r·

" ~

EJK ~ 6 P.G 2 9 2 MONDAY, APRIL 4, 2011, 5:00 PM

REGULAR MEETING

The Beaufort County Board of Commissioners met in regular session Monday, April 4, 2011, 5:00pm, in Room# 111 at the Administrative Building located at 121 West Third Street in Washington, NC with the following present:

Chai~an Jerry Langley Robert Cayton

Vice Chairman Stan Deatherage Ed Booth Jay McRoy

Hood Richardson AI Klemm

Chairman Langley called the meeting to order. Commissioner Cayton gave the invocation and Commissioner McRoy led the Pledge of Allegiance to the Flag.

CONSENT AGENDA

The Chairman then asked for approval of the consent agenda.

MINUTES

On motion by Commissioner Cayton, seconded by Commissioner Deatherage, the Board voted unanimously approving the regular minutes ofFebruary 10, 2011.

SURPLUS ITEMS REQUEST

MAINTENANCE

On motion by Commissioner Cayton, seconded by Commissioner Deatherage, the Board voted unanimously approving the surplus and disposal of the following items from Maintenance.

COMPUTER: Dell Dimension 4600 -Administration Serial# 4CHQH41

COMPUTER: Hewlett Packard Pavilion 521n -County Home's Old Computer Serial# MX21368136

MONITOR: Dell

LAPTOP: Acer 502DX - Economic Development's Old Laptop (damaged from the flood when they were on the waterfront- does not work at all now). Serial# 9145BO 140583900977M

LAPTOP: 1994 Toshiba PA1181U-X- D.S.S. Old Laptop (outdated- windows 3.1). Serial# 02556559

PRINTER: Hewlett Packard Laser Jet 4050N- Register of Deeds Old Printer (JUNK- parts have been taken off it for another county printer). Serial# USQA061449.

PRINTER: Hewlett Packard DeskJet 935C -Maintenance Serial# MX05R1F11 0

1

-r::_----------(.'

. I

MONDAY, APRIL 4, 2011, 5:00 PM REGULAR MEETING

SCANNER: Hewlett Packard Scanjet 5470c -Maintenance Serial# CN19JIIOV4

COPIER: Canon PC428 - Maintenance Serial# STU27226

HEALTH DEPARTMENT

On motion by Commissioner Cayton, seconded by Commissioner Deatherage, the Board " voted unanimously approving the following surplus and disposal of the following items from the , j Health Department.

Computers

Printers

Scanner

Lenovo IBM ThinkPad X60 Tablet Lenovo IBM ThinkPad X60 Tablet Lenovo IBM ThinkPad X60 Tablet Dell Latitude D600 w/ Dock Dell D600 (EHIOOI)

HP DeskJet 460 HP Deskjet 460 HP Deskjet 460 HP Deskjet 450

HP Scanjet 3970

PUBLIC COMMENTS

LV-A3752-07/03

LV -C7648-07 /05

sN· Label Gone.

COPTG51 HOPTG51

SN:MY8175ZOBG SN: MY8175ZOOY SN: MY8175Z09D SN: SG46E21200

CN47TB105C

Frank Swindell spoke on the possible merger of Beaufort County Hospital and University Health System (UHS) of Greenville. In summary he stated he had several bad experiences while in the care of University Health Systems and feels the Board should think long and hard before they let them take over Beaufort County Hospital.

The Board could not let Mr. Swindell continue his comments as there were others scheduled to speak during public comments. He was told he could wait and possible speak later in the evening to finish up his comments regarding UHS. He agreed and said he would wait.

Kathy Vasquez spoke in regard to the ongoing hospital issue and a merger with University Health System. She noted the derogatory comments made by Commissioner Richardson in the Washington Daily News. She recanted several other racial and ethnic slurs made by Commissioner Richardson on other occasions. She said his stubbornness and misdirection had cost the County $5 million dollars as UHS has now decreased their offer of $30 million to $25

2

r

r

9 u MONDAY, APRIL 4, 2011, 5:00 PM

SK Y 6 PG 2 1 REGULARMEETING

million for the lease/purchase of Beaufort County Hospital. In closing she said she was fed up with his behavior and he could just stuff it.

Bu2:z Cayton came before the Board noting the economic crisis the country is in. His plea is for no increase in taxes this year. High interest rates, the State facing deficits of which much will be transferred down to county government and depressed job growth are reasons for no tax increase. He asked the Board to cut the fat from budget spending. He said it is clear the people of Beaufort County will not stand for another tax increase in the next budget. In closing he said for the Board to do what they must, but not raise taxes and make do with what they have.

John LaCava also spoke about taxes. He said he relocated from Virginia to North Carolina due to a tax revaluation and increase in his taxes. He is weighing in on an option at this time regarding relocation if taxes increase. He said the government is coveting other peoples' money. People are buying on the internet which decreases the sales tax. High employment will continue to plague us. Instead of bribery and grant money the Board should discriminate between the wants and needs of the people. He said it takes real courage to go after spending cuts. People in Beaufort County are just tapped out. He said the Board should roll back any increases not related to price increases.

Cindy Baldwin also spoke on taxes. She noted appreciation for the job Commissioners perform and the role they play. She said the small business owners cannot handle any additional taxes as we are a tier I county. We have high utility rates. She asked the Board not to consider an increase in property taxes. She said while recruiting the County should focus on helping the small businesses. They should reduce the size and powers of government. They should look for greater productivity for the current spending. Taxes that are paid take away from any benefits people work for. She said to look for possibilities in cuts in the budget. In closing she said no more increases in taxes. ·

David Wheeler spoke about the hospital and said some people do not understand the due diligence process. He used an example of purchasing a used car. At first the car looks fine but then it is discovered it has a salvage title. The value has changed. So is it with the hospital offer as they have decreased their offer by $5 million from the original offer prior to due diligence. There is a loss in net value. He said to grab what you can and get the deal done. If not we will continue to see the value of the hospital shrink. He asked the Commissioners to act as soon as possible. This should have been done in a more timely fashion from the beginning but was not. The more you delay it will decrease the deal.

INFORMATIONAL ITEMS

The following items were included in the FYI section of the agenda book.

Closed Session Statutes Reminder of Chamber Appointment Representation Resolution from Town of Washington Park re: Appointment of Joint Committee to Study

Expansion of Washington Tourism Authority ·

3

MONDAY, APRIL 4, 2011, 5:00PM BK Y 6 PG 2 9 5 REGULARMEETING

Appreciation Letter from Cumberland County Board of Commissioners re: Contribution . to Veterans Park

Resolution frqm Rutherford County re: Repeal ofNCGS 87-97 Draft Copy of Revised Beaufort County Animal Control Ordinance Suddenlink Channel Changes FYI BC ABC Board Minutes February 15, 2011 NC Wildlife Resources Commissioner re: Beaver Program NCACC 2011 District Meetings Registration Form

(conflict with date of April 21st , 27th is recommended but not yet confirmed. I will keep you advised of actual date

Harnett County re: Opposition to Unfunded Mandates Related to Schools and Loss of County Revenues _

RECYCLING- EASTERN CAROLINA VOCATIONAL CENTER (ECVC)

Bob Jones, President of Eastern Carolina Vocational Center appeared before the Board to present a plaque of appreciation to County Manager Paul Spruill on behalf of Beaufort County. Due to individual and group efforts fifty pounds more from about each household in Beaufort County have been recycled. Beaufort County is one of thirteen counties. that recycles.

County Manager Paul Spruill stated he was appreciative of Eastern Carolina Vocational Center (ECVC). He said it was a rare opportunity to send mixed products to a facility that is so efficiently run and it is convenient. He said most of the recognition for this honor should go to the seven municipalities that provide a curb side service for the recycling. We can reinvest the savings the recyGling into the solid waste site. Citizens do a lot of hard work in bringing mixed products to one location. He thanked Mr. Jones on behalf of all the citizens of Beaufort County.

BEAUFORT COUNTY HOSPITAL

Chairman Langley took this opportunity to tell the audience that there is a closed session ""' scheduled tonight in regard to the Hospital, but no action will take place on making a decision on } the offer tonight. He invited them to stay for the meeting but not to expect a decision tonight.

Commissioner Richardson reported the Hospital initiations were ongoing. Last month the audit was completed and presented to the Hospital Authority and the County Commissioners. A revised Letter of Intent (LOI) has been signed by UHS representatives. UHS has about completed the UHS due diligence. As a result of the due diligence process there are some changes in the offer. They have reduced their original offer fron1 $30 million to $25 million for the Hospital. Representatives of Beaufort Regional Hospital System have been authorized to sign the LOI with significant edits. He said the "dream car" had become a "nightmare". He said the due diligence Due diligence is a discovery process which has decreased the original offer. A net operating capital was agreed upon and that is where UHS left us. The audit report reduced the account receivables by $1.4 million. Discovery found a lot of things that the Hospital should have been doing, but had not. We got an honest audit and found that the management condition of the Hospital was much worse than originally thought. The LOI will become a public document

4

BK Y 6 ~G 2 9 6 MONDAY, APRIL 4, 2011, 5:00 PM

REGULAR MEETING

and he advised the public to get it and read it. He repeated that there was a lot of bad management that the Board did not lmow about. The term used "stuff it" is accurate and characteristic of what he was getting ready to state. Commissioner Richardson said he has a job as a representative of the Beaufort County Board of Commissioners and as a member of the Hospital Board to look after the public interest of the hospital. There are a lot of people not doing their job. He is determined that the Hospital will not close. He said The County has dug into their pockets and protected your money to invest in this Hospital. He stated we should protect the people in Beaufort County that are working and struggling with hardships.

2011-12 BUDGET PROCESS

Commissioner Richardson asked for discussion on the upcoming budget process. He spoke about the budget for this year. He provided two flow charts on the County's spending in his presentation (which are attached). Usually the County gets the majority of its money in the months of December and January. That is usually when property tax owners pay the tax notices that are mailed out in September. The County spends down these funds during the year and by June usually have about $12.5 million. This past year we drew down money almost into the surplus. The State demands we maintain eight percent surplus of our funding. That is equal to one month's operations. Our banking balance should not dip below that percentage. If it does then you should start worrying because you are at the bare minimum. In years past we have retained as much as $12 million. We have spent all of the fund surplus this past year and almost gone below that percentage. PCS Phosphate kept us out of trouble this year by paying their taxes early at our request. We have budgeted and spent that money without a tax increase. We have dipped into the fund balance. If we keep the same level of services as last year we will have to raise taxes about $2 million. A penny represents about $500,000. To achieve the $2 million that is about a four (4) cents increase. If you recreate your fund balance and raise the $4 million that is an eight cent increase in taxes. There is a simple lesson and option to raising the taxes. Don't spend the money you don't have to. He firmly believes that there is $2 million that can be cut out of our budget if you have the courage to do it. If you do not cut it we will be right back. One idea is a four ( 4) cents tax increase and still cut out $2 million from the budget. When you see a copy of the audit from last year and it says in 2008 things looked rosy, they did at the time because we had money. Funds are not great looking after spending those funds collected in November and December months. In June 2008 the County had $10 million in surplus . .In June 2009 we had $14.5 million in surplus. In June 2010 we had $12 million. Commissioners have spent the money without taxing you. The federal government has done the same thing with the deficit. Last year we spent all the surplus money so now we have to start over.

Commissioner McRoy asked about an item in the audit on page three and the drop of $3 million. In 2008 the cash in all funds included the water enterprise fund and Water District Vll borrowed $10 million that was not county money. We are out of money, but the cash listed was from another enterprise fund.

Commissioner McRoy stated the public must understand that the Board of County Commissioners did not make the decision four ( 4) years ago when the public voted for a $32 million dollar school bond. The debt payment on that $32 million is about $2.7 million per year

5

~r~---·· -~- ·--------------- ----------

BK Y 6 PG 2 9 6 MONDAY, APRIL 4, 2011, 5:00 PM

REGULAR MEETING

and he advised the public to get it and read it. He repeated that there w~s a lot of bad management that the Board did not lmow about. The term used "stuff it" is accurate and characteristic of what he was getting ready to state. Commissioner Richardson said he has a job as a representative of the Beaufort County Board of Commissioners and as a member of the Hospital Board to look after the public interest ·of the hospital. There are a lot of people not doing their job. He is determined that the Hospital will not close. He said The County has dug into their pockets and pr9tected your money to invest in this Hospital. He stated we should protect the people in Beaufort County that are working and struggling with hardships.

2011-12 BUDGET PROCESS '~ "------

Commissioner Richardson asked for discussion on the upcoming budget process. He spoke about the budget for this year. He provided two flow charts on the County's spending in his presentation (which are attached). Usually the County gets the majority of its money in ~e months of December and January. That is usually when property tax owners pay the tax notices that are mailed out in September. The County spends down these funds during the year and by June usually have about $12.5 million. This past year we drew down money almost into the surplus. The State demands we maintain eight percent surplus of our funding. That is equal to one month's operations. Our banking balance should not dip below that percentage. If it does then you should start worrying because you are at the bare minimum. In years past we have retained as much as $12 million. We have spent all of the fund surplus this past year and almost gone below that percentage. PCS Phosphate kept us out of trouble this year by paying their taxes early at our request. We have budgeted and spent that money without a tax increase. We have dipped into the fund balance. If we keep the same level of services as last year we will have to raise taxes about $2 million. A penny represents about $500,000. To achieve the $2 million that is about a four ( 4) cents increase. If you recreate your fund balance and raise the $4 million that is an eight cent increase in taxes. There is a simple lesson and option to raising the taxes. Don't spend the money you don't have to. He firmly believes that there is $2 million that can be cut out of our budget if you have the courage to do it. If you do not cut it we will be right back. One idea is a four (4) cents tax increase and still cut out $2 million from the budget. When you see a copy of the audit from last year and it says in 2008 things looked rosy, they did at the time because we had money. ~ Funds are not great looking after spending those funds collected in November and December months. In June 2008 the County had $10 million in surplus. In June 2009 we had $14.5 million in surplus. In June 2010 we had $12 million. Commissioners have . spent the money without taxing you. The federal government has done the same thing with the deficit. Last year we spent all the surplus money so now we have to start over.

Commissioner McRoy asked about an item in the audit on page three and the drop of $3 million. In 2008 the cash in all funds included the water enterprise fund and Water District VII borrowed $10 million that was not county money. We are out of money, but the cash listed was from another enterprise fund.

Commissioner McRoy stated the public must understand that the Board of County Commissioners did not make the decision four ( 4) years ago when the public voted for a $32 million dollar school bond. The debt payment on that $32 million. is about $2.7 million per year

5

r

SK Y 6 liG 2 9 7 MONDAY, APRIL 4, 2011, 5:00 PM

REGULAR MEETING

and the ·County has to pay it without question. Most of us remember that we were told if the school bond passes, it could cost them tax money in the long run. The times when building was progressive and we had a good tax base growing we could do that. Now we cannot. We have to make that $2.7 million debt payment because we are obligated. You can't cut out any of that money.

Commissioner Deatherage said he remembered the 2004 school bond referendum was allowed to go forth and it was during the primary. He and Commissioner Richardson asked the citizens not to vote for a school bond referendum at the time. In 1995 he worked on his first budget and asked the Board to find a figure and back into it. He said as commissioners should select a tax rate and cut funding requests to get to it and stay with it. He said there is essentially already a tax increase due to the revaluation. The taxpayers will howl if the rate is increased agatn.

A motion was made by Commissioner Deatherage and seconded by Commissioner Richardson to select a tax rate and back into it.

Commissioner McRoy said we could make the tax rate ten cents, but that would not be feasible. You can select a tax rate but if you have debt payments to make you have to make them. He is not sure and does not have enough information to make that kind of decision tonight. The Board has not yet received a budget from the County Ivlanager. It will be forthcoming on May 9.

Commissioner Richardson said the Board could vote to set a rate and direct the County Manager to work towards that rate.

Commissioner McRoy said of a $49 million budget probably $30 million to $35 million is pass through funding from the Federal and State Governments.

Commissioner Richardson said if you can raise the budgets then you can cut them. Give the County Manager a direction to take in preparing his budget. He said it was the responsibility of the Commissioners to direct the County Manager to prepare a budget. We need a firm tax rate and prioritize who gets that money.

The Board then voted on the motion by Commissioner Deatherage and seconded by Commissioner Richardson to select a tax rate and back into it.

VOTING YES Richardson Deatherage

The motion failed.

VOTING NO Cayton Langley McRoy Booth Klemm

6

MONDAY, APRIL 4, 2011, 5:00PM BK Y 6 PQ 2 9 8 REGULARMEETING

Commissioner McRoy said the public must realize that the total of property taxes collected in a year's time is somewhere near $24 million to $25 million. The public decides what to cut. Schools and the Community College get about $15 million to $16 million of the tax funds collected. Debt service on the school debt payment is $2.7 million. Then the balance of what is left is distributed to the Sheriff and other departments. If you are going to cut law enforcement the public has to decide. If you cut $2.5 million after the necessities you won't have enough to operate the services of the County.

Commissioner Deatherage asked about economic development and cutting their funds.

Commissioner Cayton said it takes a strong vote to vote the prior motion down. He said there tends to be a movement in Raleigh to balance the State budget on the backs of the County. We need to know our legal responsibility and be aware before we do that. If the State passes on workers comp or has the County purchasing school buses we may not have a choice. There is no weakness on that vote.

Commissioner Klemm said all those proposals came down from Governor Purdue. The majorities said they are not going to unload it but address in their own way. That will make it easier for us to deal with.

IDGHWAY 17 ASSOCIATION MISSION, GOALS, STRATEGIES­ANNUAL REPORT

Marc Finlayson, Executive Director of Highway 17 Association presented the following report regarding Highway 17 mission, goal and strategies.

Status Report For US 17 Corridor

January 2011

US 17 Wilmington Bypass TIP Project No. R-2633 AlB

US 17 Hampstead Bypass TIP Project No. R-3300

US 17 Jacksonville Bypass to Drummer I Kellum Road TIP Project No. U-4007

US 17 Belgrade to New Bern TIP Project No. R-2514 B,C & D

US 17 New Bern Bypass TIP Project No. R-2301 A

US 17 Washington Bypass TIP Project No. R-2510

US 17 New Bern to Washington TIP Project No. R-2513

US 17 Washington to Williamston TIP Project No. R-2511

US 17 Mills Street i.n Bridgeton to NC 43

7

r

SK ~ 6 ~G 2 9 9 MONDAY, APRIL 4, 2011, 5:00PM

REGULAR MEETING

TIP Project No. R-3403 US 17-7 4-76 INC 133 Widening in Wilmington

TIP Project No. R-3601

US 17 Status Report January 2011

US 17 Wilmington Bypass (R-2633 AlB) Total cost: $625.2 million (NC Loop) Unfunded: $0

• Final Environmental Impact Statement- April 2007 • Record of Decision - October 2007 • Design Public Hearing- January 2008 • RJW Acquisition Segment A- complete

Segment B- began June 2008; halted briefly, since resumed • Construction Segment A- February, 2011.

(estimated completion, summer 2013) Segment BA - Grading and Structures 2013 (draft Urban Loop schedule) Segment BB - Grading and Structures 2016 (draft Urban Loop schedule) Segment BC - Paving 2019 (draft Urban Loop)

Action items Accomplished November- December 2010: • Segment A- Final Roadway Plans were accepted with comments, November 2010. • Segment A - Off-site borrow pits have been verified for impacts. • Segment A- Permit drawings and CAMA narrative submitted on October 18. • Segment A - State Stormwater Permit has been issued.

Action items for January - March 2011: • Segment A- Continue coordination with design-build contractor. • Segment A - Release for Construction Plans will be submitted in late January. • . Segment A - Utility relocation has begun. • Segment A - Anticipate permit approvals in early 2011. • Segment A- Anticipate construction (clearing and grubbing) to start early February 2011. • Segment B - Right of Way acquisition process is on-going.

Project Managers (Segment A): Andrew Young, P.E. (919) 212-3150, apyoung@ncdot.gov; Jacqueline Armstrong, P.E. (919) 212-2147, jearmstrong@ncdot.gov Project Manager (Segment B): K. Zak Hamidi, P.E. (919) 250-4016, khamidi@ncdot.gov

US 17 Hampstead Bypass (R-3300) Total cost: $219 million (NC Trust Fund) Unfunded: $199 million

• Federal Draft Environmental Impact Statement - February 2011 • Federal Final Environmental; Impact Statement- March 2012

8

BK Y 6 f.a~ 3 Q 0

• State Record of Decision- June 2012 • Begin RIW Acquisition- NC FY 2017

MONDAY, APRIL 4, 2011, 5:00 PM REGULAR MEETING

• Finish RIW ~cquisition - Budgeted $20 million in NC FY 2017 • Construction Unfunded ($199 million)

Action items Accomplished November- December 2010: • Draft Federal EIS has been sent out for review within NCDOT and the US Army Corps of

Engineers. Comments from NCDOT review have been received. Consultant is currently addressing NCDOT comments and awaiting comments from the USACE.

• Additional foraging habitat surveys were recently completed for the red cockaded woodpecker (RCW) colonies.

Action items for January- March 2011: • Following selection of preferred corridor for project (summer 2011) formal consultation

with the US Fish & Wildlife Service will be conducted concerning the RCW. Informal coordination has been ongoing.

• Preparation of corridor public hearing maps is on-going. • Corridor public hearing is planned for spring 2011.

Project Manager: Olivia Farr, P.E. (919) 733-7844 ext. 253 ofarr@ncdot.gov

US 17 Jacksonville Bvoass to Drummer Kellum Road CU-4007) Total cost: $191 million (National Highway System) Unfunded: $104.3 million

• Environmental Assessment- October 2006 • Finding of No Significant Impact- February 2008 • RJW Acquisition Segments A,B -underway (began US FY 2009)

Segment C- Budgeted $14.6 million in US FY 2020 Segment C - partially unfunded ($29 .1 million) Segment D -unfunded ($32.3 million)

• Construction Segment A- US FY 2011 (July) Segment B - October 2010 Segment C -unfunded Segment D -unfunded

Action items Accomplished November- December 2010: • Right of way acquisition for Segments A & B is complete. • Project plans complete for Segment B.

($26.3 million) ($16.6 million)

• Segment B was let in October. Date of availability to contractor was November 29,2010.

Action items for January- March 2011: • Construction on-going for Segment B. • Segment A- Final plans scheduled for April 2011 .

. Project Manager (Segments A, C & D): K. Zak Hamidi, P.E. (919) 250-4016, khamidi@ncdot.gov

9

--- ------ ·- .

u 6 3 0 IMONDAY, APRIL 4, 2011, 5:00 PM SK 1 fiG REGULARMEETING

Project Manager (Segment B): David A. Candela, P.E. (910) 347-5258, dacandela@ncdot.gov

US 17 Belgrade to New Bern Bypass (R-2514 B.C & D) Total cost: $268.9 million (NC Trust Fund) Unfunded: $38.7 million

• State ~aft Environmental Impact Statement - Approved August 31, 2004 • Corridor public hearing - August 16, 2005 • State Final Environmental Impact Statement (FEIS) - March 2011 • Record of Decision- July 2011 • Design public hearing - October 2011 • RIW Acquisition Segment B - NC FY 2014

Segment C- NC FY 2013 Segment D- NC FY 2013

• Construction Segment B- Budgeted $38.7 million in NC FY 2019 Segment B- partially unfunded ($38.7 million) Segment C- Budgeted $29.9 million in NC FY 2015 Segment D- Budgeted $98.3 million in NC FY 2015

Action items Accomplished November- December 2010: • Completion of Traffic Forecast Update report. • In-house review and approval of Capacity Analysis Update Report. • In-house review of Community Impact Assessment Update Report. • Resolution of Wildlife Underpass issue.

Action items for January- March 2011: • Completion of Community Impact Assessment Update Report- January 2011. • Alternatives 2A, 3 and 4D Right of Way Cost Estimates Updates- January 2011. • Alternative 2A Utility Coast Estimate Update- January 2011. • Alternatives 2A and 3 Relocation Report Updates- January 2011. • Incorporation of Wildlife Underpass into Preliminary design Plans and State Final

Environmental Impact Statement (FEIS) - January 2011. • Incorporation of Updated Cost Estimates and Relocation Reports in State FEIS- January

2011. • In-house review of State FEIS- February 2011. • Approval of State FEIS - March 2011. • Concurrence Meeting for Avoidance and Minimization (CP4A) for Segment C (March

2011).

Project Manager: Mark Pierce, P.E. (919) 733-7844 ext. 214 mspierce@ncdot.gov

US 17 New Bern Bypass (R-2301) Total cost: Segment A- $29.9 million (National Highway System) Unfunded: $0

Segment B- $161.8 million (NC Trust Fund) Unfunded: $156.5 million • Record of Decision approved - June 2001

10

IH\ Y 6 PG 3 Q 2 MONDAY, APRIL 4, 2011, 5:00 PM

REGULAR MEETING

• · R/W Acquisition Segment A- Began July 2006 Segment B -Budgeted $5.3 million in NC FY 2020 Segment B -Partially unfunded ($1 0.5 million)

• Construction Segment A- Underway (estimated completion 2012) Segment B -Unfunded ($146 million)

Action items Accomplished November- December 2010: • Construction underway on Segment A (78% complete as of 11/30/1 0).

Action items for January- March 2011: ~ • Continue construction on Segment A. • Segment B - A reevaluation must be prepared due to the -time elapsed since approval of

the Record ofDecision in June 2001. Project Development activities are scheduled to begin in late 2012.

Project Manager: Johnny Metcalfe (252) 514-4759, jmetcalfe@ncdot.gov

US 17 from SR 1438 to Washington Bvoass {R-2513) Total cost: $72.8 million (NC Trust Fund) Unfunded: $72.5 million

• Environmental Screening Report prepared by PDEA staff April4, 2005. • Project Costs updated by Feasibility Studies Unit- March 2010. • R/W Acquisition- unfunded ($15 million) • Construction -unfunded ($57 .5 million)

Action items Accomplished November- December 2010 • No items underway.

Action items for January- March 2011: • No items underway.

Feasibility Study Project Manager: Derrick Lewis (919) 715-5572, dlewis@ncdot.gov PDEA Project Manager: Charles Cox, P.E. (919) 733-7844 x 301, ccox@ncdot.gov

US 17 Washington Bypass {R-2510) Total cost: $326 million (National Highway System)

• Record of Decision approved- December 2004 • R/W Acquisition Segment A- Completed

Segment B - Completed Segment C - Began May 2007

Unfunded: $0

• Construction Segment A- Estimated completion in late 2010. Segment B- Opened to traffic February 26,2010 Segment C - Expected to begin in March 2011

11

SKy 6 ~iG 3 Q 3MONDAY,APRIL4,2011,5:00PM REGULAR MEETING

Action items Accomplished November- December 2010: • Segment A- Continued grading, drainage, paving and culvert construction activities

(approximately 83% complete). • Segment B - Completed construction, opened to traffic. • Segment C - Structure design work completed.

Action items for January- March 2011: • Segment A - Continue grading, drainage and paving construction activities. r . Segment c- Anticipate construction letting, March 2011.

Project Manager (Segment A): Bill Kincannon, P .E. (91 0) 341-5148 wkincannon@ncdot.gov Project Manager (Segment C): B. Doug Taylor, P.E. (919) 250-4016 bdtaylor@ncdot.gov

US 17 from Washington Bypass to Williamston (R-2511) Total cost: $54.4 million (NC Trust Fund) Unfunded: $42.3 million

• Environmental Assessment- March 2012 • Finding ofNo Significant Impact (FONSI)- March 2013 • R/W Acquisition- Budgeted $8.5 million in NC FYs 2019-20 • Utilities- Budgeted $3.2 million in NC FYs 2019-20 • Construction- Unfunded ($42.3 million)

Action items Accomplished November- December 2010: • Wetland Delineation Updates complete; updates of other environmental information

expected to be complete in spring 2011.

Action items for January- March 2011: • Updating environmental surveys. • Left-side, right-side and best-fit alternatives were selected for detailed study (Concurrence

Point 2) for the project several years ago. NCDOT is revisiting Concurrence Point 2 with the Merger team in February 2011, in order to reduce the number of alternative routes.

• Preliminary Design expected to be completed in November 2011. • Updated Construction and Right of Way estimates based on the Preliminary Design will be

available in December 2011 and March 2012, respectively.

Project Manager: Olivia Farr, P .E. (919) 733-7844 ext 253 ofarr@ncdot.gov

Additional US 17 Projects:

US 17 from Mills Street, Bridgeton to NC 43 (R-3403) Total cost: $67.9 million (US Surface Transportation) Unfunded: $33.1 million

• Environmental Assessment approved- June 3, 2002. • Finding of No Significant Impact (FONSI) approved- January 2005 • Addendum to FONSI approved- July 2005.

12

- ----~-- -------

li K y S ~Q J Q u MONDAY, APRIL 4, 2011, 5:00PM · I REGULAR MEETING

• RIW Acquisition Segment AA I AB - Completed late 2008 Segment B -Unfunded ($3 million)

• Utilities Segment B- Unfunded ($1.7 million) • Construction Segment AA- September 2010 (completion late 2012)

Segment AB- May 2010 (completion late 2012) Segment B -.:Unfunded ($28.4 million)

Action items Accomplished November- December 2910: • Construction activities continue for Segment AB (approximately 13% complete) and

Segment AA (approximately 6% complete).

Action items ~or January- March 2011: • · Construction on Segments AA and AB will continue.

Project Manager: Johnny Metcalfe, P.E., (252) 514-4759, jmetcalfe@ncdot.gov

US 17-74-76/NC 133 Widening<R-3601) Total cost: $18.9 million (National Highway System) Unfunded: $0

• Categorical Exclusion - September 2010 • Categorical Exclusion Addendum- July 2011 • RIW Acquisition- US FY 2012 • Construction- US FY 2013

Action items Accomplished November- December 2010: • Resolution by Wilmington area MPO TAC regarding Diverging Diamond Interchange

(DDI) alternative, adopted October 2010. • Met with Town of Bellville and property owners to discuss DDI alternative, November

2010.

Action items for January - March 2011: • Discuss proposed agreement with developers regarding acceleration of relocation of

Blackwell Road (service road)- January 2011. • Prepare for public hearing expected to be held in February 2011.

ProjectMana~er: Kristine O'Connor, (919) 733-7844 ext. 311, kaoconnor@ncdot.gov

Mr. Finlayson noted their budget is about 80 percent federal funds and 20 percent state funded.

Mr. Finlayson said there are a lot of policy initiatives in Raleigh that will affect us. There is a move to change the equity formula. Highway 17 Association needs a replacement for Stan White since he has moved into the Senate.

13

-r

MONDAY, APRIL 4, 2011, 5:00PM SK Y 6 liG 3 Q 5 REGULARMEETING

Commissioner Klemm asked of the 2010-11 budget funds how much was transferred from gas tax to the general fund. He also asked what county in their district did not support the Highway 17 Association.

Mr. Finlayson replied about $50 million was transferred. New Hanover County does not support the Highway 17 Association.

Commissioner Klemm said this type information is posted on their website. He asked what their total budget consists of.

Mr. Finlayson said their budget is about $200,000 that covers two staffers, overhead and professional services of a lobbyist and attorney.

Commissioner Cayton said Beaufort County is on record supporting no change in the equity fund formula. Eastern North Carolina cannot operate and build roads if the equity formula is changed. It is a statewide program. The gas tax in Texas is the only state that does a lower rate than North Carolina but they put it on the counties as does Georgia. We are a donor state on federal tax. We only ask for what we pay out to come back to us. Building roads in other states that do not have the gas tax rate will have us lose twice.

Chairman Langley thanked Mr. Finlayson for his most informative report.

SUPPORT FOR LIFTING THE CAP ON CHARTER SCHOOLS

Commissioner Deatherage stated Senate Bill #8 has already been passed and he is appreciative of this. He is asking that the Representatives go along with it as well. He feels it is best to allow this choice in schools and only a certain amount can get this choice. If the cap is lifted all will have that choice. We can offer a choice to parents and allow market forces to guide how we have our schools from now on.

Commissioner McRoy asked what is in SB#8 other than the charter schools.

Commissioner Deatherage replied just the schools.

Commissioner Booth asked Commissioner Deatherage not to play politics here that there is a problem with the resolution. They have not yet determined if counties will have to take care of capital improvements and who will own the schools if they fold on us.

Commissioner Deatherage said they don't know yet.

Commissioner Booth stated it depends on the way the bill is written.

Commissioner Deatherage stated we invest a lot in our schools.

14

~--·----

r I

I

u MONDAY, APRIL 4, 2011, 5:00PM BK 1 6 ~G 3 Q 6 REGULARMEETING

Commissioner Richardson said it is a question of capital funding in charter schools and it is up to the charter schools to have a place to hold school. There is no provision that the County provide capital for a charter school building. Charter schools generally rent space.

Commissioner McRoy ask~d if we currently budget for schools and a portion of that goes to charter schools.

The County Manager said that decision rests on the shoulders of the school board and they live by statutory obligation. They can shift funds to a charter school fund in county limited only to current expense not capital expense. ~

Commissioner McRoy asked if the County Manager could get a breakdown on how those funds are ·spent.

The County Manager said he was not familiar with the process but would be happy to pursue it as charter schools are generally well run and they will share that information with us.

Commissioner Klemm said there is much information on the school website about financial support allocation with breakdown with local, state and federal dollars. He said there is a lot of money invested in these schools. They should appear before the Board and tell us how they are doing and how they are supported.

Commissioner. Cayton said charter schools are the responsibility of the board of education and they have information on this. The first charter school in North Carolina was built in Pamlico County. There is no state funding in the building but the State is funding teachers. He said we need to be sure that the method the individual chose or enrolled are_ fair equitable and fair across the board also in innovation.

Commissioner Klemm requested the County Manager to get information regarding the Charter Schools to the Board.

On motion by Commissioner Deatherage, seconded by Commissioner Richardson, the Board voted adopting the following resolution regarding support for the Charter School bill as follows:

VOTING YES Richardson Cayton Deatherage McRoy Klemm

VOTING NO Langley Booth

Resolution in Support of the North Carolina Senate Bill 8 which Authorizes Lifting the Cap on Charter Schools

Whereas, the largest expense of the taxpaying citizens in North Carolina is Public Education, and,

15

---------,-------------------------------~~-----·-

~

SK u S 3

Q 7

MONDAY, APRIL 4, 2011,5:00 PM t ~G REGULAR MEETING

Whereas, the Department of Public Education in North Carolina has created a pr~duct that is diminished in its relative effectiveness to educate our children comparable to national and global competitive challenges, and,

Whereas, the taxpaying parents in North Carolina's school age children deserve a real choice in their children's primary and secondary education opportunities, and,

Whereas, the free will option of choice is the foundation of any free-market solution, and this real world solution should be considered as the viable alternative to the alternating whim of the central planners within the Department of Public Instruction, therefore,

Let it be resolved, that the Beaufort County Board of Commissioners do hereby resolve that they are in full support of the North Carolina Senate's SB 8 lifting the cap on Charter Schools, so that greater choice will be allocated to the parents of school age children, and we further request that the North Carolina House of Representatives work to also achieve similar success to provide greater choice as well.

The Chairman then called for a break in the meeting about 6:35. The Chairman reconvened the meeting at 7:00pm.

PUBLIC HEARING - CLOSE OUT OF 2008 CDBG COMMUNITY REVITALIZATION PROGRAM

On motion by Commissioner Cayton, seconded by Commissioner Deatherage, the Board voted unanimously to open a public hearing for comments on the close out of the 2008 CDBG Community Revitalization Program.

Chris Hilbert of Holland Consulting Planners, Inc. (Holland administered the grant) stated the purpose of the public hearing is to review the budget and activities that have been accomplished through the County's FY08 CDBG Community Revitalization Program (#08-C-1870 between Beaufort County and the Department of Commerce). This project is more familiarly known as the Middle Road Revitalization Project. The program activities are complete and the county is in the process of closing out the program. It included the following revenues:

C-1: Middle Road Revitalization Project CDBG Grant $850,000 General Fund $ 95,000 Metropolitan Housing and CDC $ 20.000 Total Project Resources $965,000

There were no comments.

On motion by Commissioner Deatherage, seconded by Commissioner Cayton, the Board voted unanimously to close the public hearing.

16

~-- ---~~------------------~------- --------------- -------------

SK y 6 JtG 3 Q 8 MONDAY, APRIL 4, 2011, 5:00 PM

REGULAR MEETING

2010 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) -SCATTERED SITE (SS) #10-C-2115

. Finance Officer Jim Chrisman introduced the 2010 Community Development Scattered Site Block Grant.

On motion by Commissioner Klemm, seconded by Commissioner Booth, the Board voted unanimously approving the following items regarding the 2010 CDBG Scattered Site grant #10-C-2115 as follows:

2010 CDBG SCATTERED SITE (SS) Site <;;rant #10-C-2115 Notification of Award - Resolution to Allow Chairman to Sign Grant and Funding Agreement - Resolution allowing Chairman to Sign Signatory Certification for Staff

to Requisition Funds Related to this Grant -Approve Project Ordinance Recognizing Total Project Spending of

$400,000 with no County Match

North Carolina Department of Commerce Community Investment and Assistance

Community Development Block Grant Program

Grant Agreement Scattered Site Housing (SSH)

Upon execution of this grant agreement, the North Carolina Department of Commerce (DOC) agrees to provide to Beaufort County, (_the "Recipient" and collectively with DOC, the "Parties"), Community Development Block Grant (CDBG) assistance under Title 1 of the Housing and Community Development Act of 1974, (P.L. 93-383), as amended, authorized (and subject to Recipient's compliance with) the DOC funding approval, the North Carolina Community Development Block .Grant administrative rules, other applicable laws, rules, regulations, and all other requirements of DOC now or hereafter in effect. The grant agreement is effective on the date the grant agreement and funding approval are signed by the Recipient. The grant agreement consists of the program guidelines and the approved application, including the certifications, maps, schedules and other submissions in the application, any subsequent amendments to this document or the approved application and funding approval and the following general term~ and conditions:

1. Definitions. Except to the extent modified or supplemented by the agreement, any term defined in the North Carolina Community Development Block Grant Administrative Rules, 4 NCAC 19L, shall have the same meaning when used herein.

17

(a)

(b)

(c)

(d)

(e)

BK Y 6 ~G 3 ·0 9 MONDAY, APRIL 4, 2011, 5:00 PM

REGULAR MEETING

Agreement means this grant agreement, as described above and any amendments or supplements thereto.

Recipient means Beaufort County, the entity designated as a recipient for grant assistance in the grant agreement and funding approval.

Certifications mean the certifications submitted with the grant application pursuant to the requirements of Paragraph (e) ofRule .0407 of the North Carolina Community Development Block Grant

Administrative Rules, 4 NCAC 19L.

"Assistance" or "Grant" means the grant funds provided under this Agreement from funds allocated to the State of North Carolina from the Federal Treasury through the CDBG and supporting laws, rules, requirements and regulations, in the amount of i 400,000 except as modified.

Program means the community development program, project, or other activities, including the administration thereof, for which assistance is being provided under this Agreement and which is described in the Recipient's approved application, as may be modified.

The date for receiving the grant means the date of the CI Director's signature on the Grant Agreement and Funding Approval

2. Timely Execution. Due to the need to expedite the use and expenditure of CDBG funds, Recipient's failure to execute and return a copy of the Agreement within 60 days of the date of the CI Director's signature on the Grant Agreement and Funding Approval may be deemed by DOC to determine the funds are available for reallocation to other subrecipients.

3. Obligations of the Recipient. The recipient shall perform the Program as specified in the application approved by DOC as may be amended with DOC approval. The Recipient hereby certifies that it will comply with all applicable federal and state laws, regulations, rules and Executive Orders, pursuant to Paragraph (e) of Rule .0407 of the North Carolina Community Development Block Grant Administrative Rules, 4 NCAC 19L. The Recipient shall also comply with all other lawful requirements of DOC, all applicable requirements of the General Statutes of the State ofNorth Carolina specifically N.C. G. S. 87-1-87-15.9 and any other applicable laws, rules, regulations, requirements, and Executive Orders currently or hereafter in force. Recipient is prohibited from any fraud, waste and abuse of CDBG funds by any person or entity. The rules contained in 4 N.C.A.C. 19L (as well as applicable federal rules and regulations) are part of the Agreement, except where specifically modified by applicable law, rule, regulation, DOC, the CDBG HUD Program Requirements and any subsequent amendments, regulations or clarifications to any of the foregoing.

18

MONDAY, APRIL 4, 2011, 5:00 PM BK Y 6 f!G 3 1 0 REGULARMEETING

Additionally, Recipient agrees to ensure compliance with respect to the Program and the Grant (and any of its proceeds) with all applicable federal and state laws, rules, regulations and requirements, including but not limited to the following (as each may be modified or amended): (1) the CDBG HUD Program Requirements; (2) Title I of the Housing and Community Development Act of 1974, as amended (42 U.S.C. 5301 et serf), (3) existing CDBG laws, rules, regulations and requirements, as may be amended, including those set forth in 24 C.F.R., Part 570; (4) North Carolina laws, rules, regulations and requirements; (5) DOC guidance and requirements regarding CDBG now or hereafter in effect, including but not limited to: DOC's CDBG Guidelines and Application Instructions, and DOC bulletins or other guidance documents; and ( 6) Recipient's own ) approved CDBG application to DOC, as may be amended with DOC approval.

4. Obligations of Recipient with Respect to Certain Third Partv Relationships. Recipient is responsible to DOC for ensuring compliance with the provisions of this Agreement and all applicable laws, rules, regulations and requirements, even when the recipient designates a third party or parties to undertake all or any part of the Program. The Recipient shall comply with all lawful requirements of DOC necessary to ensure that the program is carried out in accordance with the Recipient's certifications including but not limited to the certification of assumption of environmental responsibilities under Rule .1 004 of the North Carolina Community Development Block Grant Administrative Rules, 4 NCAC 19L. If the Recipient contracts with or designates a third party to undertake all or part of the Program, the Recipient's contract with the third party must require the third party to comply with this Agreement, all applicable laws, rules, regulations and requirements, including but not limited to the procurement standards set forth in 4 N.C. Administrative Code 19L .0908 as may be applicable.

Recipient shall likewise ensure that all subrecipient contracts regarding Grant funds or relating to the Program include all required contractual elements in order to be in ~ compliance with all Federal, State and local laws, including but not limited to the J provisions contained in 24 C.F.R. § 570.503, 24 C.F.R. § 85.37, and other provisions described throughout this Agreement, where applicable. In any event, the Recipient is liable to DOC and HUD for any improper expenditures, damage, loss or harm resulting from the failure of any person or entity to comply with any applicable law, rule, regulation or requirement regarding the Grant funds and/or the Program, including but not limited to an act or omission by a subrecipient or other third party. The Recipient agrees to periodically and rigorously monitor and audit its subrecipients and other third parties to ensure compliance with all applicable requirements.

Any subcontracts or subrecipient agreements entered into by the Recipient with Grant funds shall be subject to all terms and conditions of this Agreement. Payment of all subcontractors and subrecipients shall be the sole responsibility of the Recipient, and DOC shall not be obligated to pay for any work performed by any subcontractor or subrecipient. The Recipient shall be responsible for the performance of all subcontractors

19

---~---------r------------.--------------------- ------

'

MONDAY, APRIL 4, 2011, 5:00 PM flK Y 6 l\'C 3 11 REGULARMEETING

and subrecipients and shall not be relieved of any of the duties and responsibilities of this Agreement as a result of entering into subcontracts or subrecipient agreements.

5. Changes to Agreement. Recipient agrees that DOC may supplement or modify this Agreement as may be necessary to implement additional o~ modified Federal or State guidance regarding implementation of the CDBG program.

6. Conflict of Interest. Recipient agrees to comply with all applicable conflict of interest provisions, including but not limited to those found at 4 N.C.A.C. 19 L .0908 and .0914, N.C. Gen. Stat. § 14-234, 24 C.F.R. § 85.36, 24 C.F.R. § 570.489 (g) and (h), and 24 C.F.R. § 570.611, where applicable, copies of which may be obtained from DOC.

Except for eligible administrative or personnel costs, the general rule is that no persons described in the following sentence who exercise or have exercised any functions or responsibilities with respect to grant activities assisted under this Agreement or who are in a position to participate in a decision-making process or gain inside information with regard to such activities, may obtain a financial interest or benefit from a Grant-assisted activity, or have an interest or benefit from the activity, or have an interest in any contract, subcontract or agreement with respect thereto, or the proceeds there under, either for themselves or those with whom they have family or business ties, during their tenure or for one year thereafter. ·

The conflict of interest summary in the sentence above generally applies to any person who is an employee, agent, consultant, officer, or elected official or appointed official of the state, or of a unit of general local government, or of any designated public agencies, or Recipient or applicable third parties which are receiving CDBG grant funds. Recipient agrees to include these same prohibitions in all such contracts or subcontracts with any subrecipients or other third parties relating to the Program.

In any event, the Assistance provided under this Agreement shall not be used in the payment of any bonus or commission for the purpose of obtaining DOC approval of the 'application for such assistance, or .DOC approval of applications for additional assistance, or any other approval or concurrence of DOC required under this Agreement, or the North Carolina Community Development Block Grant Administrative Rules, with respect thereto; provided, however, that reasonable fees or bona fide technical, consultant, managerial or other such services, other than actual solicitation, are not prohibited if otherwise eligible as program costs and allowed by applicable law.

Ad~itionally, certain limited exceptions to the conflict of interest rules listed in 24 C.F.R. § 570.489 may be granted in writing by HUD and/or DOC upon written request and the provision of information specified in 24 C.F.R. § 570.489(11)00(4).

20

-------~------ ~--·-- ·-~-~-------

MONDAY, APRIL 4, 2011, 5:00 PM SK Y 6 P.G 3 1 2 REGULARMEETING

7. Reimbursement to DOC for Improper Expenditures. The Recipient will reimburse DOC for any amount of Grant assistance improperly expended, either deliberately or non-deliberately, by any person or entity. Additionally, a contract ·for administrative services shall include a clause holding the administrator organization responsible for reimbursement to the Recipient for any improperly expended grant funds that had to be returned to DOC.

& :Rtm.dlmi~ e c i p i e n t w i 11 m a i n t a i n a n y a n d a 11 r e c o r d s an d comply with all responsibilities as may be required under typical CDBG recordkeeping (for example, records and responsibilities set forth in 4 N.C.A.C. 19L.0911 ("Recordkeeping"), 24 C.F.R. 570.490 ("Recordkeeping Requirements"), 24 C.F.R. § 570.506 ("Records to be maintained") and 24 C.F.R. § 85.42 ("Retention and Access Requirements for Records") as each may be modified by HUD or DOC) as well as records and responsibilities related to CDBG or specifically to CDBG funds. Recipient agrees to comply with any additional record-keeping requirements now or hereinafter set forth by DOC, HUD or any other federal or state entity.

9. Access to Records. The Recipient shall provide any duly authorized representative of DOC, the State of North Carolina, the federal Department of Housing and Urban Development (HUD), and the Comptroller General, the Inspector General and other authorized parties at all reasonable times access to and the right to inspect, copy, monitor, and examine all of the books, papers, records, and other documents relating to the grant for a period of five years following the completion of all close-out procedures. All original files shall be maintained at the Local Government offices for access purposes.

10. Release of Personal, Financial and Identifying Information. To ensure and document compliance with CDBG income requirements as well as other matters, Recipient shall obtain and retain personal, income-related, financial, tax and/or related information from individuals and families that are benefitting from Grant or Program funds. Additionally, Recipient is obligated to provide access to any and all information relating to the Program to DOC, HUD or some other appropriate federal or state monitoring entity, upon DOC's request. This obligation includes, but is not limited to, the personal, fmancial and identifying information of individuals assisted by the Program. As such, Recipient shall obtain any releases or waivers from all individuals or entities necessary to ensure that this information can be properly and legally provided to appropriate federal and state entitie~, including DOC and HUD, without issue or objection by the individual or entity.

11. Proiect Savings. The Recipient is obligated to contribute 100 percent of its pledged cash · contribution on to the CDBG project even if the project experiences a savings after

authorized activities are completed. Any project savings accrue to the CDBG program. Substitution of in-kind contributions for cash is not allowed.

12. Expenditure of Non-CDBG Funds. The recipient must ensure that non-CDBG funds are

21

MONDAY, APRIL 4, 2011, 5:00PM BK Y 6 ~G 3 1 3 REGULARMEETING

expended along with CDBG funds, following the implementation schedule described in the approved application and modified by the Performance Contract (or otherwise with DOC approval), and shall report on non-CDBG expenditures with each Annual Performance Report, consistent with Section .1100 PERFORMANCE of the program regulations ( 4NCAC 19L) as well as any other applicable reporting requirements.

13. Method of Payment. The Department of Commerce uses the Office of State Controller (OSC) to make CDBG payments to units of local government. The Electronic Payment Form from OSC must be completed for funds to be electronically transferred. Arrangements must be made with the Finance Officer in the Division of Community Assistance if a Recipient does not want to use the electronic funds transfer.

14. Fair Housing. Recipients of CDBG funds are required to comply with fair housing and non-discrimination laws and regulations. Recipients should consult Section .1 001 of the CDBG administrative rules for further information on equal opportunity requirements. Recipients are required to submit a fair housing plan for its jurisdiction. Recipients with 10,000 persons or more will be required to complete an Analysis to Impediments to Fair Housing Choice Study. For each grant year that a CDBG project is active, a Recipient must describe the actions it will take in the areas of enforcement, education and removal of barriers and impediments to affirmatively further fair housing. Guidance for developing a Fair Housing Plan can be found in CI Bulletin 93-4 and the CDBG Implementation Notebook.

15. Equal Employment and Procurement Opportunity. A Recipient must describe the actions it will take annually while the grant is open in the areas of enforcement, education and removal of barriers and impediments that affirmatively further equal access in employment and procurement. This includes a description of steps to be taken in the areas of advertisement, compliance and complaint tracking. ·

16. Local Economic Benefit (Section 3 Regulation). For each year that a CDBG is active, the Recipient must describe a strategy whereby opportunities in employment and procurement arising out of a CDBG assisted project are identified and made available to low-income residents within the CDBG assisted area to the greatest extent feasible. This strategy must include (1) identification of training and technical assistance resources to prepare low­income residents for employment and procurement opportunities, (2) attempts to reach the numerical targets for new hires set forth in the Section 3 regulation, which applies to Recipients receiving $200,000 or more in non-administrative line items expended for construction contracts and (3) education of low-income residents within the CDBG assisted area about the components and opportunities of the program. In addition, Recipients will be required to coordinate additional activities as it relates to Section 3 with the DOC CDBG Compliance Office.

17. Section 50~ and ADA. Recipients must complete the Section 504 Survey and Transition Plan. This plan will not satisfy all the requirements of the Americans with Disabilities Act, but it will meet the minimum requirements for a CDBG assisted project.

22

-----~--~- ---,-------~--- ------·----~

S K Y 6 ~G 3 1 ~ MONDAY, APRIL 4, 2011, 5:00PM REGULAR MEETING

18. Environmental Review. Recipients of CDBG funds are required to complete the document entitled "Environmental Review Procedures for the CDBG Program." Once the Environmental Review Record (ERR) is received, CI will review for completeness and submit selected CDBG ERRs if required to the State Clearinghouse for other State agencies to review and comment. Recipients cannot conduct any program activities until CI issues an environmental clearance.

19. Language Access Plan (LAP). Recipients of Federal financial assistance have an obligation to reduce language barriers that can preclude meaningful access by Limited ~ English Proficient (LEP) persons to important government programs, services, and ) activities. Title VI of the Civil Rights Act of 1964, 42 U.S.C. 2000(d) and its implementing regulations require that Recipients take responsible steps to ensure meaningful access by LEP persons. Recipients will be required to submit a language access plan using the approved template from Cl. The plan will address the LAP policy, translation of required vital documents, and requirements f?r citizen participation.

20. Procurement Standards. Where applicable, Recipient shall follow the procurement standards established in the "Administrative Requirements for Grants and Cooperative Agreements to State, Local and Federally Recognized Indian Tribal Governments" (24 C.F.R., Part 85) and HUD implementing regulations contained in 24 C.F .R. S 570.489(g), which explicitly prohibit cost plus a percentage of cost and percentage of construction cost methods of contracting. 4 N.C.A.C. 19L.0908.

a.

b.

Any Recipient or Subrecipient shall follow other applicable procurement standards set forth in 4 N.C.A.C. 19E0908, and the relevant laws cited therein, including but not limited to, laws related to conflicts of interest (N.C.G.S. § 14-234), public building contracts (N.C.G.S. § 148-128 to 135), and payment and performance bonds (N.C.G.S. § 44A-25 tlnough 35); acquisition and relocation ( 4 N.C.A.C. 19L.1003); property management standards (4 N.C.A.C. 19L.0909); equal opportunity (4 N.C.A.C. 19L.1001); and labor standards (4 N.C.A.C. 19L.1006). Recipient shall likewise follow all other applicable federal and state procurement rules, guidelines and procedures, including those set forth in Office of Management and Budget Circular No. A-87 ("Cost Principles for State and Local Governments").

In any event, per 24 C.F.R. 570.489(g), all purchase orders and contracts shall include any clauses required by Federal statutes, executive orders and implementing regulations.

Additionally, Recipient acknowledges and agrees that, in its conduct under this Agreement and in connection with any and all expenditures of Grant funds made by it, Recipient, its officers, agents and employees shall be and are subject to the provisions of the North Carolina General Statutes and the North Carolina Administrative Code relating to and governing procurement, public contracts, suspension and debarment. Recipient further aclmowledges and agrees that, in the event that it grants any of the Grant funds awarded hereunder to one or more subrecipients or other applicable entities, Recipient shall, by contract, ensure that the provisions of all applicable laws relating to and governing

23

BK ~ 6 flQ 3 1 5 MONDAY, APRIL 4, 2011, 5:00 PM

REGULAR MEETING

procurement, public contracts, suspension and debarment are made applicable to and binding upon any and all subrecipients and/or other applicable entities.

21. Labor Standards. Recipient shall follow all applicable laws, rules and regulations concerning the payment. of wages, contract work hours, safety, health standards, and equal opportunity for CDBG-R programs, including but not limited to the rules set forth in 4 N.C.A.O 19L.1006, 24 C.F.R. § 570.603 and the following (as may be applicable to CDBG-R projects):

a. Davis-Bacon Act (40 U.S.C.A. 276a). Among other provisions, this act requires that prevailing local wage levels be paid to laborers and mechanics employed on certain construction work assisted with CDBG funds.

b. Contract Work Hours and Safety Standards Act (40 U.S.C.A. 327 through 333). Under this act, among other provisions, laborers and mechanics employed by contractors and subcontractors on construction work assisted with CDBG funds must receive overtime compensation at a rate not less than one and one-half the basic rate of pay for all hours worked in excess of forty hours in any workweek. Violators shall be liable for the unpaid wages and in addition for liquidated damages computed in respect to each laborer or mechanic employed in violation of the act.

c. Fair Labor Standards Act {29 U.S.C. 201 et seq.), requiring among other things that covered employees be paid at least the minimum prescribed wage, and also that they be paid one and one-half times their basic wage rate for all hours worked in excess of the prescribed work-week.

d. Federal anti-kickback laws (18 U.S.C. 874 and 40 U.S.C. 276). which, among other things, outlaws and prescribes criminal penalties for "kickbacks" of wages in federally financed or assisted construction activities. Weekly statements of compliance and weekly payrolls must be provided by all contractors and subcontractors.

Recipient agrees to maintain records regarding compliance with the laws and regulations cited in 4 N.C.A.C. 19L.1006 (including the citations listed above) in accordance with 4 N.C.A.C. 19L.0911.

All contracts between Recipient and third parties shall contain labor standards provisions as required in 4 N.C.A.C. 19L.1006.

22. Architectural Barriers. Per 4 N.C.A.C.19L.1007, 24 C.F.R. §§ 570.487 and 570.614 and other applicable law, all applicable buildings or facilities designed, constructed or altered with CDBG Grant funds shall be made accessible and useable to the physically handicapped as may be required by applicable laws, rules, regulations or requirements. Additionally, Recipient must comply with the following (as may be applicable to CDBG projects):

a. Architectural Barriers Act of 1968 (Pl. 90-480). This act requires Recipient to ensure that certain buildings constructed or altered with CDBG funds are readily accessible to the physically handicapped.

24

·····-·-····- ~~---~--· -~~-

BK ~ 6 p~ 3 1 ifoNDAY,APRIL4,2011,5:00PM REGULAR MEETING

b. Minimum Guidelines and Requirements for Accessible Design 36 C.F.R. Part 1190. These regulations establish guidelines for implementing the federal acts described in 4 N.C.A.C.19L.1007(1)(a). The regulations provide technical standards which must be met by Recipient.

c. Americans with Disabilities Act ["ADA"] and the ADA Accessibility Guidelines for Buildings and Facilities or the Uniform Federal Accessibility Standards.

d. North Carolina Building Code, Volume I, Chapter 11-X. These provisions describe minimum standards Recipient must meet in constructing or altering building and facilities, to make them accessible to and useable by the physically handicapped.

Change of Use of Real Propertv. Recipient agrees not to change the use or planned use of any property acquired with CDBG funds from that for which the acquisition or improvement was made, in accordance with this Agreement and applicable law, rule, regulation or requirement, unless (i) the DOC grants explicit written approval and (ii) the requirements of 24 C.F.R. § 570.4890), 24 C.F.R. § 570.505 and other applicable requirements are followed, as modified (or as may be modified) by HUD or DOC. ·

24. Obligation of Recipient With Regard to Vacant Units. The recipient shall ensure that all vacant units being rehabilitated will be occupied by a low or moderate income person by the time close-out occurs.

25. Utility Assessments or Fees: Assessments or fees to recover the CDBG funded portion of a utility project may be charged to properties not owned and occupied by low and moderate income persons. Such assessments are program income and, as such, must be used for eligible CDBG activities that meet a CDBG national objective.

False or Misleading Information. Recipient is advised that providing false, fictitious or misleading information with respect to CDBG funds may result in criminal, civil, or administrative prosecution under 18 U.S.C. § 1001, 18 U.S.C. § 1343, 31 U.S.C. § 3729, 31 U.S.C. § 3801, or another applicable statute, Recipient shall promptly refer to DOC and HUD's Office of the Inspector General any credible evidence that a principal, employee, agent, contractor, sub-grantee, subcontractor, or other person has submitted a false claim under the False Claims Act or has committed a criminal or civil violation of laws pertaining to fraud, conflict of interest, bribery, gratuity, or similar misconduct involving CDBGfunds.

27. Disputes with DOC. If Recipient has any disagreement or dispute with any action or inaction by DOC, Recipient shall inform DOC by letter addressed to Vickie L. Miller, Director, Department of Commerce - Division of Community Investment and Assistance, 4313 Mail Service Center, Raleigh, NC 27699-4313. The Division of Community Investment and Assistance ["CI"] will endeavor to respond in writing to said letter within 30 days from receipt. Recipient shall not be entitled to a hearing under Chapter 150B for matters described in N.C. Gen. Stat. § 150B(c)(8), added by N.C. Senate Bill 960,

25

SK Y 6 ~G 3 1 7 MONDAY, APRIL 4, 2011, 5:00 PM

REGULAR MEETING

including matters related to "contracts, disputes, protests, and/or claims arising out of or relating to the implementation of the [CDBG]." This includes actions arising out of or related to this Agreement or the Program.

Disputes or Complaints by Subrecipients or Other Entities. Recipient is responsible for developing, implementing and utilizing its own dispute resolution procedures with respect to disputes and/or complaints between and among Recipient, a Subrecipient, a contractor and/or any other person or entity (other than DOC). This includes (but is not limited to) procedures relating to procurement disputes or protests discussed in 24 C.F.R. 85.36. In the event of a dispute between and among Recipient, any Subrecipient, contractor and/or any other persons provide that, in the event that any party to such a dispute or complaint is dissatisfied with the final decision or other resolution provided by Recipient, the dissatisfied party shall appeal to the North Carolina Superior Court in an appropriate County for a trial de novo, to the extent that jurisdiction is proper pursuant to N.C. Gen. Stat. § 7 A-240 and other applicable law.

29. Schedules .W. Schedule for Release of Conditions and Completion Activities. The

Recipient must satisfy all Funding Approval Conditions to release CDBG funds within 3 months (June 14, 2011) from the date the Grant Agreement and Funding Approval were signed by the CI Director. The recipient must draw down all CDBG funds, expend all local non-CDBG funds and complete all project activities in conformance with the activities implementation schedule in the application as modified by the Performance Based Contract.

(b) The Recipient must obligate all funds within 27 months (June 14, 2013) from the date the Grant Agreement and Funding Approval are signed by CI Director.

(c) All funds are to be expended within 30 months (September 14, 2013) from the date the Grant Agreement and Funding Approval are signed by CI Director. Any remaining funds will be de- obligated. ·

(d) All closeout documents must be returned to CI by (December 14, 2013).

(e) Schedule for Submission of Compliance Documents. The Recipient must submit the following compliance documents within the specified number of months from the date the Grant Agreement and the Funding Approval were signed by the CI Director:

• Environmental- 3 months (June 14, 2011) • Equal Employment and Procurement Plan- 4 months (July 14, 2011) • Fair Housing- 4 months (July 14, 2011) • Section 3 Plan- 4 months (July 14, 2011) • Section 504 Plan- 4 months (Julyl4, 2011) • Language Access Plan- 4 months (July14, 2011) • Analysis of Impediments- 4 months (July 14, 2011)

26

MONDAY, APRIL 4, 2011, 5:00-PM SK ~ 6 ~G 3 1 ·a REGULARMEETING

• Request for Release of Funds- 5 months (August 14, 2011)

(f) Timely Draw down of Funds. Recipient is expected make timely draw downs so that funds are expended in a timely manner.

30. Quarterly Progress Report. Per Bulletin 094, Recipient shall ensure that a quarterly progress report that reflects approved CDBG program activity progress and CDBG financial status is presented to Recipient's elected board and a copy of that report, endorsed by the Chief Elected Official or the county/city/town manager will be provided to DOC not later than ~-.· the tenth (lOth) day of the month following the ending month of the reporting period. )

31. Performance Measures The CPD Performance Measurement System is HUD's response to the standards set by the Government Performance and Results Act (GPRA) of 1993. This act holds all Federal agencies accountable for establishing goals and objectives and measuring achievements. Official or the county/city/town manager will be provided to DOC not later than the tenth (10111

)

day of the month following the ending month of the reporting period.

31. Performance Measures The CPD Performance Measurement System is HUD's response to the standards set by the Government Performance and Results Act (GPRA) of 1993. This act holds all Federal agencies accountable for establishing goals and objectives and measuring achievements.

(a) The recipient must ensure that all activities in the funded project(s) meet the appropriate objectives, outcomes, and indicators established by HUD and selected by DOC. CDBG funds cannot be used to pay for any activity that does not meet the above requirement.

(b) The recipient must also assist DOC, when requested, in collecting indicators· and any other· data necessary to fulfill the requirements of the CPD Performance Measures System, which includes data for the Integrated Disbursement and Information "-.,,, System (IDIS). )

Upon execution of this agreement by DOC and the Recipient, the Recipient hereby accepts the · assistance on the terms of this grant agreement effective on the date indicated below, and further certifies that the official signing this document has been duly authorized by the recipient's governing body to execute this Grant Agreement.

Date: 3114/2011

Secretary of the Department of Commerce

Vickie L. Miller Director

27

" ~

MONDAY, APRIL 4, 2011, 5:00 PM BK ~ 6 lUG 3 1 '9 REGULARMEETING

· Community Investment and Assistance

Date: ------Name of Recipient

By: Signature of Authorized Official

{Title)

SIGNATORY FORM AND CERTIFICATION

Recipient Name Address

Beaufort County 121 West 3rd St Washington, NC 27889

Gr;:mt N11mhAr1 O-G-211!i __ _

Signatures of individuals authorized to sign Requisitions for CDBG Funds forms. (Two signatures required on such regulation)

Jim Chrisman Finance Officer

Angela Andrew Acct. Specialist II

Sharon Singleton Clerk to Board

Paul Spruill County Manager

I certify that the signatures above are of the individuals authorized to sign Requisition for CDBG Funds form for the above recipient.

Chairman lSianature of Certifvina Official) llJRed

(X) The governing board has passed a resolution authorizing the persons above to sign Requisition for CDBG Funds forms for the above recipient. A Copy of the resolution is attached.

I certify that the signatures above are those of individuals authorized by resolution of the governing board of the recipient to sign Requisition for Funds forms.

~---'---- ----~-

(Sianature of Certifvina Official)

28

Chairman __ ITYP.ed

--~------ --~---- ~----

SK y 6 JiG 3 2 Q MONDAY, APRIL 4, 2011,5:00 PM REGULAR MEETING

BEAUFORT COUNTY FY10 COMMUNITY DEVELOPMENT BLOCK GRANT

2010 SCATTERED SITE 10-C-2115 PROJECT ORDINANCE

Be it ordained by the Board of Commissioners of Beaufort County, North Carolina, that pursuant to Section 13.2 of Chapter 159 of the General Statutes of North Carolina, the following grant ~ ... project ordinance is hereby adopted: y

Section 1. The project authorized is the FY10 Community Development Block Grant Scattered Site project described in the work statement contained in the grant agreement (#10-C-2115) between Beaufort County and the North Carolina Department of Commerce. This project is more familiarly known as the 2010 Scattered Site Project.

Section 2. The Beaufort County staff is hereby directed to proceed with the grant project within the terms of the grant document(s), the rules and regulations of the Department of Commerce, and the budget contained herein.

Section 3. The following revenues and resources are anticipated to be available to complete the project activities:

C-1: 2010 Scattered Site Project Revenues

Total Project Resources

CDBG Grant 10-C-2115 $400.000

$400,000

Section 4. The following amounts are appropriated for the project activities:

C-1: 2010 Scattered Site Project Expenses

Project Budget $400,000

Section 5. The Grant Finance Officer is hereby directed to maintain within the Grant Project Fund sufficient specific detailed accounting records to provide the accounting to the North Carolina Department of Commerce required by the grant agreement(s) and federal and state regulations.

Section 6. Funds may be advanced from the General Funds for the purpose of making payments as due. Reimbur~ement requests should be made to the North Carolina Department of Commerce in an orderly and timely manner.

29

r

B K y 6 ~G 3 2 1 MONDAY, APRIL 4, 2011, 5:00PM REGULAR MEETING

Section 7. The Grant Finance Officer is directed to report quarterly on the financial status of each project element in Section 4 and on the total grant revenues received or claimed.

Section 8. The Grant Finance Officer is directed to include a detailed analysis of past and future costs and revenues on this grant project in every budget submission made to this board.

Section 9. Copies of this grant project. ordinance shall be made available to the Grant Finance Officer for direction in carrying out this project.

Adopted this 4th day of April, 2011.

Jerry Langley, Chairman Beaufort County Board of Commissioners ATTEST

Sharon Singleton, Clerk to the Board

2010 COMMUNITY DEVELOPMENT ECONOMIC RECOVERY (ER) BLOCK GRANT #10-C- 2136

Finance Officer Jim Chrisman introduced the 2010 Community Development Economic Recovery Block Grant.

On motion by Commissioner Klemm, seconded by Commissioner Cayton, the Board voted unanimously approving the 2010 CDBG Economic Recovery Grant #10-C-2136 as follows:

2010 CDBG ECONOMIC RECOVERY (ER) Grant #10-C-2136 Notification of Award - Resolution to Allow Chairman to Sign Grant and Funding Agreement - Resolution Allowing Chairman to Sign Signatory Certification for Staff

to Requisition Funds Related to this Grant -Approve Project Ordinance Recognizing Total Project Spending of

$500,000 with no County Match

North Carolina Department of Commerce Community Investment and Assistance

Community Development Block Grant Program

Grant Agreement North Carolina Economic Recovery (ER)

30

8 K u 6 3 2

~ONDAY, APRIL 4, 2011, 5:00PM J ~G ~ REGULAR MEETING

Upon execution of this grant agreement, the North Carolina Department of Commerce (DOC) agrees to provide to Beaufort County,,_{ the "Recipient" and collectively with DOC, the "Parties"), Community Development Block Grant (CDBG) assistance under Title I of the Housing and Community Development Act of 1974, (P.L. 93-383), as amended, authorized (and subject to Recipient's compliance with) the DOC funding approval, the North Carolina Community Development Block Grant administrative rules, other applicable laws, rules, regulations, and all other requirements of DOC now or hereafter in effect. The grant agreement is effective on the date the grant agreement and funding approval are signed by the Recipient. The grant agreement consists of the program guidelines and the approved application, including the ) certifications, maps, schedules and other submissions in the application, any subsequent amendments to this document or the approved application and funding approval and the following general terms and conditions:

1. Definitions. Except to the extent modified or supplemented by the agreement, any term defined in the North Carolina Community Development Block Grant Administrative Rules, 4 NCAC 19L, shall have the same meaning when used herein.

(a) Agreement means this grant agreement, as described above and any amendments or supplements thereto.

(b) Recipient means Beaufort County, the entity designated as a recipient for grant assistance in the grant agreement and funding approval.

(c) Certifications mean the certifications submitted with the grant application pursuant to the requirements of Paragraph (e) of Rule .0407 .of the North Carolina Community Development Block Grant Administrative Rules, 4 NCAC ·19L.

(d) "Assistance" or "Grant" means the grant funds provided under this Agreement from funds allocated to the State of North Carolina from the Federal Treasury through the CDBG and supporting laws, rules, requirements and regulations, in the amount of $ 500,000 except as modified.

Program means the community development program, project, or other activities, including the administration thereof, for which assistance is being provided under this Agreement and which is

(f) The date for receiving the grant means the date of the CI Director's signature on the Grant Agreement and Funding Approval.

2. Timely Execution. Due to the need to expedite the use and expenditure of CDBG funds, Recipient's failure to execute and return a copy of the Agreement within 60 days of the date of the CI Director's signature on the Grant Agreement and Funding Approval may be deemed by DOC to determine the funds are available for reallocation to other subrecipients.

31

" ""

3.

4.

2 3 MONDAY, APRIL 4, 2011, 5:00PM

SK Y 6 ~·G 3 REGULAR MEETING

Obligations of the Recipient. The recipient shall perform the Program as specified in the application approved by DOC as may be amended with DOC approval. The Recipient hereby certifies that it will comply with all applicable federal and state laws, regulations, rules and Executive Orders, pursuant to Paragraph (e) of Rule .0407 of the North Carolina Community Development Block Grant Administrative Rules, 4 NCAC 19L. The Recipient shall also comply with all other lawful requirements of DOC, all applicable requirements of the General Statutes of the State of North Carolina specifically N.C. G. S. 87-1-87-15.9 and any other applicable laws, rules, regulations, requirements, and Executive Orders currently or hereafter in force. Recipient is prohibited from any fraud, waste and abuse of CDBG funds by any person or entity. The rules contained in 4 N.C.A.C. 19L (as well as applicable federal rules and regulations) are part of the Agreement, except where specifically modified by applicable law, rule, regulation, DOC, the CDBG HUD Program Requirements and any subsequent amendments, regulations or clarifications to any of the foregoing.

Additionally, Recipient agrees to ensure compliance with respect to the Program and the Grant (and any of its proceeds) with all applicable federal and state laws, rules, regulations and requirements, including but not limited to the following (as each may be modified or amended): (1) the CDBG HUD Program Requirements; (2) Title I of the Housing and Community Development Act of 1974, as amended {42 U.S.C. 5301 et seq), (3) existing CDBG laws, rules, regulations and requirements, as may be amended, including those set forth in 24 C.F.R., Part 570; (4) North Carolina laws, rules, regulations and requirements; (5) DOC guidance and requirements regarding CDBG now or hereafter in effect, including but not limited to: DOC's CDBG Guidelines and Application Instructions, and DOC bulletins or other guidance documents; and ( 6) Recipient's own approved CDBG application to DOC, as may be amended with DOC approval.

Obligations of Recipient with Respect to Certain Third Party Relationships. Recipient is responsible to DOC for ensuring compliance with the provisions of this Agreement and all applicable laws, rules, regulations and requirements, even when the recipient designates a third party or parties to undertake all or any part of the Program. The Recipient shall comply with" all lawful requirements of DOC necessary to ensure that the program is carried out in accordance with the Recipient's certifications including but not limited to the certification of assumption of environmental responsibilities under Rule .1 004 of the North Carolina Community Development Block Grant Administrative Rules, 4 NCAC 19L. If the Recipient contracts with or designates a third party to undertake all or part of the Program, the Recipient's contract with the third party must require the third party to comply with this Agreement, all applicable laws, rules, regulations and requirements, including but not limited to the procurement standards set forth in 4 N.C. Administrative Code 19L .0908 as may be applicable to the procurement standards set forth in 4 N.C. Administrative Code 19L .0908 as may be applicable.

Recipient shall likewise ensure that all subrecipient contracts regarding Grant funds or relating to the Program include all required contractual elements in order to be in

32

-------~-- ---------- --~- "-------- --

BK ~ 6 ~C 3 2 ~ MONDAY, APRIL 4, 2011, 5:00 PM

REGULAR MEETING

compliance with all Federal, State and local laws, including but not limited to the provisions contained in 24 C.F.R. § 570.503, 24 C.F.R. § 85.37, and other provisions described throughout this Agreement, where applicable. In any event, the Re.cipient is liable to DOC and HUD for any improper expenditures, damage, loss or harm resulting from the failure of any person or entity to comply with any applicable law, rule, regulation or requirement regarding the Grant funds and/or the Program, including but not limited to an act or omission by a subrecipient or other third party. The Recipient agrees to periodically and rigorously monitor and audit its subrecipients and other third parties to ensure compliance with all applicable requirements.

Any subcontracts or subrecipient agreements entered into by the Recipient with Grant funds shall be subject to all terms and conditions of this Agreement. Payment of all subcontractors and subrecipients shall be the sole responsibility of the Recipient, and DOC shall not be obligated to pay for any work performed by any subcontractor or subrecipient. The Recipient shall be responsible for the performance of all subcontractors and subrecipients and shall not be relieved of any of the duties and responsibilities of this Agreement as a result of entering into subcontracts or subrecipient agreements.

5. Changes to Agreement. Recipient agrees that DOC may supplement or modify this Agreement as may be necessary to implement additional or modified Federal or State guidance regarding implementation of the CDBG program.

6. Conflict of Interest. Recipient agrees to comply with all applicable conflict of interest provisions, including but not limited to those found at 4 N.C.A.C. 19 L .0908 and .0914, N.C. Gen. Stat. § 14-234, 24 C.F.R. § 85.36, 24 C.F.R. § 570.489 (g) and (h), and 24 C.F.R. § 570.611, where applicable, copies of which may be obtained from DOC.

Except for eligible administrative or personnel costs, the general rule is that no persons ~ .. described in the following sentence who exercise or have exercised any functions or y responsibilities with respect to grant activities assisted under this Agreement or who are in a position to participate in a decision-making process or gain inside information with regard to such activities, may obtain a financial interest or benefit from a Grant-assisted activity, or have an interest or benefit from the activity, or have an interest in any contract, subcontract or agreement with respect thereto, or the proceeds there under, either for themselves or those with whom they have family or business ties, during their tenure or for one year thereafter.

The conflict of interest summary in the sentence above generally applies to any person who is an employee, agent, consultant, officer, or elected official or appointed official of the state, or of a unit of general local government, or of any designated public agencies, or Recipient or applicable third parties which are receiving CDBG grant funds.

33

MONDAY, APRIL 4, 2011, 5:00 PM BK Y 6 ~G 3 2 5 REGULARMEETING

Recipient agrees to include these same prohibitions in all such contracts or subcontracts with any subrecipients or other third parties relating to the Program.

In any event, the Assistance provided under this Agreement shall not be used in the payment of any bonus or commission for the purpose of obtaining DOC approval of the application for such assistance, or DOC approval of applications for additional assistance, or any other approval or concurrence of DOC required under this Agreement, or the North Carolina Community Development Block Grant Administrative Rules, with respect thereto; provided, however, that reasonable fees or bona fide technical, consultant, managerial or other such services, other than actual solicitation, are not prohibited if otherwise eligible as program costs and allowed by applicable law.

Additionally, certain limited exceptions to the conflict of interest rules listed in 24 C.F.R. § 570.489 may be granted in writing by HUD and/or DOC upon written request and the provision of information specified in 24 C.F.R. § 570.489(h)(ii)(4).

7. Reimbursement to DOC for Improper Expenditures. The Recipient will reimburse DOC for any amount of Grant assistance improperly expended, either deliberately or non­deliberately, by any person or entity. Additionally, a contract for administrative services shall include a clause holding the administrator organization responsible for reimbursement to the Recipient for any improperly expended grant funds that had to be returned to DOC.

8. Recordkeeping Requirements. Recipient will maintain any and all records and comply with all responsibilities as may be required under typical CDBG recordkeeping (for example, records and responsibilities set forth in 4 N.C.A.C. 19L.0911 ("Recordkeeping"), 24 C.F.R. 570.490 ("Recordkeeping Requirements"), 24 C.F.R. § 570.506 ("Records to be maintained") and 24 C.F.R. § 85.42 ("Retention and Access Requirements for Records") as each may be modified by HUD or DOC) as well as records and responsibilities related to CDBG or specifically to CDBG funds. Recipient agrees to comply with any additional record-keeping requirements now or hereinafter set forth by DOC, HUD or any other federal or state entity.

9. Access to Records. The Recipient shall provide any duly authorized representative of DOC, the State of North Carolina, the federal Department of Housing and Urban Development (HUD), and the Comptroller General, the Inspector General and other authorized parties at all reasonable times access to and the right to inspect, copy, monitor, and examine all of the books, papers, records, and other documents relating to the grant for a period of five years following the completion of all close-out procedures. All original files shall be maintained at the Local Government offices for access purposes.

10. Release of Personal. Financial and Identifying Information. To ensure and document compliance with CDBG income requirements as well as other matters, Recipient shall obtain and retain personal, income-related, financial, tax and/or related information

34

~------ -------------- ---- ---~- . ---. -------------------------

BK Y 6 ~Q 3 2 6 MONDAY, APRIL 4, 2011, 5:00PM

REGULAR MEETING

from individuals and families that are benefitting from Grant or Program funds. Additionally, Recipient is obligated to provide access to any and all information relating to the Program to DOC, HUD or some other appropriate federal or state monitoring entity, upon DOC's request. This obligation includes, but is not limited to, the personal, fmancial and identifying information of individuals assisted by the Program. As such, Recipient shall ·obtain any releases or waivers from all individuals or entities necessary to ensure that this information can be properly and legally provided to appropriate federal and state entities, including DOC and HUD, without issue or objection by the individual or entity.

11. Project Savings. The Recipient is obligated to contribute 100 percent of its pledged cash ) contribution to the CDBG project even if the project experiences a savings after authorized activities are completed. Any project savings accrue to the CDBG program. Substitution of in-kind contributions for cash is not allowed.

12. Expenditure of Non-CDBG Funds. The recipient must ensure that non-CDBG funds are expended along with CDBG funds, following the implementation schedule described in the approved application and modified by the Performance Contract (or otherwise with DOC approval), and shall report on non-CDBG expenditures with each Annual Performance Report, consistent with Section .1100 PERFORMANCE of the program regulations (4NCAC 19L) as well as any other applicable reporting requirements.

13. Method of Payment. The Department of Commerce uses the Office of State Controller (OSC) to make CDBG payments to units of local government. The Electronic Payment Form from OSC must be completed for funds to be electronically transferred. Arrangements must be made with the Finance Officer in the Division of Community Assistance if a Recipient does not want to use the electronic funds transfer.

14. Fair Housing. Recipients of CDBG funds are required to comply with fair housing and non-discrimination laws and regulations. Recipients should consult Section .1 001 of the CDBG administrative rules for further information on equal opportunity requirements. Recipients are required to submit a fair housing plan for its jurisdiction. Recipients with ~ 10,000 persons or more will be required to complete an Analysis to Impediments to Fair Housing Choice Study. For each grant year that a CDBG project is active, a Recipient must describe the actions it will take in the areas of enforcement, education and removal of barriers and impediments to affirmatively further fair housing. Guidance for developing a Fair Housing Plan can be found in CI Bulletin 93-4 and the CDBG Implementation Notebook.

15. Equal Employment and Procurement Opportunitv. A Recipient must describe the actions it will take annually while the grant is open in the areas of enforcement, education and removal of barriers and impediments that affirmatively further equal access in employment and procurement. This includes a description of steps to be taken in the areas of advertisement, compliance and complaint tracking.

35

6 K y 6 ~~ 3 2 1 MONDAY, APRIL 4, 2011, 5:00 PM REGULAR MEETING

16. Local Economic Benefit (Section 3 Regulation). For each year that a CDBG is active, the Recipient must describe a strategy whereby opportunities in employment and procurement arising out of a CDBG assisted project are identified and made available to low­income residents within the CDBG assisted area to the greatest extent feasible. This strategy must include (1) identification of training and technical assistance resources to prepare low-income residents for employment and procurement opportunities, (2) attempts to reach the numerical targets for new hires set forth in the Section 3 regulation, which applies to Recipients receiving $200,000 or more in non­administrative line items expended for construction contracts and (3) education of low­income residents within the CDBG assisted area about the components and opportunities of the program.

In addition, Recipients will be required to coordinate additional activities as it relates to Section 3 with the DOC CDBG Compliance Office.

17. Section 504 and ADA. Recipients must complete the Section 504 Survey and Transition Plan. This plan will not satisfy all the requirements of the Americans with Disabilities Act, but it will meet the minimum requirements for a CDBG assisted project.

18. Environmental Review. Recipients of CDBG funds are required to complete the document entitled "Environmental Review Procedures for the CDBG Program." Once the Environmental Review Record (ERR) is received, CI will review for completeness and submit selected CDBG ERRs if required to the State Clearinghouse for other State agencies to review and comment. Recipients cannot conduct any program activities until CI issues an environmental clearance.

19. Language Access Plan (LAP). Recipients of Federal financial assistance have an obligation to reduce language barriers that can preclude meaningful access by Limited English Proficient (LEP) persons to important government programs, services, and activities. Title VI of the Civil Rights Act of 1964, 42 U.S.C. 2000( d) and its implementing regulations require that Recipients take responsible steps to ensure meaningful access by LEP persons. Recipients will be required to submit a language access plan using the approved template from Cl. The plan will address the LAP policy, translation of required vital documents, and requirements for citizen participation.

20. Procurement Standards. Where applicable, Recipient shall follow the procurement standards established in the "Administrative Requirements for Grants and Cooperative Agreements to State, Local and Federally Recognized Indian Tribal Governments" (24 C.F.R., Part 85) and HUD implementing regulations contained in 24 C.F .R. § 570.489(g), which explicitly prohibit cost plus a percentage of cost and percentage of construction cost methods of contracting. 4 N.C.A.C. 19L.0908.

a. Any Recipient or Subrecipient shall follow other applicable procurement standards set forth in 4 N.C.A.C. 19L.0908, and the relevant laws cited therein, including but not limited to, laws related to conflicts of interest (N.C.G.S. § 14-

36

---~--------~-----·----·--------- -~---- ----

b.

BK ~ 6 PG_ 3 2 8 MONDAY, APRIL 4, 2011,5:00 PM

REGULAR MEETING

234), public building contracts (N.C.G.S. § 148-128 to 135), and payment and performance bonds (N.C.G.S. § 44A-25 through 35); acquisition and relocation ( 4 N.C.A.C. 19L.1003); property management standards (4 ·N.C.A.C. 19L.0909); equal opportunity (4 N.C.A.C. 19L.l001); and labor standards (4 N.C.A.C. 19L.1006). Recipient shall likewise follow all other applicable federal and state procurement rules, guidelines and procedures, including those set forth in Office of Management and Budget Circular No. A-87 ("Cost Principles for State and Local Governments").

In any event, per 24 C.F .R. 570.489(g), all purchase orders and contracts shall include any clauses required by Federal statutes, executive orders and implementing regulations.

Additionally, Recipient acknowledges and agrees that, in its conduct under this Agreement and in connection with any and all expenditures of Grant funds made by it, Recipient, its officers, agents and employees shall be and are subject to the provisions of the North Carolina General Statutes and the North Carolina Administrative Code relating to and governing procurement, public contracts, suspension and debarment. Recipient further acknowledges and agrees that, in the event that it grants any of the Grant funds awarded hereunder to one or more subrecipients or other applicable entities, Recipient shall, by contract, ensure that the provisions of all applicable laws relating to and governing procurement, public contracts, suspension and debarment are made applicable to and binding upon any and all subrecipients and/or other applicable entities.

21. Labor Standards. Recipient shall follow all applicable laws, rules and regulations concerning the payment of wages, contract work hours, safety, health standards, and equal opportunity for CDBG-R programs, including but not limited to the rules set forth in 4 N.C.A.O 19L.1006, 24 C.F.R. § 570.603 and the following (as may be applicable to CDBG-R projects):

a. Davis-Bacon Act (40 U.S.C.A. 276a). Among other provisions, this act requires that prevailing local wage levels be paid to laborers and mechanics employed on certain ~ construction work assisted with CDBG funds. ·

b. Contract Work Hours and Safety Standards Act (40 U.S.C.A. 327 through 333). Under this act, among other provisions, laborers and mechanics employed by contractors and subcontractors on construction work assisted with CDBG funds must receive overtime compensation at a rate not less than one and one-half the basic rate of pay for all hours worked in excess of forty hours in any workweek. Violators shall be liable for the unpaid wages and in addition for liquidated damages computed in respect to each laborer or mechanic employed in violation of the act.

c. Fair Labor Standards Act (29 U.S.C. 201 et seq.), requiring among other things that covered employees be paid at least the minimum prescribed wage, and also that they be paid one and one-half times their basic wage rate for all hours worked in excess of the prescribed work-week.

d. Federal anti-kickback laws (18 U.S.C. 874 and 40 U.S.C. 276), which, among other

37

MONDAY, APRIL 4, 2011, 5:00PM BK Y 6 ~C 3 2 9 REGULARMEETING

things, outlaws and prescribes criminal penalties for "kickbacks" of wages in federally financed or assisted construction activities. Weekly statements of complianc~ and weekly payrolls must be provided by all contractors and subcontractors.

Recipient agrees to maintain records regarding compliance with the laws and regulations cited in 4 N.C.A.C. 191.1006 (including the citations listed above) in accordance with 4 N.C.A.C. 19L.0911.

(" All contracts between Recipient and third parties shall contain labor standards provisions as required in 4 N.C.A.C. 191-1006.

". \

22. Architectural Barriers. Per 4 N.C.A.C.19L.1007, 24 C.F.R. §§ 570.487 and 570.614 and other applicable law, all applicable buildings or facilities designed, constructed or altered with CDBG Grant funds shall be made accessible and useable to the physically handicapped as may be required by applicable laws, rules, regulations or requirements. Additionally, Recipient must comply with the following (as may be applicable to CDBG projects):

a. Architectural Barriers Act of 1968 (P .L. 90-480). This act requires Recipient to ensure that certain buildings constructed or altered with CDBG funds are readily accessible to the physically handicapped.

b. Minimum Guidelines and Requirements for Accessible Design 36 C.F .R. Part 1190. These regulations establish guidelines for implementing the federal acts described in 4 N.C.A.C.19L.1007(1)(a). The regulations provide technical standards which must be met by Recipient.

c. Americans with Disabilities Act ["ADA"] and the ADA Accessibility Guidelines for Buildings and Facilities or the Uniform Federal Accessibility Standards.

d. North Carolina Building Code, Volume I, Chapter 11-X. These provisions describe minimum standards Recipient must meet in constructing or altering building and facilities, to make them accessible to and useable by the physically handicapped.

Change of Use of Real Property. Recipient agrees not to change the use or planned use of any property acquired with CDBG funds from that for which the acquisition or improvement was made, in accordance with this Agreement and applicable law, rule, regulation or requirement, unless (i) the DOC grants explicit written approval and (ii) the requirements of 24 C.P.R. § 570.4890), 24 C.P.R. § 570.505 and other applicable requirements are followed, as modified (or as may be modified) by HUD or DOC.

Obligation of Recipient With Regard to Vacant Units. The recipient shall ensure that all vacant units being rehabilitated will be occupied by a low or moderate income person by the time close-out occurs.

Utility Assessments or Fees: Assessments or fees to recover the CDBG funded portion of a

38

BK ~ 6 ~Q 3 3 0 MONDAY, APRIL 4, 2011, 5:00PM

REGULAR MEETING

utility project may be charged to properties not owned and occupied by low and moderate income persons. Such assessments are program income and, as such, must be used for eligible CDBG activities that meet a CDBG national objective.

26. False or Misleading Information. Recipient is advised that providing false, fictitious or misleading information with respect to CDBG funds may result in criminal, civil, or administrative prosecution under 18 U.S.C. § 1001, 18 U.S.C. § 1343, 31 U.S.C. § 3729, 31 U.S.C. § 3801, or another applicable statute. Recipient shall promptly refer to DOC and HUD's Office of the Inspector General any credible evidence that a principal, employee, agent, contractor, sub-grantee, subcontractor, or other person has submitted a " false claim under the False Claims Act or has committed a criminal or civil violation of .._/ laws pertaining to fraud, conflict of interest, bribery, gratuity, or similar misconduct involving CDBG funds.

27. Disputes with DOC. If Recipient has any disagreement or dispute with any action or inaction by DOC, Recipient shall inform DOC by letter addressed to Vickie L. Miller, Director, Department of Commerce - Division of Community Investment and Assistance, 4313 Mail Service Center, Raleigh, NC 27699-4313. The Division of Community Investment and Assistance ["CI"] will endeavor to respond in writing to said letter within 30 days from receipt. Recipient shall not be entitled to a hearing under Chapter 150B for matters described in N.C. Gen. Stat. § 150B(c)(8), added by N.C. Senate Bill 960, including matters related to "contracts, disputes, protests, and/or claims arising out of or relating to the implementation of the [CDBG]." This includes actions arising out of or related to this Agreement or the Program.

28. Disputes or Complaints by Subrecipients or Other Entities. Recipient is responsible for developing, implementing and utilizing its own dispute resolution procedures with respect to disputes and/or complaints between and among Recipient, a Subrecipient, a contractor and/or any other person or entity (other than DOC). This includes (but is not limited to) procedures relating to procurement disputes or protests discussed in 24 C.P.R. 85.36. In the event of a dispute between and among Recipient, any Subrecipient, contractor and/or any other persons or entities (not including .DOC), Recipient shall make every effort to resolve the dispute pursuant to its own dispute resolution procedures and shall issue a final decision on the provide that, in the event that any party to such a dispute or complaint is dissatisfied with the final decision or other resolution provided by Recipient, the dissatisfied party shall appeal to the North Carolina Superior Court in an appropriate County for a trial de novo, to the extent that jurisdiction is proper pursuant to N.C. Gen. Stat.§ 7A-240 and other applicable law.

29. Schedules .(g) Schedule for Release of Conditions and Completion Activities. The Recipient must

satisfy all Funding Approval Conditions to release CDBG funds within 3 months (June 14, 2011) from the date the Grant Agreement and Funding Approval were

39

MONDAY, APRIL 4, 2011,5:00 PM flK ~ 6 ~G 3 3 '1 REGULAR MEETING

signed by the CI Director. The recipient must draw down all CDBG funds, expend all local non-CDBG funds and complete all project activities in conformance with the activities implementation schedule in the application as modified by the Performance Based Contract.

(b) The Recipient must obligate all funds within 27 months (June 14, 2013) from the date the Grant Agreement and Funding Approval are signed by CI Director.

(c) AU funds are to be expended within 30 months (September 14, 2013) from the date the Grant Agreement and Funding Approval are signed by CI Director. Any remaining funds will be de- obligated.

(d) All closeout documents must be returned to CI by (December 14, 2013).

(e) Schedule for Submission of Compliance Documents. The Recipient must submit the following compliance documents within the specified number of months from the date the Grant Agreement and the Funding Approval were signed by the CI Director:

• Environmental- 3 months (June 14, 2011) • Equal Employment and Procurement Plan- 4 months (July 14, 2011) • Fair Housing 4 months (July 14, 2011) • Section 3 Plan 4 months (July 14, 2011)

• Section 504 Plan- 4 months (July14, 2011) • Language Access Plan- 4 months (July14, 2011)

• Analysis of Impediments- 4 months (July 14, 2011) • Request for Release of Funds- 5 months (August 14, 2011)

(f) Timely Draw down of Funds. Recipient is expected make timely draw downs so that funds are expended in a timely manner.

30. Quarterly Progress Report. Per Bulletin 09-1, Recipient shall ensure that a quarterly progress report that reflects approved CDBG progran1 activity progress and CDBG financial status is presented to Recipient's elected board and a copy of that report, endorsed by the Chief Elected Official or the county/city/town manager will be provided to DOC not later than the tenth (lOth) day of the month following the ending month of the reporting period.

31. Performance Measures The CPD Performance Measurement System is HUD's response to the standards set by the Government Performance and Results Act (GPRA) of 1993. This act holds all Federal agencies accountable for establishing goals and objectives and measuring achievements.

40

--.-=:::---- ----r

·I

r

iK Y 6 ~Q 3 3 2 MONDAY, APRIL 4, 2011,5:00 PM REGULAR MEETING

Official or the county/city/town manager will be provided to DOC not later than the tenth (1Oth) day of the month following the ending month of the reporting period.

31. Performance Measures The CPD Performance Measurement System is HUD's response to the standards set by the Government Performance and Results Act (GPRA) of 1993. This act holds all Federal agencies accountable for establishing goals and objectives and measuring achievements.

(a) The recipient must ensure that all activities in the funded project(s) meet the appropriate objectives, outcomes, and indicators established by HUD and selected by DOC. CDBG funds cannot be used to pay for any activity that does not meet the above requirement.

(b) The recipient must also assist DOC, when requested, in collecting indicators and any other data necessary to fulfill the requirements of the CPD Performance Measures System, which includes data for the Integrated Disbursement and Information System (!DIS).

Upon execution of this agreement by DOC and the Recipient, the Recipient hereby accepts the assistance on the terms of this rant a • cement effective on the date indicated below, and further certifies that the official signing this document has been duly authorized by the recipient's governing body to execute this Grant Agreement.

Secretary of the Depanmnent of Commerce Date: 3/14/2011

n~tP.· _____ _

By. ~ch.~.~ 1 ickie L. Miller

Director Community Investment and Assistance

Name of Recipient By: Signature of Authorized Official (Title)

SIGNATORY FORM AND CERTIFICATION

Recipient Name Beaufort County Address 121 West 3rd St

Washington, NC 27889

Gr~nt NumhP.r1 0-C-2136 __ _

Signatures of individuals authorized to sign Requisitions for CDBG Funds forms. (Two signatures required on such regulation}

41

-~------- ~~-------------- --------

1\tiONDAY, APRIL 4, 2011, 5:00PM . BK Y 6 w,c; 3 3 3 REGULARMEETING

Jim Chrisman Finance Officer

Angela Andrew Acct. Specialist II

Sharon Singleton Clerk to Board

Paul Spruill County Manager

CERTIFICATION

I certify that the signatures above are of the individuals authorized to sign Requisition for CDBG Funds form for the above recipient.

Chairman (Sianature of Certifvina Official)

(X) The governing board has passed a resolution authorizing the persons above to sign Requisition for CDBG Funds forms for the above recipient. A Copy of the resolution is attached.

I certify that the signatures above are those of individuals authorized by resolution of the governing board of the recipient to sign Requisition for Funds forms.

lSianature of Certifvina Official)

BEAUFORT COUNTY FY10 COMMUNITY DEVELOPMENT BLOCK GRANT

2010 ECONOMIC RECOVERY 10-C-2136 PROJECT ORDINANCE

Chairman __ [yP,ed

Be it ordained by the Board of Commissioners of Beaufort County, North Carolina, that pursuant ~ to Section 13.2 of Chapter 159 of the General Statutes of North Carolina, the following grant J project ordinance is hereby adopted:

Section 1. The project authorized is the FYlO Community Development Block Grant Economic Recovery project described in the work statement contained in the grant agreement (#10-C-2136) between Beaufort County and the North Carolina Department of Commerce. This project is more familiarly lmown as the Economic Recovery or "ER" Project.

Section 2.. The Beaufort County staff is hereby directed to proceed with the grant project within the terms of the grant document( s ), the rules and regulations of the Department of Commerce, and the budget contained herein.

Section 3. The following revenues and resources· are anticipated to be available to complete the project activities:

42

-~------~------------------------ --- ---···------------

3 3 u MONDAY, APRIL 4, 2011, 5:00 PM

BK ~ 6 WG ·a REGULARMEETING

C-1: 2010 ER Project Revenues

Total Project Resources

CDBG Grant 10-C-2136 $500,000

$500,000

Section 4. The following amounts are appropriated for the project activities:

C-1: 2010 ER Project Expenses

Project Budget $500,000

Section 5. The Grant Finance Officer is hereby directed to maintain within the Grant Project Fund sufficient specific detailed accounting records to provide the accounting to the North Carolina Department of Commerce required by the grant agreement( s) and federal and state regulations.

Section 6. Funds may be advanced from the General Funds for the purpose of making payments as due. Reimbursement requests should be made to the North Carolina Department of Commerce in an orderly and timely manner.

Section 7. The Grant Finance Officer is directed to report quarterly on the financial status of each project element in Section 4 and on the total grant revenues received or claimed.

Section 8. The Grant Finance Officer is directed to include a detailed analysis of past and future costs and revenues on this grant project in every budget submission made to this board.

Section 9. Copies of this grant project ordinance shall be made available to the Grant Finance Officer for direction in carrying out this project.

Adopted this 4th day of April, 2011.

Jerry Langley, Chairman Beaufort County Board of Commissioners ATTEST

Sharon Singleton, Clerk to the Board AWARD/ADMINISTRATIVE/PLANNING CONTRACT FOR 2010 CDBG SCATTERED SITE AND ECONOMIC RECOVERY PROGRAMS

Finance Officer Jim Chrisman presented the award introduction for the 2010 CDBG Scattered Site and Economic Recovery Programs. He stated the County solicited bids for the professional services contract work for administrating the CDBG Scattered Site and Economic Recovery grant projects. The formal bid process was followed and was repeated a second time due to the fact that only one bid was received. The second bid process resulted in receipt of only one bid. Staff recommends that the contract be awarded to Holland Consulting for $65,000 for the Economic Recovery Project (total budget of $500,000) and $48,000 for the Scattered Site Project

43

u 6 3 3

,MONDAY, APRIL 4, 2011, 5:00 PM B K -I . JQG !:» REGULAR MEETING

(total budget of $400,000). The contract amount is indicative of historical administration awards as a percentage of total budget and falls well below the 18% recommended by Division of Com!llunity Assistance.

On motion by Commissioner Cayton, seconded by Commissioner Klemm, the Board voted unanimously awarding the Administrative and Planning Contract for the 2010 CDBG Scattered Site and Economic Recovery Programs to Holland Consulting Planners, Inc. at a cost not to exceed $65,000.

PYROTECHNICAL PERMITS IN CITY OF WASHINGTON AND ETJ

Currently the City of Washington has to request authority annually from the Beaufort County Board of Commissioners for pyrotechnical permits for events in the City of Washington and their ETJ. A letter wa~ sent to the County by Jasper Hardison, Division Chief and Fire Marshal for the City of Washington requesting that the County Commissioners give the City of Washington permanent authority for the issuance of pyrotechnical permits within the City of Washington and its ETJ.

On motion by Commissioner Richardson, seconded by Commissioner Klemm, the Commissioners voted unanimously authorizing the City of Washington to issue pyrotechnical permits for events within the City of Washington and its ETJ for a period of two years.

COUNTY MANAGER REPORTS

COUNTY EMPLOYEE TRAVEL

On motion by Commissioner Cayton, seconded by Commissioner Booth, the Board voted unanimously approving the following travel for employees.

VOTING YES Cayton Langley McRoy Klemm Booth

DEPARTMENT/

VOTING NO Richardson Deatherage

TRAVELER DATES LOCATION EMPLOYEE-TRAVELTOBEAPPROVED

HEALTH Roxanne Holloman 04-20/21 Chapel Hill Roxanne Holloman · 04-26/29 Chapel Hill

Stacey Harris 05-25/26 RTP Vera Vaughn 05-11/13 NewBern

44

PURPOSE OF TRIP

MANDATORY/ DESIRABLE

Directors' Conf. Mandatory National PH Leadership

Desirable Food Safety Mandatory District Meeting Mandatory

TOTAL COSTS

$398.86

$533.00 $165.71 $164.50

r '

r

~ .... ···.

(

MONDAY, APRIL 4, 2011, 5:00 PM flK ~ 6 f"G 3 3 6 REGULARMEETING

Candace Hammer 05-27/29 Greensboro WIC Training Mandatory $439.00 Ann Barnes same

SUBTOTAL $1,701.07 SOCIAL SERVICES Barry Johnson 04-05 Greenville Preventing Child

Abuse Mandatory $110.00 COUNTY MANAGER Sharon Singleton 10-10114 Chapel Hill IIMC Clerk

Part 3 of3 SOG Certification Mandatory $841.00 SHERIFF/JAIL Catrina Ross 04-20 Greensboro Leadership Seminar $279.00 Josh Villegas same Mandatory Alan Jordan 03-25 Raleigh Legislative Mtg. Mandatory $113.50

SUBTOTAL $392.50 ANIMAL CONTROL Sandy Woolard 05-10 Greenville Cruelty/Self Defense/Diseases $111.00 Todd Taylor same Mandatory Billy Lassiter same James Evans III same

REGISTER OF DEEDS Jennifer L. Whitehurst 05-12 Raleigh Indexing Wkshop Mandatory $298.75 Argie Waters 06-16 Williamston Indexing Wkshop Mandatory $120.00 Lisa Mizelle same Patricia Columbus 06-23 Greenville Indexing Wkshop Mandatory $120.00 Elizabeth Howard same SUBTOTAL $538.75

TOTAL TRAVEL EXPENSE FOR APRIL 2011 $3,694.32

APPOINTMENTS

SOCIAL SERVICES BOARD

Commissioner Booth nominated Richard Smaw to serve another term on the Social Services Board and the Board concurred unanimously. Mr. Smaw will begin another three year term on the Social Services Board July 1, 2011 with said term expiring June 30, 2014.

ABC BOARD

On motion by Commissioner Booth, seconded by Commissioner Cayton, the Board voted unanimously reappointing Donald Sadler to serve another term on the Beaufort County ABC Board. Said three-year term to begin July 1, 2010 and expire June 30, 2014.

BEAUFORT COUNTY TAX ASSESSOR AND TAX COLLECTOR

Commissioner McRoy said he would like to find a way to upgrade the efficiency in the tax office. I:.Ie would like to have more integration there. One way to do this is to have the County

45

BK ~ 6 lflG 3 3 7 MONDAY, APRIL 4, 2011, 5:00 PM

REGULAR MEETING

Manager help oversee that department. He said one of their inefficiencies is the tax bill being sent out in October or November. He has property in Pitt County and they get their bills out by the end of July, versus Beaufort County getting their bills out in October or November. The earlier the bills get out the sooner the revenue comes in. He would like to improve those two issues.

The County Manager said he was in the tax office recently and noted a board displaying a target time line for projects in the office. He said they have some good ideas in regard to automation and they have some creative ways to get that done. In a year after revaluation you can expect more board of adjustments than a regular year. The tax office understands how they fit intO the team designed to keep the cash flow running for the. County with the collection of tax J revenue.

BEAUFORT COUNTY TAX ASSESSOR

On motion by Commissioner Cayton, seconded by Commissioner Booth, the Board voted unanimously reappointing Bobby Parker to serve another two year term as Tax Assessor. Said term to begin July 1, 2011 and expire June 30, 2013.

BEAUFORT COUNTY TAX COLLECTOR

On motion by Commissioner Cayton, seconded by Commissioner Deatherage, the Board voted unanimously reappointing Bobby Parker to serve another one year term as Tax Collector. Said term to begin July 1, 2011 and expire June 30 2012.

REGION Q WORKFORCE

On motion by Commissioner Klemm, seconded by Commissioner Booth, the Board voted unanimously reappointing the following to serve another one year term on the Region Q Workforce. Said term to begin July 1, 2011 and expire June 30 2012. ·

(COUNTY) (EMPLOYMENT SECURITY COMM.) (PRIVATE SECTOR) (PRIVATE SECTOR) (PRIVATE SECTOR) (Randy Roark is unable to serve)

Sonya Toman Patsy Jones Chase Stallings Lindsey Crisp to be filled at a later date.

TOWN OF BELHAVEN- BOARD 0~ ADJUSTMENT- REGULAR MEMBER

On motion by Commissioner Klemm, seconded by Commissioner Deatherage, the Board voted unanimously concurring with the Town of Belhaven with the reappointment of Chuck Latham to serve another three year term on the Board of Adjustment as a regular member. Said term to begin February 29, 2011 and expire March 30,2014.

AWARD BID FOR ALLIED HEALTH PROJECT CONSTRUCTION

46

MONDAY, APRIL 4, 2011,5:00 PM BK ~ 6 f.!G J 3 8 REGULARMEETING

The County Manager welcomed Dr. David McLawhorn, President of Beaufort County Community College, Phillip Price, Dean of Administrative Services and Mitch St. Clair, Chairman of the Board of Trustees to the meeting.

Bids were received for the new Allied Health & Nursing Building #12, Project# 2009-07 on March 1, 2011. Bidding was promptly closed at 3:00 p.m. All in attendance indicated they received all the addenda, that no one was denied the right to bid, and that no one objected to opening the bids.

r Based on the attached Certified Bid Tabulations, Centurion Construction Company, LLC was the apparent low-bidder based on the Base Bid plus Alternates 1 through 5. We notified Centurion Construction Company, LLC, they were the apparent low-bidder on March 3, 2011 and requested their W/MBE Documents in accordance with the Project Manual. Centurion Construction Company, LLC, has submitted the attached Affidavit D indicating a W/MBE level of participation of0.1%. The information submitted regarding their Good Faith Effort is acceptable. Based on the Base Bid and Alternates noted, we recommend awarding a Single-Prime General Construction Contract to Centurion Construction Company, LLC as follows:

Base Bid Alternate Bid #1; Alternate Bid #2; Alternate Bid #3; Alternate Bid #4; Alternate Bid #5;

$4,677,916 28,000 13,000 18,000 84,000

19,000

Unit Prices and Allowances are as indicated on the Form of Proposal and the Bid Tabulation.

TOTAL BUILDING AREA

Construction Cost Contingency Construction Cost & Contingency Advanced Planning & USDA Feasibility Geotechnical Survey Location/Topo Survey Construction Testing Commissioning Agent

Administrative, Legal Expenses, Interim finance Owner Furnishing & Equipment AlE Fees Estimated Total Project Cost

47

-r-=r::--- ------------,

30,600 GSF

$ 4,840,116 1,319,575 21% 6,176,359

42,000 JFK Architecture PC 5,966 Actual Cost, Terracon 5,400

11,000

35,000 722,627

Included in JFK Architecture Fee as Amendment #1

618,316 Includes Amendment # 1 $7,600,000

BK ~ 6 RG 3 3 9 MONDAY, APRIL 4, 2011, 5:00 PM REGULAR MEETING

On motion by Commissioner Cayton, seconded by Commissioner Booth, the Board voted unanimously awarding the contract for the construction of the Allied Health & Nursing Building #12 Project to Centurion Construction Company, LLC at an estimated construction cost of

$4,840,116.

HEALTHDEPARTMENTFEESCBEDULE

On motion by Commissioner Klemm, seconded by Commissioner Cayton, the Board voted unanimously adopting the following increases to the following Health Department Fee Schedule. ~

• Vaccine Codes: These are vaccines previously provided by the state universally through the NC Immunization Program. These vaccines will now only be provided through the Vaccines For Children Program (VFC).

CPT Code Vaccine Fee 90700 DTaP $25.00 90713 IPV $27.00 90633 Hepatitis A $33.00 90744 Hepatitis B Pediatric $25.00 90648 Hm $26.00 90734 Meningococcal $114.00 90707 MMR $53.00 90670 Pneumococcal (Prevnar 13) Pediatric $120.00 90680 Rota virus $77.00 90715 Tdap $42.00 90716 Varicella $89.00

• Pap Smear (88142-90) o Current fee $12.33; Requesting to increase to $20.00. This request is based on

the fee we will pay to LabCorp

• Two new vaccine administration codes, effective January 1, 2011 for use with combined antigen vaccinations

o 90460 Immunization Administration with counseling $21.00 o 90461 Immunization Administration with counseling (add on code) $11.00

• Flu Vaccine (90658) o Requesting to change the fee for the flu shot from $31 to $25. This would

change the fee for the vaccine itself from $13.50 to $7.50. The administration fee stays at $17.50. This covers our cost and is more competitive.

48

ll 6 3 u OMONDAY, APRIL 4, 2011,5:00 PM BK fG ·1 REGULARMEETING

• Request to accept an income declaration for Rabies and Tdap vaccinations to determine sliding fee scale eligibility. These vaccinations are important for clients to have if needed and the cost of the vaccine should not be a barrier to service.

• Revision to Billing, Fee, and Eligibility Policy: "In the interest of public health and in accordance with the Beaufort County Detention Jail Health Plan, services provided to inmates will be at no charge for the Beaufort County Sheriffs Department. The most common service provided is STD screenings (which is no charge for all clients)".

WATER DEPARTMENT- BID AWARDS MOWING AND WEED EATING

The County Manager announces the following sealed bids were received for Mowing and Weed Eating Services in the Water Department. The members of the Water Committee were present for the bid opening. The Committee is reconunending the bid be awarded to T' s Lawn Service.

MOWING

Bidder

Cooper Mowing

Currie Mowing and Landscaping

Double A Hauling

Greentree Grading, Inc.

Landscaping Unlimited, Inc

T's Lawn Service and Landscaping

Wayne's Grass Mowing

Bid Amount

$1,135.00

$900.00

$2,425.00

$1,499.96

$1,860.00

$850.00

$1,380.00

On motion by Commissioner Deatherage, seconded by Commissioner McRoy, the Board voted unanimously awarding the Mowing Contract in the Water Department to T' s Lawn Service at a cost of $850.00 per mowing of all sites.

WEED EATING

Bidder Bid Amount

I Cooper Mowing $2,610.00 1

49

~r-----· ----- -·-- ··-------~·-----··

6K ~ 6 PC 3 ~ 1

Currie Mowin2 and Landscapin2

Double A Haulin2

Greentree Gradin2, Inc.

Haw Branch Nursery

Landscapin2 Unlimited, Inc

T's Lawn Service and Landscapin2

Wayne's Grass Mowin2

.MONDAY, APRIL 4, 2011,5:00 PM REGULAR MEETING

$1,718.25

$4,350.00

$5,220.00

$3,262.50

$6,000.00

$1,400.00

$3,045.00

On motion by Commissioner Deatherage, seconded by Commissioner McRoy, the Board voted unanimously awarding the Weed Eating Contract in the Water Department to T's Lawn Service at a cost of$1,400.00 per month.

WELL DRILLING REGULATIONS

On motion by Commissioner Richardson, seconded by Commissioner Deatherage, the Board voted unanimously supporting the resolution adopted by Rutherford County in regard to the eliminating the supervision of well drilling by local Health Departments as follows:

WHEREAS, Beaufort County has many Residents who live in rural areas away from municipal water supplies, and

WHEREAS, those residents must achieve a wate~ supply at their own expense, and

WHEREAS, North Carolina General Statue 87-97 mandates that the local health department serving each county shall implement a private drinking water well permitting, inspection, and ~ testing program, and

WHEREAS, the cost of that program is paid by residents as an additional expense to achieving their own water supply;

NOW THEREFORE, the Beaufort County Board of Commissioners, on behalf of residents, hereby does resolve to support the repeal ofNorth Carolina General Statue 87-97, and for such repeal to be effective on or before July 1,'2011.

The Beaufort County Board of Commissioners directs the county manager to send promptly a copy of this resolution to North Carolina General Assembly members Senator Stan White and Representative Bill Cook, and a copy to all other counties in North Carolina.

Adopted this the 4th day of April, 2011.

50

" \

BK Y 6 ~C 3 r &MONDAY, APRIL 4, 2011,5:00 PM 1 C. REGULAR MEETING

SOLID WASTE- ROAD IMPROVEMENT

It was the consensus of the Board to allocate $15,000 of capital spending for road maintenance (rock and fill) at the landfill. Garbage refuse and debris is dumped in the back area there and the road has become impassable. This allocation will be used for sand, rock and grading to get the road back in shape prior to contracting out the grinding that is to be done there.

BUDGET AMENDMENT- PORTRAIT RESTORATION

On motion by Commissioner Klemm, seconded by Commissioner Cayton, the Board voted unanimously to re-allocate $3,000 to pay for the portrait restoration that was agreed upon last year. The work has been completed and the portraits unveiled. The following budget amendment is submitted and approved.

100991 499100 APPROPRIATED FUND BALANCE 3,000.00

104160 535101 M/R COURTHOUSE 3,000.00

OPPOSITION TO UNIVERSITY HEALTH SYSTEM MANAGING/PURCHASING BEAUFORT COUNTY HOSPITAL

Mr. Frank Swindell was granted more time to talk with the Board about his experience at University Health System. He thanked them for an opportunity to give further comments on his health issue. With details of his excruciating pain and little assistance from UHS he said he almost died and probably would have had he not gotten to the V .A. Hospital in Durham. He said the poor service he received at Pitt County Memorial Hospital almost killed him. He asked the Board if this was the type of care they. want to get here in Beaufort County. He stated nobody is indispensible. In departing he thanked them for hearing him.

CLOSED SESSION- NCGS 143-318.11(a)(6) - PERSONNEL

On motion by Commissioner McRoy, seconded by Commissioner Cayton, the Board voted unanimously to go into closed session under NCGS 143-318.ll{a)(6) to Consider the qualifications, competence, performance, condition of appointment of a public officer or employee or prospective public officer or employee.

On motion by Commissioner Cayton, seconded by Commissioner Booth, the Board voted unanimously to come out of closed session.

PONZER FIRE DEPARTMENT MAP AND BOUNDARY LINES

On motion by. Commissioner Cayton, seconded by Commissioner Klemm, the Beaufort County Board of Commissioners voted unanimously approving the boundary lines (map and description) of the Ponzer Volunteer Fire Insurance District in accordance with the maps and description filed this date with the Board of Commissioners. This map will accompany the

51

-,----- . - .. ------

MONDAY, APRIL 4, 2011, 5:00 PM BK Y 6 IQG 3 ~ 3 REGULARMEETING

original contract document with Beaufort County and Ponzer VFD to provide mutual aid that was signed in April2009 (without the map) and resolution.

CLOSED SESSION- NCGS 143-318.1l(a)(3) ATTORNEY -CLIENT PRIVILEGE

At approximately 8: 10 pm, on motion by Commissioner Cayton, seconded by Commissioner Booth, the Board voted unanimously to go into closed session under NCGS 143-318.11(a)(3) to consult with an attorney employed or retained by the public body in order to ~ preserve the Attorney-Client privilege between the Attorney(s) and the public body to discuss Y issues related to the Hospital. This includes a legal attorney as to the potential liabilities as a result of Hospital Authority to approve a letter of intent. It also will include consulting with legal counsel regarding his work product to help the County better move forward in the hospital lease/purchase.

On motion by Commissioner Cayton, seconded by Commissioner Deatherage, the Board voted unanimously to come out of closed session.

MEETING DATES

The County Manager noted a hand out of scheduled meetings for the month of April and May.

The Board will hold seyeral special call meetings prior to the next regular monthly meeting.

Monday, April11, 9:00AM at the BCCC Building #10 (special call with BCCC Board of Trustees)

Tuesday, May 3, 5:30PM Supper 6:45 PM at Belhaven Civic Center video tape meeting

(special call with Belhaven Town Council) Monday, May 9, 8:00AM at King Chicken

(special call with JCPC)

The next regular scheduled monthly meeting of the Board is Tuesday, May 9, 2011 at 5:00 pm. Said meeting is to be held at the regular meeting location of the Administrative Office Building located at 121 W. Third Street, Washington, NC.

On motion by Commissioner Cayton, seconded by Commissioner Klemm, the Board voted unanimously to adjourn.

ATTEST:

52

QK Y 6 IJG 3 Y ·~

....... '"""""' ~ .,

53

MONDAY, APRIL 4, 2011, 5:00PM REGULAR MEETING

BK Y 6 RG 3 Y 5 BEAUFORT COUNTY BOARD OF COMMISSIONERS

RECESSED MEETING WITH BEAUFORT COUNTY COMMUNITY COLLEGE BOARD OF TRUSTEES.

MONDAY, APRIL 11, 2011, 9:00A.M. BUILDING #10 ON CAMPUS

The Beaufort County. Board of Commissioners met in special called session Monday, April11, 2011 at 9:00a.m. at the Community College. This was a joint session with the Beaufort County Community College Board of Trustees. The following were in attendance.

BEAUFORT COUNTY BOARD OF COMMISSIONERS Chairman Jerry Langley Commissioner Hood Richardson Commissioner Robert Cayton Commissioner AI Klemm Commissioner Jay McRoy Commissioner Ed Booth County Manager Paul Spruill County Attorney Billy Mayo Assistant County Manager and Finance Officer Jim Chrismon Clerk to the Board Sharon Singleton

BC COMMUNITY COLLEGE BOARD OF TRUSTEES Chairman Mitch StClair Vice Chairman Jack Wallace Myrtle Carowan J. Sheilds Harvey Henry "Buster" Humphreys Delores Lee Cornell McGill Betty Randolph Russell Smith President Dr. David McLawhorn Phillip Price, Dean of Administrative Services Lou Stout, Continuing Education

1 . Wesley Adams, Director of Campus Operations Assistant to President Jennie Singleton

Mitch St. Clair, Chairman of the Beaufort County Community College Board of Trustees then called their meeting to order and the group gave the Pledge of Allegiance. He welcomed everyone to the meeting.

Chairman Langley called the County Commissioners' Meeting and thanked the Trustees for the invitation as well as the breakfast.

The invocation was given by Rev. Robert Cayton.

1

" ~

" ~

BEAUFORT COUNTY BOARD OF COMMISSIONERS SK Y 6 fiG 3 L.f 6 RECESSED MEETING WITH

BEAUFORT COUNTY COMMUNITY COLLEGE BOARD OF TRUSTEES MO~DAY, APRIL 11,2011,9:00 A.M.

BUILDING #10 ON CAMPUS

UTILITY SAVINGS PROGRAM

Wesley Adams, Director of Campus Operations gave an informative presentation on energy savings at the Community College. The graphs and kilowatt hours shown gave a better idea to staff when the peak hours were occurring. Fiscal years 2007 and 08 as compared to 2010-11 showed a 20% reduction in Kilowatt usage. A combination of operational improvements such as adjusted HV AC operating schedules, outside air intake reduction, program changes to OAT lockouts, programmable thermostats with locked covers, low flow aerators and reduced hallway lighting contributed to the savings. ·Electric utility costs have two main components: the energy component- kilowatt hours at $0.0737 per KWH and the power component KW. The highest measurement of power usage during a fifteen minute period in a month is peak demand at a cost of$13.36 per Peak KW. He said $54,000 avoided cost in KWH charges in 2010-11 through March co~pared to 2007-08 at current rates. There was no reduction in peak demand KW charges. The current projection appears the College should be about $25,000 under the electrical budget at the end of the fiscal year. Peak demand cost is $13.36/KW. 40.2% of the cost year to date is $127,213.92. The reduction of 100 KW is a savings of $1,336 per month. There is a plan to achieve future savings. They need electrical power monitoring in each building. They could monitor and record the KWH and KW. That would help to identify areas that most contribute to peak demand. Monitoring 24 hours a day, seven days a week will help identify other areas wasting electricity. It will cost $26,000 in the first phase to install monitoring hardware in twelve buildings. Subsequent phases to connect to energy management system with data analysis software for the twelve buildings will cost about $13,500.

The County Manager noted the graph results showed the distinction month of February peak high in usage. This is an opportunity for a savings in decreasing the KW hours through HV AC monitoring.

Commissioner Richardson said the creation of the "peak" is because everyone is throwing the switch at the same time. There can be a distinct difference if you can alternate the power. It is the peak and all using at same time that adds to cost.

Commissioner Klemm asked if they had considered performing energy audits with thermal imaging equipment.

Mr. Adams said that information is on tap for the coming year.

The County Manager said the good news is the College is working hard to improve savings more than the $25,000 that they have saved this year.

Phillip Price said he had a conversation with the staff and it looks as though the College will be able to get a reduction in the last check they get from the County due to the energy savings they have made. The study in peak usage will help the College save utilities in the future. They are open to other options for savings as well. The College budget request does not

2

---- ,-------------~~------~--~~~--

BEAUFORT COUNTY BOARD OF COMMISSIONERS BK y 6 p~ 3 y 7 RECESSED MEETING WITH

BEAUFORT COUNTY COMMUNITY COLLEGE BOARD OF TRUSTEES MONDAY, APRIL 11, 2011, 9:00 A.M.

BUILDING #10 ON CAMPUS

include the $25,000 for hardware for the energy study. The $26,000 for hardware and installation and the current $25,000 in savings will be a wash but worth considering.

Commissioner McRoy asked about using the energy savings to offset roof work.

The County Manager said all savings made by the College will be reported back to the County. In the last roof planning and bidding the College included input from· Commissioners Klemm and Richardson. They approved funds for a large and a small building. '

Mr. Price said the roof on building two was a small $325,000 project. $312,000 was allocated for project. Bids came in at an estimated $320,000. $13,000 of that went into contingency. Building two roof project is nearing completion and thus far there are no change orders on that as of yet.

The County Manager noted there would be no roof savings for the College to share with the County. He is happy with the project and how they were bid. The energy savings project remains to be discussed. He asked to proceed with the budget request and set this aside for now

PRESENTATION OF BCCC FY 2011-12 PRELIMINATY PROPOSED BUDGETREQUESTFORLOCALFUNDS

Dr. David McLawhorn stated that the College is finding jobs for students. They have been able to continue the truck driving program and the air conditioning program. They are in pursuit for a new nursing program. They have an EDA grant for $1.5 million and are moving forward applying for additional grants. They have been and are trying to be good stewards of the tax payer funds.

Phillip Price, Dean of Administrative Services then contributed the College budget request.

County Budget Request for Fiscal Year 2012

Summary with PriorY ear Requests: PERCENTAGE

YEAR CURRENT CAPITAL TOTAL VARIANCE CHANGE 2008 1,780,958 305,500 2,086,458 20,247 1.0% 2009 1,876,550 435,000 2,311,550 225,092 10.8% 2010 1,945,038 160,000 2,105,038 (206,512) -8.9% 2011 1,944,245 190,000 2,134,245 29,207 1.4% 2012 1,973,949 229,000 2,202,949 68,704 3.2%

As can be seen from the above chart, the College is requesting a 3.2% increase more than our previous year's budget. A more detailed breakdown of this projection is shown within the current and capital expense figures.

3

BEAUFORT COUNTY BOARD OF COMMISSIONERSaK Y 6 ~G 3 y 8 RECESSED MEETING WITH

BEAUFORT COUNTY COMMUNITY COLLEGE BOARD OF TRUSTEES MONDAY, APRIL 11,2011,9:00 A.M.

BUILDING #10 ON CAMPUS

The chart below summarizes the enrollment for curriculum programs for the time period of fall of 2007 until spring of 2011.

Curriculum Enrollment Data Year Fall Spring 2007-2008 1,555 1,508 2008-2009 1,739 1,723 2009-2010 1,919 1,844 2010-2011 1,900 1,859

Total 3,063 3,462 3,763 3,759

Percent Change 5.15%

13.03% 8.69% -0.11%

Enrollment has increased by 23% during this time period.

CURRENT EXPENSE BUDGET REQUEST

Salaries and Benefits Contracted Services and Insurance Utilities Supplies Repairs to Facilities Miscellaneous TOTAL

Breakdown of the Request:

2011 2012 APPROVED REQUEST $ 998,352 $ 1,022,000

203,293 204,194 539,850 539,350 79,950 85,450 75,000 75,000 47,800 47,955

$1,944,245 $1,973,949

VARIENCE $ 23,648

901 (500)

5,500 0

(155) $ 29,704

PERCENT CHANGE

2.37% 0.44%

-0.09% 6.88% 0.00% 0.32% 1.53%

He said the biggest increases in the budget are in benefits and salaries. This is due to projected increases in health insurance premiums and retirement contributions for college employees. The college's contribution on behalf of each employee for health insurance is scheduled to increase by $345 and the college's contribution on behalf of each employee for retirement is scheduled to increase by 1.11 %. If the Governor's proposal passes in the General Assembly it is estimated that worker's compensation insurance coverage will cost the College an additional $75,000 which is not reflected in the above request, but would be necessary if this cost is passed back to the College.

Current Expense Cost per Square Foot of Space:

The College currently has 242,428 square feet of space on campus. Our current expense request for 2011 represents a cost of$8.14 per square foot.

4

BEAUFORTCOUNTYBOARDOFCOMMISSIONERSK ~ 6 ~G 3 Y 9 RECESSED MEETING WITH

BEAUFORT COUNTY COMMUNITY COLLEGE BOARD OF TRUSTEES MONDAY, APRIL 11,2011,9:00 A.M.

BUILDING #10 ON CAMPUS

CAPITAL EXPENSE BUDGET REQUEST

2011 2012 APPROVED REQUEST

Alternations/ Additions & Improvements to Buildings $ 179,750 $180,000 Land and Land Improvements 7,250 0 Maintenance Equipment 3,000 19,000 Admn. & Communications Equipment 0 0 Motor Vehicles 0 30,000 TOTAL $190,000 $229,000

Breakdown of the Request:

PERCENT VARIANCE CHANGE

$ 250 0.14% (7,250) -100.00% 16,000 533.33%

0 0.00% 30,000 100.00%

$ 39,000 20.53%

Included in the 2011 capital expense budget request are funds to replace sections B, C, D, and E of the building #2 roof, replace exterior steps on Building #5, repair and upgrade the HV AC systems for buildings #2, 3, 4, 5, and 8, and purchase a mower for the maintenance department (to replace- John Deere Diesel Mower Model F935 purchased June 15, 1994 with current work hours of 35,236). The budget request also includes funding to replace a 2003 Dodge Van (currently has 122,500 miles) and replace an aging vehicle used by our basic law enforcement training program. They transfer the old vehicles to maintenance and they use them or they go to an auto mechanics class for repair and study.

The County Manager said there is a lot of pressure this year in our budget to try to accomplish a flat appropriation. Last year he predicted a tax increase for this year. The College has never been a place where any commissioners have looked at shaving fat. This year looks no different and they are to be complimented on their budget request. He noted the . increase in insurance as driving cost upward in current expense. He asked if some of the capital project ~.·' could be delayed. )

Phillip Price said they started the building #2 project this year. They have completed F and are shooting forB, C, D, in a portion of the $180,000. They have completed $80,000 of the $180,000.

Commissioner McRoy asked what projects remain to be done.

Mr. Price said project for: Roof steps on building #5 $25,000 Windows replacement 5,000 AIC Handler #4 30,000 HV AC #7 control system 20,000 Modify heat system in #2, #3 5,000 The County Manager asked if a portion roof project #2 has any life expectancy at all.

5

" ~

-~

(

BEAUFORT COUNTY BOARD OF COMMISSION~~Su 6 ~G 3 5 Q RECESSED MEETING WITH ~,

BEAUFORT COUNTY COMMUNITY COLLEGE BOARD OF TRUSTEES MONDAY, APRIL 11,2011,9:00 A.M.

BUILDING #10 ON CAMPUS

Mr. Adams said it is bad but not as bad as the section F listed for repair.

Mr. Price said the timing of the projects is important due to the classroom attendance. They cannot start some projects while students are in class. The September planning and bids will be for projects that will be done next summer when classrooms are less busy. During the fall and spring it is difficult to schedule projects around classroom availability for moving students.

The County Manager requested several of the Commissioners be involved in the bidding process as they were last year in the roof project. This will help with the appropriation timeframe and not slow down the bidding process. They can make funds available to hire your architect for the roofmg project.

Mr. Price said he would take that request to the College Board of Trustees for direction.

The County Manager said they would need a minimum of $10,000 to hire consultant to get work done for roof design.

Mr. Price said the summer of 2012 they want to begin the work on June 1 to finish by August 1 when students return to classes.

The County Manager said he saw no waste in funds for a consultant and the Commissioners will stay involved about re-appropriating funds after the auditing process.

Shields Harvey said he was pleased with the process used last year and sees no reason not to proceed as before. He said a lot of expertise was involved and he was pleased with the approach and wants to consider it again.

Chairman Mitch St. Clair agreed with that process. He said they would look at the roofing situation and plan to move forward.

The County Manager asked about the exterior steps project.

Chairman St. Clair said it \Vas a bad OSHA violation and the steps had been roped off.

The County Manager said nothing can be slowed on the steps project and the Commissioners have a good idea of what the College is up against. He thanked the College for the time and thought put in the costs for the current expense budget.

Commissioner McRoy said he assumed the current expense request in the budget for utilities was flat. If their budget is adopted unchanged does the College have a fund for an upgrade for the capital.

6

--- - ~-----~~----- --~~-~---. --~-

BEAUFORT COUNTY BOARD OF COMMISSIONE!ft\ y 6 P.G 3 5 1 RECESSED MEETING WITH ·

BEAUFORT COUNTY COMMUNITY COLLEGE BOARD OF TRUSTEES MONDAY, APRIL 11,2011,9:00 A.M.

BUILDING #10 ON CAMPUS

Mr. Price replied with approval of the allied health budget they expect one year ?f construction ending April 2012. They are assuming using electricity two months .of that year 1n the new building. That is why cost is flat. They picked that up as a part of the sa~ngs p~ssed ~n to the new building. The utilities for next year's budget will be flat. The $25,000 1n sav1ngs wlll go toward the new building's electrical use.

Commissioner McRoy said the savings and investment is saved forever. He said they could make that savings work for peak load demand. ~

Commissioner Cayton commented that Commissioner Richardson always asked two questions in regard to buildings. How many buildings are in use today and how many buildings have been built here. The answer to that is all of them. The College contributes to maintenance and stays on top of the needs. All buildings are maintained.

Commissioner Klemm asked how bad was the leak in building two ..

Mr. Adams said it was bad and it is around the perimeter of the building. He stated that roof is in need of repair. The fibers and filler are gone.

Mr. Price commented that building two houses their computer program lab.

Commissioner Richardson asked about the undedicated fund balance.

Mr. Price said it is in the $160,000 range and they have about 1/12 on hand. They have funds approved to meet' payroll.

The Boards then moved on to another presentation.

CAREER READINESS CERTIFICATION AT BCCC

Lou Stout, of Continuing Education at the College spoke on the Career Readiness Certification Program. She said the CRC certifies core employability skills required across multiple industries and occupations. The CRC is a poitable credential that promotes career development and skill attainment of the individual, and confrrms to employers that an individual possesses basic workplace skills in reading, applied math, and locating information - skills that most jobs require. This is achieved by WorkK.eys in skill areas. She noted the College works currently with Workforce Development, Potash and Joblink with this program.

Chris Toppin, Director of Human Relations at Potash Corporation of Aurora said they had partnered with the College in a program called WorkK.eys at Potash Corp. The main focus was on evaluation of senior evaluations. In 2008-2011 they utilized Wayne Rollins to assist in evaluating senior level operations and maintenance positions, evaluations and pay grades. The process allowed them to determine required skills in reading for information, applied mathematics and locating information for these senior level positions. The process also enabled

7

BEAUFORT COUNTY BOARD OF COMMISSIONE%~ u 6 ~G 3 5 ·2 RECESSED MEETING WITH I

BEAUFORT COUNTY COMMUNITY COLLEGE BOARD OF TRUSTEES MONDAY, APRIL 11,2011,9:00 A.M.

BUILDING #10 ON CAMPUS

them to evaluate each position to determine appropriate pay grade for senior positions tn operations and maintenance. They used an in-house process in conjunction with WorkK.eys.

They evaluated entry level positions and determined minimum required scores for: reading for information - 5 or higher on a scale of 3-7 applied mathematics - 5 or higher on a scale of 3-7 locating information - 4 or higher on a scale of 3-6

They used performance assessment test that measured the following: attitude towards safety, attitude towards management and attitude towards peers.

In hiring process improvements they looked at resignations and terminations that were related to the following: lack of safety commitment, lack of work ethic and the inability to move up our skills training and promotion program.

They implemented the following to improve the hiring process: WorkK.eys pre­employment testing and establish interviewing skills training for all foremen.

PotashCorp utilizes a skills training and progression plan that allows production and maintenance employees to move up the pay scale when they achieve the following: req:uired on the job hours (OJT) and required training for each pay level (operations scale is 4-14 and maintenance scale is 8-14.

They identified the required WorkK.eys scores for the senior level positions. In 20 II they plan on implementing WorkK.eys testing for all employees to determine their scores for reading, math and locating information. PotashCorp will be able to ensure when promotions are made to the senior level positions they have the skills required to perform those jobs.

By June 2011 Potash Corp estimates will have implemented : 286 applicants completed testing 51 applicants won't meet required scores 54 applicants will have been hired 2 resignations will occur

In summary Mr. Toppin said safety scores working with others and retaining employees were issues. Attitude and work ethics were not what we were looking for. They want to determine what resignations were related to. W orkK.eys is helping them achieve this.

Dr. McLawhorn said they could use these scores on tests to promote employees.

Mr. Toppin said a good example of this is for an employee to fill in for the foreman when he is out. They want the scores to be higher. They must help get those employees to that level.

Chairman Langley asked about the resignations.

8

---- ---~-------

('--~-----~------

BEAUFORT COUNTY BOARD OF COMMISSIONERS ·s K Y 6 FG 3 5 3 RECESSED MEETING WITH

BEAUFORT COUNTY COMMUNITY COLLEGE BOARD OF TRUSTEES MONDAY, APRIL 11, 2011, 9:00A.M.

BUILDING #10 ON CAMPUS

Mr. Toppin said from June to June they usually hire about seventy five people. The big hurdle is employees that stay tend to loose interest and get tired .of shift work. ~at has a lot to do with the hiring process that we are improving and WorkK.eys IS the tool. He said there were. a lot of success stories at BCCC. In closing he said they want to hire people that can move up In their job.

UPCOMING APPOINTMENT

In closing Chairman St. Clair said the College Trustees have a lot going on right now and the coming eighteen months. Dr. McLawhorn will be leaving June of 2012 and they "Will be searching for a replacement for him. He noted that Russell Smith serves on that search committee. He asked the Commissioners to consider his reappointment to the Board of Trustees so he may continue to serve on the search committee as he has done excellent in his work performance. He asked that the Commissioners consider this appointment in September or sooner.

Chairman St. Clair then adjourned the Board of Trustees' meeting.

The Commissioner had several other items of business.

BUDGET AMENDMENTS

The County Manager said he was trying to get budget revenues in line for the 2012 budget. The original_ sales tax is lower than anticipated. He is trying to make up the missing revenues in other areas. He is amending expenditures and revenues down. He is making the assumption that University Health System will close on their hospital offer by June 1, 2011. If that occurs we will not need to make that debt service payment. He is trying to be upfront to make a true issue proper to budget.

On motion by Commissioner Cayton, seconded by Commissioner Booth, the Board voted unanimously (6-0) approving the following budget amendments.

DSS TANF STATE FUNDS- TANF activities are reimbursed time for staff in handling Work First clients, intake social workers handling emergency assistance, and cash payments to Work First eligible recipients. The funding has historically been divided up 50% Federal, 25% State and 25% County for all eligible expenditures. The State has recently removed their portion making all costs 50% Federal and 50% County. The State's justification is that by removing their share they are allowing Counties to reach their Maintenance of Effort (MOE) which allows us to be eligible for unlimited 100% TANF funding. The problem is that with tighter restrictions on TANF eligibility and the spending cuts DSS has voluntarily made they are having difficulty meeting the MOE to d~w down the additional Federal funds. After the meeting I had with DSS this week I am confident they will be able to code the correct amount of time to these activities allowing us to draw down the added TANF funds, but I don't think it will compensate for the lack of State funding. I don't expect this issue to be as large next year as they have already met with State fiscal reps on coding procedures for TANF eligible daycare subsidy clients that should allow us to meet MOE more quickly and then make up the State's funding cuts.

9

"· ~

BEAUFORT COUNTY BOARD OF COMMISSIONERS ·sK u 6 ~G 3 5 ~ RECESSED MEETING WITH -1 ·

BEAUFORT COUNTY COMMUNITY COLLEGE BOARD OF TRUSTEES MONDAY, APRIL 11,2011,9:00 A.M.

BUILDING #10 ON CAMPUS

DSS IV-E FEDERAUSTA TE FUNDS- These funds are directly tied to social work staff time related to handling CPS and foster care case work (worker time, travel reimbursement, medical appointments, etc .•• ). The funding is drawn down when children are deemed eligible under a tight set of restrictions. Historically our County has been able to draw this funding down due to the placement of foster children in primarily licensed foster homes. The feds deem a child eligible (and therefore we are able to bill) only when·a child is placed into a licensed facility. We have seen DSS staff over the past year rely more heavily on family or relative placements which makes the children not eligible for the IV-E reimbursement rate. The time spent with these cases then becomes reimbursable at 50% vs. the 75% that we would receive for a IV-E eligible child. The revenue is decreased but benefits the County because relative placements are cheaper to us on the expenditure side as we are not paying board rate payments. In addition, children placed with relatives tend to spend less time in our custody making our overall liability decrease. I suspect this revenue decrease will continue into FY 2012, but we will also see offsetting decreases on the foster care expenditure side as well. I have been monitoring the spending and reimbursement for foster care and our overall net cost, due primarily to relative placements and placements in foster homes staying within the County, has decreased by about $24,000. Not substantial, but with other decreasing revenues it helps.

FY 2011 General Fund Budget Amendment April11, 2011

The following amendments are adjustments that need to be made to account for decreased or increased revenue and expenditure predictions.

Revenue Line Item Amount Property Tax Prior Year Collection 95,200 Property Tax Current Year Collection 195,600 Property Tax (MV) Prior Year Collection 12,510 Art 39 Sales Tax ( 1% Point of Sale) -110,259 Art 42 Sales Tax ( 1/2% Point of Sale) -96,500 Art 44 Sales Tax (1/4% Rescinded) -63,000 Public School Capital Lottery Funds 258,815 DSS TANF State Funds -212,014 IV-D Child Support State Match -83,521 IV-E Federal/State Contribution -289,000 State Prisoner Reimbursement 48,500 Citv of Washington E911 Share 40,000

Total Revenue -203,669

Expenditure Line Item Amount Debt Payment Hospital Purchase -542,000 Co Share of Medicaid Transportation 43,521 Foster Care Payments State Foster Homes -32,000 LINKS Foster Care 32,000 County Share of Assistance 82,165 ESC Unemployment DSS Only 18,241

10

------~---------~ ·---------. ----- -- ------- -.- ----- --~---

BEAUFORT COUNTY BOARD OF COMMISSIONERS SK Y 6 ~c; 3 5 5 RECESSED MEETING WITH

BEAUFORT COUNTY COMMUNITY COLLEGE BOARD OF TRUSTEES MONDAY, APRIL 11, 2011, 9:00 A.M.

BUILDING #10 ON CAMPUS

CDBG County Planning Activities 34,681 Solid Waste Scrap Tire Disposal 18,605 Solid Waste Landfill Maint. & Repair 38,644 Animal Control Part Time Salaries 10,453 Communications Salaries 58,600 Communications Overtime 18,500 Jail Inmate Safekeeping -52,500 Jail Inmate Meals 18,594 Sheriff Vehicle Maint/Repair 32,622 Sheriff Fuel 16,205

Total Expenditure -203,669

CONSOLIDATED STATE CONTRACT

The County Manager announced the Consolidation State Contract was up for review and approval. He asked the Board to review the copy provided to them. They can take action on this item at a later date. The Health Director can make a presentation. He is buying some time for the Board to make that consideration on the contract.

Commissioner Richardson stated not knowing what the Legislature is going to do makes this a difficult decision. He said University Health System has supported the concept to take the OB-GYN practice at the Health Department into their health system. When this takeover is done those adjustments should be considered. The transfer of those patients needs to be looked into.

The County Manager Paul asked the Board to review the contract and if there are some suggested language edits they can be given to him during the E&R meetings.

Chairman Langley then adjourned the meeting.

ATTEST:

11

---~----------,---.--------------------------------~-~~

~