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MINUTES
ORANGE COUNTY BOARp OE COMf4ISSI0NERS
SEPTEP~BER 25, 1978
The Orange County Board of Commissioners met in regular session on Monday,
September 25, 1978, at 7:30 p.m., in the Commissioners' Room of the Courthouse in
Hillsborough, North Carolina.
Members present: Commissioners Norman Gustaveson, Donald Willhoit, Jan Pinney
and Norman Walker. Commissioner Richard Whitted was absent.
In Chairman Whitted absence, Vice Chairman Gustaveson assumed the chair.
Vice Chairman Gustaveson opened the meeting by asking if any member of the Board
wished to add additional items to the agenda.
The following items were added to the agenda:
Agenda Item 6: Charles Rivers Memorandum
Agenda Item 7: Rezoning Request of Clarence Gates
Agenda Item 8: Appointments to EMS Council
Agenda Item 9: CETA Activities Review
Agenda Item 7: Rezonin Re uest of Clarence Gates
Mr. Gates read a memorandum addressed to the Orange County Commissioners which
stated that he and his father wish to move their septic tank business from its
present location to his father's property. He stated that the lease at the present
site will be up in three years and, if they are not al1awedto relocate on their own
property, they will have to sell the business or sell their homes and move to another
location with the business. Mr. Gates invited the Commissioners to come and see the
operation and the proposed new location before making a decision on his request for
rezoning.
Agenda Item 2Ac ~p_oir.tment-Orange County Board of Adjustments
Commissioner Willhoit nominated Richard Ducker to serve on the Orange County
Board of Adjustments. Commissioner Walker offered a second and moved to close
nominations. Vote: ayes, 4; noes, 0.
Agenda Item 26: Appointment-Orange County Planning,Board
Commissioner Willhoit nominiated Robert D. Greer to serve on the Orange County
Planning Board. Commissioner Walker offered a second and moved to close nominations.
Vote: ayes, 4; noes, 0.
Commissioner Gustaveson asked the Clerk to write letters to Colonel Breeze and
Ms. Marilyn Riddle thanking them for their service and hard work on the Orange County
Planning Board.
Agenda Item 3: Property Tax Assessments
In the Tax Supervisor's absence, Commissioner Gustaveson asked that this item
6e put on the first Monday agenda for action.
Agenda Item 9: CETA Activities Review
Mr. Joe Bradshaw addressed the Board stating that he attended the Balance of
State Council meeting in Raleigh on Tuesday, September 19. The Council's staff
proposed Orange County and Qurham County be considered a consortium by the Balance of
. State. He said that Secretary Lee designated the Orange-Durham County problem a high
priority condition to be given instant attention by the State Office of Community
Employment. Mr. Bradshaw stated one person, Jim Lott, had been assigned to us full
time. A management team from Raleigh will come to Orange County to help set up our
records and work with the finance and CETA offices. Some of this team will work with
Mr. Bradshaw to plan programs through the Balance of State. Congressional action to
continue CETA is expected this week, but, to date, there are no guaranteed CETA posi-
tions after September 30.
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The County Manager told the Board that his staff would get together a .list of
all CETA requests and current CETA positions for the Board's review.
Commissioner Pinney expressed his concern over what would happen if congress
does not fund some CETA titles. He did not like the idea of a blanket 30 day extension
as suggested in case Title VI is slashed 25% to 30%.
Commissioner Gustaveson stated that the County Manager's staff should then use
its best judgment in making temporary extensions.
Commissioner Willhoit suggested making extensions "up to 30 days". He also
asked to be kept abreast of any additional information available regarding funding.
Agenda Item 4: Architect's Presentation of Grad Brown Alternatives
Mr. Nassif stated in his original feasibility study he examined each county build-
ing, the number of persons in these buildings, the best use of this space and county
program priorities. He considered expanding present county buildings and tried to
reassign agencies to different buildings before arriving at his final recommendation.
The Grady Brown building is both substantial and large - 57,000 square feet. He
recommended renovating Grady Brown because it would be less expensive than building
a new building. Mr. Nassif gave the Commissioners a tabulation of the bids received
and reported the requested 30 day extension had been granted. Mr. Nassif said other
options available are to rent additional space, rebid Grady Brown, negotiate bids on
Grady brown, renovate Grady Brown in phases, or do nothing at all.
The County Manager asked if it would be possible to renovate the old part of
Grady Brown first.
Mr. Nassif felt this was possible but not his recommendation.
Commissioner Walker voiced concern over the impact of having a gym beside the
library.
Mr. Nassif said that all departments were consulted during this study and.the
Recreation Department did not bring this to his attention when interviewed. He said
the Recreation Department expressed concern over parking and wanted the existing
playfield to serve as parking.
Commissioner Walker asked what had happened to the concept of converting the
parking area in front of the Recreation Department to a park with trees and benches.
Mr. Nassif stated that would happen at a later time when all parking would be
located in the rear.
Commissioner Walker asked how much the renovation would cost per square foot.
The County Manager stated the bid figure runs about $36.30:
Mr. Nassif said new construction ~rould run $40 to $45 per square foot.
Commissioner Walker said he believed that it would be more economical in the long
run (50 years) to build a new building since Grady Brown is out of the governmental
complex. He stated that by building a new building, we would be saving energy, etc.
He stated he believes Grady Brown to be too expensive for a stopgap measure.
Commissioner Pinney asked, "How did we miss the bid estimate so badly?"
Commissioner Walker stated there had been a year's delay and costs had gone up
during that time.
The County Finance Director said the county had $1,915,000 to use on this projec.
Commissioner Gustaveson asked if it was an acceptable practice to bid a fixed
contract profit and work with the contractor to negotiate separate phases of the bid.
Mr. Nassif replied, "As it stands now, the Board, by law, is able to negotiate
with low bidders in any category. This way you are assured of competitive bids".
The County Attorney said that he had not heard of bidding that way before. He
said he would look into the statutes to check this idea.
Commissioner Pinney stated that in any remodeling job, the contractors bid
high enough to cover unanticipated cast they might encounter.
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Commissioner Willhoit said he did not believe it worthwhile to try to nickel and
dime the contract down. It looks like it is 1/2 million aver our estimates. If
there is a chance to get more competitive bids, maybe we should ga out for bids
again.
Ben Lloyd asked if he understood Commissioner Willhoit to say it would cast
1/2 million over what was budgeted given time lapse. He was told the original
estimate was $1,24p,000 and the bid now is $2,049,000. Mr. Lloyd asked, "Why
the drastic increase?" "Has the time lapse caused this increase?"
Commissioner. Walker answered, "Inaccurate initial cost estimate, plus time
lapse and a whole lot of other things."
f1r. Nassif said it would take three weeks to get new bids.
Commissioner Willhoit laid he was not interested in considering $2,000,000 and
would like to pursue the idea of getting bids from contractors who did not bid.
He mentioned things that might 6e changed, such as elevators, and the coordination
of a central intake for Social Services and Health instead of each having their own
reception rooms.
Commissioner Pinney observed this project would take all the money the county
had, leaving nothing for the jail.
The County Manager asked if the county could rebid for one building and Mr.
Nassif replied it could.
Commissioner Walker said renovation of Grady Brown would save money but new
construction might be cheaper in the long run. He said the Board should start
looking into the option of new construction which might save more money, energy
and be more convenient for the community in the long run.
Commissioner Gustaveson asked that this issue be put on the third Tuesday
agenda in October to discuss options available in terms of rebidding.
Commissioner Walker was excused from the rest of the meeting.
Agenda Item 5: Industrial Development Revenue Bond_Authority
The County Attorney introduced Ms. Jane Curtis with the North Carolina Department
of Commerce. Ms. Curtis told the Board that industrial revenue bonds are fairly ne~•~
in North Carolina. The state requires certain legislative findings that assures
industry using this procedure provides enough jobs to have an impact on the
community, pays high than average wages and shows certification of financial
responsibility. Industry cannot abandon another location in North Carolina and use
these bonds to construct new plants. Interest on these bonds is exempt from state
and federal income taxes, thus, lower rates are available to the user.
Ms. Curtis stated there were five steps involved in bonding: 1) initial meeting
with financing authority, 2) approval in principal by Department of Commerce,
3) public notice, 4) review period and 5) final approval by Department of Commerce
after judicial review.
The county is in no way responsible for repayment if the user defaults.
Commissioner Gustaveson asked if it were necessary to have a company waiting
before forming a financing authority..
Ms. Curtis responded that some authorities were formed beforehand while others
were created when needed.
The County Finance Director said there had been same question initially that
companies needing this type of financing were of lower financial quality.
Ms. Curtis responded that the credit worthiness for this type bonding had to
be better than the typical bank or other lending institution normally required.
The County Attorney said the necessary step the Board Should take if interested
would be to direct him to get in touch with bonding counsel with the idea of pre-
paring a resolution of intent.
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Commissioner Gustaveson directed the attorney to secure the resolution of intent
for Board consideration.
Before proceeding further with industrial land development project, Commissioner
lillhoit wanted the industrial area identified, and a land use plan developed.
Fie wanted to convey this information to the Planning Board. Commissioner Willhoit
said he would write a memorandum to the Planning Board.
Agenda ItEm 8: Appointments to EMS Council ,
Commissioner Willhoit moved, seconded by Commissioner Pinney, to appoint Bill
Lessig and Dr. Tommy Griggs to the Retional EM5 Council. Vote: ayes, 3; noes, 0.
Agenda Item 6: Charles Rivers Memorandum
The Board authorized the Chairman to write our senators and congressman requesting
t;ieir support of federal legislation continuing the present Impact Aid Act.
There being no further business, the Board adjourned.
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Norman Gustaveson, Vice Chairman
Mary Lou Bauley, Clerk