, meeting to discuss fund balance and other items that go beyond August 4th. He referenced the specific language from the approved budget ordinance. Commissioner Sullivan said the Guilford County Board of Commissioners, a Republican majority, voted to place the 1/4 cent sales tax on the November ballot. They knew they needed more revenue and that there was a deadline to do so. She said that strategic planning has not been moving forward. Vice-Chair Bryan questioned how Commissioner Sullivan could bring up the strategic planning that he suggested, and turn it into a negative.
Commissioner Sullivan agreed with the need for a strategic plan but stated the reason this item needs to be on the August 4th agenda is because of the ballot deadline. Chairman Matthews concluded the discussion and moved forward to the next item.
Appointments
Wake County Adult Care Home Community Advisory Committee
68 Commissioner Coble nominated Mr. William Green for appointment to the Wake County Adult Care Home Community Advisory Committee.
Alcoholic Beverage Control Board
Vice Chairman Bryan nominated Mr. Ken Kirby, Jr. and Mr. Paul White for reappointment. Mr. John Converse was reappointed as Chairman of the Alcoholic Beverage Control Board.
Durham-Wake Counties Research and Production Service District Advisory Committee
Commissioner Sullivan nominated the Primary recommendations from the Research Triangle Park Owners and Tenants Association as follows:1. Mr. David Gouveia, Eisai, Inc.2. Ms. Francis Neary, RTI International3. Ms. Karen Long, Dupont Electronics
Wake Technical Community College Board of Trustees
Commissioner Coble nominated Mr. Chad Price. Commissioner Sullivan nominated Mr. David Brownlee. The roll call vote was as follows:
Chad Price: Commissioners Coble, Gianni, Bryan and Matthews David Brownlee: Commissioners Sullivan, Ward and West
Mr. Chad Price received the majority votes for the nomination.
Garner Board of Adjustment
Commissioner Coble nominated Mr. William Pittman to be moved from an alternate to a regular member and Mr. Craig Lewis was nominated to an alternate position.
Garner Planning and Appearance Commission
Commissioner Coble nominated Ms. Jayne McBurney for reappointment to the Garner Planning and Appearance Commission.
Wendell Planning and Zoning Board
Commissioner Coble nominated Mr. Billy Bryant for the Wendell Planning and Zoning Board.
Paul Coble motioned, seconded by Betty Lou Ward, to accept the nominations by acclamation. The motion passed unanimously.
69 Upcoming Vacancies
Ms. Susan Banks, Clerk, read the list of upcoming vacancies on boards and committees.
Other Items
Committee Reports
Commissioner Ward said that there was an audit committee meeting this morning. She said that the committee should serve well.
Other Business
Vice-Chair Bryan asked that the committee liaisons share reports in the future.
Closed Session
There was no closed session.
Adjourn
Paul Coble motioned, seconded by Phil Matthews, to adjourn the meeting at 4:32 p.m. The motion passed unanimously.
Respectfully submitted,
Susan J. Banks, NCCCC Clerk to the Board Wake County Board of Commissioners
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