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HomeMy WebLinkAbout12-1-2020 1 December 1, 2020 IREDELL COUNTY BOARD OF COMMISSIONERS PRE-AGENDA MINUTES December 1, 2020 The Iredell County Board of Commissioners met in pre-agenda session on Tuesday, December 1, 2020 at 5:00 PM, in the Commissioners’ Meeting Room located in the Iredell County Government Center 200 South Center Street, Statesville, NC. Board Members Present Chairman James Mallory Vice Chairman Thomas Bowles Gene Houpe Ken Robertson Board Members Participating Remotely Marvin Norman Staff present: County Manager Beth Jones, County Attorney Lisa Valdez, Deputy County Manager Susan Robertson, Assistant County Manager Joe Pierce, and Clerk to the Board Amy Anderson. CALL TO ORDER: Chairman James Mallory called the meeting to order. ADJUSTMENTS TO THE AGENDA: County Manager Beth Jones went over the following adjustment to the agenda. Add: Administrative Matter VIII.9 Request from Social Services for approval of budget amendment 30 and advance county funds for Pandemic Low-Income Home Energy Assistance (LIEAP) payments. ADMINISTRATIVE MATTERS Request from the Register of Deeds Office for approval of a revenue stamp refund in the amount of $147: County Manager Beth Jones said Clodfelter Law, PLLC recorded a deed with the incorrect excise stamps. A corrected deed was recorded. The law firm is requesting a refund in the amount of $147.00, the amount of the overpayment in excise stamps. Jones noted this was not an error made by the Register of Deeds staff. This item was placed on consent. Request from Iredell-Statesville Schools for approval to make application to the Local Government Commission to issue debt not to exceed $9,000,000: This item will be presented at 7pm. Request from Elections for approval of budget amendment #28 and to accept a grant in the amount of $24,333 from the NC State of Board of Elections: Assistant Finance Director Susan Cornell requested approval of budget amendment #28 in the amount of $24,333 for one- time bonuses for the one-stop workers. The County had 92 one-stop workers that worked an average of 14 days. 2 December 1, 2020 Commissioner Houpe expressed appreciation to all the poll workers. Consider a request from Harold C. Mash, Sr., to rezone approximately 25.9 acres off Eagles Refuge Drive: This item will be considered at 7pm. Consider a request from William Clay Wooten to rezone approximately 4.76 acres of farmland along West Memorial Highway: This item will be considered at 7pm. Consider the adoption of the 2021 Public Transportation Program: The Board held a public hearing for the program on November 17, 2020. Because of that meeting was considered a remote meeting the matter was held open for 24 hours. By consent, the Board ratified their decision made on November 17, 2020. Request from ICATS for approval of the FY 2020 Title VI Program: ICATS Director Brad Johnson requested approval of the FY2020 Title VI Program. This updates the County’s program to most recent template available. Johnson noted the numbers are based on the 2010 Census. Chairman Mallory asked if the program will be updated to reflect the 2020 Census. Johnson said yes. This item was placed on consent. Request from ICATS for approval of the Public Transportation Agency Safety Plan, required by the Federal Transit Administration: ICATS Director Brad Johnson requested approval of the Public Transportation Agency Safety Plan. This is a new requirement for all systems that have fixed guideway service. Johnson also requested approval for any minor changes to the Plan be approved by the ICATS Transportation Commission. Johnso n acknowledged employee Bruce Kester for his time and dedication to the plan. This item was placed on consent. Request from Social Services for approval of budget amendment 30 and advance county funds for Pandemic Low-Income Home Energy Assistance (LIEAP) payments: Dan Edward said assistance program provides financial assistance for families with heating and energy related emergencies, a normal service provided by DSS. However, DHHS has allocated additional funds totaling $147,310.40 to the County for automated pandemic payments through LIEAP. Edward requested approval of budget amendment #30 to expend these funds used to process payments. This item was placed on consent. APPOINTMENTS TO BOARDS & COMMISSIONS Board of Equalization & Review 3 December 1, 2020 The following members have agreed to serve: Carl Lombardo – Chairman – First Term Hal Jolly – Vice-Chairman – Fourth Term Mike Brotherton – Member – Fifth Term Allen Simmons – Member – Fourth Term Jennifer Christian – Member – Second Term Dan Howard – Alternate – Fifth Term Board of Health Sylvia Chapman has volunteered to serve again. Recreation Advisory Board Seth Hathcock, Christopher Campbell, and Scott Bell have volunteered to serve again. In addition, historically there has been an appointed representative from Iredell-Statesville Schools to serve as a liaison on the Recreation Advisory Board. Rob Jackson recently retired from ISS and subsequently resigned from the advisory board. Bobby Deal has assumed Jackson's responsibilities and has volunteered to serve on the Recreation Advisory Board for the first time. Zoning Board of Adjustment Bob Dellinger and David Aman have volunteered to serve again. MOTION by Vice Chairman Bowles to appoint the names listed above. VOTING: Ayes – 5; Nays – 0 OLD BUSINESS (None) NEW BUSINESS (None) COUNTY MANAGER’S REPORT County Manager Beth Jones provided an update on the following:  COVID19 testing is continuing. A list of sites for December is available on the County website. As of today, there are 5,836 positive cases. The County is considered to be in the orange category, which signifies substantial community spread. Next week, the categories will be updated. Jones is hopeful the County does not enter the red category.  The Iredell County Board of Commissioners will meet the morning of Monday, December 7, 2020 The Incumbent Board will meet at 10am, followed by the Oaths of Office at 10:30am, and the Organization Meeting will begin at 11am (or as soon after the conclusion thereafter the oaths of office as time permits). 4 December 1, 2020 CLOSED SESSION The Board moved into Closed Session at 5:42PM IREDELL COUNTY BOARD OF COMMISSIONERS REGULAR MINUTES December 1, 2020 The Iredell County Board of Commissioners met in regular session on Tuesday, December 1, 2020 at 7:00 PM, in the Commissioners’ Meeting Room of the Iredell County Government Center, 200 South Center Street, Statesville, NC. Board Members Present Chairman James Mallory Vice Chairman Thomas Bowles Gene Houpe Ken Robertson Board Members Participating Remotely Marvin Norman Staff present: County Manager Beth Jones, County Attorney Lisa Valdez, Deputy County Manager Susan Robertson, Assistant County Manager Joe Pierce, and Finance Director Debra Cheek. CALL TO ORDER by Chairman Mallory. INVOCATION: Chairman Mallory asked everyone to bow their heads for a moment of silence or reflection. PLEDGE OF ALLEGIANCE led by Chairman Mallory. ADJUSTMENTS TO THE AGENDA County Manager Beth Jones made a correction to Administrative Matter VIII.3. The public hearing date should be November 17, 2020. Remove: Economic Development from Closed Session. MOTION by Commissioner Houpe to approve the agenda as presented. VOTING: Ayes – 5; Nays – 0 PRESENTATION OF SPECIAL RECOGNITIONS & AWARDS (None) APPOINTMENTS BEFORE THE BOARD (None) PUBLIC HEARINGS 5 December 1, 2020 Public hearing to consider a request from realtor Eric Thompson, representing Trinity Volunteer Fire Department, to rezone approximately 2 acres along Wilkesboro Highway: Planning Director Matthew Todd said the property owner is requesting to rezone the property from Neighborhood Business (NB)/ Single Family Residential (R -20) to General Business Conditional Use District. Staff supports the request and Planning Board recommended in denial of the request. Todd said there was opposition at the Planning Board meeting because of the potential as a race shop. However, since the Planning Board the applicant has agreed to add race shop to the list of exclusions. Chairman Mallory asked if a race team is still interested in buying the property. Todd said not that he is aware. Vice Chairman Bowles said the race team is no longer interested in the property. Bowles added the residents in the area were primarily concerned over noise from the race shop. They seem to be okay with the idea of a general car garage, which would be consistent with the GB zoning. Todd said race shops are allowed in the GB zoning district with a Special Use Permit and must meet a 50 foot setback from the property line. The existing building does not meet that setback, therefore to use the building as a race shop the applicant would need to rezone the property, apply for a variance and Special Use Permit from the Board of Adjustment. Again, race shops have been excluded from the list of intended uses. Vice Chairman Bowles said excluding the race shop negates the need for the variance and Special Use Permit. Todd said yes. Vice Chairman Bowles asked if there has been any comments from the nearby church. Todd said no. Chairman Mallory opened the public hearing. No one wish to speak. Chairman Mallory closed the public hearing. Chairman Mallory explained that the meeting is considered a remote meeting and the Board will not be able to vote on the rezoning until 24 hours after the hearing. The Board will consider the rezoning Monday, December 7, 2020 at 10am. Iredell County PLANNING & DEVELOPMENT PLANNING STAFF REPORT 6 December 1, 2020 REZONING CASE # 2011-1 STAFF PROJECT CONTACT: Leslie M. Meadows EXPLANATION OF THE REQUEST This is a request to rezone a spilt-zoned parcel of land along Wilkesboro Highway, approximately 2 acres, from Single-Family Residential (R-20)/Neighborhood Business (NB) to General Business Conditional District (GBCD). This request is conditional per the submitted application, and will be limited by excluding certain GB uses as attached to the request. OWNER/APPLICANT OWNER: Trinity Volunteer Fire Department APPLICANT: Eric Thompson, Equity Commercial Properties PROPERTY INFORMATION ADDRESS/LOCATION: 2997 Wilkesboro Hwy; more specifically, PIN#: 4727560709.000. SURROUNDING LAND USE: There are a variety of NB uses to the north. Otherwise, the site is surrounded by residential R-20 and RA properties, with Yadkin Baptist Church lying diagonally to the southeast. SIZE: The total acreage to be rezoned includes approximately 2 acres. EXISTING LAND USE: Vacant Fire Department building built in 1972. ZONING HISTORY: The property was zoned Single-Family Residential (R-20) when county- wide zoning was established in 1990. However, in 1995, the northern portion of the property was rezoned to Neighborhood Business (NB), along with a block of neighboring commercial properties to the north. The Trinity Volunteer Fire Department later purchased and combined the southern R-20 portion to the property in order to add on to their building. OTHER JURISDICTIONAL INFORMATION: This primarily rural area is located entirely within the County’s jurisdiction, and is not in close proximity to any municipal Urban Service Area. OTHER SITE CHARACTERISTICS: This property is located within the regulated South Yadkin WS-IV-PA Protected Watershed Area. Proposed new development will be governed by the 70% or 10/70 Rule; 24% built-upon area with curb and gutter (36% without), after 10% is developed. The property is not located in a flood hazard zone. 7 December 1, 2020 UTILITIES: This site is currently served by well and septic. IMPACTS ON LOCAL INFRASTRUCTURE AND/OR FACILITES TRAFFIC: The closest traffic count along Wilkesboro Highway (NC115) is to the north pa st Windy Hill Road, which had a traffic count of 6,200 vehicles per day in 2018. According to the Comprehensive Transportation Plan 2008 Study Report for Iredell County, the capacity for this section of Wilkesboro Highway is approximately 13,800 vehicles per day through the year 2030. The speed limit along this portion of Wilkesboro Highway is 45 mph. SCHOOLS: This is a commercial rezoning and should have no implications on local schools. EMERGENCY SERVICES: This proposal has been reviewed by the Iredell County Fire Marshal’s Office and Iredell County EMS. Neither office addressed any concerns regarding the request. REQUIRED REVIEWS BY OTHER AGENCIES LOCAL: The applicant must provide a site plan to the Planning & Development Department for review to develop the properties. Zoning requirements such as parking, landscaping, and buffering will be reviewed at such time. Erosion & sedimentation control standards will also be reviewed for compliance. STATE: Other than building code, there should be no formal state agency review at this time. FEDERAL: None at this time. STAFF AND BOARD COMMENTS STAFF COMMENTS: The applicant represents Reaume Bros Racing, currently competitive in the Camping World Truck Series. Development plans include converting the existing vacant Volunteer Fire Department building into a successful race shop. It is important to note that in addition to obtaining a rezoning, the intended race shop use also requires a Special Use Permit and Variance approval by the Board of Adjustment. As a conditional rezoning request, agreed upon conditions should help mitigate initial change in use concerns. The specific conditions imposed as part of the conditional rezoning application are as follows: 1.) The following GB uses would be excluded, not permitted: Amusement arcades and indoor places of entertainment; including bowling alleys, pool rooms, skating rinks, & batting cages, Bingo games, Correctional institutions, Dance halls; including night clubs, Go-kart, motorcycle, & similar vehicle tracks, Indoor shooting ranges, Adult oriented businesses, Bars, Bus stations, Crematories not associated with a funeral home, Drive-in theaters, Liquor stores, Motels & hotels, Pawn shops, Private clubs, and Race shops. 8 December 1, 2020 2.) Create a no thru-access to Clearcut Lane with landscaping barrier or fence. 3.) Add additional landscaping along the south side of the building creating additional screening/noise buffer. Being along a major thoroughfare, Wilkesboro Highway (NC115), the parcel in question is partially inside of and adjacent to what the 2030 Horizon Plan calls a Rural Commercial area. Rural Commercial areas include existing commercial uses or areas intended for future commercial uses that are located along major roadways in rural areas. The intent of these areas is that they will remain rural in character for the planning period and will not be served by public or private water and sanitary sewer systems. Land uses appropriate within Rural Commercial areas include supporting farm services, small-scale commercial uses, small-scale neighborhood service businesses, restaurants, churches, and institutional uses. However, the 2030 Horizon Plan does state that other commercial and office uses could be permissible in the Rural Commercial designation, provided the property is rezoned to a conditional district. Land use plan designations are typically viewed as conceptual, but staff feels that with this particular request being an increase in intensity of use, an amendment to the land use plan would be needed. Staff feels comfortable including the entire parcel within the rural commercial designation due to it adjoining existing commercial uses, and the fact that Special Use Permit and Variance requirements must still be met prior to operation. Staff does have some concerns of permitting a race shop in close proximity to a residential area. These concerns are largely related to noise. However, there was limited concern from neighbors at the required public input meeting. If GBCD zoning is approved, the applicant will still need to apply for a Special Use Permit where the Board of Adjustment can specifically look at the evidence to determine if a race shop is an appropriate use in the area. The Planning staff can support the proposed rezoning request, and subsequent 2030 Horizon Plan map amendment, based on the following: The property directly adjoins the 2030 Horizon Plan Rural Commercial area, it will result in the repurposing of an existing vacant structure, and the proposed conditions mitigate change in use concerns. PUBLIC INPUT MEETING: A public input meeting was held on Thursday, Oct. 1st, 2020, from 5:30pm - 6:30 pm, onsite at the original Trinity Volunteer Fire Department along Wilkesboro Highway. Approximately five property owners from the area were in attendance to hear the race shop proposal. Some opposition was expressed, and various concerns were voiced and debated. Those present representing the fire department were in favor of the repurposed use. A copy of the applicant’s summary of said public input meeting has been included at the end of this report. SITE REVIEW COMMITTEE: Staff visited site on October 16, 2020. PLANNING BOARD ACTION: On November 4, 2020, the Planning Board held a public meeting to hear the rezoning request. The applicant explained ways in which the current building is readily equipped for a race shop. There were four family members present representing the elderly neighboring landowner, who expressed noise and property value concerns. The board voted 9-0 to recommend denial of the rezoning. 9 December 1, 2020 ADMINISTRATIVE MATTERS Jones explained that the Board held a public hearing for the program on November 17, 2020 and because the meeting was considered a remote meeting the following matters were held open 24 hours for any further comments. Jones noted there were no comments received for either rezoning request. Consider a request from Harold C. Mash, Sr., to rezone approximately 25.9 acres off Eagles Refuge Drive: MOTION by Commissioner Houpe to approve the zoning map amendment and to make a finding that the approval is consistent with the adopted 2030 Horizon Plan and that said approval is reasonable and in the public interest and furthers the goals of the 2030 Horizon Plan because it is contained within the Rural Conservation designation, which allows for small-scale family subdivision, it lies at the edge of the R-20 zoning district, and currently adjoins existing RA lands. VOTING: Ayes – 5; Nays – 0 Consider a request from William Clay Wooten to rezone approximately 4.76 acres of farmland along West Memorial Highway: MOTION by Vice Chairman Bowles to approve amending the County’s 2030 Horizon Plan to extend Highway Interchange Commercial designation to the portion of property requested and approve the zoning map amendment. The zoning approval and land use plan amendment are reasonable and in the public interest and furthers the goals of the 2030 Horizon Plan because a portion of the property is within the Highway Interchange Commercial corridor, it is adjacent to various existing General Business commercial properties, and traffic impacts should not exceed road capacity. VOTING: Ayes – 5; Nays – 0 County Manager Beth Jones summarized the following Administrative Matters during the Pre-Agenda meeting held at 5pm:  Request from the Register of Deeds Office for approval of a revenue stamp refund in the amount of $147.  Request from Iredell-Statesville Schools for approval to make application to the Local Government Commission to issue debt not to exceed $9,000,000.  Request from Elections for approval of budget amendment #28 and to accept a grant in the amount of $24,333 from the NC State of Board of Elections.  Consider the adoption of the 2021 Public Transportation Program.  Request from ICATS for approval of the FY 2020 Title VI Program.  Request from ICATS for approval of the Public Transportation Agency Safety Plan, required by the Federal Transit Administration. MOTION by Commissioner Houpe to approve the consent agenda. VOTING: Ayes – 5; Nays – 0 10 December 1, 2020 Request from Iredell-Statesville Schools for approval to make application to the Local Government Commission to issue debt not to exceed $9,000,000 : Deputy County Manager Susan Robertson explained that Iredell-Statesville Schools is requesting the County to apply to the Local Government Commission to issue debt not to exceed $9 million, with debt payments to come from the County’s annual appropriation of restricted sales taxes for Capital Outlay. Iredell- Statesville Schools would like to enter into a design-build contract for LED lighting upgrades, indoor air quality, and control upgrades at some of the schools. Robertson explained based on the updated calendar, application will be due to LGC by February 4 with a decision from the LGC on March 2 and potential closing March 10. R obertson said the schools have talked about a 15 to 20 year financing, but it looks like 15 years would be the absolute maximum. It looks to be closer to 10, depending upon the life of the devices and improvements made. Robertson said $9 million at a 10-year amortization would result in $10.1 million with the interest and 15 years would be almost $10.9 million. Dr. Kenny Miller introduced Dr. Doug Knight, in-coming member of the Board of Education, member Todd Carver, school superintendent Dr. Jeff James. Dr. Miller said, “There is a lot of misinformation. A lot of people have questions about this. We are not pushing real hard right now, because we think with new County Commissioners coming aboard, we would like to reboot and get this information out. Make sure it’s public and everybody can have weigh in and questions. We would like to get it as soon as possible, but we understand that there are a lot of procedures and things that go into that. We will work with the Board in that respect. We are not here to ask for approval tonight for that money because we do have new board members that will be coming on. We think they need to have an opportunity to learn about it too.” Chairman Mallory said, “We appreciate all of you getting into some depth. This is sort of a non-standard approach.” Dr. Miller said, “First of all, this is an infrastructure project. I think maybe we've gotte n off line just a little bit. Some folks have thought that it was a performance contract. It is not and I wanted to share with you just a little bit. Our facilities task force met in 2017. In that facilities task force we had phase one, phase two, phase three. Iredell-Statesville schools is a huge entity. This board owns $800 million in property in just ISS. Your portfolio is very big. When you include Mooresville Graded and County Government Buildings, you are well over a billion. There is a huge amount of investment that the taxpayers have made in buildings within the County. We want to try to keep those as good as we can and keep them up to speed. Sometimes that means we have to have infrastructure improvements. We have to have additional change outs of HVAC equipment. We have 40 sites, 4,300,000 square feet of maintainable space, 1,600 acres, 20,150 students and growing. In 2018-2019, the last full year that we were in school, our utility budget was $3,860,415. Of that, $3,076,000 was electricity. That is a significant investment in utilities and operational costs.” Commissioner Robertson said, “The other $700,000 is water and natural gas.” Dr. Miller said, “How did we get here? We looked at LED lighting over the last decade. Early on, LED lighting just wasn’t there. As most new technologies, it was not reliable and expensive. We did see the savings it generated but it just did not make since economically at that 11 December 1, 2020 time. We even did a couple of pilots. We did our grounds building with LED lighting early in the decade and we weren’t real happy with it at the time because they didn’t last like they said they would. Technology has improved significantly and you probably notice LED lighting is pretty much the standard in new facilities. I am not sure if the jail has LED lighting, but probably so because it is pretty much a standard. LED lighting has come a long way. The price has come down and quality has gotten much better. We looked at it in 2015 and piloted it at one of the schools. It so happens the school we piloted, was Commissioner Houpe’s wife’s school, East Middle. We did a change out. It was $143,000. We wanted to use it as a test to be sure before we rolled it out to any others. It worked very well. Improvement in the learning environment. Teachers liked it. The lighting was much better. We were able to reduce the number of lighting fixtures and bulbs. It reduced our energy cost. In fact, Energy United, who serves the school, contacted us and said something was wrong at the school because the bill was too low and something was wrong with the service at the school. The HVAC specialist told them they changed out to LED lighting. We noticed a 30% reduction in energy usage and $1,000 a month reduction due to the fact the peak they set the rate on dropped significantly. That continued to be the case in that school. We started a plan 5 years ago to gradually start to change out to LED lighting, as much as we could. Particularly, gymnasiums and high use areas. That worked pretty good except we just didn’t have the funding to get it all done quickly. We continued with that process for the last couple of years. When we did the facilities task force, we included mechanical and electrical plumbing upgrades as part of deferred work. These are projects that really need to get done and will be done in the future but maybe we just don’t have enough occurring capital at this minute to do them but the y are in the pipeline to be done. We estimated it would take 10 – 15 years and we would have to bump our capital investment up to about $300,000 a year to an in -house change out. Staff calculated that we are missing savings of approximately $50,000 a month every month we extended the payout. If it took us 10-15 years at $50,000 a month. That would be reduced based on the change outs. But over time, we are losing a lot of savings. That is one of things that got us to take a look at how could do this as quick as possible, but also be cost effective with it. The drivers we have right now for some of these projects…” Miller said, “We also have two major HVAC projects that are control related. One is Lake Shore Elementary and Lake Shore Middle. It is extremely inefficient and uncomfortable. If you talk to the principal and staff members…We have suffered with that for years trying to figure it out. We have had engineers. We’ve done everything we can. Intolerable is the best thing you can say about it. We have a very big need at that school to do some major HVAC work. We also have East Iredell Middle School that has dial up controls for its HVAC system. Dial-up controls went out the window years ago. Most of the time they do not work. When they break down, you can’t get parts for them because the dial up systems are antiquated. We really need to change out that system plus they need a new boiler. These are top-level HVAC projects we had in the facilities task force plan with the LED lighting. Also at the time, the pandemic hit, and we were looking at indoor air quality at 20 of our schools. We have 20 schools that are older HVAC systems that do not allow but for limited outside air because when they were built that system did not have to meet the same standards. We would like to do something to improve the indoor air quality at those schools. About the same time, with allergies and flu season, the pandemic hit. Now we are faced that standards will be tightened up and we need to have more outside air. We’ve done all we can. What can we do to help those situations and what can we do to prepare for the future. This board in conjunction with the school board made some adjustments to the financial capital formula and that meant the schools got a reduction in recurring capital. Two years before that, we were chipping away at this kind of stuff because we have $11 million and then $13 million. There is no complaint, I am just telling you this because that is one reason why we are looking at this. The recurring 12 December 1, 2020 capital dropped to $7.1 million. When you back out $2.3 million for computers, it leaves you with a very limited fund to do roofing, HVAC, and paving. We also have to buy buses from capital. A lot of things come out of the capital fund that a lot of people don’t have even realize. So we are saying, we got these things that we need, we really need to get some of this stuff done. What can we do? How can we do this? How can we chip away at the facilities task force deferred work without asking you guys to come up with new money or raise taxes. Staff thought maybe they needed some professional assistance in designing and coming up with a plan. That is where the RFQ came from. It came from the fact that we wanted to get people who have done this kind of work and were very confident in it and had experience to come in and assist us in developing a plan to address some of these issues. That is where we are today. We chose ESG, a national company. They have been wonderful to work with. I think we have a really good plan because we didn’t want to come to you with any kind of plan until we felt comfortable with it. What we are doing tonight is try to get it out to the public and get it out to you, tax payers. We are trying to be good stewards. One of things that will happen from doing these projects, we'll get improved indoor air quality, higher efficiency more comfortable space for learning and teaching space but also have better lighting. An additional sidebar is the savings that it generates. A lot of attention has been placed on the savings and the savings are important. We usually don't bring projects to you where we can say we're going to save in operational cost. Usually we're coming in and saying we need to do a renovation. The payback is really not relative in the sense that it’s not paying for the project. It is a sidebar. These drivers are that we have improved indoor air quality. Interest rates are at historical lows. I don't think you're ever going to see interest rates much lower. We wanted to share this information and where we are now. We actually lose about $500,000 annually in electricity inefficiencies without the LED lighting. We spending about $150,000 annually and need to increase that if we are going to do bulb replacements and LED upgrades. Spend an average $350,000 annually on school energy capital projects. These are small projects that the schools need that have to be pushed to the side. it's an incentive for schools to be energy efficient because we can give them a little bit of that money and capital funds to do things like buy additional computers or put new carpet in the office. I know Melissa (Neader) has been working with the schools a lot and you know how the energy funds work. The schools use it quite often. That money actually is operationally could be moved back over to the current expense side and give the schools more flexibility in the use because right now they have to use it for capital projects. They can’t use it for other things that they need in the classrooms. We would project that that money could be moved back across over to the current expense because the savings will be generated on the current expense. We have a need right now of about $1,627,000 for the obsolete control systems at the two schools I mentioned. We have anticipated future costs for indoor air quality building code changes. We feel pretty sure that is going to be coming down the pike. We tried to plan for that. Here is some project scope and overview. I like the before and after pictures of the lighting. It gives you a really good idea of the change in the lighting. It is much brighter and more natural light. The control system and upgrades at Lake Shore and East Middle. The new technology that is the best we found is the bipolar ionization technology. We have 20 older schools that this would address some issues with indoor air quality. It combats COVID19 and other airborne pathogens. It also helps to create a cleaner space so the allergens are more easily filtered out of the air. Here is scope of work for the LED project. 37 school buildings, about 37,000 total fixture change outs. Project installation period is six to eight months. Estimated 10 years to perform if done, in house. I think it will probably be closer to 15 but we were trying to be aggressive. A 10-year warranty on replacement bulbs. Right now, the schools spend $36,000 per year on lightbulb replacement for fluorescents. We also pay one person that does nothing but change bulbs and ballasts. A fluorescent light bulb cannot be taken the dump. It has to be disposed of as hazardous waste. We have to pay .16 cents a bulb to have them recycled. We did not calculate any HVAC improvement or 13 December 1, 2020 efficiency. We did not calculate labor costs associated in maintaining and upkeep on any of the equipment. You can’t judge the cost of attendance, during flu and allergy season. If you have teachers and students out. It’s been pretty much proven through studies that improved indoor air quality improves attendance. There is a potential onetime energy rebate from Duke, Energy United, and City of Statesville. There is a onetime $350,000 - $400,000 rebate based on the equipment installed and the fixtures. Right now, there are vintage controls at East Middle, Lake Shore Elementary, and Middle School. We have longstanding issues with the systems. The benefits would be energy efficiency gains due to improved energy management software, scheduling of time management, and climate controlled classrooms. Bipolar ionization is the newest technology. Charlotte-Mecklenburg is spending $20 million to put this in every school. Other schools are starting to put this in as well. The bottom line is we are talking a projected cost of $8.8 million. We do not think we need new dollars. We think we can use our existing recurring capital funds. In all honesty, this will free up recurring capital funds because if we don’t do this as a part of a package then the ionization and HVAC controls will have to come out of something. Because they will take the number one priority. They will have to come out recurrin g capital so that means I have got approximately $3.1 or $3.2 million that has to be funded from somewhere. That is going to drain all the recurring capital. It will just have to. For maybe a year or two or we might split it over two years. The LED lighting would take a backseat and piecemealed. Which means we will continue to the pay Duke Power more money. By doing this in a package and going ahead and assigning the money that needs to be done to pay it back we are not having to do those bigger projects from our recurring capital. That will free up some funds that we can apply toward roofs and toward HVAC. We have been doing that every year. This year we had $500,000 in HVAC and roofing. We do that on a regular basis. We would like to do more. When we had more we did. We had a $900,000 in roofing the year before last and close to $1 million in HVAC, but when recurring capital drops you have to look at those priorities and how that balances. That is pretty much where we are coming from. Here is a breakout of the actual projects themselves and the costs associated. These are very tight numbers. ESG has to provide us with a guaranteed maximum price contractually and it can’t go over that for this scope of work. We have not entered into any contract. This is an information meeting, more than anything. When we do get to a point to make a decision and go into a contract that guaranteed maximum price is a guaranteed price. We are pretty confident we can do it for that. We just want the county board to review the project, work with us, let us reboot this, get public input, get information from commissioners coming on board, and possibly help us developing a funding plan to do this. We feel like this is a very important set of projects. They’ve risen to that level where we need to start looking at doing them.” Vice Chairman Bowles said, “I didn’t see in here where the savings of $500,000 will be folded back into the project. What happens to the $500,000 that is saved.” Miller said, “The savings will be generated in the utilities budget which is current expense. The energy usage will drop so the energy costs will drop by about $500,000 or more a year. That money would then be available in the current expense budget. How that is used in current expense is totally up to the Board of Education, but it will create savings. These projects are capital project which we would fund through capital money anyway.” Vice Chairman Bowles said, “Didn’t in the past year, we move money from capital to current expense. My concern is if we keep moving it…I am worried about depleting that capital account to a point where big ticket items that may be deficient. We don’t want you to come back halfway through the year because a HVAC unit went out and need another $500,000. Would that $500,000 in current expense be able to be moved back to capital to pay that?” 14 December 1, 2020 Miller said, “It could be. You can move current for emergency capital needs, but capital cannot be used for current. This board has done a fantastic job of helping us with capital. We recognize that. We try to be smart with the capital budget and always have contingency. Because I don’t know what may happen. There is usually a couple hundred thousand in contingency built in the budget. Our board has been very smart and put back emergency capital funds. There is about $2 million in that account. Those funds are available for that purpose, for emergencies. We will use them for a small project and then ask for a lottery rebate to replenish the fund. In addition, we have lottery funds that we can draw from in emergencies. We have used this year through the third quarter, however after the Statesville Middle project is complete, the lottery funds will be available for other projects or for the Board to use in other ways that is related to education. We do have back up plans for those kinds of things. Several years ago, the recurring capital was $1.7 million, the economy was in the tank, so the question is what if that happens again. How do make the payment? That is that emergency fund and lottery proceeds. The lottery proceeds have always stayed flat, $1.4 million. That is a fund that can be used in emergencies as long as you don’t do it too early and be sure that recurring capital is available.” Commissioner Houpe asked, “Are the three controls systems $1.627 or is that just two?” Miller said, “Lakeshore Middle and Elementary are connected so that is one project and East Middle is the second. The $1.627 is both.” Commissioner Robertson asked, “How much is the boiler?” Miller said, “Around $125,000.” Commissioner Robertson said, “Most of that project is the controls.” Miller said, “The controls are very expensive.” Vice Chairman Bowles said, “We have met with the facilities task force and talked about the $20 million and the new high school. I don’t remember the LED project coming up.” Miller said, “They didn’t. They were listed under deferred work. I do a very detailed data analysis every year of projects. This was presented to the task force. There are a lot of little projects that do not rise to the level of being a bond project, but with the deferred work being approximately $64 million at the time, we felt like we needed to package some of that. So it was packaged into the deferred work. We felt like we could handle about $32 million of that through recurring capital. The other $32 million, we are going to have find some other funding sources and that is sort of what we are looking at here. We are trying to leverage our funds to get some projects done. That was in phase one.” Dr. Knight said, “We basically didn’t think the deferred maintenance rose to being in a bond. There were lots of little things that came up. We put it in a package and was a second tier need relative to a bond position. We kind of spelled out the pure needs at the high level. The other things were needs, but we didn’t think we could package them in a bond and make it work.” Vice Chairman Bowles said, “I just don’t remember the LED part.” 15 December 1, 2020 Knight said, “We had some discussions a little bit. I remember some discussions of it. When we were packaging the presentation we knew the political realities.” Miller said, “It was in phase one as a need, but not considered a bond package need. It was considered recurring capital.” Vice Chairman Bowles said, “A lot times when it gets to us it is big ticket items.” Commissioner Robertson asked to use a whiteboard to better show numbers involved in the project. Commissioner Robertson said, “At the end of the day, we have to go to the Finance Department and this thing has to work. Somewhere we have to come up with some money. We have to start by saying when you borrow money for a house, how many year mortgage do you get, 15, 20, or 30. Houses last a long time. When you buy money for a car, what is the life of the loan, 5 – 6 years? The resale value of a car is close to zero. How many years are you guaranteeing the project? Miller said, “The bulbs are guaranteed for 10. The actual fixtures will last the life of the building.” Commissioner Robertson said, “That is a big component of it. We are not going to borrow money for 15 years for this. This would be a 10-year bond. The first six annual payments are over $1 million (each). The schools is paying that out of recurring capital. You just told me you have $7 million in capital and you have to spend $2.3 million.” Miller said, “But that is going to be reduced. We are looking at another option on computers and it will probably reduce that number.” Commissioner Robertson said, “You have $64 million in deferred work and can cover $34 million. Your savings are $570,000 a year.” Miller said, “The savings have nothing to do with the cost of the project. That is on the current expense side.” Commissioner Robertson said, “You said you would be able to pay for this. If you save $570,000, but it costs $1 million. Somewhere somebody is making up $430,000 a year.” Miller said, “That $570,000 is not paying for the project. That is on the current expense side.” Commissioner Robertson said, “Somebody from Iredell County is going to make a payment of $1 million a year and somebody will save $570,000 a year. $430,000 extra a year is going to get spent. This project does not pay for itself.” Miller said, “It never was going to.” Commissioner Robertson said, “What we are really talking about it having to come up with some extra money. I think we should really look at it as three different projects: the light project, control project, and air quality project. One of them is a cost reductive project and the other two 16 December 1, 2020 are not. You can’t judge air quality as a cost reduction project. If you look at what you said you were going to spend on the light project. The LED is $5.1 million, which is 58% of the total amount you could borrow. Fifty-eight percent of the annual payment is $612,000 but again you are telling us you are going to save $570,000 a year. Even if we take away the other two parts of the project it still does not make sense to borrow $612,000 to save $570,000.” Miller said, “You are saving the money over 20 or 25 years, maybe 40 depending on the building.” Commissioner Robertson said, “I am pretty sure those light fixtures are not going to last 40 years.” Miller said, “Some of them have been in 40 years.” Commissioner Robertson said, “This is a nine year payback.” Miller said, “This is not about a payback. We do not do a payback on the jail or fire departments.” Commissioner Robertson said, “You do get a payback on a high school that I supported.” Miller said, “A payback was never a part of this. It was just the savings generated that made it an attractive infrastructure improvement.” Commissioner Robertson said, “You don’t borrow $612,000 a year to save $570,000. The math doesn’t work. No business in Iredell County...” Miller said, “We are not a business in a sense that a private business is. You are comparing current expense savings to an infrastructure capital project. That is two different things. You are comparing a capital project to a current expense saving on the ut ilities side. Tell me how that is the same.” Commissioner Robertson said, “We have to write a check. That money has to come from somewhere. If there is a savings then the people writing the check have to get the savings.” Miller said, “Tell me the savings in the prison. Tell me in an infrastructure improvement at this location. You spent $1 million - $2 million here repairing and fixing stuff. Tell me the savings that paid for that.” Commissioner Robertson said, “If we were talking about a roof, I would.” Knight said, “Economically, the cost that we are spending now every year on the fluorescents over 10 years will probably go down because as LEDs are being put in the cost per bulbs. I don’t want to get in the weeds, because that is not the purpose of this. My thought is if you take that variable into play it may get closer to get zero. The fixed cost will probably be a little less.” Commissioner Robertson said, “I would not have this argument with new construction. You should absolutely put the LEDs in. I am talking about removing light fixtures that work to 17 December 1, 2020 replace them with other light fixtures that work. I understand there is some savings. I think it’s a; stretch to say they pay for themselves.” Commissioner Robertson said, “To improve the air quality, I was provided by your consultant a study and when I read it, it did say there is a reduction of sick absences 35%. This means the school system is not having to pay substitute teachers and we all agree there is some tangible benefit for having children miss less school days. The cost of that is $2 million for 20 buildings. I think I am making a good argument that this has some good benefit. This is what we have to think of as a board, you have 40 buildings. There are some schools that are not going to get this.” Miller said, “Those are new schools and have newer HVAC systems. They will eventually have this system.” Commissioner Robertson asked, “How long do you think that is going to last? Once we do it for 20, the others are going to want it.” Miller said, “The plan is to do it at all the schools eventually.” Commissioner Robertson said, “We are talking about doing it at once because they are not going to want to wait. Anticipate that number doubling. Mooresville Graded will come next, adding another million. That is assuming we tell Mitchell Community College no and county government facilities. This number is going to grow. It has nothing to do with you, it has to do with what we have to deal with. This number will get bigger. Politically, you are not going to be able to take the beating if you do it for some of the kids but not all of the kids,” Vice Chairman Bowles said, “The $64,000 question that the school system is tasked with answering is do you put the system in to keep the kids safe and we don’t even know if they are going to school in another month. We don’t know, but we have to answer the question.” Commissioner Robertson said, “It would be really good if you could use COVID funding for this, but most of that money needs to be spent by December 31. Even if there wasn’t COVID, it is good technology.” Miller said, “It is and that is the reason we looked at it. We don’t look at things just because they are fancy now. We look at for long term and that is the reason we looked at it for flu and allergy. We don’t enough COVID funds to do both.” Vice Chairman Bowles asked, “Did the schools receive COVID funding?” Miller said, “Yes, we did.” Dr. Jeff James said, “The State received $280 million but it is all earmarked. Schools received about $240,000 but we keep getting little pots of money as things go along. It is money that has been moved out of other areas. The school system will take a beating in child nutrition even with COVID. We need kids in seats because that is where we get our money. When they’re not, we are going broke.” 18 December 1, 2020 Chairman Mallory said, “We need your comments made in the microphone so everyone can hear.” Miller said, “There is additional equipment not just controls.” Representative from ESG said, “The control systems control the buildings comfort systems, if there is no control system, the building does not get heated or cooled. If the dial up system fails next year, there is no heating or cooling in the building. It is an infrastructure improvement.” Miller said, “This is at East Middle.” Commissioner Robertson said, “We are spending $3 million a year. You make it sound like ever since we’ve built those schools they’ve not been able to control the temperature.” Vice Chairman Bowles asked, “What do the controls in those schools not do that you need them to do and from what I'm hearing you say now is they frequently don't work and therefore you can't control the systems. Would that be fair to say. ESG Representative said, “I think that's fair, it's a complete overhaul of the comfort control system. We’re talking about control valves that control the amount of water flow through coils, damper controls on air handlers system level controllers. It is a high level replacement. It’s essentially ripping out the existing obsolete control system and replacing all the components this Commissioner Robertson said, “This is the electronics.” ESG Representative said, “This is the whole skeletal components.” Vice Chairman Bowles said, “This isn’t something to just be able to set a schedule for when you wanted the system come on when you want to call this is brain of the system where it can’t operate without it.” ESG Representative said, “We're going to replace the brain but we got to replace the skeleton, muscles, and all because they're not working very well either. We were asked to look at these, because there were lots of parent complaints. The kids were never comfortable and the teachers were never comfortable.” Miller said, “This was at Lake Shore. The driver at East is the system is outdated.” ESG Representative said, “It's kind of a serviceability issue. It's obsolete, you can't get parts for it. There is also service issue.” Commissioner Robertson said, “To me, when I hear this it's like every time that they need to overhaul an HVAC system and want to at 20 something schools. Are they going to come to us and ask for $1 million and do we give it to them? Where does where does maintenance responsibility stop and start and when does capital projects to build. I think our intent was to do capital for building new buildings, adding new wings and such like that. Not necessarily that every time a heating and air conditioning system or a roof, both of them none of those are small numbers ever are they small numbers…Does that mean that every time the two school systems 19 December 1, 2020 have an issue like that that it comes before our board to pony up a million bucks?” Vice Chairman Bowles asked, “Would this be something that would be better addressed in a task force meeting to where we can figure out what items…? Commissioner Robertson said, I think that's the issue because they're coming to us asking…we're trying to set aside money for the next school and building that we have to build anywhere in the county. We're trying to set that kind of money away. We're not talking about $10,000 or $100,000, it needs to be in the millions. You can't do that if we're also going to have to pay for every single one of these. So really the question becomes then, what's the maintenance responsibility and what's the capital money that we give them, where does that responsibility stop and end. The way it was presented to us, because it's in the document that you all gave to us, is in here you did say you're trying to get a million and a half dollars a year to raise the teacher supplemental pay from 6.25% percent to 8%. So if the money that is saved goes towards something like that, which we are not arguing the merits of are things good ideas or bad ideas but what this means is…We said that they offered to pay for it out of their capital. If they can't replace the HVAC control system for schools now, what are they going to do when they have a million less a year for 10 years. These are issues I think are bigger than that. Before we put ourselves on the hook for a million a year we really need to resolve that. Miller said, “Tell me how many times we've ever come to you and asked.” Commissioner Robertson said, “You haven't but you're here. Because you all asked us to convert money from capital to expense and we did.” Miller said, “I didn’t.” Commissioner Robertson said, “I know you didn't, your school system did.” Miller said, “My charge is a time frame without having to go into that limited recurring capital budget and take…if I just do the controls and the indoor air quality, I’m looking at $3 million. How can I make some of these deferred pieces of projects that need to be done and are going to be done. I'm telling you they're going to be done, but what it means is I’m going to have to take that $3 million out of that capital budget to do these important projects and it's going to reduce my roofing amount I've got available. It's going to reduce my paving and it's going to reduce my other areas because I’m not stretching it out over 10 years, I'm doing it now. It's going to reduce the amount of recurring capital available not…I mean it's going to reduce that over the next 10 years. Because those big projects I have to pull out of that budget are going to have to be done immediately because if I have a failure at lakeshore then I’ve got no heating and air conditioning control at that school. So I've got to do that one this next year. So, that $1.6 million is going to come right out of that recurring capital budget so I'm going to spend $1 million…I am either going to spend $1.6 million on that or I am to spend $1 million on a payment that's going to free up some capital money, that I can use on roofs and hvac. The thing you've got to understand is a balancing act here we're never ever going to be able to fund every deferred piece of work that needs to be done. You don't do it right now with your county buildings. You have deferred work that you have to prioritize. What I'm telling you is that these projects have risen to a level of urgency that we've got to do them. Now we can do them any way you guys want to do them. I have no problem, my job is to try to let you know what is needed, let my board know what is needed and give options, talk about it get it out there and then let's come up with a plan. If the plan is to pay for it, that's 20 December 1, 2020 what we'll do but know that if I pay $1.6 million this coming year for those two schools, it’s going to reduce that recurring capital budget by $1.6 million. If I do it the way that we've discussed, as far as borrowing the money, I'm going to have a $1 million payment and I am going to have $600,000 that I can redistribute to roofs, hvac or other needed things. Plus if I've got that $1 million coming off, I also have $570,000 on the current expense side I am saving. I’ve also got bipolar ionization at 20 schools. So, I am going to spend $1.6 million next year on that Lakeshore project. We can leverage it and do it smart and try to get this stuff done as best we can especially high priority. But, that's not my decision, that's my board's decision and your decision. I'm just a conduit telling you what the needs are and hopefully we can come to some resolution and can find a way to get all this stuff done for the kids and the teachers and take care of the $800 million investment these taxpayers have put in. It's our obligation to do that. I’m a taxpayer. I pay taxes just like everybody else. I don't want my taxes to go up. I don't want to waste money. When I do budgets I do it as if it's my money because I’m a taxpayer it's my money. I've got to tell you there are priorities and things that have to be done we can argue about how, we can already argue about oh my god it was fine when I went to school and it didn't have air conditioning and I don't know why they got air conditioning today.” Commissioner Robertson said, Nobody is making those comments. Let’s not go there. Basically, they're asking $11 million that we did not have budgeted. I think I’ve made the case that it's not going to end... if we do the lights, Mooresville will be here asking for the same thing. If we do the ionization they will be here looking for it, as well as probably some of the other schools that don't get it this is this is $15 million. We're not arguing about whether or not something is in the direction of good to do. What we're talking about is do the Iredell County Board of Commissioners have $11-$15 million that we are willing to spend that we weren't willing to spend when we created our budget. Miller said, “Now, I will disagree because we're asking to use our recurring capital to make the payment.” Commissioner Robertson said, “My argument is that's not enough. You just said that the amount that you get for capital is insufficient and you can't turn around and then say you…” Miller said “ We always have deferred maintenance, we always have deferred work. And we'll work off that list with the monies we have available. If you want to know the industry standard for capital to maintain your buildings is two percent of the value that is $16 million dollars in capital per year. Most industries use four percent. We don't do that because that's just an increase in taxes. I don’t want that. So, we make it work within the budget we have. When Mr. Johnson sat in that chair i made the whatever you provide for us we're going to leverage it we're going to use it to the best of our ability to make the schools the best possible, maintain them the best we can. We'll continue to do that. Now what we're asking is give us the ability to leverage the funds that you already provide. We're not asking for any new money, the funds you provide for us give us the option to leverage some of that money to do some of these bigger projects that we can't just pull them out we can't pull $3 million out of our capital budget, but we're willing to pull $1 million out for 10 years and do these projects that we think are important. I think we need to reboot this and sit down with our new commissioners and our seated commissioners. I think we need to come up with a plan on how we can do this.” Commissioner Houpe asked, “What was the installation time if you did this all at one time?” 21 December 1, 2020 Miller said, “Six to eight months.” Commissioner Houpe said, “I guess the contacts I've had, since I guess it hit the free news, the big question is to Ken's point, there's three different aspects to this potential project if you did what you say can't wait let's say the control systems if they couldn't wait. That would be $1.6 million. Your annual cost on bulbs was like $36,000 and what was your other your annual savings projection.” Miller said, “$536,000.” Commissioner Houpe said, “I guess the difference is from a layman's standpoint is you're paying about $110,000 annually in interest if you do this project. The question is if you were able to tackle the most important dire need, the three control systems up front and then if you said okay over let's say five years you were able to with lottery monies and other things we've talked about. Is it worth to do it as you go or tackle it in a financing mechanism upfront? Miller said, “If we do it pay as you go for 10 years, that cost is going to go from $300,000. That is again is another draw down on recurring capital. I am probably not going to do that. It is probably going to take 15 or 16 years to do it. If you don’t do it with this package then that is going to take a back burner and look at it a longer period of time, which means we continue to pay Duke Power.” Commissioner Houpe said, “The tax payers want to hear the pros and cons and where the savings comes in. If you take the $100,000 additional money you saved on interest and add to the $150,000, you will still have to add more. If you did the control systems next year, like you have to, that reduces the $7 million or so capital. Lets say you are able to figure out a way to tackle the lighting and air quality issues over five years in house. I know that creates other problems but I want people to understand the numbers. Commissioner Robertson said, “The task force, at the request of the board, if we give them money for capital they can only spend it for capital, if we give them money in current expense, they can either spend it there or maintenance or capital. We did not cut capital and keep current expense the same. It was increased. They still have the ability to use some of the increase in current expense to pull and do these projects. They have the flexibility, we don’t even have to be involved. That is why we did it that way, for them to have flexibility. At this point, they have to exercise that capability. Commissioner Houpe said, “That is what he is saying. If he can do it all at one time he thinks he can pay it out of recurring capital, but if necessary can move current expense money. How much of the lottery funds are dedicated? Miller said, “It’s not dedicated to anything right now, but we do have other projects down the road that this board will have to discuss. The Statesville High School CTE program is another one that will be brought later.” 22 December 1, 2020 Commissioner Houpe said, “If you do this project and an annual payment of $1 million, if there is a savings through the bulbs and utilities, you are looking at a reduction at a minimum of $300,000. If you were to rededicate that money towards that you would really have $700,000 increase in debt service. That could be paid out of recurring capital or lottery.” Miller said, “This is a discussion that needs to be made. We are here tonight to share. We are open to other options. We just need to know these projects are important and need to be addressed. We can table this and discuss it later and get into more detail with a group and come back with more options. I do think it is worth while to have that discussion. Commissioner Houpe said, It is worth while to have it. What we are tasked with is, which is a challenge, when we do something for ISS, Mitchell and Mooresville Graded will follow. There are also needs for the County.” Miller said, “I would say if Mooresville wants to use recurring capital to do that, that should be there option. We are not asking the Board for any money. We are just asking to be able to leverage the funds we have available.” Houpe said, “The concerns are we looked at a new funding formula with the school boards. They asked us to move capital to current expense. You can move current back to capital, if needed. If you weren’t for some reason able to meet capital needs that year, I don’t think there is going to be a grant available. You are saying you are able to do it at this point, but if there are things that come up and you don’t have the money. It is a public relations nightmare, because we are tasked with capital expenditures. That is the concern. If you tie up current expense on a project like this, the School Board and superintendent in teacher supplements, that is a reoccurring expense. That revenue is not going to be available. They are going to short teacher supplements. Last week, they did not want to furlough employees, at the superintendent’s request. I understand that to so me degree, however if you are upside down in your cost you can’t keep bleeding. Nobody here believes this is bad project. There is savings, but the concern is the payback. There are questions.” Miller said, “We have looked at all those options. Mr. Robertson and I can disagree on some of the numbers and information but we have looked at doing it in-house, piecemealed, and over-time. We really feel this gives us the best flexibility. Those are capital projects. The savings are a plus.” Chairman Mallory said, “When this first was presented, the tag line was this is a project that pays for itself. That was what was presented in the excel spreadsheet. I understand you are withdrawing the distinction now because it comes from two different pots of money. That is how we started down this path. It is a business proposition. If you come to us with a business proposition, we are going to apply business rules. As you said, you are not a business, but what we need to do is manage expectations. You said several times we need a plan. Absolutely, we need a plan. Both boards need to understand the needs and resources so we can have mutually agreed upon expectations, and no surprises. Because all of the dollars in the capital budget are spoken for and then you have a HVAC system go out or a leaking room. Then you are in front of with an emergency. We are not going to let kids and teachers swelter and let a roof leak. We can prevent that kind of thing from happening at circumstance by clearly understanding which pots of mo ney are involved and how you are going to backstop these issues. From a conceptual perspective, it is interesting how we can all agree that routine maintenance is an operational expense. I think you have a $2 million maintenance that covers personnel as well as various projects. You can’t get to 23 December 1, 2020 everything on the punch list so the other things are deferred and automatically becomes a capital issue. You said you had $64 deferred capital maintenance that was identified by the facilities task force. You said you could cover $32 million and you needed someone else to cover the other $32 million. If that is not correct, then we need to sit down and work through these numbers so everyone will have a clear understanding of what we are talking about. I think this d rill has been helpful in terms of being able to understand the complexities of the process but also for trying to get some mutual understanding about where dollars come from and where they go. At the end of the day, you have to look at income streams. We clearly have a half cent worth sales tax revenues that are possible out there if the public supports it. You can’t be in a contest and have the public have any confidence in the management of the funds. The challenge for both boards and other entities is to say here is what we need to do and here is how we are going to plan to fund it over a 10-year period because the facilities task force recommendations cover a 10-year period. We have to figure that out and put that into our capital improvement plan, because that is our job. As we grow the economy, that is going to pay for some of it, but additional income streams can get after some of these things that have been languishing for some time, but it will take all hands on deck, unified, and focused on educating the public on what exactly these funds will be used for in broad strokes. Understanding what is important to the people of this county for a lot of different things. There are a lot of other projects that reach down to the benefit of the people of this county. I think they look at one entity always gets the vast majority and it is never ending. We need to educate them that it is not a black hole. It is well managed but people did not understand the scope and challenges.” Miller said, “There is a huge challenge on all our plates for these kinds of things. I think that is what we are doing. We are trying to come up with a creative method of addressing some of these issues and not having to have new monies infused into it.” Board of Education member Todd Carver said, “I don’t think any one came here tonight wanting a contest. We came down this road saying here is a way we can save some money on energy costs. That was the very first meeting I had about this was about a year ago and they said here is a way we can save about $500,000 a year in energy costs. It has sort of grown, I will give it that. It has transformed into other things. We’ve been able to say we are going to use $1 million of the capital to pay that back. I agree with your math, Mr. Robertson. Over that first six years, you’re probably losing about $40,000 a month, but over the life of the project we believe that it will bring back some savings.” Commissioner Robertson said, “That gets into you don’t have to fix the lights now, especially if someone is spending more than you save. If the control systems that those three schools have are unmanageable and you can fix them for $1.5 million, then that is your top priority. Address that first and convert your expense back to capital. That is the only emergency that you have talked to us about. The lights are not an emergency.” Carver said, “The lights were never an emergency.” Commissioner Robertson said, “Then you don’t tie up $6 million today over something that is going to take you 10 or 12 years to get your money back. Then cleaning up the air, I don’t think you will find anyone in the County that does not think that is in the direction of good. We tell people no to good ideas every single month. Our board led the charge for the new $80 million high school. Your board can’t say that. Give us a little credit. This is about spending the limited money we have in the right way.” 24 December 1, 2020 Carver said, “Mr. Robertson, you and I are saying the same thing from different sides of the table. If we knew there was a way out there to save $540,000 a year in energy…It does add up. In the short run, the first six years, it is going to cost you, but after that, you reap back.” Vice Chairman Bowles asked, “What can this board do to create more continuity so we can all sing off the same sheet of music.” Carver said, “We need to sit down and talk more. This is not the way…” Commissioner Houpe said, “The projects are worthwhile, we just have to figure out how and when to do them. Our boards met through the task forces and were asked to do a new funding formula. The other two school systems signed the agreement but Iredell Statesville didn’t. Then, ISS asked us to move capital from current. We did that and then were criticized publically by some of the board members saying we cut your capital funding. That wasn’t true. We have to build a confidence amongst ourselves and the citizens that we are using taxpayer dollars wisely.” Commissioner Houpe asked that the matter be tabled so the elected officials and staff can come up with a path on how to do the projects and pay for it.” Carver said, “On my honor, both of you have mentioned supplements. At no time, have I heard anything…” Commissioner Robertson distributed a handout from ISS to Carver.” Carver said, “I can only tell you what I know. To me, there is no ulterior motive to switch this to current expense and then make that happen. I would love to take a look at it. I can ask for something to be put on the Board of Education’s agenda regarding the funding plan to discuss it. We need to see if it is a good thing or bad thing.” Chairman Mallory expressed appreciation to Carver and Dr. Miller for their hard work.” ANNOUNCEMENTS OF VACANCIES ON BOARDS & COMMISSIONS (None) APPOINTMENTS TO BOARDS & COMMISSIONS Board of Equalization & Review The following members have agreed to serve: Carl Lombardo – Chairman – First Term Hal Jolly – Vice-Chairman – Fourth Term Mike Brotherton – Member – Fifth Term Allen Simmons – Member – Fourth Term Jennifer Christian – Member – Second Term Dan Howard – Alternate – Fifth Term Board of Health 25 December 1, 2020 Sylvia Chapman has volunteered to serve again. Recreation Advisory Board Seth Hathcock, Christopher Campbell, and Scott Bell have volunteered to serve again. In addition, historically there has been an appointed representative from Iredell-Statesville Schools to serve as a liaison on the Recreation Advisory Board. Rob Jackson recently retired from ISS and subsequently resigned from the advisory board. Bobby Deal has assumed Jackson's responsibilities and has volunteered to serve on the Recreation Advisory Board for the first time. Zoning Board of Adjustment Bob Dellinger and David Aman have volunteered to serve again. MOTION by Vice Chairman Bowles to appoint the names listed above. VOTING: Ayes – 5; Nays – 0 UNFINISHED BUSINESS (None) PUBLIC COMMENT PERIOD (None) NEW BUSINESS (None) COUNTY MANANGERS REPORT County Manager Beth Jones provided an update on the following:  COVID19 testing is continuing. A list of sites for December is available on the County website. As of today, there are 5,836 positive cases. The County is considered to be in the orange category, which signifies substantial community spread. Next week, the categories will be updated. Jones is hopeful the County does not enter the red category.  The Iredell County Board of Commissioners will meet the morning of Monday, December 7, 2020 The Incumbent Board will meet at 10am, followed by the Oaths of Office at 10:30am, and the Organization Meeting will begin at 11am (or as soon after the conclusion thereafter the oaths of office as time permits). CLOSED SESSION Chairman Mallory explained that Closed Session was held immediately following pre- agenda. 26 December 1, 2020 MOTION by Commissioner Robertson to call for a public hearing on December 15, 2020 at 7pm regarding a maximum economic development incentive of $1,601,312 over a five-year period based on a $90 million investment in Iredell County. VOTING: Ayes – 5; Nays – 0 MOTION by Commissioner Houpe to approve the purchase of property known as lots five and six of the Troutman Industrial Park located on Murdock Road, Troutman, NC for the purchase price of $995000 to close on or before December 31st from Andrew Development LLC and, authorize the County Manager to execute a purchase contract and to approve a budget amendment #29 to appropriate fund balance of $1,010,000 for the property purchase. VOTING: Ayes – 5; Nays – 0 Chairman Mallory explained this meeting is one of the last for Commissioner Robertson and Vice Chairman Bowles. Mallory opened the floor for comments. Commissioner Robertson said, “It's been an honor to serve. I served for 12 years before then finishing out almost two years for Representative Mcneely’s term. That means I've been a part-time employee of the County for almost 14 years. Part-time being a commissioner means you don't have a favorite television show at night and you're gone Friday or a Saturday night or both. There's always those people that invite you to stuff that you got to go to at two o'clock on Saturday afternoon which is just tough, but that's what it means to serve. Its been my honor to serve when I first came on the board one of the ex-county commissioners said ‘you know you don't have to be very smart to be a county commissioner but you have to be able to count to three’ and there's a lot of truth in that. Another county commissioner said ‘you know if you can count to three but if you can modify give in a little work with some other people and get it to a 5-0 vote it's always better’ and I've always found that even when I thought my three was right to wiggle and move and get it to five. I never regretted it. At the time, I didn't like it but in the end I thought it was always the right and wise thing to do. I’d like to say that I did a lot of good over the 14 years but I want to officially recognize the leadership of this board and the good things that this board has done for this county for decades. It began with Chandler Bryan. He’s a Clemson grad and e owned Bryan Sweater Mills and one of the first leaders I ever met in Iredell County and has always been such a good guy. RB Sloan led Energy United and took time out of his career to lead this board as Chandler did. Larry Hedrick who recently passed away. Larry served as Chairman. His wife, Sue, was the Chair of the Republican Party and it was under her leadership that I first got involved in Iredell politics. Sarah Tice, Steve Johnson, Marvin Norman and now General Mallory. I have served and worked with great leaders, leaders with vision who led us through really difficult times and I take no credit for their leadership. I just wanted to acknowledge that it happened. The taxpayers and citizens of this county have benefited from the leadership that those former Chairmen provided and their boards. As well as Joel Mashburn, Ron Smith and now Beth Jones as county managers. We've had good county managers and I can't say how important enough it is to have a leadership team like them. A lot of people think being a Commissioner is making speeches in front of adoring crowds and it's not. What you saw tonight is what it is and what the people elected us to do. When somebody comes and asks us for a dollar, make them work for every penny of that dollar and make sure there's not a nickel of waste in it. Make sure t every penny is necessary. We all ran saying that we're conservative that means that we are tight. We fight to keep every penny in to the pockets of the people who earned it and it's tough. It can be ugly. I promise, it's a whole lot more fun to give away other people's money than have to argue with somebody who's saying they want it for the kids. Every rezoning case that we get… they're not so bad now, 27 December 1, 2020 but eight years ago they were tough with standing room only. Every rezoning case you walk out and half the people love you and half the people don't like you. To our incoming commissioners, we say no almost every Tuesday night. The budget cycle starts in January with the review but it's not approved until July. That is six months of telling folks no and then the people that didn't get what they wanted like tonight will come and ask for it again. That project was not brought up in the school funding discussions that we had in January through July. This light project was done in 2015, five years ago. We say no over and over again for a million dollars here five million dollars there ten million dollars. We say no over and over and over again so that we can build libraries, fire stations. We didn't pass a bond to build a library ,fire station, Public Safety Building, or jail. We didn't go tell the taxpayers we are going to borrow money and raise taxes. We paid for that by saying no on nights like tonight. That's what being a County Commissioner is and we still have to do it next week. The other commissioners will learn to say no because they're saving for stuff that we know is coming. They're saving for projects that we don't even know what they are yet but we know something's going to come. This board has saved for big down payments on every school project that's ever happened. Every big school capital the bonds were always less because we had saved a bunch of money. In order to save a bunch of money you can't spend it every time somebody has a good idea, even if you think it's a good idea. We don't save money by not spending money on crappy ideas. We save money by not spending on good ideas. Something has to be an immediate need or pretty high priority to get us to spend for it one of the things. I am going to say this for the benefit of the people who stay on the board and the people coming on. There's something that in the county, we've never had to pay for before in a big way, that in the next decade we are going to have to pay for. We are not getting anything extra for it and that is road needs identified by the State. They are going to prioritize what roads will be built. A part of that funding formula, will be how much cities pay and how much the counties pitch in, and if we're not pitching in we're going to go to the bottom of the list. That means you're not going to get roads that you used to. We're going to have to pitch in just to keep getting the roads that we used to get.” Commissioner Robertson said, “I want to wrap up by thanking the 1,000 county employees. We have close to 200,000 citizens, when I say they work for me, they also work for you. Twice in my career I made them eat the leather out of their boots so we didn't have to cut the schools and have to cut other people. We did it during the great recession that lasted for two years. In not giving increases, we developed salary compression. Where you where all of a sudden now you're losing people because you don't pay them enough and you can't hire anybody. It took us three years to unscrew that horrific mess. I think we learned our lesson this time and we limited it to six months and that was a wise thing to do, but make no doubt that this board and our 1000 employees paid a price out of their wallets. They did it at a time that they didn't get to work from home. They had to show up, they still inspected, the Health Department worked overtime, ambulances still ran, first responders still responded. Everybody still worked and didn't quit still went to work. We froze their pay. Every year, Department Directors underspend their budget and that money gets turned back in to fund balance and then rolled it into capital improvement projects. That's where your library and jail came from because they saved the money. That comes from super strong leadership at the top right on through to department heads to the individual people. My observation is that Iredell County employees are the ones who are volunteer to be little league coaches, run concessions stands, and serve on PTO. They are great people and have a servant's heart. I would like to end this with a lot of gratitude for the county employees that did the heavy lifting while we were the face, but they did the work. It has been my honor to be a part of that process thank you very much. 28 December 1, 2020 Vice Chairman Bowles said, “I had all kinds of little fun things I wanted to say and then I got to thinking about it. It’s been a long time on this board and where I’ve come from. I tried to reflect back on what were some of the best times and that were some of the worst times. The best thing that I have gained out of being associated with Iredell County is I met Susan Robertson. I walked into her office as a young fire chief and just as soon as I opened my mouth I could see the little bubble above her head saying this guy knows nothing about budgets. She was very polite and very kind. She took me to raise and showed me how to do everything. Later, Sara Tice got me nominated to the Fire Commission. I was amazed because Mrs. Robertson could peck that calculator without looking at it that amazed me she's looking flipping papers and she's not looking calculator while David Boone sat over there and could figure percentages of increase in his head. I never understood how he could do that. One day, Jerry Lundy asked me about doing the rest of these budgets and running the rest of the meeting. I was thinking why is Jerry putting me up here. I didn't realize he was grooming me for the Chairman's seat. I became the Chairman of the of the Fire Commission and Jim Whitehead, when he was discussing the doctrine of election and the reformation of Martin Luther and said ‘no doubt this is going to lose me many friends.’ I'll be honest with you there's still some folks that I don't think have much use for me now. I remember being down at The Point in on Lake Norman at a campaign event for candidates. and Steve Johnson introduced me as David Boone with pants that fit. A lady stood up demanded that I raise her taxes and build a new high school, of which I was the deciding vote to build Lake Norman High School 3-2. I said ma'am you do realize this is going to cause a pretty substantial tax increase. She didn’t care no matter what. I explained to her that the night before about 3am the fire alarm went off and we all jumped in our old cold trucks and our cold turnout gear and headed down to the fire. We rolled up before the engines arrived. A couple of firemen and myself handed four lifeless children's bodies out of that house. They all perished along with their grandfather who was looking after them. Their mother was working a second shift at Cannon Mills. I told the lady that night the last thing that mother needed in her family budget is a tax increase. So we have to realize that we have other services we have to provide and we have to be reasonable with what we vote on. She said well I know that's bad but I still want a new high school. I said ma'am we're here at the clubhouse, does your child swim in this pool. She said yes, I said if your child goes under water and is under water for three or four minutes, do you realize your ambulance is coming from the old lowrance hospital in downtown Mooresville. That is a long haul in a jet airplane out to the end of the peninsula. She had no idea that that's where her ambulance came from. We have to balance everything as we make these decisions and move forward. The hardest part for me was that Lake Norman High School vote. In two weeks I 17 lost pounds because I couldn't sleep couldn't gather my thoughts for my phone ringing off the hook. I actually received a death threat because of it, A guy told me that if I didn't vote for that he'd see that I died. That doesn't scare me I've been threatened before, but we have to understand that we're taking the dollars out of taxpayers pockets to provide these services. We have to be reasonable with what we do. I do want to leave the Board with one thing, I have a whole list of things I want to tell you that I’d like to see you do in the future, but I'll do that Monday morning. A lot of people would say that these seats and these positions are largely about character, I want you to know I believe that these seats and these positions are entirely about character. I couldn't be more proud to have served with the guys that I've served with on this board. Thank you so much. ADJOURNMENT 29 December 1, 2020 MOTION by Commissioner Houpe to continue the meeting at 9:48PM. The Board will reconvene Monday, December 7, 2020 at 10:00AM, in the Commissioners’ Meeting Room, Government Center, 200 South Center Street, Statesville, NC. VOTING: Ayes – 5; Nays – 0 __________________________________ ___________________________________ Date Approved Amy B. Anderson, Clerk