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02161981,!Rn =any 529 HARNETT COUNTY BOARD OF COMMISSIONERS MEETING, FEBRUARY 16, 1981 CALL TO ORDER PRAYER RESOLUTION RE: STATEWIDE SCHOOL BOND REFERENDUM The Harnett County Board of Commissioners met in regular session on Monday, February 16, 1981, in the Assembly Room, County Office Building, Lillington, North Carolina, with the following members present: Commissioners M. H. Brock, Bill Shaw, Rudy Collins and Chairman Jesse Plphin presiding. H. D. Carson, Jr., Clerk to the Board, and Edward H. McCormick, County Attorney, were also present. Commissioner Lloyd G. Stewart was absent. Chairman Jesse Alphin called the meeting to order at 7:30 p.m. Don Buie led the evening prayer. Commissioner Brock moved for the adoption of the following resolution in support of a statewide school bond referendum. Commissioner Shaw seconded the motion and the resolution passed with a unanimous vote: Whereas, it appears to the satisfaction of the Harnett County Board of Commissioners that in order to properly conduct and maintain the State Public School System in the County of Harnett, as required by law, it is necessary to expend certain sums, in addition to those presently available, for the erection of needed school buildings, to provide needed equipment for said building, to make renovations to existing school buildings; and to make additions to existing schools to eliminate the use of nonstandard and tem- porary classrooms; And, whereas, it is the opinion of the said Board of Commissioners that for the proper improvement and development of the Harnett County System that Coats, Dunn, and Erwin High School should be consolidated to the end that a more balanced curriculum may be provided, as well as opportunities in voca- tional and industrial training; And, whereas, the said Board of Commissioners has conducted an extensiv investigation and has determined the total school needs in the County at $33,491,000.00; And, whereas, the Harnett County Board of Commissioners is of the opinion that a statewide bond issue for the purpose of financing such con- struction would be in the best interest of the citizens of North Carolina an the County of Harnett; And, whereas, it appears that a special referendum should be called for the purpose of submitting to vote of the entire State of North Carolina the question of issuing bonds in an amount not less than $600,000,000; Now, Therefore, Be it Resolved by the Harnett County Board of Commis- sioners: That it is hereby declared necessary for the proper maintenance, con- duct, and improve of the public school systems of North Carolina, as required by law, that a sum, not less than $600,000,000 be raised and expended to erect necessary school buildings, to equip such newly erected sch000l build- ings and, to the extent there are remaining funds available, to make additions and alterations to the existing school buildings in the State of North Carolina; That the governing authorities of the State of North Carolina be, and they are hereby petitioned to forthwith call an election of the voters of North Carolina to the end that the question of issuing bonds on the State in an amount not less than $600,000,000 be submitted to the voters for their approval or rejection at a special election to be held for that purpose; And, Be It Further Resolved: That the General Assembly enact the appropriate legislation empowering the State of North Carolina to call the said school bond referendum at the earliest possible date. This the 16th day of February, 1981. HARNETT COUNTY BOARD OF COMMISSIONERS Chairman Jesse Alphin 540 BOARD OF EDUCATION LEG- Commissioner .Brock made a motion that-the Harnett County ISLATIVE GOALS FOR 1981 Board of Commissioners support the following Board of Educa- tion Legislative Goals for 1981. Commissioner Collins seconded the motion and the issue carried. A. Active Support to get the General Assembly to authorize the State Bond Issue. This bond issue has been postponed for two years. This delay has already cost Harnett County more than $2,500,000 due to the cost of inflation for the third high school. It will continue to cost more than $1,000,000 per year from Harnett County Tax Dollars for each year of delay due to inflation. B. Active Support in getting the state to pay the full salaries for all state teachers including vocational education.teachers. The State pays the full salary and benefits for all regular state paid teachers except for Vocational Education Teachers. The State provides only 72% of these teachers' salaries and benefits. Harnett County pays the remaining 287. We budgeted $279,459 during the 1980 -81 school term for this purpose. The Governor is proposing a 5% increase for teachers and State employees in the retirement fund. If this comes to pass, the Board of Education will need a sum of $307,405 from county tax funds, for the vocational education salaries for 1981 -82 fiscal year. C. Active Support in getting more state dollars for school energy. The State providing $192,047 for our schools energy allocation and the County is providing $320,000 for this purpose during the 1980 -81 fiscal year. With the cost of oil and electricity going up at a rapid pace we must increase the amount for the 1981 -82 fiscal year. D. Active Support in getting more state dollars for custodial services. The state does no t,allocate sufficient funds for custodial services. Before County funds were budgeted for this labor cost, the toilets were not cleaned properly at the schools and the buildings and grounds were unkept The schools are still understaffed with custodial per - sonnel_and the schools still receive complaints: however, the schools are in much better condition now than ever before. This year the state is providing $279,510 for custodial services and the county is providing $106,057. REVISED LEASE AGREEMENT Don Buie with Central Catalina'Techhicel College' appeared:be- FOR INDUSTRIAL TRAINING fore the Board and presented the following revised lease CENTER agreement with Calvin G. Wellons regarding the Harnett County Industrial Training Center. THIS LEASE, dated as of this 4th day of December, 1980, by and between Calvin 0. Wellons ( "Landlord ") and HARNETT COUNTY INDUSTRIAL TRAINING CENTER ( "Tenant "). W I T'N E S S E T`H: 1. Landlord hereby leases to Tenant, subject to the terms and conditions hereof, the following described property together with all improvements thereon and appurtenances thereunto belonging (the "Premises "); Warehouse located at 1105 North Ashe Avenue, Dunn, North Carolina for an initial term of eighteen (18) months, commencing on January 1, 1981, and ending on the thirty -first (31) day of May, 1982. 2. Beginning with January 1, 1981, Tenant -shall pay to Landlord a monthl rental of Five Hundred Twenty and Eighty -Three Hundreds ($ 520.83), payable in advance on the first day of each month. Beginning March 1, 1981, Tenant'willpay an additional Three Hundred Seventy -Five ($ 375.00). Be- ginning April 1, 1981, through the remainder of the Lease, Tenant agrees pay to the Landlord the sum of Eight Hundred Ninety -Five and Eighty -Three Hundreds ($ 895.83) per month. 3. Tenant agrees that it shall: (a) Pay all charges for water, electricity, gas and other utilities; (b) Except as otherwise provided, keep the interior of the premises in good order and repair and upon termination of this lease sur- render the same in as good condition as when received, excepting depreciation caused by fire, accident, casualty or act of God; s (c) Not use or permit the premises to be used for any unlawful or disorderly purpose; and (d) During the entire term and so long thereafter as Tenant shall occupy the premises, Tenant shall keep in full force and effect at its expense a policy or policies of public liability insurance with respect to the leased premises and the business of Tenant and any Sub - Tenant; licensee or concessionaire, or terms approved in writing by Landlord, in which both Tenant and Landlord shall be adequately covered under reasonable limits of liability not less than $ 100,000.00 for injury or death to to one person; $ 300,000.00 for injury or death of more than one person; $ 100,000.00 with respect to damage to property. Tenant shall furnish Landlord with certificates or other acceptable evidence that such insur- ance in in effect. (e) Tenant will maintain and make all repairs, except structural repairs to the interior of the premises and will idemnify and save harmless said Landlord from and against all mechanics' liens or claims by reason of any such intereior repairs. The Tenant shall be responsible for routine repairs and maintenance of both air conditioning and heating equipment. In the event that any repair necessitates a charge in excess of $ 75.00, the Tenant shall notify the Landlord and the Landlord shall arrange for immediate completion of such repairs. 4. Tenant shall have the right to: (a) At its own expense make such alterations, changes and improvements to the Premises (including installation of signs) as Tenant may deem nec- essary; provided however, that no structural alterations to Premises shall be made without Landlord's consent. 5. Landlord agrees that it shall: (a) Pay when due, all real estate taxes and other charges accessed against the Premises; (b) Maintain the exterior and structural elements of the Premises (including without limitation the roof, foundation, and sidewalks), the parking area and sidewalks (if any) and replace all plate glass (unless such glass was broken due to Tenant's negligence); (c) Landlord shall be responsible for any major repairs required on either air conditioning or heating euqipment. Any service calls providing for expenditure in excess of $ 75.00 shall be deemed a major repair and shall be the responsibility of the Landlord. (d) At its own expense make such improvements or alterations to the premises as shall be necessary in order to comply with any law, regulation or ordinances; and (e) Hold Tenant and its agents harmless from any and all claims and demands resulting from acts or omissions or Landlord or its agents. (f) Install electrical service as specified by the County and Central Caro- lina Institute per attached drawings submitted. 6. Landlord covenants, warrants and agrees: (a) That Landlord has full and complete authority to make this lease and that so long as Tenant is not in default hereunder, Tenant shall have quiet and peaceable possession and enjoyment of the premises for the duration of this lease without hindrance on the part of the Landlord or any other parties and that Landlord shall warrant and defend Tenant in such pos- session against the claim of all parties; (b) That Landlord shall deliver to Tenant physical possession of the premises upon the commencement of the term, free and clear of all tenants and occupants and the rights of either, and of all encumbrances and violations of laws relating to the use and occupany of the premises; and (c) That the premises and all plumbing, heating, ventilating and electrical are in good condition and operating order. 7. Landlord agrees to the following: (a) To install 5/8" fire rated sheetrock from the floor to the ceiling if required by the building inspector. (b) To install a gas space heater. 5 BUDGET AMENDMENT HEALTH DEPARTMENT (c) To install an additional bathroom and finish it with sheetrock and paint. 8. All notices called for hereunder shall be'in writing and shall be deemed to have been given when sent postage prepaid by registered 'or-certified- mail, return receipt requested, to the address stated beside signature, or to such other address as the party to receive such notice may hereafter direct by written. 9. This lease sets forth the entire afreement of the parties regarding the premises, and there are no promises, agreements, conditions or Understand- ings, either oral or implied, other than as set forth herein. No subse- quent amendment or modification of this lease shall be binding unless in writing and signed by both parties. 10. This lease shall be binding upon and enure to the benefit of the parties hereto, their heirs, successors, assigns and legal representatives. WITNESS the following signatures and seals. (Corporate Seal) ATTEST: TENANT HARNETT COUNTY INDUSTRIAL TRAINING CENTER By: M. H. Brock Title: Harnett County Manager Address: P. 0. Box 758 Lillington NC 27546 LANDLORD CALVIN G. WELLONS By: Title: Owner Address: P. 0. Box 739 Dunn, NC 28334 Following ,a discussion of this matter, Commissioner Brock moved the adoption of the foregoing lease agreement. Commissioner Collins seconded the motion and it carried. Henry Thompson, Director of the Harnett County Health appeared before the Board and requested the following amendments: 1. Amendment to A. Increase B. Increase C. Increase D. Increase E. Increase $2,253 F. Increase 2. Amendment:. to A. Decrease B. Increase C. Increase by $200 D. Increase 3. Amendment to the Family Planning Fund as follows: Code 10- 591 -02, Code 10- 591 -11, Code 10- 591 -13, Code 10- 591 -33, Code 10- 591 -79, Code Department. budget Salary & Wages, by $1,496 Telephone & Postage, by $1,000 Utilities, by $1,000 Materials and Supplies, by $1,000 Medical and Surgical Supplies, by 10- 592 -41, Clinican Fees, by $3,120 the. Health.Depattment,General Fund, as follows: Code 10- 590 -02, Salaries & Wages, by $2,275 Code 10- 590 -11, Telephone & Postage, by $1,075 Code 10- 590 -16, Maintenance & Repair- Equipment, Code 10- 590 -57, Miscellaneous Expense, by $1,000 Maternal & Child. Health as follows: BUDGET AMENDMENTS Professional Services Landfill Program HARNETT COUNTY WORK - EDUCATION COUNCIL A. Increase Code 10- 592 -14, Travel & Meetings, by $600 B. Decrease Code 10- 592 -78, Medical & Surgical Supplies, by $600 Commissioner Brock made a motion that the above described codes be amended. Commissioner Shaw seconded the motion and the issue carried. Commissioner Brock made a motion that Code 10- 400 -04, Pro- fessional Services, be increased by $15,000 and that Code 10- 580-17, Landfill Operations & Equipment be increased by $24,280. This money is to be transferred from Special Appro- priations, Code 10- 690 -116, Historical Survey. Commissioner Collins seconded the motion and the issue carried. M. H. Brock, County Manager, informed the Board that at the Harnett County Board of Commissioners meeting of August 18, 1980, the Board agreed to serve as the sponsoring agency for the Harnett County Work- Education Council until the Council could incorporate. This action was taken in order for the Board to proceed with applications for funds and handle the financial transactions on behalf of the Harnett County Work - Education Council. Mr. Brock continued to explain that the County made application for and received $3,500 from the State Department of Administration for the Council. He stated that the Work- Education Council had also incurred the following ex- penses since its operation: A. $91.57 to the Harnett County Schools for Xerox Service B. $31.39 to Robert B. Garrett for a workshop he had attended in Wilmington C. $27.79 to Sam Miriello for a workshop he had attended in Wilmington D. $25 to The Daily Record for a want ad for an administrative em- ployee to work with the Work- Education Council. E. $1,086.85 to the Law Office of Woodall & McCormick for legal services Mr. Brock informed the Board that the Council had been incor- porated and is now in a position to handle its own financial transactions. Commissioner Brock made a motion that the check in the amount of $3,500 and the aforementioned invoices be forwarded to the Harnett County Work - Education Council to be paid. Commissioner Collins seconded the motion and it carried HARNETT COUNTY CITIZENS Walter Smith, Chairman of the Harnett County Citizens for Tax FOR TAX REFORM, INC. Reform, Inc., appeared before the Board and addressed the Commissioners as follows: Dear Mr. Chairperson: The members of HCCTRI thank you for the opportunity to discuss with you and the other members of the Board of County Commissioners, taxes, fund and record management, and other related matters. We, also, thank you for your answers to our county -wide petition signed by more than 9,600 citizens of our county. We take exception to many of your answers and will continue to press for 25% reduction in our present tax rate. As you are aware, HCCTRI has a Finance and Budget Committee which has been actively engaged in re- searching and studying the county's budget, financial records, and manage- ment records. The County Manager and his staff have been cooperative and courteous to our committee and its examination of the county public records, Although our committee has not completed it's task, which will be on- going, tonight we wish to discuss with you some of our questions. First, this year's county budget reflects $211,850.00 budgeted by the county's N. E. Metro Water System. Our organization understands that the Metro Water System was to be self - sustaining financially. Is this amount a subsidy from the county fund to the water system? If this is a subsidy, why not tell the citizens why it is a subsidy and how it is to be repaid. The Board of Commissioners are now in the process of selling water to five communities in Wake County. Further, Mr. Chairperson, you have publicly stated that the Water System would provide water to outlying rural commun- ities of our county. Our organization is opposed to county water being sold outside the county before our residents are provided water. We are opposed to funds received from the sale of water within or outside of the county being placed in the General Funds of the county. Such monies real- ized should be returned to the Metro Water System for use in providing water for all our county citizens who need it. Mr. Chairperson, you have not told the citizens of our rural communities when they can expect county water will be provided for them. Mr. Chair- person, any water sold outside the county could well impact on our county obtaining industry, i.e. water sold to Wake County could be used to divert new industry from our county to Wake County. Further, as you realize many well of our property owners are dying up and water becomes more and more a most precious commodity. Let's take care of our own first, Mr. Chairpersm Second. You have before you appendices Al, A2, and A3 from the financial records of the county. You will note that these records were signed by members of the jury commission on 9/19/79 for "Services rendered jury commission." You will also note that there are no supporting documents explaining the dates of service or the pay schedule of such services. The signed certifications state "I hereby certify the above itemized statement to be a true and accurate account as of this date and that no part of the account has been paid." Mr. Chairperson, we could not locate a fully itemized statement for services rendered from these three persons and therefore assume payment was made without an itemized statement. Such payment totalling $5,840 without supporting documents reflects poor accounting and management, procedures. We request that immediate correc- tive action be taken by the County Manager who authorized these payments. Third. You have before you exhibit 1, Voucher 14907; exhibit 2, voucher 14909; exhibit 3, Voucher 16499; exhibit 4, voucher 16500; and exhibit 5, voucher 15506. The first three exhibits, vouchers 14907, 14909, and 16499- relate to three county commissioners attending the National Association of County Commissioners Annual Meeting held in Las Vegas, Nevada last November 1980. Vouchers 14907 and 14909 indicate that the County Manager and one county commissioner travelled to and from Las Vegas in the county manager's vehicle with their wives. We question whether or not a county owned vehicle can be used for travel of spouces. Such a policy, written or oral, is not good management and could, if an accident occurred involve law suits against the county. Further, there is no apparent authorization by the Board of Commissioners that such a` trip could take place with or without wives. Further, Voucher Number 14907, dated August 1980, states "Hotel Reservations for M. H. Brock and Jesse Alphin - $508.08" and "Gas expenses for M. H. Brock and Lloyd Stewart - $330.73" submitted by Mr. Brock. Voucher Number 14909, dated August 20, 1980, submitted by Mr. Stewart for expenses incurred at the NACO Conference =amounted to $532.93. Voucher Number 16499, dated December 8,11980, submitted by Mr. Alphin for airline tickets amounted to $365.00. Each attendee should, according to good management and account- ing procedures, submitt his own request for reimbursement. Mr. Brock claims funds for Mr. Stewart and Mr. Alphin which these gentlemen should have claimed for themselves. With a "tight budget" we question why it is necessary for the county commissioners, three of them plus two wives, to attend this conference? We question why the two commissioners and their wives took different routed to and from the Conference in a county owned vehicle? In Voucher Number 16500, dated December 8, 1980, supporting documents in- dicate that Mr. Brock attended the NC Association of County Commissioners and received two parking citations in the amount of $2.00 per citation and was reimbursed for these out of county - funds. In Voucher Number 15506, Mr. Brock also received another parking citation by the City of Raleigh for $2.00. Again Mr. Brock submitted a request for reimburse- ment of this citation and received the payment of this citation from county funds. It is the opinion of the Board of Directors of HCCTRI that Mr. Brock's violation of the law is due to his error judgement and that the responsibility for violating the law is solely his responsibility and not the citizens of Harnett County. The County tax payers should not pay for his citations and we request that Mr. Brock make restitution to the county funds for the money he received for payment of the citation plus interest on the principal amount reimbursed by the county. We further request that a written policy be established as soon as possible to pre- clude this occurring again. Four. We have submitted appendix 4, Voucher Number 3893; appendix 5, Voucher Number 7554; and appendix 6, Voucher Number 11832; appendix 7, Voucher Number 16027, regarding the costs of annual audits of the county funds. In 1977, a bid was submitted by a CPA firm to audit county funds with an expense charge not to exceed $2,100. On page 147 of the county commissioners meeting minutes book, the commissioners approved this audi bid not to exceed $2,100. A bill was presented from the audit firm for $2,100 and subsequently approved and paid on October 11, 1977 by the County Manager. In 1978, a bid was submitted to audit county funds with an expense charge not to exceed $2,300 by the audit firm. On page 235 o the county commissioners meeting minutes book, the board approved this audit expenditure charge of $2,300. A bill was presented from the audit, firm for $2,300 and approved by the county manager and subsequently pai on October 17, 1978 in that amount. We noticed that the auditing firm failed to itemize their professional services expenses rendered nor were they requested to do so by the county manager. Now in regard to 1979, apparently two audit bids were submitted according to the county commis- sioners meeting minutes book. A bid not to exceed $2,775 was accepted by the commissioners. An itemized bill was presented from the CPA firm in the amount of $4,455.65. This bill was approved by the county manage and subsequently paid on November 9, 1979 in the amount of $4,455.65. ADJOURNMENT Note this paid amount exceeded the approved authorized bid by $1,680.65 since we could not locate an amendment or a new contract. Again in 1980, a bid for audit was submitted by the audit firm not to exceed $4,200 and this was accepted by the board. On page 422 of the county commissioners meeting minutes book, this bid was awarded in an amount not to exceed $4,200. The accounting firm submitted an itemized bill for this audit in the amount of $6,338.42. The county manager initialed this bill and payment was made on November 12, 1980 in the amount of $6,338.42. In reviewing the contracts for this year at the NC Treasurers Dept in Raleigh, we noticed an amendment or new contract executed for an amount not to exceed $6,400.00. Note this paid amount exceeded the first contract bid by $2,138.42. In our review of the commissioner meeting minutes book, there appeared no authorization for the additional ex- penditures for the years 1978 -1980. If there is no authorization in the county minutes, it is our understanding that no contract exists. We do not understand why the county manager authorized the additional expen- ditures of $3,819.07 above the Board's authorization for expenditures regarding these audits. This indicates a lack of attention to detail and good management practices by the county manager. We reviewed the town of Dunn audit bids and noted the same accounting firm which was employed to audit the county funds submitted a bid to the city of Dunn of $3,525 and submitted services rendered in the amount of $6,093.59. However, also the bill stated the maximum contract of $3,525.00. The city of Dunn paid the $3,525.00 exactly. Because of the noted seeming financial irregularities, the Board of Directors of HCCTRI request an immediate audit and inspection of all county funds, investments, financial documents, etc., by an independent and impartial private audit agency outside the county. The results of this audit should be published in county newspapers and made a matter of public record. Mr. Chairperson, because of tonight's presentation, questions arising from our research, and our lack of confidence in the leadership of the county, we would like to formally state the resolution of the HCCTRI membership, 15 January, 1981, at it's annual meeting be it resolved: THAT THE COMMISSIONERS OF HARNETT COUNTY TENDER THEIR RESIGNATIONS IM- MEDIATELY BECAUSE OF THEIR LACK OF INTEREST IN TAX REDUCTION AND FOR THE GOOD OF THE POPULATION OF THIS COUNTY, AND FOR THE CAUSE OF BETTER GOVERNMENT FOR ALL. Our Organization has other matters concerning financial management and records of the county which will bring before the Board of County Commissioners at the evening meeting in March. As noted at the on -set of this presentation, our committee will continue its research and study of all aspects of the county funds. We would be most pleased if you would elaborate upon questions to all interested tax paying citizens tonight at this public meeting. This presentation tonight was authorized by the Board of Directors of HCCTRI. There being no further business, the Harnett County Board of Commissioners meeting of February 16, 1981, duly adjourned at 9:40 p.m. Clerk